1. Why Trenton? I see most of the properties you have available (http://outsideinenterprises.com/hot-list/) are in Trenton NJ. Just curios why you chose Trenton over other city areas like Newark/Hoboken/jersey city where it attracts more city commuters?
  1. http://outsideinenterprises.com/why-trenton/
  2. 100 Years of Success in Trenton: https://youtu.be/nTvdcOZ8nHQ
  1. Trenton is phenomenally located, positioned right between Philadelphia and New York. Head down to the recently renovated train station and you are in either city in about 1 hour.
  2. Route 129
  3. Hamilton Avenue light rail station offers easy transit access
  4. Trenton Transit Center, which is within easy walking distance of former Roebling factory
  1. Trenton being the capital of NJ has a great majority of state jobs. Trenton also borders Pennsylvania. In 2011 a law was passed that all state workers are required to live in NJ effectively cutting off any chance for those people to seek housing across the bridge in PA.
  1. In recent years Trenton has seen a lot of investment in the city. The train station has
    been rehabilitated, the Roebling Market, Roebling Lofts, New Court House, Thomas Edison State College Expansions and New Residential construction throughout the city.
  2. 10/04/17: Trenton Mayor, Eric Jackson, ribbon cutting @ 71 Clark Street, Trenton, NJ The Roebling Lofts (138-unit loft apartments) and welcomed its first 40 or so tenants. Rents as high as $2,150 for ground floor two-bedroom units & income-restricted studios going for $1,085. The anticipated tenants are young workers (especially when the offices are complete) and retirees. The first renters so far indicate that this is true (dean of students for a charter school is one of the tenants with her family, an artist and baby boomer empty nester).
  3. Redevelopment of historic buildings by using arts culture to draw visitors to the city. This is being done because surveys show younger workers prefer living in walkable communities and like the city more than the suburbs.
  4. A nearby boiler building is being repurposed as office space. Building a new structure. This is part of a plan to bring offices, apartments, and upscale shops and restaurants to the area. This is planned to be 200,000 square feet of office space and a central square called The Railyard, which would double as a concert and festival venue.
  5. A smaller industrial building, used to be an oyster cracker factory on Center Street, is now 18 condos.
  1. Entertainment:
  1. City’s popular events include the Art All Night festival and the Punk Rock Flea Market
  2. Entertainment venues
  1. The CURE Insurance Arena
  1. Restaurants:
  1. Trenton Social and Joe’s Mill Hill Saloon are on South Broad Street on the other side of Route 129.
  2. Across Elmer Street is the Roebling Market shopping center anchored by the Food Bazaar supermarket, which specializes in Latin American, South American, and Caribbean food
  3. Sabor Latino on Roebling Street
  4. Riconcito Latino on Hudson Street
  5. Puerto Barrios on Chambers Street
  1. Why Be a Landlord in Trenton, NJ?
  1. Phenomenal return on investment.
  2. Cash Flow
  3. Streamlined and fair eviction process.
  4. Strong rental market with high rents.
  1. Who Are Our Ideal Clients?
  1. People with a minimum $5,000 to invest via cash or equity from real estate
  2. People that are interested in using Self Directed IRAs to invest in Real Estate
  3. People looking to establish a source of passive income
  4. People making less than 6% on their investments
  1. What Qualities Do Our Clients Possess?
  1. They are open to creative ideas
  2. They are interested in building wealth through real estate investing
  3. They are not interested in micromanaging our process
  1. What Are Our Clients Frustrations?
  1. They missed the opportunity to get into the market when prices were more affordable
  2. They don't know how to earn more than they are on their investments and savings
  3. They can't seem to get out of debt and save to get ahead
  4. They won't make enough money to retire comfortably and in the timeframe they had hoped
  1. Why Should I Trust Outside In Enterprises?
  1. We work with our clients 1-on-1 and discuss their current financial situation, their goals, and provide solutions to get them moving forward to making their dreams a reality
  2. We are experienced Real Estate Investors ourselves
  3. We are experts in the Trenton NJ market
  4. We can offer references of current clients investing with us who started at ground zero and now hold investment properties that are performing well
  1. Which properties would you consider first if you were to invest?
  1. The ones with the highest potential returns. You can look here to see what we have available. http://outsideinenterprises.com/hot-list/. We've sorted the list based on highest yearly return (Cap Rate) first.
  1. So how does this work? What’s the difference between a Landlord vs. investor
  1. Landlord:
  1. Either purchases a property and handles the details him/herself.
  2. Or purchases a property and has a management company take care of the details
  1. An Investor supplies money to a company like ours in one of 2 capacities
  1. Either provides funding for a particular deal and earns a percentage of a said deal in this case, the investor's return is subject to whatever profits were made on the deal. Lends the money and earns a percentage of a particular deal in the case, the investor's return is subject to whatever profits were made on the deal. For example, Instead of you purchasing a property, owning it, managing the situation, and paying us premium price... One could become a "partner" in a deal, you'd supply the funding, we'd take care of the rest and then pay you a % of the profits. In this scenario, we of course would be purchasing a property for less than we'd be selling it to you for, the renovations would cost us less than they would cost you, and therefore, there would be more profits in the deal. The upside, projects typically take around 3-4 months from start to finish and then perhaps another month or two to sell. Therefore, if you’re so inclined, you’d be able to turn your money over roughly twice a year. The downside of this is that if for some reason it takes longer, the costs are higher, etc... Your % of the profits would equal to less than initially projected and thus, you might have made more if you had purchased / owned the property and had us do the work.
