Flipping USA / NJ edition / August 2016

FREE TAKE ONE

AUG 2016

HOW WE MADE OVER

$60,000

ON OUR FIRST NJ FLIP

Where to Find

HARD MONEY Flip Homes without Flipping Out Ü

Look inside for great properties!

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“Premier Direct Private Lenders�

When others say no, we say yes!

We are Investors, Lending to Investors, understanding exactly what they want.

For over 15 years, Peak Private Lending has been lending to fellow real estate investors. As a division of Peak Properties, LLC, a professional real estate investment company that specializes in buying and selling distressed and bank owned properties, we bring over 25 years of successful experience in the real estate and construction industry, and understand exactly what it takes to bring your flip to market.

Easy! Fast! Simple!

YES! Up to 100% Funding Program NO Recent Bank Statements NO Personal Guaranty NO Recent Federal Tax Returns NO Financial Statements NO Credit Report

Our supporting services to our borrowers are unparalleled!

NO Recent Pay Stubs NO Monthly Payments

Complete the Loan Application at PeakPrivateLending.com to submit your application for review.

Glen Gallucci President & CEO

Offices in Teaneck and East Brunswick PeakPrivateLending.com

201-836-7300 201-836-7370/fax support@peakpropertiesllc.com

a division of Peak Properties LLC

Real estate Development | acquisitions anD Renovations tuRn-Key investment stRategies | pRivate shoRt teRm lenDing pRogRams foR Real estate investoRs Flipping USA | New Jersey edition

August 2016

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For 25 years, Freedom Mortgage Corporation has been earning a name for itself as a fullservice lender with strong customer service and a unique streamlined process. Freedom Mortgage has proudly helped customers purchase their dream home and refinance their existing mortgages since 1990. We maintain an A+ rating with the Better Business Bureau.

John Palumbo NMLS #169369 Branch Manager

231 Union Blvd, Totowa, NJ 07512 Office: 973-339-3453 | Cell: 973-699-3797 | Fax: 201-285-6743 4

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InThisIssue Flipping USA is your local guide to a real estate property investment

8 6 STEPS TO GET STARTED INVESTING IN SHORT TERM REAL ESTATE

by Glen Gallucci

15 LOW BALL OFFERS Am I Stealing The House?

by Glen Gallucci

18 THE TOP 10 MISTAKES MADE BY FIRST TIME HOME BUYERS

by Alexis

We help you find the perfect flip

Tarrazi

22 OUR FIRST NJ FLIP ByJoe Dunne

30 FLIPPING HOMES WITHOUT FLIPPING OUT 32 HOME FLIPPING REACHES 2-YEAR HIGH A RealtyTrac Report

34 ZOMBIE FORECLOSURE A RealtyTrac Report

advertising & submissions

HOW TO ADVERTISE To advertise with Flipping USA magazine or request a media kit, please contact us at 732-439-0334 or email joedunne@FlippingUSA. com. Deadline for ads: the 5th of the month.

EDITORIAL SUBMISSIONS Email kathy@FliuppingUSA.com. Deadlines for editorial: 5th of the month.

Flipping USA | New Jersey edition

August 2016

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the publisher’s desk

Welcome to Flipping USA. contact us Publisher Joe Dunne 908-405-1515 joedunne@FlippingUSA.com

Managing Editor/ Design & Production Kathy Tarbell kathy@FlippingUSA.com

Assistant Editor Lana Dykes

Social Media Lana Dykes

FlippingUSA.com © 2016 by FlippingUSA. All rights reserved. Although some parts of this publication may be reproduced and reprinted, we require that prior permission be obtained in writing.

Flipping USA/New Jersey edition is a free publication distributed locally and is supported by our advertisers. It is available in selected locations throughout Central New Jersey.

Please call to find a location near you or if you would like copies placed at your business.

We do not necessarily endorse the views expressed in the articles and advertisements, nor are we responsible for the products and services advertised. We welcome your ideas, articles and feedback.

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W

elcome to our first edition of Flipping USA. Our focus, now and forever, will be content. Our primary goal is to bring you our reader cutting edge information, educational articles and personal stories (see our cover story on page 22) centered primarily around the exciting world of “flipping.”

One components of success in almost any endeavor is timing, and we are confident our timing is spot on. Contributing factors such as consumer awareness, the personal effects the housing bubble imprinted on so many of us plus the multitude of cable and television shows, outlining the industry guided our decision to bring you Flipping USA, a free monthly magazine.

Flipping USA will offer our readers an opportunity to view, visit and access properties not yet offered to the public until now. Some property offerings are ready to invest in “as is.” Many properties are waiting for you, if you’re ready to take on an adventure and engage in the activity of flipping. Whether you want a quick turn, slow turn or perhaps a rental or commercial property, each of those investments will show up in our pages. Every month will bring a new possibility, so we urge you to pick us up often.

At the heart of our publication will be the local resources we have gathered, reliable resources to guide you through the benefits, process, pitfalls, and risks associated with flipping houses, along with data on the market. Our advertisers, local in most cases, form part of the New Jersey community of professionals. Each has come to us with proven track records of purchasing properties with discipline, and strict guidelines to assure limited risk.

Our advertisers include banks, mortgage companies, and private lenders, who understand the unique needs of the property investment process. In our pages, you will also find general contractors for all aspects of the flip who we know and have worked with or vetted. Our goal at Flipping USA is to act and attract those with integrity.

From our content will come the little ins and outs of the business of flipping. Topics will be wide-ranging. For example: “Taxes: What Can I Write-Off and How Will It Affect My Return?”

“Your 401K: How to Use It and Still Protect Yourself ” “Which Upgrades Yield the Greatest Return” This is small sample of our vision for the magazine: information, education, choices, resources, integrity.

One more note we believe is very important the subject of risk.

Many people lose money in the flipping world for a variety of reasons. With any investment comes risk. And as all risk-takers know, the best way to minimize risk is to educate yourself, surround yourself with proven winners, and tap into a team of experts who handle their business with integrity. This is why we bring you Flipping USA, to offer you the knowledge we have gathered to make this valuable proposition work for you, and to celebrate with you as you enter our world of flipping real estate.

All the best,

We believe in people.

Everyone has a story to write and an impact to make.

Let us hear your idea... productions@joshwa.com Chris: 908.397.3423 | Joe: 609.548.957 Flipping USA | New Jersey edition

August 2016

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to Get Started Investing in Short Term Real Estate

By Glen Gallucci

M

any beginning investors get stumped when trying to figure out exactly the best way to get started investing in short term real estate. They see people on TV, the internet and direct mail buying and selling houses for profit. I have put together a simple guideline to help these beginners.

My favorite way of telling people how to get started in this business is to wholesale or “flip” their properties for a quick cash payout. This way they can also track the process of making larger profits by watching the more experienced investor.

Remember wholesaling is nothing more than getting a property under contract with the seller of a property and then have another contract with your buyer (another investor) selling it for a higher price than you negotiated. Or as I prefer, just “assign” the contract to your buyer who will close on the property in your place. It’s a great tool and an easy process!

