All Forum Posts by: Thomas Visaggio

Has anyone here had the opportunity to invest in tax liens in NJ's urban markets. I am interest in hearing about others' experiences and network with investors already in this space.

More specifically:

What percentage of your liens were you able to foreclose on vs were paid back?

What is the average interest rate you had to accept when buying a lien attached to a reasonable property (not land or super invaluable dilapidated building in a terrible area)?

Do you underwrite the liens based on the residual land value of the property which the lien is attached to? I am aware that anything can happen to the property from the time you purchase it until the time you may eventually foreclose (fire, town demolition).

I look forward to hearing your thoughts/experiences!

 Thanks Beth - sounds easy enough. I will give it a shot this week and see how it unfolds.

 THank you for the insight. 

@Ray Reed

The numbers were arbitrary d I was just trying to lay out an example for you. For a 3 bed am actually looking for $1,500.

The reason I am exploring section 8 is because it is on the northern part of the Weequahic section bordering route 78. I’ve been told by other investors it is difficult to find good market rate paying tenants in this area and section 8 would be a better option. What do you think?

@Allan Szlafrok agreed. Thanks for the help - will update in a couple weeks or so with the result

@Ray Reed I will need to measure out the minimum size needed for a closet and see if they can be configured in one of the corners of the room. That would probably be the best bet though I agree

@Allan Szlafrok good idea I will look into that. Am I able to negotiate a higher cash portion with tenant?

For example - if market rent is $1,000 and section 8 is paying $800 then I would be allowed to try and obtain $300 cash from tenant which would total $1,100 ($100 higher than market for 2 bed)?

@Ray Reed thank you ray

@Eric C. Will do Eric thank you for the advice

I am looking to rent out an apartment in Newark, NJ to a section 8 tenant (my first time). Does anyone know exactly how the fair market rent value is determined? 

Is it done independently by an appraiser - or can I supply them comps directly to support the rent I am requesting?

Lastly - it is a 3 bedroom apartment (although 1 of the bedrooms is smaller and currently does not have a closet). Would this be seen as a 2 bedroom apartment which would lead to a fair market rent value being based off other 2 bedroom apartments in the area although it is being utilized as a 3 bedroom apt?

I look forward to hearing your thoughts!