  2. Or provides funding the form of a loan and earns a set interest rate on said loan. In the case the money is not tied to any particular deal and the funds are “tied up” for a year. The interested is paid yearly. In this scenario, the money wouldn't be tied to any particular deal or property. It would be used for us to do the deals that we're working on. We'd require the funds to be "tied up" with us for a year and we'd offer you a 10% return on a yearly basis. Every year, you'd be able to decide whether you'd like your money back + the 10% or whether you'd like to roll it over for another year. The upside is that you'll know what your returns are. The downside, is that on your yearly return might be less than what you would have made had you gone with option 1.
  1. Just curious if you had more investors chose #1 or #2
  1. It's a mix. Really depends on the investor's comfort level, and other factors... Some like the assurance of knowing what their return will be. Less risk. Some like the idea of making more than 10% on their money, higher risk.
  1. Is there an option to participate in both? Diversify the risks?
  1. Yes, using $50k as an example, if you'd like, you can put $25k into a deal... and $25k at 10%.
  1. What would be the process of being an "investor" rather than a landlord (i.e., is there an agreement we enter into? if investment into a specific deal)
  1. We have an agreement that you'll be able to review / sign…
  1. How often do you update the investors of the progress?, etc.)
  1. We update you as there are significant milestones but you're welcome to check in any time.
  1. If I chose Investor Option #1 (putting money into a deal), are there any other deals that you are currently working on that need another investor that have better projected returns than what you have on http://outsideinenterprises.com/hot-list/? In other words, do you have any “flip” deals that you are looking into besides the ones on your hot list?
  1. Most of the deals that we are looking for funding on are on hot list (http://outsideinenterprises.com/hot-list/). That being said, we would need to have your investment as cash on hand in order to really do this type of deal because the really good deals don't make it to the hot list and as such, the money needs to be ready to go on a moment’s notice.
  1. How is the 10% interest paid?
  1. Annually
  1. How would the profits be shared if we are renting out instead of reselling?
  1. The profits are split based on the project monthly net. If you look here, http://outsideinenterprises.com/hot-list/, column “B” describes what we project as the yearly net income to be on that property. The rest of the funds are held on hand so that we can cover any expenses as the come up (taxes, insurance, repairs, inspections, licenses, etc...). Any remaining funds after 12 months are split 3 ways. We each get 1/3, and then 1/3 gets kept on hand as a reserve.
  1. How long will it take to renovate if hire your crew?
  1. 3 - 6 months depending on how extensive the renovation is, any unforeseen issues, and workload of our crew (how many other projects do we have going on)
  1. What'll be the price if we hire your team to make a property “turnkey" condition?
  1. Each property is different. That being said, on our list at http://outsideinenterprises.com/hot-list/, we try to give as accurate of an estimate as possible. If you’re going to hire my team to do the renovations, there will be a 15% premium charged for us to manage the project.
  1. What's the avg. time for reselling in a flipping?
  1. Depends on several factors such as; what's happening with the local market at the time the property is ready to sell, is the property occupied / producing income or vacant, is it going to be priced competitively, etc..? Could be 1 - 3 months.
  1. How can I tell if a property is worth flipping?
  1. Depends on several factors;
  1. If you are looking for rental income, than look for the properties on this list with the highest estimated Cap Rate. http://outsideinenterprises.com/hot-list/
  2. If you’re looking for a more short-term return (remember that you’ll pay short-term capital gains on anything that you make money on in less than a year), than look for the properties with the highest estimated flip profit. http://outsideinenterprises.com/hot-list/
  1. Can you provide me with references from current or past clients confirming that the earning projected are real?
  1. Yes
  1. How big is your team?
  1. At this time, 4 people in terms of real estate sales, rentals, management. As for renovations we have a few crews that we work with depending on who's available and how many projects we have going on at a given time.
  1. Properties listed as "as-is" on your list such as 105 Walnut Ave, Trenton, NJ 08609, the est. rehab of $25,000 is what is needed for renovate (if I hire your crew) to turn the property into "turnkey" condition?
  1. The 25k is if I hire my crew to get it past the city inspections. If you want to hire our crew, the price will depend on what you want done plus a 15% premium for our management of the project
  1. I hear that there is a population decrease in Trenton?
  1. Trenton faces some unique challenges, among them its lack of university and corporate anchors and a large amount of its property that is owned by the state, city, and county governments. There are some high crime rate areas... However, the number of killings in Trenton are down 37.5 percent from last year. Another issues is education. The Trenton school district’s 2013 graduation rate was 48.6%. So, parents that can move out of Trenton in order to give their children better educations do so.
  1. https://www.neighborhoodscout.com/nj/trenton/crime
  1. High crime leads to depopulation and greater expense in policing
  2. Depopulation leads to higher taxes which drives people away faster
  3. In a city where almost half of its budget is fixed on debt services and benefit obligations,
  4. ​Trenton's ability to fund discretionary budget items such as city services is limited
  5. Lack of services drives people away even faster thus creating a vicious cycle.
  1. The good news is that the city government is aware of this and there are several initiatives to work on changing this trend.
  1. Here are some highlights:
  1. Why Trenton? Why now? https://www.youtube.com/watch?v=r2Fesu2wUPQ
  2. 400-plus units of quality, affordable developments slated to break ground in the next 18 to 24 months https://www.youtube.com/watch?v=OUKJ3GuQqgs
  3. the city is also working to create a branding and marketing strategy
  4. Some culture:
  1. In the area immediately surrounding the golden dome of the New Jersey State House is the New Jersey State Museum, an exciting museum featuring four museums in one, with a planetarium, a fine art collection of more than 12,000 works, a natural history collection and an impressive assemblage of cultural history, archaeology and ethnography artifacts. After extensive renovations, the museum’s main building re-opened with exhilarating new exhibits that celebrate the state’s artistic and cultural life.
  2. Just across the street from the State House is the New Jersey World War II Memorial that honors and pays tribute to the courage and sacrifices of out "Greatest Generation."