There is no risk, you don’t need any license and you can do it with little or no money down! I would like to show how easy this process is to complete in 6 SIMPLE STEPS!

Find a Property Find a suitable property that has equity.

These type properties are usually found 8

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through finding foreclosures. You can subscribe to many services to identify foreclosures which are easily found on the internet.

Companies such as American Foreclosures. com, Foreclosure World.com, Foreclosures. com or Realtytrac.com can give you tons of foreclosures in your area.

You can also advertise in newspapers that you buy houses, foreclosures, etc. Finding vacant houses with out of state owners is also another great way to pick up bargain properties. Just find the owner and send them a letter that you wish to buy their house. One simple way you can find the owners of the house is by going down to the tax assessor’s office in the town the property is located and see who and where the tax bill is being sent. Another way is to tell everyone you know that you buy distressed houses.

Many times great deals are found through your own networking circle. And don’t worry as you don’t have to actually buy the house. Step number 6 will take care of this for you!

Make Your Offer to the Seller Here you will make an offer and have them sign a purchase contract. I suggest you make your offer where there is enough profit for both you and your investor buyer. If not, make a lower offer or find another property.

Your contract should always have a con-

tingency clause that will let you cancel the contract. I like the “attorney review” clause which basically says that the contact is subject to your attorney’s approval. Or another one is the contract is subject to your sole satisfaction on the home inspection report.

This gives you time to find your new investor/buyer and also to check out the house.

If your contract does not have this clause (which many already do have it) you can write it in and you and the seller both initial the addition. Also if the contract says you cannot assign the contract, I simply cross it out and replace it with the phrase that this contract IS ASSIGNABLE and both me and the seller initial the change.

This is the language that I use. I am not an attorney nor do I give legal advice so you should ask the advice of your professional real estate attorney in your area what verbiage he or she prefers you use.

Start Title Work After signing the contract, contact your settlement attorney or title company to start the title work on the property to insure what the seller has told you concerning any liens on the property or personal judgments is actually true. Only spend these funds if you feel that getting the property at the negotiated price will give you and your investor a good profit.

Flipping USA | New Jersey edition

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You can also pass this task along to your investor (new buyer) to do if all the other numbers make sense. Another words if the loan amount owed on the house plus any money given to the seller, plus any fix up costs and your fee still leaves a nice profit, you can then sell it to your investor buyer.

He or she will investigate any title issues should there be any. If the homeowner tells you they have no judgments, you can tell that to your investor and base you fee on that assumption.

Go to your Buyers List Start lining up potential buyers for your property. If you don’t have a buyers list start immediately advertising for buyers. One of the best ways to find buyers is either through your local real estate investors association or place an ad in the newspaper that you have foreclosure properties for sale. You will get a ton of calls!

Negotiate Your Deal Either tell your investor what price you want for flipping this deal to him/her or you

can ask what they would pay. Give them all the details to save both of you some time.

Remember, it has to be a good deal for both you and the investor. And the investor is taking any and all risks so give them plenty of room to profit. If you find a house that you can buy for $150,000 and needs about $25,000 in repairs and will sell on the market for $250,000, you can certainly ask for a $5,000 or $10,000 assignment fee from your investor. He or she will gladly pay that as they will still make a nice profit for their efforts.

Assign Your Contract and Get Ready for Closing Give your investor an assignment of contract with the amount of money you want for assigning your contract to them.

Let’s say its $5,000. He/she will give you a $1,000 deposit and the balance when they close the deal. Give your attorney or title company your contract and your assignment of contract and let them do the rest of the work! You are assigning your interest in the property for an assignment fee.

You can also do the same thing with an option to purchase contract. You simply sign an option contract, giving you the right but not the obligation to purchase the property at a specific price for a specific time and then sell your option contract to your new buyer/investor for a fee. Here again you are assigning your interest in the property.

It’s that simple! This is just one way to make money in short term real estate!

Glen Gallucci, President and CEO of Peak Properties, LLC, and the Founder of Peak Private Lending is an expert real estate investor and educator in the quick turn real estate market and was featured in the NY Times with his popular touring of his investment properties. Glen has over 25 years of “in the trenches” experience in successfully buying, renovating and selling distressed and bank-owned properties. Glen and his lending company has become NJ’s Premier Direct Private Lender to other real estate investors.

Don’t let unexpected

title issues

hold up your project.

Let our 45 years of experience at Cortes & Hay close your deal.

Richard Reynolds | 908.410.7070 110 Main Street | Flemington, NJ | 908.782.8850 | CortesHay.com 10

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Flipping USA | New Jersey edition

August 2016

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143 North Oraton Pkwy, East Orange, Essex, NJ 6bd/2.5bath • Single Family • See ad on page 14

410 Elsie Ave., South Plainfield, Middlesex, NJ 3bd/2bath • Single • $159,000 • See ad on pg 11

120 Harrison Ave.,, Roselle Boro, Union, NJ 3bd/2bath • Single Family • $ Call for Price

182 W. Emerson Ave., Rahway, Union, NJ 5bd/1.5bath • Single Family • $162,000

119 US Hwy 202, Ringoes, Hunterdon, NJ 3bd/1.5bath • Single Family • $155,000

43 Church St, Robbinsville, Mercer, NJ 2bd/1bath • Single Family • $75,000

Interested? Call 1-800-569-2347.

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New Jersey market facts

Hot

Market temp

1. Hudson 2. Union 3. Essex 4. Somerset 5. Morris 6. Monmouth 7. Middlesex 8. Bergen 9. Passaic 10. Burlington 11. Ocean 12. Gloucester 13. Mercer 14. Hunterdon 15. Camden 16. Warren 17. Sussex 18. Cumberland 19. Cape May 20. Atlantic 21. Salem

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Cool

5

3

1

2 14

4 7 13

10

6

11

15

12 21

20 18 19

Flipping USA | New Jersey edition

August 2016

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For more information call

(201) 836-7300

BUY ~ RENOVATE ~ SELL

Residential & Commercial Properties

JUMP START

Peak Properties, LLC

YOUR INVESTING CAREER Have the cash but not the time, experience or confidence yet? Would you like to:

»» Buy foreclosures and REO (bank owned) properties? »» Have them rehabbed and then sell them for profit? »» Have them rehabbed and keep them for rentals?

is a professional real estate company that specializes in buying and selling houses for cash!

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and renovated residential projects as well as commercial projects.

“Complete Turn-Key Consulting for the Real Estate Investor” PeakPropertiesLLC.com 14

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Low Ball Offers

Am I Stealing the House?

what homeowners or FSBOs do. Try to sell the car directly to the retail buyer to get the highest offer. If you have time and your not motivated to sell and your car really is a creampuff, you’ll probably sell it close to your price. If not, back to the wholesaler for a quick sale to solve your situation of needing cash without spending any money on fixing your car to get top dollar.

by Glen Gallucci

H

ere is “weird” (as she says) question from one of my new aggressively motivated, letter sending, phone calling, door knocking, grab the seller by the ear, persistent student I’d like to share with you.

