All Forum Posts by: Tim Pagano

As a NJ resident for most of my life there are a number of advantages to living here.  With the military and corporate jobs I've gotten around a lot so here's my take on NJ. 

Property taxes are high in NJ that's why everyone moves out of state.  It's the cost of living next to some of the most exciting cities on the planet NYC & Philly.   All things are relative though, you can charge higher rents and if you're not looking in some of the more down neighborhoods you can find some interesting deals.  

There are over 100 municipalities in NJ that have some sort of rent control legislation so before you invest you should look to the city hall before you pull the trigger on a purchase.   Good luck 

For those of you who are successful wholesalers what are the one or two points that you feel most effectively persuade a seller to work with you?  Rephrasing I guess what do you say or do in your pitch that seems to turn a potential seller into a seller.  I realize all the things like persistence and followup etc., but during the discussion what happens?   I also know that there isn't a magic bullet, but I'm just trying to learn from war stories so to speak.  Thanks

Hi I'm working on a project and I need to have a physical survey conducted where they actually mark and map the property.  Does anyone have a good surveyor they can recommend?  The property is located in Essex County in the Montclair area.  

@Brian Naumann  have you ever watched the Shea Show on Youtube?   Though you're in the middle of the storm you might find some insights.  He's a  PM for non resident landlords in Detroit.  

Here's a link:

https://www.youtube.com/user/proshea01

Wow - Phil are you in Brooklyn NY or Brooklyn Nova Scotia?  If you're from Nova Scotia (I've visited many times) there is nothing in that province like where you're looking to invest.   Zillow can be as much as $100k off in its estimates.  Look at this property in Essex county: http://www.zillow.com/homedetails/12-Claremont-Pl-...

If you walk this place you will find out that there's at least $150k in repairs.  Zillow has nothing more than an algorithm that can significantly mislead at times.   You should build a relationship with some of the local realtors that deal with investors to get your comps.  

There's a reason these places are so cheap in Newark and Irvington.  Seasoned investors have a whole myriad of troubles in these towns.  Good Luck. 

If the tenant is a less than desirable, have you discussed cash for keys?  You need to move forward ask them what they want to just leave.  It might be cheaper than eviction.  Also fire the PM.  

Phil as an Essex County resident for over 25 years let me share with you what I know about this place.  Some of the wealthiest people in the nation and some of the poorest reside here.  It's so culturally diverse and rich community.  There are deals but don't be fooled by "low" prices.  You and I both know that NYC is flooded with foreign capital driving the RE prices through the roof, and consequently the surrounding communities are seeing an explosion in housing prices as rents force people from their neighborhoods.   

There are thousands of investors here in Essex County looking for deals right now. They understand the market and are tough competitors. You don't mention what kind of property you're looking for or what your investment goals are. You can be a slum lord or you can flip multi-million dollar houses here in Essex County. I know one area where you can do both within a 1 mile radius of each other.  Check out the Bamberger Mansion it's on the market. My point is you must define your goals much better before you anyone can respond to your post for information. 

I live 30 minutes by train from Madison Square Garden.  An investor purchased a house just down the block 2 years ago for the high $200's and sold it for just over $700k.  (Oh and BTW I'm still mad I missed that deal.)  My neighbors were astounded by this, but I understood why.  It took the investor nearly 6 months to get the town to approve his changes.  He turned a 2 bedroom house with no parking into a 3 bedroom house with off street parking.  It took nearly a year to work through the bureaucracy and finish the project and he sold it to a person from Brooklyn.  He was rewarded for his tenacity and creativity. This example is the most freakish I've seen so far.  FYI I bought a similar house down the block for $189.  

You can find deals in Essex County but understand that your sellers can see you coming from a long way off.  We know what's happening in NYC and we are prepared.  With that said pick your neighborhoods carefully and understand that just because it's cheaper than Brooklyn it doesn't mean it's a good deal.  Another word of caution, good contractors are really hard to find and your NYC contractor probably won't want to travel to NJ.  Also town building inspectors here are a source of revenue, and if you get caught doing work without permits it will cost you.  In Montclair NJ I've heard of penalties running into the 10's of thousands of dollars.  The contractors I work with are very cautious about being penalized. The good ones won't do work without permits. I'm not saying off permit jobs aren't being done.  I'm just saying if you get caught you're going pay fines and be delayed.  

Here's my last bit.  Doing one gut renovation is an achievement.  I know I've done many and there is a great satisfaction in it.  But RE investing is more about knowing and understanding a market and being able to discern the metrics of a deal.  Investors like safe deals with high returns, if you can bring those to the table the money will flow.   A good deal is a good deal in any market even though the price points could seriously differ.  You can succeed in Brooklyn just as easily as anywhere else.  I welcome you to Essex County, but you might want to dig into the resources here at BP, learn all you can, and clearly define your goals before you start investing in NJ.  PM me if you have Q's.

In our area smaller older houses are the norm and they always lack storage space , so we maximize storage space with the tallest cabinet we can install.  I know plenty of people in NYC who use the oven to store clothes.  

It's rare that I install a shorter upper cabinet. Just remember to keep enough space between the counter and the cabinet so a cook can work comfortably. 

I've never met a home buyer say that they had too much storage space, but I have had buyers walk from a home because they cannot fit their stuff.   Just my 2 cents. 

Just a thought.  If you want to send a shot across this service person's bow so to speak you may want to contact his commander when he returns from deployment.  A simple FYI may go a long way in getting this person to be far more judicious when it comes to friends in the apartment.  Military folks are not allowed to take military weapons off the post/base at any time and these weapons are strictly controlled.  Also military commanders are very keen to ensure the safety and security of the people in their command.  

A simple non-confrontational conversation with a superior will definitely get this person's attention.  I would keep it a community safety and command awareness type of conversation.  As a former military officer I would have appreciated this type of call.  It allows all kinds of professional development opportunities.  

Thanks for the reply.  I've run the comps and looked through the home.  I'm a sucker for old homes with charm.  This one has original details and is steps from a huge park. Old homes here are the norm but, it's kind of rare to see one that's untouched.  Many folks would pay a premium in this market for some of the original detail kind of stuff. 

Unfortunately, the bank has had if for years and they've let it deteriorate to the point where it doesn't make sense to even make and offer.  I can tell a number of folks have looked at this place and passed. The bank may have repaired the roof but that was after the major damage was done.  Thieves have started to steal the stained glass etc.  The bank wants $269 and I estimate at least a $100k rehab budget it still will only bring maybe $350k.  Once we open the walls ( many have already been opened partially)  there will be even more surprises and I don't want expose myself to that risk and get stuck.  It's a shame to see a classic piece of architecture just rot.    

Thanks for responding.  Your insights are helpful.