  3. The Trenton Thunder, the New York Yankees’ AA baseball team, make their home at the Arm & Hammer Park.
  4. The Sun National Bank Center hosts major concerts and other top family-oriented events. During the past decade, international music sensations like Cher, Bruce Springsteen, Shania Twain, Elton John and Luciano Pavarotti have graced the stage.
  5. Other top sports events have included the 2006 NCAA Division I Women's Basketball First and Second Rounds and 2009 NCAA Division I Women's Basketball Trenton Regional.
  1. The center also hosts family-friendly entertainment like the Ringling Bros., Barnum & Bailey Circus and The Harlem Globetrotters.
  1. Art All Night - Trenton 2016 International Film Festival https://www.youtube.com/watch?v=VVYOxXEb3qw
  1.                  Trenton is trying to lure new businesses to the city's downtown by offering them a $5,000 signing bonus. I know it doesn't seem like a lot, but, it's an effort
  1. I read somewhere that vacancies are at about 7%.
  1. You'll see on my list of available properties (http://outsideinenterprises.com/hot-list/) that I calculate vacancies at 10%. So, we account for that in our estimated returns.
  1. But what about all the houses that the people who left used to live at?
  1. The houses that people used to live at either get sold, rented, foreclosed on, etc... Which for us as investors (at least for the time being) means that we have plenty of properties to choose from to invest in. Over 65% of the Trenton population are renters.
  1. Can you elaborate a bit on your property management services?   
  1. http://outsideinenterprises.com/property-management/...
  1. What's Included in your management services?
  1. Advertising and marketing of vacancies
  2. Lease agreements and tenant screening
  3. Coordination of repairs
  4. Rent collection
  5. Bill payments
  6. Evaluation of properties and rental rates
  7. Eviction coordination
  1. What's not included:
  1. Costs of repairs
  2. Legal fees
  3. License fees
  4. Filing fees
  1. How do you get to the estimated holding costs?
  1. We use averages over time to estimate what the estimated holding costs will be. How long does it take to turn over a property? How long does it typically take to rent the property out once it’s ready, etc…
  1. How do I know if the house is in good condition?
  1. Typically, we’ll state in our ads how much repairs we estimate are needed. We also have a list here: http://outsideinenterprises.com/hot-list. See column “G”.
  1. Do you think any repair need to be done?
  1. Typically, we’ll state in our ads how much repairs we estimate are needed. We also have a list here: http://outsideinenterprises.com/hot-list. See column “G”.
  1. For how many years have you lived in the property?
  1. Never. These properties are investment properties that we have not lived in.
  1. Why are you selling the properties?
  1. Because that's the business that I'm in. Buyer and Selling properties. We only have as much money as we have. We can’t buy every property / deal that comes our way. As such, the ones we can’t buy, we package up and sell to someone else.
  1. Are you open to some negotiation on the price?
  1. Somewhat. Our properties are priced very fairly at this time.
  1. If we pay cash and close quick how much would you need?
  1. If you were offering something less than what we have listed, we invite you to make a reasonable offer and attach proof of funds (POF) with your offer. That being said, pretty much all of our deals are cash deals with a quick close so, you're not really offering anything different than anyone else that would be interested in purchasing it.
  1. If we got other questions whats is the best phone number to call you? 
  1. We can be reached at 484-436-2622
  1. I noticed your property link at http://outsideinenterprises.com/hot-list. For the estimated rehab costs, are those pretty accurate?  
  1. The estimated rehab prices are based on what it would cost for our team to do the rehab. The numbers are subject to change should something come up in middle of the rehab that we were unable to to see without getting started on the actual project... That being said, in general, we don't typically see too much more than about a 10% - 15% variance in price (sometimes up, sometimes down).
  1. What does NOI Stand For?
  1. Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.
  1. The NOI numbers that you posted on http://outsideinenterprises.com/hot-list, are there some houses that are better than others, such as lower turnover?
  1. These NOIs are based on the estimated incomes of the properties divided by the estimated costs of the property... As such, some properties cost more than others... Some properties have better incomes... Some properties have tenants that stay longer, etc... It’s hard to know in particular which property is going to have more turnover than others. Each tenant and each property has it’s own variables. However, we’ve found that a typical tenant lasts about 1.5 years on average. Some stay longer some shorter. That being said, on the list, most of the incomes posted are calculated on an 11 month year as opposed to a 12 month year to account for the turnover.
  1. When I’m looking at: http://outsideinenterprises.com/hot-list. For a particular property, what things need to be done in order to get them rentalabe? For instance, if the repair says $7,500, how do I know what will need to be done?
  1. On any given property, the repair numbers will vary and as such, the estimates provided are our best guestimate based on our years of experience & the resources we have available to us. What needs to be done to one to the particular property will depend on the condition that it’s in, and what the city Inspection will turn up and require in order to issue a Certificate of Occupancy. If a property needs $7500 worth of repairs, it likely needs just about everything... floors, paint, kitchen, electric, plumbing, etc...
  1. What does it mean when a property shows $500 as the repair cost?
  1. Properties that show $500 as the repair costs, means that they will be delivered pretty much not needing any repairs or very minimal.
  1. What does it mean when the property/row is listed in bold lettering?
  1. The properties in bold are properties that are tenant occupied or will be delivered as tenant occupied
  1. What does “turnkey” mean if the property isn’t in bold?
  1. If the property says “turnkey” but is not in bold, it means that the property is tenant ready but is not generating income yet.
  1. What does “as-is” mean?
  1. “As-is” means that the Buyer/Investor is purchasing the property in it’s current condition along with any and all of it’s flaws, liens, bills, etc… The Seller makes no warranties on the property and is not responsible for any expenses related to the property.