Question: I was reading a book last night and it says the following sentence that bothers me: “Conversely a low ball offer may not be taken seriously by the seller.

Unless he is highly motivated to sell, He will probably be insulted by an obvious attempt to steal his property.”

Hmmm. Let’s see here. I was going to call you but let me try to answer this now. It’s a little long. The answer basically lies right in your statement. “Unless he is highly motivated to sell.”

First of all, we don’t just go out and make “low ball” or LB offers. Our offers are what they are for a reason. A calculated formula for entitled profit for investing our money.

I explain many times to homeowners why my offer is what it is. I buy it, fix it up and resell for profit. It offers two solutions.

Getting the seller the cash they need quickly without any fix ups or paperwork hassle, and me making a profit for my efforts of buying, fixing and selling. If both solutions don’t work, or one side is not happy, there is simply no deal and we both move on.

Remember, if a seller is not motivated, any offer will seem like a LB offer to them.

These are not our potential profitable deals nor the type sellers we seek. Otherwise you can go through the real estate section of the paper and offer every FSBO an offer of 5060% of their asking price. Now that can be construed as LB offers just to see if anyone bites on it. Not a good way to try to buy houses.

Back to your question. As an example, I guess you can consider an offer being a LB offer when your house is worth 300K, nothing wrong with it, nice neighborhood, not behind on payments, and it’s just a “peach of a house” and someone comes along and offers you 190K just because they want to own that 300K house for 190K. But, if the house needs work, or the owners are facing foreclosure, or they inherited the house and it’s become a burden, or are going through divorce, and any other reason they need to sell quickly, they become our motivated sellers. And usually, only real estate investors can buy quickly and take on a house that doesn’t look so great and needs attention. Investors buy and fix and sell.

That’s why we offer what we offer.

Retail buyers usually don’t want to do fix ups and would rather look else where and that leaves very little buyers for the house at retail value. But homeowners rarely see this point and continue to “hope” for a buyer.

But an offer is an offer and if you don’t like the offer of 190K, you don’t take it. Here again, there is nothing wrong with offering a person a price you are willing to pay. They may not like it, but there is nothing wrong with it.

A house, or anything for that matter is only worth what someone is willing to pay for it. And that price depends on the condition and location of the house. You are an investor, or wholesaler of houses. An example is like when you trade in your car.

Ouch!

The dealer or wholesaler, only wants to give you 8K when you think its worth 12K. They need to clean it, fix it up, pay for their costs and resell it for a profit…what’s the word?…Profit! That’s why they are in business. And even if it’s a creampuff, they are still going to offer you less so there is room for…..yep, their profit! So you can do

Question: Is this why my out of state offers don’t get a counter offer? Do they think I’m trying to “steal” their house?

Some times out of state owners just like instate owners are simply not motivated (although it’s a great market usually with motivated sellers because they can’t keep an eye on their property and do fix ups, etc.).

Here again, motivation is the key. But in time, when they don’t get their price, they can become motivated. This is why a good follow up system can get some good deals.

And yes, as you said, marketing to people in these overvalued communities is a tougher market. Usually they are people who can support their out of state house and are not in a distressed situation and just “eat” the losses each month until the house sells. There is nothing you can do about people in that situation until they just get fed up and sell at a discount to just get rid of the property after it being nothing more than a nuisance to them. But marketing to out of state owners with houses in a less expensive community is still a great marketing tool. There are a couple of guys in our association who do this and do quite well.

Question: What does it mean to “steal” their house?

Offering a lesser amount and it being accepted by its owner is not considered stealing a house, a car or anything. People use that term in lieu of saying, they want it or got it at a discounted price. If it’s an open offer, through a contract, that one is willing to pay, it’s not stealing. Stealing is stealing.

Stealing is when you offer a price, the owners say no, and you get the house anyway by using unscrupulous tactics, fraudulent documents, signatures, etc.

This is just a sample of the questions and other real deal situations covered in Peak Properties monthly newsletter.

Flipping USA | New Jersey edition

August 2016

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4 Stone St. North Plainfield, Somerset, NJ 3bd/2bath • Single Family • $ Call for Price

105 Readington Rd, Readington, Hunterdon, NJ 4bd/2bath • Single Family • $250,000

323 N. Olden Ave, Trenton, Mercer, NJ Commercial • $299,000

153 Delmonico Ave., Somerset, Somerset, NJ 4bd/2.5bath • Single Family • See ad on page xx.

1312-1314 E 2nd St, Plainfield, Union, NJ Investors Choice • $244,064 OR $110,000

3002 Astor Close, Hillsborough, Somerset, NJ 2bd/2.5bath • Condo • $ Call for price

Interested? Call 1-800-569-2347 Flipping USA | New Jersey edition

August 2016

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right realtor will make all the difference in finding your perfect home at the right price.

First time home buyers often don’t do the proper due diligence on an agent. A big mistake is going with an agent whose full time career is not real estate. It’s very easy to get a real estate license. There is a big difference between being licensed and being professional. Buyers should ask realtors how many homes they have sold in the last 6 months.

Made By First Time Home Buyers (that you can avoid)

By Alexis Tarrazi, Patch staff writer

W

estfield local, Michelle Pais is a force to be reckoned with in the real estate business.

Michelle Pais Pais has been a realtor for 15 years and six years ago became the Founder and CEO of Signature Realty NJ in Springfield, which serves Union, Somerset and Essex counties.

Pais personally sells about 100 homes per year. With that much experience in the real estate field, Pais is looking to pass on her knowledge to first time home buyers.

Here are top 10 mistakes first-time home buyers make: 1. They don’t know what they can afford: Home buyers should get pre-approved before they even start looking. First time home buyers tend to fall in love with a home and then overpay or find out later that they can’t afford the home they fell in love with.

2. They don’t do their research ahead of time: First time home buyers often set their eye on a home only to find out later, after starting the paperwork, that there are problems. Buyers should do neighborhood research ahead of time and ask questions about the school, transportation, and community.

3. They don’t make a list of non-negotiable items needed in their future home: 18

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Buyers should have a brief list of nonnegotiable items they need included in their home. Is the master bedroom with a master bath really needed or are you willing to settle on having one bath? Have a list ready to show your real estate agent so you’re not wasting time seeing homes you’ll never buy.

4. They hesitate on good deals: Some home buyers get pre-approved, find a home that fits all of their needs and then are afraid to pull the trigger. Maybe they feel they haven’t seen enough homes or that a better option is out there, whatever it is, they hesitate. Depending on the city, first time home buyers typically can take 2-4 months when they start looking to settle. In that time, interest rates can change and the marketplace sees a lot of turnover. When a buyer finds a good deal there is no time to hesitate.

5. They let an opinionated home inspector or attorney make their decision for them: When a first home buyer finds a good deal, but are addressed with a few minor issues, they should get a contractor quote or second opinion before walking away from the deal. “I found one client a phenomenal deal that was listed under market value.

