Flipping USA SEP 2017 New Jersey Edition

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Real Estate Marketing and Media 

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Issue 9 

NJRESN 

CHANGING & PERSONALIZING 

THE DYNAMICS OF THE FLIP 

MILLENIALS 

ARE THEY A GOOD FIT 

FOR YOUR FLIP? 

CONTRACTORS 

HOW TO HIRE A GOOD ONE 

Ü 

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up today for your FREE online 

subscription at 

FlippingUSA.com/Magazine 

Entrepreneur 

Jon Steingraber 

We Buy Houses for CASH! 

908-262-2289

QUALITY 

ACQUAVELLA, CHIARELLI, SHUSTER & CO., LLP 

Certified Public Accountants and Advisors 

A Full Service Boutique CPA Firm 

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212-867-1319 

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2 FlippingUSA.com

“Premier Direct Private Lenders” 

When others say no, we say yes! 

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Real estate Development | acquisitions anD Renovations 

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Flipping USA | New Jersey edition Issue 9 

3

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 


In This Issue 

Flipping USA/NJ edition is your local guide to a real estate property investment. 

8 FLIPPING FORECLOSURES FOR QUICK PROFITS 

by Glen Gallucci 

14 HOW CAN I FLIP HOUSES IF I HAVE NO MONEY? 

Newbie Q&A 

16 ON THE COVER: NJRESN 

Changing and Personalizing the Dynamics 

of House Flipping 

by Gail Steckler 

We help 

you find 

the perfect 

flip 

20 RENOVATION OF THE MONTH 

TRENDS OF 2017 

22 MILLENIALS: ARE THEY A GOOD FIT 

FOR YOUR FLIP? 

25 HOW TO HIRE A CONTRACTOR 

by Joe Otero 

27 PEOPLE YOU NEED TO KNOW WHEN 

RENOVATING A HOUSE 

advertising & 

submissions 

HOW TO ADVERTISE 

To advertise with Flipping USA magazine or request a media kit, 

please contact us at 908-262-2289 Ext 118 or email Hassan@ 

FlippingUSA.com. Deadline for ads: the 5th of the month. 

EDITORIAL SUBMISSIONS 

Email gailsteckler@FlippingUSA.com. Deadlines for editorial: 5th of the 

month. 


5

The Publisher’s Desk 

R 

contact us 

Founder 

Lenny Hernandez 

Founder 

Joe Otero 

Editor & Marketing 

Hassan Qayyum 

Publisher 

Gail Steckler 

908-230-5295 

gailsteckler@flippingusa.com 

Design & Production 

Kathy Tarbell 

908-262-2289 Ext 115 

kathy@FlippingUSA.com 

FlippingUSA.com 

© 2017 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. 

Flipping USA, in this September issue, continues its mission 

of providing education and a network of advertiser 

resources to assist the investors, lenders, and contractors that 

are rejuvenating neglected, abused, and distressed properties in 

neighborhoods throughout New Jersey. 

In many ways, the work all of us do is, well, philanthropic. 

We give back—restoring life to broken-down properties, providing financial 

income to tradesmen, and delivering a return on investment to investors. All this 

while actually doing good for the families that will buy and live in our renovated 

homes—and for the towns and cities that get to replace troubled, blighted, and 

eyesore properties with rebuilt ‘virtually new’ houses that attract hard-working 

families and stabilize the tax rolls. 

See the article on how NJRESN: Changing and Personalizing the Dynamics 

of House Flipping in a monthly networking event led by Jon Steingraber, 

a master motivational speaker specializing in the real estate industry. Learn 

the ins and outs of Flipping Foreclosures for Quick Profits in a tell-all article 

by Glen Gallucci. And don’t miss the tips and techniques offered by Joe Otero as 

he leads readers through the renovation process by starting with How to Hire a 

Contractor. 

Two new columns have been added to the magazine. One is Newbie Q & A, 

which is an open question and answer ‘Dear Abby’ style column that readers can 

use to pose a question and receive an open answer that we can all learn from. 

This month, the reader asks…How Can I Flip Houses If I Have No Money? 

The answer is far-thinking and instructive. Make sure you read this one! 

The second regular column is Marketing 101. The purpose of this column 

is to help our advertisers and renovators to grow their business through the 

application of marketing. This month’s article, Millennials…Are They a Good 

Fit For Your Flip? Offers an interesting one-size-may-not-fit-all perspective by 

targeting demographics at the outset of your flip project. 

Flipping USA will continue to print a hard-copy publication; but in an effort 

to reach the broadest possible readership, the magazine is now available online. 

Log into FlippingUSA.com/agazine to make sure the free subscription is sent to 

you every month. 