  1. Do you have an internal team to do rehab or do you use third-parties to do it?
  1. We have a variety of contractors we work with... Depending on what projects we need done, who's available at the time, the most reasonable price (not always the cheapest), and the time frame we need the job done in are all factors that go into deciding who we are going to use for a particular project.
  1. I have other investment properties and sometimes the other companies I’ve worked with have given me an estimate on renovations but they don’t specify the contractor name. Are the people doing the rehab part of your internal team or are they contractors?
  1. We have a variety of contractors we work with... Depending on what projects we need done, who's available at the time, the most reasonable price (not always the cheapest), and the time frame we need the job done in are all factors that go into deciding who we are going to use for a particular project. This allows us to scale up or down depending on the workload.
  1. Are some streets better than others? I know block by block makes a difference to where you are in Trenton, NJ.
  1. Yes, the streets matter as do the blocks. However, consider that if you're planning to move to the area, have a family, kids, etc... then it makes a huge difference on what street & block you're on... If you're looking to invest, then it shouldn't matter too much what the block or street your property is on... Typically, the return is actually higher in the "worse" streets / blocks as the acquisition costs of these properties are lower and the rents aren't that much different in relation to the better areas...
  1. How do you come up with the estimated insurance costs. I have other properties with lower insurance rates than you’ve listed here: http://outsideinenterprises.com/hot-list
  1. We cannot know what each property insurance will cost, what every Buyer’s insurance company will give them as a premium and what coverages the Buyer wants to have. As such, we do estimate on the higher end based on what we insure our properties for. We have been told many times that someone else can give us better rates than the estimates we have listed. We have found that when comparing apples to apples and coverages to coverages, the rates don’t end up being too different. That being said, each Buyer can / should get estimates from an insurance broker they trust and they are not ever obligated to use the ones we use.
  1. I'm not an experienced investor so i would want to understand how it could be that in most cases the asking price is higher than the price presented in the EST. ARV (after repair value) column at the list (http://outsideinenterprises.com/hot-list)?
  1. Trenton is a great market to buy and hold. This means that while you'll buy the property for pretty cheap, if you try to resell it, you're not likely going to get the value out of it... The great potential here is the rental income in comparison with the total initial investment.
  1. On the spreadsheet (http://outsideinenterprises.com/hot-list) the key say that properties in bold letters means that the property is occupied. Turnkey means remodeled / ready to go but not occupied. My question is what does a row that has both (says turnkey & is bold)?
  1. If the row is bold and says turnkey that means it's occupied and therefore in relatively good repair... When it says turnkey (not in bold). That's when the property is ready for a tenant, but is not yet occupied.
  1. Do you know any property management companies in the area? I think it's very important to know the property manager before investing.
  1. There are several management companies in the area. You're welcome to check them out. We are also property managers and our course would like an opportunity to earn your business. http://outsideinenterprises.com/property-management/
  1. Do you have experience with investors from out of the country?
  1. Yes. We have investors from several countries.
  1. Is Chambersburg area (08609, 08611) more stability or safe for investment (in aspect of turnover of tenants/quality of tenants/monthly payment etc.) than East Trenton (08638, 08618).
  1. Chambersburg is a "coveted" area for investors. Many of them feel that the tenants are more reliable and stay longer. That being said, it's been our experience that the property prices are higher, not as easy to come by, and the returns are lower over a longer period of time. If you look at our hotlist http://outsideinenterprises.com/hot-list you can see examples of this. If you look online you'll see the same.
  1. Is your management system transparent to the investor. Can the investor can see his balance online and that all payments like taxes etc... are displayed.
  1. Yes.
  1. Considering that i'm looking for more stable tenants and a higher quality of property and areas (as long as the property has enough Est. Cap. Rate....), What 4 properties on your list, do you recomend for me as a first time investor in the USA. I understand that every street and every house/block is different and only one with experience would know the difference.
  1. We'll tell you what we tell every investor and what we do with our own money... We buy the ones with the highest est. cap rate...
  1. Can I suggest/offer a lower price than the asking price on the list or it the price listed the final/firm price?
  1. These prices are pretty close to set... We know that everyone wants to haggle and feel like they got a deal. But, it wastes a lot of time and energy. You're welcome to make a reasonable offer.  
  1. Does the insurance cover only a situation of property being damaged or tenant damage to the house, or does is cover cases in which a tenant's claim against the house owner - is there's such insurance?
  1. It is our understanding that the insurance covers the property, if something happened to it such as fire, vandalism, roof leak, etc... it does not cover the tenant's personal property, it does cover you in case you get sued by the tenant, or someone else... You are also covered for lost rent if the property becomes not rentable because of such damages. We can put you in touch with with several insurance agents that we use. They can give you better details on what is and is not covered.  
  1. Do you have some other good investments for me at these prices with these returns that are not on the list?
  1. What we have here, is what we have available: http://outsideinenterprises.com/hot-list/. This is what we have. Whatever is on the list. We try to keep it as up-to-date as possible.
  1. If relevant - can I (or someone else) schedule with you a date to see the houses inside and outside?
  1. Yes. However, keep in mind that properties that are tenant occupied are going to be more difficult to get into.
  1. How can I know the structural integrity of any of these properties. For instance, will I need to spend thousands of dollars over the next few years to replace things like; replace gas/electricity/chimney system etc...
  1. The typical house in the area is close to or even over 100 years old. We do not do extensive infrastructure analysis on the properties, we fix the properties to a level that will pass the city requirements to grant us the Certificate of Occupancy needed in order to rent the properties out. So, over time, you will need to replace, repair parts of the property including mechanical, chimney, and pretty much anything else that arises while you own it. This is why in our calculations (http://outsideinenterprises.com/hot-list) you'll see that we suggest that an owner set aside 10% of their yearly income and build up some savings so that when / if stuff like that happens, the funds will be available and the property over time pays for itself.