When they had the home inspection, a couple of minor issues came up. Instead of hiring a contractor to get an opinion on correcting the issues, they were scared by the home inspector. They killed the deal only to find out later the house closed for $25,000 over their original offer.”

6. They don’t pick the right realtor: The

7. They don’t calculate expenses: First time home buyers should figure out the benefits of renting versus owning. There are many advantages, not to mention tax savings alone, in home buying but depending on your area, renting could win out.

8. They don’t know the cost of making improvements: It’s good to have a realtor with contractor knowledge or vendors to find out what deals can be had to make improvements on a home. Many buyers may get overwhelmed on updates but should be open-minded. First time home buyers should know they can get a rehabilitation loan to help cover expenses. They think they need all the capital upfront, but are unaware that programs like these exist. Your realtor should also be aware of these programs.

9. They make other purchases before closing: First time home buyers may be so excited that they shop for furniture for a new home before closing. They don’t realize that the purchase of additional items is looked at in the debt to income ratio. This may change their bank loan and may no longer allow them to qualify for a mortgage.

10. They don’t know the importance of terms: Price and terms are both equally important. First time home buyers sometimes think price is the only major factor but terms are just as important. Closing date, the down payment amount, and any stronger terms are needed when negotiating. A great down payment, figuring out the closing date, and finance is key.

For more information on Michelle Pais visit signaturerealtynj.com.

View article at patch.com/new-jersey/ springfield/springfield-realtor-offerstop-10-mistakes-made-first-time-homebuyers.

The “SIGNATURE EXPERIENCE” is a commitment of excellence from our agents to you.

Our agents intelligence, confidence and diligence as well as their assertive and creative nature has allowed Signature Realty NJ to consistently maintain its excellent track record even through a changing economy.

With a Signature “Special Agent” and the backing of a supportive leadership team, you will be able to buy or sell with confidence knowing you have agents on your side.

Our enthusiastic team of Realtors create a powerful brand that evokes skill, talent and productivity.

Signature Realty nj

973-921-111 | info@signaturerealtynj.com Flipping USA | New Jersey edition

August 2016

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Over $100 Million in Property Sales Using Our Stagings!

First impressions are super important! “I just sold my flip for $25,000 higher than asking price within 48 hours of hitting the open market. Every buyer mentioned how much they loved the staging and I believe this helped me –Eric M. (2/13/15) gain the extra $$$$$ above asking!�

1 1 1 5 I n m a n A v e n u e , S u i t e 3 5 6 , E d is o n , N J 0 8 8 2 0 (908) 753-1459 | Fax: (908) 566-9700 P r o f e ssi o n a l H o m e S t a g i n g N J . c o m

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What is Staging?

To compete in the marketplace, you must be priced right and look better than any of the other properties. Your home is one of many homes for sale and you must present it to potential buyers in the best possible light.

Professional Staging is the process of preparing any home for sale, regardless of price or location. Using a proven, professional set of guidelines your house is reviewed with preset standards designed to help with the sale. Then any necessary modifications are made or suggested. Your home is then open to a special marketing program developed to promote those homes that have been designated as Professionally Staged Homes.

This unique system has proven to help sell homes faster and for more money.

Real estate agents will have great confidence in showing your home to potential buyers because they know it is a Professionally Staged Home and ready to be sold.

Sellyour housein

Any condition

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Look at property 24 Hour offer 2 Check Title 3 Set up closing date 4 5 $ Get paid

Give us a call and let us help you

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Anthony www.7dayclose.com Flipping USA | New Jersey edition

August 2016

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cover story

Our First NJ Flip

by Joe Dunne

105 Bache Place Dunellen 22

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T

here is a natural progression in the world of sports, from little league to high school, then college or even the pros. Business has the same rhythmic feeling. The mistakes I have made, over the last 45 years have only made me appreciate the achievements, of today. My entire business life, and the learning curves that accompanied it, had a exciting beat that drove me forward. Hobbies are like that—a slight interest can turn to a passion, and your hobby becomes a big part of your identity.

A new DNA, so to speak, develops.

In the world of what’s commonly known as flipping, passion, the accumulation of knowledge, and the adrenalin of a flip, can get in your blood. Especially if you’re a successful.

In the world of flipping risk and reward rules. As the saying goes little risk, little reward. Big risk, big rewards. However, I believe there is a special sense of personal reward we rarely appreciate from a successful flip. One thing is for sure, you can make money flipping houses. It is not a game though, and for most not a hobby, it is a means to an end, and it is all business.

So what does it take? I wish I were an expert. I wish I could lay down a path with all the possibilities covered. I cannot and I don’t think anyone can.

Every flip is unique to itself, and that’s part of the excitement.

Recently, I had the chance to sit down with with Gary and Sharon Domingo, pictured on our cover with their first flipped property in NJ. Dunellen. We met at the 3,400 sq. foot investment property they are presently transforming, which is quite different from the Dunellen property. This investment is in the very quaint, quiet and sought after area of Sleepy Hollow, in Plainfield, New Jersey.

Having arrived a bit early for the interview, I decided to explore their new property.

As a novice with interest who has never flipped a property, I viewed it with amazement. The slate roof in perfect condition sitting atop a beautiful English Tutor design, the property looked expensive. Then the details started to jump out. Repairs were needed everywhere. Years of neglect had

clearly taken its toll and the large dumpster half full in the driveway indicated it was a work in progress. Windows, doors, wood rot, a lawn in distress and boarded up windows.

For this novice it seemed overwhelming. However, after my conversation with Gary and Sharon, it started to make sense.

What was initially overwhelming to me now seemed manageable. It’s funny how good facts lead to good decisions.

I now looked at the property through a more trained brain. I could imagine the changes. The spacious private patio, finished and completed, would present itself well. Amenities that mattered to the purchasing public, landscaping brought to perfection, an entrance and freshly hung door to greet the buyer. A property transformed, polished and ready to sell for a profit. New kitchen appliances and bathrooms modernized. I understood the rush as Gary explained his vision of a fin-

ished product, and I could see how quickly a personality like mine could be affected.

All of a sudden I was really interested in getting some facts.

Gary has an incredibly warm personality. His expressive mix of grin and smile at all times was a permanant fixture. My intuition told me this was a pleasant man with a great personality, attitude and ability. His interpersonal relationship skills were evident.

Right away I sensed he knew what he was doing. Flipping is not a hobby to him; it was a pure “I love it” business. I asked him if he was happy doing this. Again his smile broadened. “Very happy,” he replied.

“We’re not there just yet, but our dream is a work in progress.” He then explained that flipping contained a combination of financial security, independence and freedom. “The top priority in our lives is our children. The money we can make flipping

Living Room Before After

Flipping USA | New Jersey edition

August 2016

23

investments allows us time to be with our kids through their formative years, to make every event in their lives. That’s our real end game,” he said. “Flipping is the pathway to time, and time is priceless, to coin a phrase.”

Inside the property they were in the demolition stage, a word I’m not crazy about but none the less an industry term.

