As we discussed in a previous entry, a HUD home may or may not be the right fit for your NJ real estate investment. HUD gives priority to owner-occupant purchasers. However, it there is no acceptable bid during the priority period, unsold properties are then available to all buyers, including investors. Your NJ Realtor will have the necessary details.
There are a couple of ways to find out what HUD homes are available in your area. You can visit the HUD website online, or a better way is to find a participating NJ real estate agent. He or she will know what is for sale under the HUD guidelines. Moreover, your NJ real estate agent must submit your bid for you. HUD generally does not accept bids directly from buyers. (more…)
Remember this: You make your profit when you buy a NJ investment property, not when you sell it. Pay to much and you will NEVER recoup as much as you could have had you driven a better bargain!
The NJ rental real estate market is generally tougher on investors who overpay than on homeowners who do the same thing. While a home is an emotional purchase, many times leading to the “I must have it!” offers and bidding wars, most landlords look strictly at the numbers to see if their investment will pay off. If you pay too much for a rental NJ investment property, you should not count on a greater fool to come along later to bail you out of the purchase. (more…)
The less credit card and other consumer debt you have, the better your credit score will be, as will your prospects for getting a decent loan. Lenders usually require bigger down payments then in previous years due to the mortgage mess. Other factors will be the interest rates and generally stronger finances of the person purchasing the NJ investment Real Estate. Interest rates will be higher for those purchasing investments properties because studies show there is a higher likliehood defaults, compared to those covering real estate used as a primary residence. (more…)
Experienced NJ landlords find their investment properties in a variety of ways. Some look for foreclosures, whereby making friends with clerks at the city hall or bank employees who know which properties are about to be sold. Some run advertisements in local newspapers. Others work with a NJ Realtor who keeps their eyes wide open for possible purchases.
Several NJ landlords recommend joining a local landlord or property owner’s association to make contacts. Still, others take an additional step and join local chambers of commerce and clubs such as Kiwanis, Moose, and Elks Lodge. (more…)
The idea of owning rental real estate in NJ seems to be gaining popularity as investors tire of the swoops and swoons of the stock market. Not everyone has what it takes to be a landlord, but those who do may find that rentals are a good way to build long term wealth.
Once you have made the decision to buy NJ rental property, your real work begins. Finding a profitable rental property usually takes time, connections, plenty of research. A licensed NJ Realtor can be a valuable asset when transitioning into your new livelihood. This series of posts will help you along the way.
Know your time table. As with any other investment, you should have a good idea of how long you plan to own a rental property before you buy it. The long you plan to own the rental property, the more you’ll need to invest into maintenance, repairs, and improvements. (more…)
Investment opportunities in real estate abound. As an investment vehicle, NJ real estate allows you to flexibility to control the involvement and time invested. From passive investments in Real Estate Investment Trusts, to buying NJ homes and positioning them for rent, there are may ways to profit from real estate investment. As your agent, I know all the ways, as well as the advantages and drawbacks of each. Let me explain further…
1. Real Estate Stocks and Mortgage Instruments: The passive investor would most likely want to place investment funds into the stock market in the form of equities of major national home builders. On the other hand, they might want to invest in Real Estate Investment Trusts (REIT). This is a fund set up and managed to invest in stocks, bonds and mortgage investments in the real estate area. Discounted notes are another investment strategy. Sellers many times accept a mortgage from a buyer, and after payments have been made for a while, they want to convert to cash. They sell the note to an investor at a discount and the investor then gets payments from the buyer. (more…)
Buyers use NJ Licensed Realtors to find their second home. In searching for a second home, 53% of vacation home buyers and 52% of investment buyers purchased through a licensed Realtor. However only 15% of both vacation buyers and investment buyers purchased directly from an owner they knew in advance.
A 2006 study profiling second home buyers shows the typical NJ buyer searched seven weeks to find their second home and looked at six properties. Most vacation home owners want to use their property exclusively, and 75% of them report that they never rent their properties. A similair finding was reported among vacation home buyers in 2007. (more…)
Given the demographic demand, the second home market is expected to remain healthy for many years to come. The size of the second home market is significant. Analysis of the US Census Bureau data shows there are 7.5 million vacation homes and 39 million investment units in the United States, compared to 75.2 million owners-occupied homes.
The long term demand for second homes looks favorable because there are large numbers of people in their prime years for buying a second home. Currently, 38.7 million people in the United States are ages 50-59, 45.3 million people are between 40 and 49, and another 40.9 million are 30-39. These younger segments will drive the second home market over the next decade.
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As we discussed in a previous entry, a HUD home may or may not be the right fit for your NJ real estate investment. HUD gives priority to owner-occupant purchasers. However, it there is no acceptable bid during the priority period, unsold properties are then available to all buyers, including investors. Your NJ Realtor will have the necessary details.
Given the demographic demand, the 