  1. Can I know who the current property manager is, or at least if a property is suitable to be under your management?
  1. For the most part, any property within a 45 minute driving radius of the Philly suburbs or our office in Trenton is where we manage properties. So, given the opportunity, we'd always like a shot at managing the property.
  1. I heard that in the Trenton area there is a lot of investors who tend to sell their properties for higher than the asking price if they know that a Buyer is from out of town or overseas. How can I be sure that you will not to mention the fact that I’m such a BUyer to the Seller of the property? 
  1. We are not sure who these investors are, however, we don't disclose any info to the Seller that the Buyer asks us to keep private (so long as it doesn’t affect the deal) and it goes the same for the Seller, we don't share with the Buyer any info that the Seller asks us to keep private (so long as it doesn’t affect the deal). Furthermore, the prices you see listed on our list (http://outsideinenterprises.com/hot-list/) are the prices. While the are subject to change depending on the particulars of the deal, timing, etc… Even if the owner decided to raise the price arbitrarily, we have other properties available and they would just lose a Buyer so, it wouldn't be in the Seller's best interest to do that.
  1. How do I know if the properties you’re selling are good for me as a first time investor? (http://outsideinenterprises.com/hot-list/)?
  1. In our opinion and experience, buying the property with the highest cap rate is the best investment that we offer. That being said, while we’ll guide you and advise you, it’s up to you to decide what a good investment is for you. That being said, our goal is to work with you in a way that you’ll make money, will want to invest more with us and tell everyone you know to work with us.
  1. When will a “turnkey” or “as-is” property be ready for tenant occupancy (http://outsideinenterprises.com/hot-list/)?
  1. “Turnkey” properties that are not in bold are ready for rent and are being shown to prospective tenants and Buyers. As such, when we get a qualified tenant, it will be occupied and we’ll bold it on our list. That being said, the property price will likely go up once it’s rented as now that it’s cash-flowing, the owner is likely not in a rush to sell it anymore. Typically, once it’s bolded (and as such, rented,), the for sale price will likely go up. It can take up to about 2 months to find a tenant that passes our criteria as a qualified tenant.
  2. “As-is” properties are typically in need or repair, you’ll likely see on our list (http://outsideinenterprises.com/hot-list/) that a property that is being sold “as-is” will have a relatively higher renovation cost than properties that are marked at “turnkey”. With that, being said, as an example, if you see a property that right now it's priced at $26,730 “as-is”, is the price being offered at that price if a Buyer buys now, before the property is finished and rented. Once it's finished and rented, the price will likely be going up to somewhere around $30,000 depending on what the final renovation costs are.
  1. Does "turnkey" mean that the asking price is a fixed price (http://outsideinenterprises.com/hot-list/)? 
  1. No. "turnkey" when not in bold mean is the price that we charge a Buyer to deliver the property to them "tenant ready". This means that it will have a C/O but is not yet occupied by a tenant. If it is in bold, this means that the property already has a tenant in it.
  2. "as is" mean that renovation costs is just an estimate (http://outsideinenterprises.com/hot-list/)? "as-is" means that this priced to deliver the property to the Buyer and the condition that it's in and it's up to the Buyer to coordinate the renovations, and anything needed to get the property "tenant ready". The rehab cost here is an estimate based on what our crew would cost us to do the work. We do not know or control the costs that the Buyer's crew might charge the Buyer to get the property "tenant ready".
  1. I see that most of the high estimated cap rate properties are properties that are in the middle or before renovation (http://outsideinenterprises.com/hot-list/).
  1. That is correct, since we are selling the property in "as-is" condition, and it's up to the Buyer to coordinate the renovations, we don't have to put in the time, energy, money, etc... to renovate it, we are able to sell it to the Buyer at a lower cost. In this case, the Buyer bears the responsibility to get the property up and running. Once we put in the renovations, the property will usually cost more to the Buyer and if there is a tenant in it, it will likely cost even more to the Buyer since we've put in the time, effort, energy, etc... to get the property cash-flowing and the new owner will receive a property that is already earning money.
  1. 26 klagg Ave. (http://outsideinenterprises.com/hot-list/):
  1. When will it be ready? 
  1. If you're Buying the property "as-is" it will be up to you, the Buyer to figure out when it will be ready and coordinating the renovations, etc... If you're buying it "turnkey", From the time you purchase it, it would take roughly 2 months before it's ready. Likely sooner, but it's hard to know until we've begun the process.
  1. Is the c/o guaranteed? 
  1. If you're buying the property "as-is" you've have to discuss this with your renovation crew. If you're buying it "turnkey", the price we offer it at is what it will cost to get it to you with a C/O.
  1. In Zillow is this house in Auction?
  1. In Zillow it says auction because we bought it at the auction and did not update Zillow.
  1. Is the Est. Rehab a conservative estimate, or perhaps could you offer it to me in a fixed price.
  1. This is the price that we estimate it will cost our crew to renovate the property... In this case, since it's being delivered "as-is" to the Buyer, the Buyer would be responsible to get estimates from their own crew, and coordinate the renovations. If you wanted us to deliver to you "turnkey", there would be a premium on top of the renovation costs for us to handle the renovations for you. If you're interested in a particular property, we can put together a "turnkey" price for you
  1. I didn't find the property on Google Street View (I tried to identify it according the pictures I saw in Zillow). Can you help?
  1. If you give us an address, we can try to help you locate it on Google Street View
  1. In the Google Street the the looks like a higher quality street in the area (both the houses and people), is that so?
  1. In our opinion, it’s hard to judge what you’re seeing on Google Street View. There are several websites you can go to to find statistics about a particular neighborhood.
  1. https://www.neighborhoodscout.com/about-the-data/crime-rates
  1. On a crime map it looks like a particular property is in a bit more dangerous area. is it so?
  1.  Here is a website that can help you figure out how safe a property is: https://www.safewise.com/blog/confirm-safety-neighboorhood-online-tools/. That being said, one of the reasons the prices of the properties are so low and why the returns are so high is because of the fact that a large portion of Trenton is considered to be in a higher crime area.
  1. Does have this fact an effect on your property management or on the collecting of the rental money? 
  1. As mentioned above, in our opinion there are areas that are considered worse and areas that considered better parts of Trenton... From our experience, you'll likely see a higher % return (cap rate) on properties in the worse areas than the best areas... Reason being is that the property prices are generally lower and the rents aren't as discounted in proportion to the acquisition costs. In "better" areas, the acquisition costs of the property are going to be higher and while the rents will be a bit higher, they will not be in proportion to the premium you paid for the property in a better area.
  1. Can you offer me a property that is "turnkey" at a total invest of around of between $26k-$27k?
  1. If you look at our list on http://outsideinenterprises.com/hot-list/ you can look at properties and see if there are any that are in that price range. Depending on what we have available at the time, there may or may not be such options.  
  1. I see a property that looks like it has both a good estimated cash flow and high estimated cap rate, but the total investment is a bit higher than what I have planed to invest. Is it possible to buy it for a bit a lower price?
  1. Typically, in this type of case, we’d be looking for you to give us an offer along with proof of fund (POF), before we’d spend the time & energy to review our numbers and let you know if we have some flexibility on the price. That being said, our numbers are pretty close to what we need on them... We do this because we really don't like to waste a whole lot in negotiations and haggling... As you can see, we’re offering the property at an already discounted rates.
  1. Zillow says that the house is for sale by owner for a particular price and the ad says: "Monthly rent roll is $1795 won't last". Do you have an explanation on what this means?
  1. If it’s not one of our own properties, we'll try to get in touch with the owner to get clarification. However, the numbers that we have on http://outsideinenterprises.com/hot-list should be pretty accurate as we get these numbers from the owner.
  1. Is there a chance that if I will await for a "special opportunity" (as you know it seems like in this area there exists a lot of foreclosed properties, etc.), that in an investment for around $30k-$40k I will get a return estimated $6k-$10k cash flow per year? 
  1. There are lots of deals here every day... There are also lots of investors including ourselves. The hot, hot deals, go before anyone has a chance to see them anywhere... You're certainly welcome to wait, and if some super duper deal comes along that we can't buy myself, We will put it on the spreadsheet like the rest of them and it's up-for-grabs on a first-come-first-serve basis.
  1. Someone who invests in this type of area warned me that the type of the roof and its quality is important to know before investing because once it leaks water or something else there's a leak of money too.. As the local professionals, do you think I have to worry about that?
  1. Each property is a different situation. It is up to the Buyer if they are concerned about this to hire / pay for a roofer to give you specifics about the roof of any property. On our end, if we don’t see any visable signs of water damage, we assume the roof is ok and if something does occur in the future, it will be handled by whoever owns it at the time. Typically, we have no idea how old the roofs are, or what "quality" it is either. If this as concern of yours, you can hire a roofer to give a certification. This would be at your cost. This is again why we encourage our investors to set aside money so that when something needs to be repaired (and it will at some point) the money will be there.
  1. Does turnkey mean that the property is ready for tenant with electricity, machines like a wash machine, dryer, basic furniture etc.?
  1. Turnkey, when it is not in bold, means the property will be delivered for that price, tenant ready, with C/O. It will not be "furnished". There will be a stove and refrigerator. No washer or dryer.
  1. What type of people rent a house with one bathroom upstairs? Dp these families have children?
  1. If you’re interested in the demographics of the area, you can find the info here.. We are equal opportunity so, as long as a tenant can afford to rent the property, and do not have any evictions on their record, we do not descriminate based on race, sex, religion, creed, color, etc…  http://www.city-data.com/city/Trenton-New-Jersey.html#b most of the families have kids.
  1. Does it means that every tenant has to bring their own furniture and appliances?
  1. Yes, that’s correct. The only appliances we’re required to provide by the city is a working stove and refrigerator.
  1. My lawyer suggested that I should ask for a basic inspection report (despite the low prices of these properties). Can I request such an the inspection report?
  1. An inspection report would be something that you, the Buyer would have to pay for. They start at about $500 and you'll have to be specific about what inspections you want… As the more thorough you’d like to be, the more they will cost.
  1. Could I see an example of a your Property Management Contract?
  1. Yes. We can send you a template. That being said, if you choose to hire us to manage the property, the contract would be catered to fit your specific needs.
  1. Can I pay the inspector with a credit card?
  1. I'm not sure if the inspector accepts credit cards, We'll ask. If they do, we'll let you know, if they don’t, perhaps you can use paypal, cash app, or a service like it?
  1. Can you send to me the insurance policy of a particular property?
  1. Depending on who owns the property, it may or may not have a policy on it. If there is a policy on it, and we can get it, we’ll be glad to share it with you. That being said, whatever policy is on the property now, will likely change when you own it as you’ll need to purchase your own policy.
  1. Once i decided to proceed what's the next step?
  1. We put together a contract, you review it, ask questions, sign it, then we’ll send it to a the title company. They will do a title search, figure out all the prorated fees, (taxes, title insurance costs, recording fees, etc...) You'll have to give us more information about who's buying the property... Will it be under a company name or personal name. We'll need details for whichever you choose...
  1. I wanna make sure that I’m paying for the property as we agreed. How do I do that?
  1. The title company will prepare something called a HUD1, this will show all the financial details for purchase of the property.