Everything was stripped to the bone.

Drawings and plans were laid out on the dusty table as we sat on dusty chairs.

Electrical outlets and fixtures were in one stage of repair or in the inspection process. Gary shut off the temporary alarm system he had set up with his iPad. We chatted a few minutes about how much he paid, what he was putting in, how long he had owned the property and his expectation of profit.

In other words, we reviewed the flipping process.

When Sharon arrived, I discovered the contrast which made them a great partnership. A bit more reserved than

Gary, she is the number cruncher, the budget setter, the mind of reason when it comes to actually purchasing a project.

Her approach is simple and effective. “The numbers tell you everything. If they work and make sense then you can go forward to the next steps. If not, you pass, simple as that,” stated Sharon. “The first lesson you learn, and the real starting point in the process of flipping, is controlled discipline. Some things you can control, others you can’t, such as the water pipes bursting a week before the closing of the Dunellen property. But it still closed on time.”

Initially, I thought Dunellen was Sharon and Gary’s first flip. Much to my surprise I discovered that they started flipping in 2003 while living in California. Gary shared that they started with a light flip—$675,000 for a four apartment flip, fully occupied and leased. “Light!”

I thought to myself, “sounds heavy to me” as multiple potential problems ran through my mind. Yes, property in the Los Angeles area is expensive, especially

in 2003, but what amazed me was how lightly Gary glossed over the leases. The first thing that entered my mind was how do you get renters to move? Again Gary breezed through the situation, just a small obstacle to overcome in pursuit of the big picture. What a great attitude, I thought.

I couldn’t help but view his demeanor as perfect for the investor in pursuing his goal of making flipping homes his full time business.

After their first flip the couple was hooked and proceeded to buy, fix and sell properties for a profit. The pursuit of the flip took them to Hong Kong, a place they knew well and where they had initially met. Together they did two flips, and liked the end result of one so much that they kept it as an income producing property rental.

“Flipping in Hong Kong though is much different and much harder, but what we learned we carried forward,“ stated Gary.

Their future as flippers seemed

Kitchen

Before After

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FlippingUSA.com

on solid ground and then change happened—the 2007-2008 bubble came tumbling down. The business dreams of flipping in California shifted to a corporate job in New Jersey. It proved to be a good place to wait things out. When the market felt right again, their surpressed passion for the flip erupted and Gary and Sharron resumed their dream of turning short term property investment into a full time business.

They purchased the Dunellen property in October of 2015 for $245,000.

After completing $45,000 in renovations, the home was listed in January 2016 and sold in March for $360,000. Not bad for six months work, but “high risk, high reward” is central to the flipping appeal.

When I asked them about their approach, fears and worries, each again

repeated that it was all about controlling what you can, which they explained as three key structure.

“One—don’t panic, problems will arise, it is part of the business, stay calm, find the solution. Second—and most important, follow the numbers, do your homework, and stay focused. When you pick the property that interests you and crunch the numbers; they will tell you if it is a go or not,” they explained. “As it happened the Dunellen property worked, so we went forward, and the results were terrific. But those results also rely on the third key—the resources you choose. This

is an ongoing process...gathering knowledge, finding those you trust to work with and being willing to honestly review the results of each flip.”

It is no coincidence that some of those they chose to work with are also advertisers in Flipping USA. Flipping NJ worked with them to purchase the property, providing the background work to avoid potential pitfalls, verifying clear

Bathroom Before After

Flipping USA | New Jersey edition

August 2016

25

Basement

After title, investigate potential tax liens or other unwanted suppressions. Alpha Funding and Peak Properties supplied the funds needed for demolition, reconstruction, interior design, and marketing.

“I can’t stress enough how important it is to know your partners. Hold hands with the winners, the people that have your interest at heart, and follow good advice,” says Gary. “We reached out to Jon Steingraben, whose networking group NJRESN (New Jersey Real Estate Social

Network) not only advised us but put us in touch with a network of professionals that interact and support each other with experience, knowledge, motivation and vision. It made, and continues to make a huge difference in our lives, and our business. We now have the resources to draw from and that gives us the confidence and ability to look for our next project and then our next project.”

Before

The Successful Flipping Footprint

1. In depth research to eliminate the potential problems.

2. Crunch the numbers.

3. Find the right resources, open your mind, and follow their direction.

4. Enjoy the process, learn, and learn, and learn.

Sounds simple and it can be, but it also takes time. There will be unforeseen pitfalls—it is part of the business.

Flipping is not for everyone, but it is for Gary and Sharon. They love it, and why wouldn’t they? Nine properties flipped, nine successes. You can tell by their passion, excitement and enthusiasm that flipping is for them.

Yes, this is one of those feel good stories and we know that all are not full of smiles. Our goal at Flipping USA is to bring you the truth—the ups, the downs, the good, the bad and the mistakes. We hope you enjoyed our first cover story and will continue to pick up our magazine as we take you on the journey of the flip.

Look for updates on Gary and Sharon’s Plainfield flip in the September issue of Flipping USA.

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Make the Connection!

Welcome to New Jersey Real Estate Social Network Even if you are only interested in one of the components of our benefits such as the online educational platform with educational videos and documents, that alone is a great return for a small investment!

Become part of our community!

Visit NJRESN.com Flipping USA | New Jersey edition

August 2016

27

Open The Door To Real Estate In Your Self-Directed IRA M

any savvy investors already know that investing in real estate can be a lucrative way to build retirement wealth. But did you know that Investing in Real Estate Using Self Directed IRAs makes up the most popular asset class to be included in selfdirected retirement plans? In fact, about half of all self-directed investments today are in commercial and residential real estate.

Investing In Real Estate Using A Self-Directed IRA By investing in real estate using Self-Directed IRAs, you free up your discretionary income for other expenses while building a more eclectic retirement portfolio. These nontraditional assets are bought, owned, and sold by the IRA, which shelters your capital gains and allows the retirement account to earn tax-free or tax-deferred income (depending on whether you open a Roth or traditional IRA). You may also open a self-directed 401(k) or tap into a previous employer 401(k) for investing in real estate using a self-directed IRA if your employer’s plan allows for self-directed options.

Allowable Real Estate Investments In Self-Directed IRAs Include: 28

FlippingUSA.com

QQ Rental property – multi-family homes, condos QQ Vacation homes -- domestic and foreign properties QQ Rehabs QQ Foreclosures QQ Undeveloped, raw land QQ Farm land QQ Mobile homes QQ Warehouses QQ Lease options

Examples Of Things Not Allowed When Investing In Real Estate Using Self-Directed IRAs: QQ You may not live in the property or use it at any time, nor can any disqualified person.

QQ Any business you own may not lease space at the property.

QQ You may not do any repairs or rehab to the property, nor can any disqualified person.

QQ Any business you or a disqualified person own may not do repairs or rehab on the property.

QQ If you finance the property it must be a non-recourse loan. This means you may not personally guarantee the loan.

QQ You may not pay any expenses relating to the property with personal funds.

