From NJ-Can't Relate to Examples - Posted by Gleng

Posted by JohnBoy on February 25, 2002 at 18:45:39:

From NJ-Can’t Relate to Examples - Posted by Gleng

Posted by Gleng on February 25, 2002 at 17:28:04:

Im from Northern New Jersey where you can’t but a shack or a dog house for under $100K. All the examples in the Carlton Sheets course use numbers like 60k for this house and 70K for that deal and people pay 700 dollars rent. No money down or little money down isn’t a big deal when the houses are under 100K. But here in NJ the numbers are more like 250K on the low end to over 400K at the medium range. So even a 20% down payment adds up if doing multiple deals. Can the principles that work on the 70K houses work on the 300K houses? I have been looking at homes at 300k using the 1.3% rental equation and I would need to get almost 4K/month in rental! Not gonna happen. Any thoughts or comments from East coast students or investors? Anyone in NJ using CS course? Thank you.

Re: From NJ-Can’t Relate to Examples - Posted by Robert Bailey

Posted by Robert Bailey on February 28, 2002 at 12:00:30:

Yeah. The prices ARE different. It make analysis a challenging and requires greater imagination. Call me a positive thinker, but I believe there are deals out there that could work. A better strategy for these markets might be in distressed property: owners who want OUT! Foreclosures. Stalled development.

I have been thinking that a few deals around my area(Brooklyn) might be $0 down and a partial ownership for option in return for management/getting tenants, etc. Mr. Sheets talks a lot about this–you recall hearing him say “these are not in stone.” It requires creative thinking. The WORK might be in an
area we hadn’t previously thought about prior to THIS situation on THIS property.

In NYC and Brooklyn, the rules changed on Sept 11th and are not rewritten yet. Some people are leaving, some are coming back to the City. People change, things change.

For goodness sake, don’t stay discouraged. And don’t quit.

Robert Bailey