  1. Could you sell me a property that will be a total of $25k including all closing fees?
  1. Look on our list at: http://outsideinenterprises.com/hot-list/. Whatever the estimated project cost is, that’s what we project the project is going to cost. The further we get into the rehab of a property, the higher the purchase price will be. The closing fees and such don't go to us. They are paid to the title company for the title search and insurance, they go to the city, state, county, governments as taxes, recording fees, etc...
  1. Is there an option to make a deal of purchasing a bunch of properties for much cheaper (bulk price)?
  1. This will have to be on a case by case basis as each property has a different set of circumstances... In most cases, if you're buying a few from the same owner, they will likely be able to give you a better deal. However, if you're purchasing several properties but they have different owners, as far as each owner is concerned, you're only purchasing one property from them. So, again, depending on their particular situation, what we can negotiate with them, etc... you may or may not be able to get a discount if you're purchasing from multiple owners.  
  1. I’m waiting for my partner or my attorney to review the contact can you hold the deal for me?
  1. We'll be standing by to see your lawyer or partner's comments. However, you understand that so long as we don't have an earnest deposit or signed contract, we will still show the property and be trying to sell it to anyone that might want to buy it and be able to pay more $ and close soon(er).
  1. We agreed on one thing and your contract shows something else, can we discuss?
  1. Yes. We always want to make sure that any deal we do is equitable to both Buyer and Seller. We’re open to making reasonable modifications to our contracts.
  1. Where do we submit the deposit to?
  1. Depending on the particular deal, the deposit will either go to the title company, the owner, or a Seller’s agent.
  1. Once we have a mutually signed agreement, have calculated all the closing costs, etc... The title company will give us something called a HUD1 to review make sure everyone agrees with all the numbers, the will at that point also give us wiring instructions (where to wire the funds).
  2. Is the inspection result of the house ready?
  1. The inspector will get back to us as soon he can to let us know when they are availablE. We'll then schedule the inspection.
  1. How does homeowner’s insurance work on these deals? Does the existing policy transfer to the Buyer automatically or does the Buyer have to get a new policy?
  1. The Seller’s insurance policy will not transfer to you. You'll have to get your own insurance. We can give you a few people to contact about that... They will try to get you the best prices and coverages possible...
  1. From your experience, what is the range of costs in case of eviction?
  1. No less than $300.
  1. How long does it take you to evict a tenant if need be?
  1. Typically, no longer than 1.5 months
  1. Investing in Trenton isn't for everyone. So, if you or your partners aren't interested, we can understand that. In the investment world, the rule of thumb usually is the higher the risk, the higher the potential reward (of course on the flip side, the bigger the loss), the lower the risk, the lower the potential reward, but also the lower the potential loss.
  2. I live far away. How will this affect my ability to make money on your deals?
  1. The distance is a valid concern. 90% of the people that buy properties from us or through us and/or hire our company for property management are from out of town... So, the best we can do is give you references that you can speak to about our services / integrity.
  1. It appears that there has been a significant drop in population in Trenton. How will this affect my ability to rent the property or sell it?
  1. Here are a few links that can help you learn more about what Trenton is doing to increase the population and make Trenton a place that people will want to live in:
  1. http://uspopulation2017.com/population-trenton-2017.html
  2. http://www.nj.com/mercer/index.ssf/2015/05/trenton_officials_working_to_counter_citys_declini.html
  3. http://www.nj.com/mercer/index.ssf/2016/10/does_trenton_have_what_it_takes_to_remake_itself.html
  4. http://www.nj.com/politics/index.ssf/2016/06/nj_sees_large_drop_in_homeless_population_count_finds.html
  5. That being said, The "only" attractions about Trenton for investment purposes is that the cash flow and return on cash are pretty high as compared to the investment amount.
  6. Here is Trenton's Master Plan: http://www.trenton250.org/master-plan-elements/ there are a lot of details in here of what Trenton is up to in terms of turning things around. The City of Trenton is as concerned if not more concerned about all the negatives about Trenton than you or any other investor is worried about...
  7. http://www.trenton250.org/wordcms/wp-content/uploads/2015/12/IO-Report_ADOPTION-DRAFT.pdf. Using the link above, use search terms; "Crime" (35 instances), "Education" (122 instances), "Housing" (151 instances), "Residential Development" (3 instances), "Population" (42 instances)
  8. http://www.trenton250.org/vision-element/
  1. In regards to property management, I see that you charge 11% of the gross rent. I’m interested in seeing you’ll work with me on a net basis rather than a gross basis.
  1. The average rent in Trenton is about $950/mo. Using that as the rent, our 11% management fee comes to $104.5/mo. We don't get rich off of this. We do this so that we can support our investors and get compensated for our time, effort, resources, etc... Of that $104.50, we will end up with roughly $25/mo (as profit) after taxes, expenses, etc... Remember, you only pay the 11% when there is a tenant paying rent. If the property is vacant, we do not get paid. So, we do share in your "pain". It's our goal to get you tenants that pay and stay for as long as possible. That being said, you're welcome to shop around for management companies. There are some that charge less than we do. However, we can tell you that about half of our property management clients come to us after trying out some of the cheaper companies because they are not happy with the quality of service / attention they get from the other ones. We work towards a win-win-win (owner - turnkey - tenant) strategy. We can help you invest in a scaleable solution. We believe that what we offer is very fair.
  1. I’m reviewing some of the information I found about Trenton online. What does this mean: "At the 2010 United States Census, there were 84,913 individuals, 28,578 family units, and 17,747 families living in the city. There were 33,035 lodging units"
  1. These are just statistics for 2010. For the most part in and of themselves irrelevant to 2017 and the future. It's only relevant as a look back of population trent.