QQ All income and expenses must flow through the IRA. QQ If you are a real estate agent or broker you may not list the property for sale or make any commission on the sale or purchase.

Who Should Consider Investing In Real Estate Using Self Directed IRAs? If you are already investing in real estate outside of your existing retirement account, or you know and understand the real estate market, investing in real estate using self directed IRAs could be a great way to build a solid foundation for your retirement years.

Looking For A Self Directed IRA Real Estate Custodian?

Learn the basic steps to Investing in Real Estate Using Self Directed IRAs at NextGenerationTrust.com. With a self directed real estate IRA you can own investment property, and keep the funds tax deferred or tax free!

The Next Generation of Self-Directed Retirement Plans Next Generation Trust Services (NGTS) is a third-party administrator of self-directed retirement plans. Our experienced, knowledgeable professionals provide comprehensive administrative support and account maintenance to individuals interested in self-directing their retirement portfolios with a wide variety of investments that are not typically found in an IRA; these include real estate, precious metals, notes and mortgages, private placements, accounts receivables, limited partnerships, hedge funds, and much more.

We never endorse, recommend, or sell any products or investments, nor do we give investment advice; however, we do offer a variety of educational resources and seminars so that you can learn more about this retirement wealth-building strategy.

75 Livingston Avenue, Suite 304 | Roseland, NJ 07068 Toll Free Number: 888.857.8058 | Phone Number: 973.533.1880 | Fax Number: .973.533.1088 Info@NextGenerationTrust.com | NextGenerationTrust.com Flipping USA | New Jersey edition

August 2016

29

Flipping Homes without flipping out (NewsUSA) Buy a run-down building in a nice area. Gut the rooms and rebuild state-of-the-art kitchens and bathrooms. Then sell the home for hundreds of thousands of dollars in profit.

The idea of “flipping” homes appeals to Americans. But for many aspiring flippers, reality does not live up to the expectations created by reality television and get-rich books.

Flippers buy distressed properties in nice neighborhoods. They often run into trouble with contractors to stay on budget for the home repairs or improvements. People attempt to make lavish improvements and don’t realize how much time and money the ambitious renovations will really cost. By the time they sell their real estate project, many flippers barely break even. In some cases, flippers lose money. Sometimes people create a dream property, put it on the market, then watch the home sit for months without exciting buyers’ interests. In the meantime, mortgage costs eat into flippers’ profits.

When it comes to flipping homes, profits depend on quick sales. Before buying properties, people should learn how to sell them. New Jersey real-estate professionals have created a step-by-step system for homeowners looking to quickly sell properties.

The “Fast Action Homes Sales System” teaches homeowners how to create bidding wars with or without a real estate agent.

Homeowners using the guide learn how to attract buyers’ interest with signs, printed ads and custom-built Web sites. The advertisements lead to a frenzied weekend bidding war, giving sellers the advantage.

The whole process, from first step to exit, takes two or three weeks. Before potential real estate moguls invest in a property, they should start planning its final sale -; selling a newly renovated home quickly is key to making a profit-earning flip.

To access a quick-start guide to the Fast Action Home Sales System, either visit www.

RealEstateKit.com or call 1-800-669-1038.

30

FlippingUSA.com

500 Carlisie St., South Plainfield, Middlesex, NJ ?bd/?bath • Single Family • $155,000

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48 Oakwood Ave., Kearny, Union, NJ 4bd/1.5back • Single Family • $ Call for price

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235 Benson Pl., Westfield, Union, NJ 4mdrm/3bath • Single Family • Sold!

112 Village Commons, Flemington, Hunterdon, NJ Townhouse • $ Call for price

Interested? Call 1-800-569-2347.

Flipping USA | New Jersey edition

August 2016

31

Home Flipping Reaches Home Flipping Rate Still 26 Percent Below Q1 2006 Peak; Average Gross Flipping Profit at a More Than 10-Year High;

R

ealtyTrac®, the nation’s leading source for comprehensive housing data, today released its Q1 2016 U.S. Home Flipping Report, which shows that 6.6 percent (43,740) of all single family home and condo sales in the first quarter of 2016 were flips, a 20 percent increase from the previous quarter and up 3 percent from a year ago to the highest rate of home flips since the first quarter of 2014.

For the report, a home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by RealtyTrac in more than 950 counties accounting for more than 80 percent of the U.S. population (see full methodology below).

a dearth of housing inventory for flippers to compete against,” said Daren Blomquist, senior vice president at RealtyTrac. “While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker that overheats a housing market, and we are starting to see evidence of that pressure cooker environment in a handful of markets.

“The good news is that — despite the 20 percent jump in the first quarter — home flipping nationally is not far above its historic norm, and home flippers in most markets appear to be behaving rationally and responsibly,” Blomquist continued. “In the first quarter, 71 percent homes flipped were purchased by the home flipper with

“After faltering in late 2014, home flipping has been gaining steam for the last year and a half thanks to falling interest rates and a dearth of housing inventory for flippers to compete against,” said Daren Blomquist.

The 6.6 percent share of total home sales that were flips in Q1 2016 was still 26 percent below the 9.0 percent share at the peak of home flipping in Q1 2006, but was 55 percent above the recent trough in home flipping — 4.3 percent of total home sales in Q3 2014.

“After faltering in late 2014, home flipping has been gaining steam for the last year and a half thanks to falling interest rates and 32

FlippingUSA.com

cash — compared to only 37 percent who purchased with cash at the height of the flipping boom. Spending their own money rather than other people’s money is keeping flippers conservative. On average they are buying the homes they flip at a 27 percent discount below full market value and selling them at a 6 percent premium above full market value, helping to deliver strong flipping returns on average.”

Home flipping hits new alltime highs in 7 percent of markets Counter to the national trend, the share of home flipping reached new all-time highs in Q1 2016 in nine of 126 metropolitan statistical analyzed (7 percent) including Baltimore, Maryland; Buffalo, New York; Huntsville, Alabama; New Orleans, Louisiana; and York-Hanover, Pennsylvania.

Other markets where the share of home flipping has reached new highs since home prices bottomed out in 2012 include Seattle, Washington; Virginia Beach, Virginia; Bakersfield, California; and San Diego, California.

“It’s somewhat surprising to see flipping is on the rise in the Seattle area given our rapidly rising home prices,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where the share of homes flipped in Q1 2016 increased 32 percent from the previous quarter and were up 5 percent from a year ago. “My hope is that this is a temporary byproduct of having far more buyers than available inventory, as an increase in home flipping numbers can artificially inflate prices and makes homes even less affordable for buyers. Thankfully we are starting to see modest increases in the number of homes for sale in Seattle, which should cause a slowdown in price growth as we head into 2017.”

Flipping share up from a year ago in 60 percent of local markets

Home flipping as a share of total sales increased from a year ago in 75 out of 126 metropolitan statistical areas analyzed for the report (60 percent). Among markets with a population of at least 1 million, those with the biggest increases in the rate of flipping were New Orleans (up 45 percent), San Antonio (up 34 percent), Nashville (up 26 percent), Cleveland (up 26 percent), Columbus, Ohio (up 23 percent), and Dallas (up 22 percent).

