Home Buying in Jersey City>Question Details

arundhati27, Home Buyer in Jersey City, NJ

Hi, I am looking for investment opportunities in Jersey city. Not sure if I should go for Short Sales, Foreclosures or normal sales.

Asked by arundhati27, Jersey City, NJ Wed May 1, 2013

Hi, I am looking for investment opportunities in Jersey city. Not sure if I should go for Short Sales, Foreclosures or normal sales. From a buyer's perspective its always good to get a deal. My main aim is to get a good return on rent after deducting expenses. Please suggest.

Help the community by answering this question:

Answers

11
I do have my own Excel spread sheet. It is not a difficult calculation to do. There is a software package for this as well if you like which is a little more sophisticated and has some more bells and whistles, but for a basis one off investment I think it would be an overkill.

There are really two basic ways you can make an investment work, one is through appreciation, and another through revenue. Either is independent of the other, but in both cases the profit is mostly made in the purchase.

If you buy a property and it appreciates over time, and you do not use it as your primary residence, you can collect the profit by re-selling it down the line. The consideration for this type of profit would be location of best areas projected to appreciate best.

If you buy a property and then rent it out, creating a positive cashflow, you are profiting via revenue model. In this situation the appreciation is not a major calculation, but rather the rental value, or best areas for rental where the demand is high, and projected to remain high.

Best investment is of course where both of these strategies converge.

I'd be happy to meet with you regarding a strategy for your investment, if you like.

Sincerely,

Amos Elroy
CDPE (Certified Distressed Property Expert)
SFR (Short-Sale Specialist Certified)
CHBA (Certified Home Buyer Adviser from NAEA)
CSBA (Certified Home Seller Adviser from NAEA)
NAEA Member (National Association of Expert Advisers)

Residential Real Estate Expert Adviser

Lic. Realtor Associate
EXIT On The Hudson Realty
(888) 462-6573 / (888) HOB-NJRE
FAX (888) 462-6573
Office 201-437-0411
http://www.HobNJRE.com
1 vote Thank Flag Link Mon May 13, 2013
Hi Arundhati27,

Regarding your question about which way to go....the Short Sale, Foreclosure or Normal Sales route truly depends on what you are able to do for yourself. Let me explain, since the market is on an uptrend the great deals of the past are just not there. The Lenders are requiring a heftier price tag on these properties making them, in most cases, not worth it for what you can purchase in a straight Sale in a fraction of the time.

Rents will vary based on a number of factors including, but not limited to, location and type of property. I would be happy to review your options and as I am very analytical I can help you with your investment strategies.

Give me a call at 973.868.4034 or e-mail me at EmilVeltre@aol.com to set up some time to determine next best steps.

Have a GREAT day!

Best regards,
Emil

Emil Veltre, R.Ph, MS, CDPE
Realtor Associate
Liberty Realty
mobile: 973.868.4034
e-mail: EmilVelte@aol.com
Website: http://www.EmilVeltre.com
1 vote Thank Flag Link Mon May 13, 2013
I think what you need to do is get an idea of what is available, no matter how it is listed. I think the days for huge savings on short sales or foreclosures are gone. The market has stabilized and prices are fairly stable across the board. Anyway, why don't you give me a call and we can begin with just seeing what is our there and what your goals are.
'
1 vote Thank Flag Link Wed May 1, 2013
And FYI, some of the agents responses below are really good.

In particular, at least 3 people have stated:

THE GOOD DEALS OF THE PAST 1-2 YEARS ARE LONG GONE.

That should be your cue to put your $400K elsewhere.
0 votes Thank Flag Link Fri May 24, 2013
If you are asking this type of a question on an internet forum, you don't have what it takes to be an investor. Yes, you can get started somewhere. Asking a bunch of real estate agents for such advice is not a good idea.

You might want to find a mentor or an associate who does not have a conflict of interest. Real estate agents make a commission on your purchase, and the higher your purcahse price the better it is for you. That's not to say that every real estate agent is out to screw you, but chances are stacked against you.

Also, if you can not independently analyze this on your own, you are likely not going to make a good deal.

And lastly, let's say there are 50 properties out there, and 3-5 of them have a chance of becoming good investments. 10 people like you are looking for those 3-5, and 7 of them are really reall good at this.

Do you think you stand a chance of beating the 7 people who have done this before, you squeeze EVERY possible penny to make that razor thin profit? I don't think so.
0 votes Thank Flag Link Fri May 24, 2013
Thanks guys for responding to my query. I have very simple aim to make money out of the existing money that I have :)...
And I am a firm believer of doing simple maths before making any investments.
So here is the things:
If I intend to invest lets say: $400K for a house whats the return I can expect? Do you know of a rental income calculator which can give me the net return deducting insurance, mortgage, taxes etc.
0 votes Thank Flag Link Sat May 4, 2013
As some have mentioned each type of distressed sale has its own disadvantage.

In fact each short sale is different. I have worked with short sales for quite a number of investors, and the main rule is that there is no rule.

There are also various streamlined processes, like HAFA for example. Some banks are flexible and streamlined in their short sale processing, others are difficult and pig-headed. In some cases the price is set a head of time and "pre-approved" by the bank, in which case the pre[approval process is faster.

You just really need to know the specifics of each particular sale.

Sincerely,

Amos Elroy
CDPE (Certified Distressed Property Expert),
SFR (Short-Sale Specialist Certified)
CHBA (Certified Home Buyer Adviser)
NAEA Member (National Association of Expert Advisers)

Residential Real Estate Investment Consultant
Lic. Realtor Associate
EXIT On The Hudson Realty
(888) 462-6573 / (888) HOB-NJRE
FAX (888) 462-6573
Office 201-437-0411
http://www.HobNJRE.com
0 votes Thank Flag Link Thu May 2, 2013
It depeneds on your time frame for buying and how much you are willing to spend on possible repairs. Short sales will take longer to close, many bank owned foreclosures need repairs and normal sales are usually priced at retail value. What are your strengths as a buyer? Is it the amount of time you can wait? Or are you able to get repairs done at low cost and fast? Or would you rather pay for something that is ready now and move on to next thing?

I've worked with foreclosure properties since 2005. I can give a more accurate assessment of your possibilities after a short conversation.

I'm sure I can help,

You can reach me at:

Elvin
551-208-0166
elvinlopez@kw.com
0 votes Thank Flag Link Wed May 1, 2013
It all depends on whether you like getting more gray hairs...Short sales...they are guaranteed. Foreclosures, not so bad...just be prepared to pay CASH. "normal sales" that's relative. Banks are tough on lending...have your pre-approval, go in strong...this market demands power and decisiveness...go in weak; you lose.
8 years in...full-time. I don't play games. Call me if you wish for me to help...
0 votes Thank Flag Link Wed May 1, 2013
Why not just buy one that is already making money? Find something with a good cap rate and you can narrow your search down easily.
0 votes Thank Flag Link Wed May 1, 2013
Hello -

I can help you with your investment search. I also have investment properties as far as collecting rents. Give me a call 917.209.9391
0 votes Thank Flag Link Wed May 1, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer