All Forum Posts by: Stephen Chatto

 Amanda, It varies a little from place to place within NJ.   So local municipalities come up with some crazy stuff.   Attorney fees depend on weather you use an attorney.   North Jersey Typically does, South not so much.  Are you a resident of NJ?  If not there is a 2% Withholding at closing for taxes.   There is a transfer tax calculator...   You can click here: https://www.njrealtor.com/consumers/realty-transfer-fee-calculator/ The title company has a closing fee which is normally split between buyer and seller.   Maybe about $500.   And what does it cost to deal with your local municipality to sell?  There is usually an inspection fee for a sale inspection.   Also the inspectors sometimes make off the wall request that you need to address in order to get clear Certificate of Occupancy for your end buyer.    

I landlord in Mercer County NJ.   The Typical turn around is about 2 Months on the longer end.   The Legal fees are normally around $300-$500 bucks.   Closer to the $500 if they file hardship hearings.  In Mercer County the Court date is usually about 2-3 Weeks after you file.  After the court date.  It's typically another 2-3 Weeks to schedule the lock out.  Hardship Hearing will push it out another 2-3 Weeks.  6-9 Weeks Total.    This assumes of course that you have all your ducks in a row and are in action to move the process forward.  

 Shoot me an email, and I will send you what we have been using.  We personally use a title company, not attorneys.  Thanks.

@Mike Bitette - I have done a few.   They are a bit of a pain, but the financing in place can make deals work.  

#1)  I purchase them in a land trust with the owners name in it.  This makes it a little easier to prevent the bank from noticing thus enforcing the due on sale clause.  

#2)  Get Authorization.   To talk to the bank.   To Online Banking.  And all mail goes to you.

#3)  Watch Escrow.  If there is a balance due it get's mailed to the OLD OWNER.   In Their Name.   I have had them cash it.   When I noticed a few months later... it is lost money.  

#4)  Loans get sold.  If the loan gets sold, and there is a new service company, you may need to go back to the owner and get a new authorization to talk to the bank.  

Good Luck, 

Stephen Chatto

Katharine, 

Be ready for Red Tape in Ewing NJ.   Wow.   What a difficult city to work in.   Don't get me wrong, I have some great properties in Ewing...  But dealing with the Inspections etc can require some patience and persistence.   

Any time you purchase a house.   EVEN VACANT you need get a Transfer Inspection Performed by the Township.

There is a limited amount of time to make all the repairs from the inspection.  If too much time passes you need to pay for ANOTHER Transfer Inspection.

They will not come out for a Transfer Inspection if there are open permits.   Sometime distressed sellers can not close the permits.

Lastly, You need to renew your rental paperwork yearly, which is a 2 page application, which includes the tenant names.  Get re-inspected yearly.  And get a new CO (Certificate of Occupancy) Inspection with each tenant turnover.   So plan on extended vacancies not for lack of tenant, but the time it takes to get issued a New CO.  

Don't get me wrong.   Ewing is a good place for rentals.   Just be prepared for Red Tape.  

Good Luck, 

Stephen Chatto

I will be at this event tomorrow night!  Looking forward to hearing @Matt Faircloth talk about raising private money.  Who else will be coming.   The event is in Trenton NJ!

I wonder if @Matt McDonald will be there?   

 David - Slatehouse is a new property manager in the City.   Talk to Matt about them.  

It is about the same.   Prices have been going up.   Areas and Rents have been about the same.  

I used to let my tenants deposit directly to our checking account.  I thought it was a good idea until I was going through an eviction.   

Long story short.   The constable showed up to remove the tenant.  She showed her deposit slip, I showed the check I sent back the next day.  The Constable locked her out.   

Don't know what the "LAW" is, but the constable used common sense.  

We now use appfolio, and we can with one click stop all online payments etc.  

On another note.   We had another tenant pay online the night before court.   Online payments can bounce for NSF 3-4 days later.   So We shut off online payments a week before the court date now.  

Good Luck