Gail Steckler 

Publisher 


Real estate and business expertise 

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Kessler Law offers its clients specialized real estate expertise. We 

represent clients in the acquisition, financing, leasing, joint venture and 

sale of commercial, multi-family and residential properties. 

At Kessler Law we have the experience and accessibility expected of 

a real estate boutique. We are aware of market conditions, allowing us 

to effectively counsel our clients and negotiate transactions. Ultimately, 

our strengths are understanding and helping our clients realize their 

business goals. 

Our clients include: 

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individual property owners, investors, 

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owners of portfolios of residential 

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Practice Areas 

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Execution of writs 

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973-773-1200 ofc • 973-773-6533 fax 


7

Flipping 

Foreclosures 

for 

Quick Profits 

By Glen Gallucci 

Most newbie investors and 

just about everyone for 

that matter has probably 

heard about all the quick and easy money 

you can make by buying and selling 

foreclosures. Or as the new term is called 

“flipping” foreclosures, as well as other 

distressed or vacant houses. 

People hear about this from friends, 

contractors, real estate agents and other 

investors. Each one has a story on how 

they made a quick profit from “flipping” 

one of these foreclosures and then proceed 

to tell you that it would be a great 

way for you to also make some money. 

Maybe you nodded your head enthusiastically 

and said, “Sounds great—I’ll look 

into it.” Newbie investors who join local 

real estate investor clubs see many of the 

members actually flipping these foreclosures 

and are all ready to jump in flipping 

properties with both feet! 

But what is “flipping properties,” and 

how do you go about doing it and doing 

it correctly? I’m sure people only tell the 

stories on when they make a quick profit 

and perhaps leave out the fact that you 

can actually lose money with one of these 

babies! 

Basically flipping foreclosures 

involves buying a house that is being 

foreclosed, perhaps sprucing it up and 

then reselling it within a very short period 

of time. And many times, selling the 

house before you even own it! That is the 

ultimate quick flip for quick profits. The 

upside to flipping instead of buying and 

holding real estate is that when you buy 

and hold to rent, you obviously become a 

landlord. Being a landlord is not for the 

faint of heart nor the undercapitalized 

investor, although many investors do 

prosper nicely when they buy foreclosure 

properties cheap and their tenants pay on 

time. 

My recommendation for beginning 

investors is start by doing a few basic flips 

first to build up a cash reserve. That way, 

whether you buy and flip or buy and hold, 

you will at least have made some cash 

from your flips. As I always say, “Cash is 

King!” 

The Basic Flip 

There are two types of “flips” in real 

estate. The first type is finding a property 

and then, without actually buying it, sell 

the property (or flip it) to another person 

for a profit. You’re not really selling the 

property itself, you’re selling the exclusive 

right to someone else who will purchase 

the house. It sounds impossible, but it’s 

actually pretty simple once you understand 

how it works. 

Suppose I sign a contract to buy a 

property. When I sign a contract, it gives 

me the exclusive right to buy this property 

by closing on it, and obligates me to 


Join the Flipping NJ team 

& earn while you learn. 

Navagating the real estate business 

can be tough on your own. 

We have members with as many as 15 years of experience you 

can learn from. Accelerate your desire to become a Real Estate 

professional and get in contact with us today. 

info@FlippingNJ.com 

Position Yourself For Sucess! 

Bird Dog 

Brings us deals and gives us heads up on pending 

deals in areas in which we do business. 

Field Reconnaissance 

Manager 

Responsible for field reconnaissance and 

scouting of pending properties. 

Works under the supervision of the Senior 

Reconnaissance Manager. Must have reliable 

transportation, knowledge of real estate, 

estimating home repairs, HVAC and ability to 

determine condition of property. 

Duties and Responsibilities 

Inspecting properties identified by 

company in assigned county using 

provided check list. 

Use of mobile device (iPhone/iPad) to take 

photos. 

Send required information to Analytical 

Manager for review. 

Estimating repairs. 

Securing properties after they have 

been acquired by company. 

Analytical Research 

Manager 

Responsible for researching 

properties, utilizing internal tools 

and research sites such as MLS, tax, 

and flood maps. Strong knowledge 

of Real Estate needed. Excellent 

interpersonal skills needed. This 

position works closely with our 

Field Reconnaissance Manager. 

Duties and Responsibilities 

Make sure lists are done correctly 

and on time for auction sale 

days. 

Property research. 


9

do so as long as the terms and conditions 

of the contract are met. In the contract 

under “buyer” I make sure that the phrase 

“and/or assigns” appears right after my 

name. 

Having a contract gives me an interest 

in that property. The “and/or assigns” 

gives me the right to assign that contract. 