“As available listing inventory has remained low across Ohio, rising residential home prices and strong buyer demand are fueling a resurgence of small investors entering the market to rehab and flip residential homes,” said Michael Mahon, president at HER Realtors, covering the Cincinnati, Dayton and Columbus housing markets, all of which posted a year-over-year increase in home flipping rate. “While in recent years, large institutional investors had been leading the way in purchase of mortgage notes and foreclosed residential shadow inventory, restored market prices appear to be lessening the appetite of such Wall Street investors.”

Markets with the highest share of flipping in the first quarter were Memphis, Tennessee (13.3 percent); Clarksville, Tennessee (12.5 percent); Deltona-Daytona Beach-Ormond Beach, Florida (11.8 percent); Fresno, California (11.3 percent); and Visalia-Porterville, California (11.1 percent).

Other markets where the share of homes flipped surpassed the national average included Tampa, Florida (10.8 percent); Las Vegas (10.3 percent); Virginia Beach (9.9 percent); Miami (9.5 percent); and Jacksonville, Florida (9.4 percent).

“There continues to be good opportunities for cash investors in the South Florida market,” said Mike Pappas, CEO and president at the Keyes Company, covering the South Floridamarket. “One out of 10 transactions in the first quarter were flipped investor deals yielding an average $65,000 gross profit with an average 51 percent gross ROI.”

estimate typically run between 20 percent and 33 percent of the property’s after repair value).

The average $58,250 gross flipping profit in Q1 2016 represented an average 47.8 percent return on the original purchase price, the highest average gross flipping ROI since Q3 2012.

Markets with highest average flipping ROI Markets with the highest average gross flipping ROI in Q1 2016 were East Stroudsburg, Pennsylvania (212.1 percent); Reading, Pennsylvania (136.4 percent); Pittsburgh, Pennsylvania (126.8 percent); Flint, Michigan (105.8 percent); and New Haven, Connecticut (104.8 percent).

Other markets with an average gross ROI above 80 percent included Philadelphia (103.7 percent); New Orleans (97.6 percent); Cincinnati (88.5 percent); Buffalo, New York (85.1 percent); Cleveland, Ohio (83.8 percent); Jacksonville, Florida (81.8 percent); and Baltimore, Maryland (80.8

percent).

Report methodology

RealtyTrac analyzed sales deed data and automated valuation data for this report. A single family home or condo flip was any transaction that occurred in the quarter where a previous sale on the same property had occurred within the last 12 months.

Average gross profit was calculated by subtracting the average price for the first sale (purchase) from the average price of the second sale (flip). Average gross return on investment was calculated by dividing the average gross profit by the first sale (purchase) price.

RealtyTrac is a leading provider of comprehensive U.S. housing and property data, including nationwide parcel-level records for more than 130 million U.S. properties. Detailed data attributes include property characteristics, tax assessor data, sales and mortgage deed records, distressed data, including default, foreclosure and auctions status, and Automated Valuation Models.

Gross flipping profit increases to more than 10-year high Homes flipped in Q1 2016 yielded an average gross profit of $58,250, the highest average gross flipping profit since Q4 2005 — a more than 10-year high. The average gross flipping profit is the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans Flipping USA | New Jersey edition

August 2016

33

One in Four U.S. Foreclosures are “Zombies” — Vacated by Homeowner, Not Yet Repossessed By Foreclosing Lender

R

ealtyTrac’s Q1 2015 Zombie Foreclosure Report revealed that as of the end of January 2015, 142,462 homes actively in the foreclosure process had been vacated by the homeowners prior to the bank repossessing the property, representing 25 percent of all active foreclosures.

The total number of zombie foreclosures was down 6 percent from a year ago, but the 25 percent share of total foreclosures represented by zombies was up from 21 percent a year ago.

“While the number of vacated zombie foreclosures is down from a year ago, they represent an increasing share of all foreclosures because they 34

®

FlippingUSA.com

tend to be the problem cases still stuck in the pipeline,” said Daren Blomquist vice president at RealtyTrac. “Additionally, the states where overall foreclosure activity has been increasing over the past year — counter to the national trend — tend to be states with a longer foreclosure process more susceptible to the zombie problem.”

“In states with a bloated foreclosure process, the increase in zombie foreclosures is actually a good sign that banks and courts are finally moving forward with a resolution on these properties that may have been sitting in foreclosure limbo for years,” Blomquist continued. “In many markets there is plenty of demand

from buyers and investors to snatch up these distressed properties as soon as they become available to purchase.”

Florida, New Jersey, New York have most zombie foreclosures Despite a 35 percent decrease in zombie foreclosures compared to a year ago, Florida had the highest number of any state with 35,903 — down from 54,908 in the first quarter of 2014. Zombie foreclosures accounted for 26 percent of all foreclosures in Florida.

Zombie foreclosures increased 109 percent from a year ago in New Jersey, and the state posted the second highest total of any state

Flipping USA | New Jersey edition

August 2016

35

with 17,983 — 23 percent of all properties in foreclosure.

New York zombie foreclosures increased 54 percent from a year ago to 16,777, the third highest state total and representing 19 percent of all residential properties in foreclosure.

Illinois had 9,358 zombie foreclosures at the end of January, down 40 percent from a year ago but still the fourth highest state total, while California had 7,370 zombie foreclosures at the end of January, up 24 percent from a year ago and the fifth highest state total.

“We are now in the final cycle of the foreclosure crisis cleanup, in which we are witnessing a large final wave of walkaways,” said Mark Hughes, Chief Operating Officer at First Team Real Estate, covering the Southern California market. “This has created an uptick in vacated or ‘zombie’ foreclosures and the intrinsic neighborhood issues most of them create.

“A much longer recovery, a largely veiled underemployment

36

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issue, and growing examples of faster bad debt forgiveness have most likely fueled this last wave of owners who have finally just walked away from their American dream,” Hughes added.

Other states among the top 10 for most zombie foreclosures were Ohio (7,360), Indiana (5,217), Pennsylvania (4,937), Maryland (3,363) and North Carolina (3,177).

“Rising home prices in Ohio are motivating lending servicers to commence foreclosure actions more quickly and with fewer workout options offered to delinquent homeowners, creating immediate vacancies earlier in the foreclosure process,” said Michael Mahon, executive vice president at HER Realtors, covering the Ohio housing markets of Cincinnati,Dayton and Columbus.

“Delinquent homeowners need to understand how prices have increased in recent months, and how this increase in equity may provide positive options for them to avoid foreclosure.”

The greater New York metro area had by far the highest number of zombie foreclosures of any metropolitan statistical area nationwide, with 19,177 — 17 percent of all properties in foreclosure and up 73 percent from a year ago.