  2. 84,913 individuals = Total population
  3. 28,578 family units. What does 28,578 mean? = Units when the population (above) is grouped into families. So, roughly 2.97 people per family unit.
  4. 17,747 families living in the city. = Honestly, not sure how this differs from above. This might mean that in the 28,578 is counting people that live together but might not actually be family/related. 17,747 might represent actual relatives. But again, not sure. I'll have to look at the document. Can you tell me what link / page you find this on. Also, seems to me that we shouldn't be spending too much time on this since these numbers are from 2010 unless somehow they are relevant to today.
  5. While the city has 33,035 units to populate this amount of families?
  1. Because we don't know what the number 17,747 represents, we’re not sure how to answer this questions.   
  1. How many places to live in Trenton?
  1. There were 33,035 lodging units. Yes. 33,035 places to live at. This is how many homes the population lived in. This means apartments, single family, etc.
  2. As of 2016, according to http://www.towncharts.com/New-Jersey/Housing/Trenton-city-NJ-Housing-data.html there are roughly 34,694 housing units in Trenton.
  3. That's in increase of 5% between 2010-2015
  4. Roughly 63% of all housing units in Trenton that are rentals
  5. Median rent is about $950/m
  6. 80% of housing units are occupied
  1. How many families in Trenton?
  1. Total population in Trenton as of 2016 is 84,913
  2. Avg. household size is about 2.9 (people living in a unit). This means that 29,280 "households) live in Trenton
  3. However, avg. family size is 3.8 (people related to each other). This means that about 22,345 families live in Trenton.
  4. 53% of renters moved into Trenton between 2010-2016
  1. How many vacant properties are there in Trenton?
  1. 3,566 fully vacant buildings -- that's 15% of all the buildings in Trenton
  2. 339 are owned by the City of Trenton (9%) http://www.restoringtrenton.org/city-initiatives
  1. With regards to the houses in the NJ tab in the Excel. When you say "rehab", who is running this rehab project (either small or large)?
  1. This depends on the Buyer. The numbers we put there for the rehab is if we hire our crew to do the work for us. If a Buyer choses to use their own crew, those prices might be different as we don't know what their crews will charge them. If the Buyer hires us to manage the project with our crew, that number will be pretty accurate however, we have a 20% premium that we put on it for our management services.
  1. With regards to running the property while rented. What are the activities that are needed by the owner? Give you an example: property tax payment?
  1. This also depends on the owner. Our management services include receiving and paying those bills assuming that we have the funds either from the rent or from the owner to pay them. That being said, some owners like to do this on their own. It gives them a sense of "control" or whatever reasons they have.
  1. Utility payment while the house not rented?
  1. While the property is not rented, utilities are the owner's responsibility.
  1. I would like to understand the amount of activities the owner is expected to do. If we own 10 houses, any little activity is multiplied by 10. If we have more houses, it becomes worse. So need to understand what are the little to big items the owner is expected to do.
  1. This is a hard question to answer, every property is going to be different except for the following things
  1. Yearly
  1. Insurance
  2. Yearly landlord license
  1. Quarterly:
  1. Property taxes
  2. Water / sewer (if the property is vacant, owner's responsibility. If property is occupied, tenants pay for this)
  1. Monthly
  1. Gas / Electric (if the property is vacant, owner's responsibility. If property is occupied, tenants pay for this)
  2. Collect rents
  1. Bi-weekly (every 2 weeks)
  1. If the property is vacant, someone will need to tend to the yard / lawn / landscaping / snow removal. If occupied, tenants take care of this (unless it's a multi unit)
  1. Other than that, everything else is on an as needed basis.
  1. If the property is vacant, we'll need to market it (put up signs, online ads, listings, etc...) Show it, screen tenants, do walk throughs, make repairs, get inspections from the city, etc... Meet with tenants, sign leases, etc…
  2. If it's occupied, we'll need to tend to Tenant's needs if something goes wrong with the property. If the issues is wear & tear, then the owner is responsible. If the issue is because of neglect or abuse by the tenant or their guests, then it's the tenant's responsibility to pay.
  1. I would like to have a call and discuss some of the opportunities in the file you sent.
  1. For the most part, you can call us anytime. If we can answer, we’ll pick up, if not, leave a message or text and we'll call you back when we’re available. Alternatively, we can set a time and date for a call. Whatever works best for you.
  1. What's the worst that can happen (historic "monte carlo") and hypothetical?
  1. historic "monte carlo"
  1. Tenant doesn’t pay rent. You’re forced to evict them.
  2. Property gets damaged and you need to make repairs that cost more than what you’ve set aside or anticipated.
  3. Property stays vacant for longer than anticipated. When property is vacant, you still need to pay taxes, insurance, city landlord license.
  4. Renovation costs go higher than expected.
  1. Hypothetical
  1. Property stays vacant for a year or more
  2. Repair costs exceed the ARV
  3. Tenant doesn’t pay rent. You’re forced to evict them. They get so angry, that they destroy the property while moving out.
  1. Can you provide contact # of two investors so I can get their feedback/experiences?
  1. Yes
  1. Can you provide proof of 5 properties performing according to expectations roughly (12 percent capitalization).
  1. We can provide data to show actual returns on properties we own or manage (minus any personal / identifying data)
  1. Can you provide samples of: contract with investors/explanation of 2 bank accounts etc. 30% contingency, 1 month delay, tax forms etc.
  1. ?
  1. Can you provide: Sample of contract with tenants?
  1. Yes
  1. I want to be involved/help as much as possible 1 day/week.  Is this ok?
  1. So long as you’re actually being helpful as opposed to “getting in the way”
  1. Can you reduce the finders fee if: I help you close/help you have more energy?
  1. I’m open to some sort of arrangement. We can discuss what this looks like.