Zombie foreclosures decreased from a year ago in Miami, Chicago and Tampa, but the three metros still posted the second, third and fourth highest number of zombie foreclosures among metro areas nationwide: Miami had 9,580 zombie foreclosures,19 percent of all foreclosures but down 34 percent from a year ago; Chicago had 8,384 zombie foreclosures, 21 percent of all foreclosures but down 35 percent from a year ago; and Tampa had 7,838 zombie foreclosures, 34 percent of all foreclosures but down 25 percent from a year ago.

Zombie foreclosures increased 53 percent from a year ago in the Philadelphia metro area, giving it the fifth highest number of any metro nationwide in the first quarter of 2015. There were 7,554 zombie foreclosures in the Philadelphia metro area as of the end of January, 27 percent of all foreclosures.

Other metro areas among the top 10 for most zombie foreclosures were Orlando (3,718), Jacksonville, Florida (2,368), Los Angeles (2,074), Las Vegas (1,832), and Baltimore, Maryland (1,722).

Among metro areas with a population of 200,000 or more and at least 500 zombie foreclosures as of the end of January, those with the highest share of zombie foreclosures as a percentage of all foreclosures were St. Louis (51 percent), Portland (40 percent) and

Las Vegas (36 percent).

Among metro areas with a population of 200,000 or more and at least 500 zombie foreclosures as of the end of January, those with the biggest year-over-year increase in zombie foreclosures were Atlantic City, New Jersey (up 133 percent), Trenton-Ewing, New Jersey (up 110 percent), and New York (up 73 percent).

Methodology RealtyTrac gathers data for vacant foreclosures by matching foreclosures in the RealtyTrac database with data collected from the United States Postal Service for addresses that the agency has deemed vacant or where the owner has requested a change of address.

About RealtyTrac RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 130 million U.S. parcels that include property

characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties.

RealtyTrac’s housing data and foreclosure reports are relied on by

the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

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Flipping USA | New Jersey edition

August 2016

37

What Qualifies as Vacant and Abandoned Property?

To qualify for a shorter timeline, the law requires that the lender present clear and convincing evidence that the real estate is vacant and abandoned. The lender must explicitly show that the property is not occupied by the borrower (or other lawful tenant) and that two or more of the following conditions exist.

QQ The property has neglected or overgrown vegetation.

QQ The property does not have window treatments, such as blinds, curtains or shutters.

QQ There are no furnishings or personal items at the property.

QQ Neighbors, delivery persons, or government employees state that the residence is vacant and abandoned.

QQ There is an accumulation of newspapers, circulars, flyers, or mail on the property.

QQ The windows or entrances to the property are boarded up or closed off or multiple windows are damaged, broken, and unrepaired.

QQ The gas, electric, or water utility services to the property have been disconnected.

QQ The doors to the property are smashed through, broken off, unhinged, or continuously unlocked.

QQ There is an accumulation of hazardous, noxious, or unhealthy substances or materials on the property.

QQ A risk to the health, safety or welfare of the public, or any adjoining or adjacent property owners, exists due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property.

QQ There is an accumulation of junk, litter, trash, or debris on the property.

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QQ There is an uncorrected violation of a municipal building, housing, or similar code during the preceding year, or an order by municipal authorities declaring the property to be unfit for occupancy and to remain vacant and unoccupied.

QQ The lender or other authorized party has secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing.

QQ There is a written statement issued by any borrower expressing the clear intent of all borrowers to abandon the property.

QQ There is some other reasonable indication that the property has been abandoned.

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Flipping USA | New Jersey edition

August 2016

39

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A Property Box Listing lets buyers see what’s available in a glance with property visual, simple detail and easy Quick Response link to your website for full description.

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Our team has the absolute goal to deliver the most efficient solutions and results. Each member at Crowne Management has a personal desire to be the best in their duties. Working as a team we are able to provide our clients with a unique level of customer service. We believe a truly satisfied client is one who is confident their property is being maintained with high quality standards, and is able to achieve a profitable financial return with all community members being content.

With a total experience of 8 years in real estate, real estate development, property management, and cleaning, our entity is able to identify and pursue the specific needs and demands of our clients.

With ethics and integrity, Crowne Management strives to provide our clients with the highest quality services in the industry. Our team of professionals excels every day to transform ideas into reliable solutions to achieve maximum results for our clients and communities.

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The Directory Connecting you to the leaders in real estate property investment. To find out how you can be included in the The Directory, email joed@FlippingUSA.com to request our media kit.

Flipping USA for All You Need to Flip

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Lenny Hernandez 425 Amwell Road, Hillsborough, NJ 08844 1st Floor Suite 2 908-262-2289 815-717-9687 fax info@flippingnj.com FlippingNJ.com For trusted real estate investment consulting solutions that are guaranteed to help build a stronger portfolio, more discerning investors choose Flipping NJ over any other firm—period. We are the only firm of our kind that works laterally with our clients every step of the way. If you want to work with a proven leader in the New Jersey real estate market—with the sales to back it up—let Flipping NJ show you what we can do for your portfolio today.

FREEDOM MORTGAGE John Palumbo, Branch Manager 231 Union Blvd, Totowa, NJ 07512 973-339-3453 Ofc 973-699-3797 Cell 201-285-6743 Fax NMLS #169369 For 25 years, Freedom Mortgage Corporation has been earning a name for itself as a full-service lender with strong customer service and a unique streamlined process. Freedom Mortgage has proudly helped customers purchase their dream home and refinance their existing mortgages since 1990. We maintain an A+ rating with the Better Business Bureau.

HEATING & COOLING LOU FASANO HEATING & COOLING 1451 S. Washington Avenue, Piscataway 908-755-9141 When it comes to heating and cooling repairs and installations, call Lou for the best service year around.

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HOME STAGING PROFESSIONAL HOME STAGING AND DESIGN

1115 Inman Ave., Ste 356, Edison, NJ 08820 908-753-1459 908-566-9700 fax ProfessionalHomeStagingNJ.com First impressions are super important! When a professionally staged home hits the market, it stands out and makes buyers want to move quickly.

RETIREMENT PLANS NEXT GENERATION TRUST SERVICES 75 Livingston Ave., Ste. 304, Roseland, NJ 07068 888-857-8058, 973-533-1880 973-533-1088 fax info@NextGenerationTrust.com NextGenerationTrust.com

The mission of Next Generation Trust Services is to provide our clients with the tools and support necessary for them to “control their futures, today” by investing in self-directed retirement plans. We fulfill this mission by educating individuals and their trusted advisors about the many options and benefits of self-direction as a retirement wealth building strategy.

WATER FILTRATION SMART WATER COOLER Drew Chafey 800-287-0099 SmartWaterCooler.com

SMART

WATER

Smart Water Filtration Systems reduce the impact on the environment by dramatically decreasing greenhouse gas emissions and lowering energy consumption for pennies a day.

State of the art Carbon Block filters down to 0.5 micron, removes chlorine, filters organic contaminants yet leaves minerals in the water.

WATER COOLERS &

FILTRATION SYSTEMS

Courtesy of Jon Steingraber & NJRESN

Flipping USA | New Jersey edition

August 2016

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