Having the right to assign the contract 

is critical, because this means that I have 

the right to turn around and assign or 

sell this contract to some other person or 

entity. 

Now say we put a closing date 45 days 

or so from the signing of the contract. You 

now have the right and 45 days to find 

another person or investor and assign 

the contract to them to buy the house for 

more money than you were originally paying. 

Thus giving you a quick profit. 

For example, let’s say I sign a contract 

to buy a property on 555 Main Street. I 

know that property is worth $250,000, 

but I get it for $165,000. A week or two 

later I assign the contract to a buyer for 

$10,000, so they are buying the house for 

$175,000, which is still a deal ($10,000 to 

me, then $165,000 to buy the house.) If 

the new buyer will pay $185,000 for the 

house, that means you just made another 

$10,000 or a total of $20,000! 

You must have a contract to buy the 

property before you try and flip it as it is 

this contract that enables you to assign 

the property without being accused of 

practicing real estate without having a 

license. By assigning the contract, you are 

assigning your interest in the property. A 

basic flip is a good way to raise some quick 

and easy cash that you can use to finance 

your next deal! 

The Buy, Fix and Flip 

The buy, fix and flip is what most people 

mean when they talk about buying and 

fixing properties. A fix and flip involves 

buying a distressed fixer-upper that you 

then fix and improve and sell for substantially 

more than you spent on the 

purchase of the property and the repairs, 

improvements and holding costs. 

Please understand the whole trick to 

a successful transaction for you is your 

ability to get a good price on the property 

to begin with. Anyone can pay too much 

for a house in order to own it. The beauty 

in buying ugly, distressed properties is 

most buyers won’t look past the raunchy 

smell, peeling paint, cruddy and matted 

carpet and the beat up kitchen and baths. 

They mostly just say, “oh yuk!” and they 

leave the house! 

A savvy investor can look past an ugly 

appearance and wisely assess the situation. 

What is this house really worth all 

fixed up? How much do I need to fix it 

up? That is the key to profit. How much 

to buy, fix and sell this foreclosure or any 

distressed house to make a nice profit. 

Foreclosures that need a ton of work, 

or complete gutting, or ones with structural 

problems will not provide a smart 

start. As a beginner, look for foreclosures 

that mainly need cosmetic repairs. New 

windows, front door, paint, carpet, maybe 

new siding or a new roof. You will be 

surprised how much just those things can 

change a house and make the value rise 

dramatically for a maximum return for 

your investment. 

Here is a short list of common 

improvements (along with basic cost estimates) 

to spruce up a house so that it will 

appeal to new buyers. 

Nice Clean Landscaping 

$1000 to $2500 

New Front Door with nice handle 

$500 to $800 installed 

Refinish Wood Floors 

$2.50 per square foot 

New Outdoor Light Fixtures 

$40 

New Carpet 

$1,500 to $2,500 

Kitchen Stainless Sink 

$250 installed 

New Toilets 

$200 - $300 installed 

Ceiling Fans 

$150 - $200 installed 

Fresh Paint Interior 

$1500 to $2,500 

New Stove 

$600 

New Refrigerator 

$600 

New Dishwasher 

$600 installed 

Plus anything else to make it look 

cutzy! I also like to install mini blinds on 

all windows. It costs less than $5.00 each 

and make the house look a little warmer. 

The level of quality for improvements 

is important to your return on investment. 

Carpet, flooring, cabinets, and even 

paint jobs have a low end, a mid-range, 

and an upper end. Unless you are dealing 

with upper-income properties (which I 

wouldn’t suggest for a beginner investor), 

you’ll want to avoid putting in upper end, 

top-of-the-line improvements because the 

return on your investment just won’t be 

worth it. Don’t fix it up as if you’re going 

to live there, because you are not. Fix it up 

so it looks nice and cozy. 

Mid-range quality usually works well. 

You can ask your contractor to give you 

“builders grade” quality which looks good 

yet won’t break the budget. Improvements 

should match the neighborhood 

and can be even a tad nicer. That extra 

edge can make it sell faster. (cont’d pg 12) 


For more information 

call (201) 836-7300 

BUY ~ RENOVATE ~ SELL 

Residential & Commercial Properties 

JUMP START 

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? 

Or flip wholesale deals while offering your investors 

complete construction renovation and seal the deal? 

We can help you achieve your investment goals! 

You can now work with our professional team! 

PAST SAMPLE PROJECT 

East Brunswick 

Purchase Price ($): 180,000 

Renovation Cost ($): 48,000 

Total Investment ($): 228,000 

Sold Price ($): 315,000 

LTV: 70% 

Peak Properties, LLC 

is a professional real 

estate company that 

specializes in buying and 

selling houses for cash! 

We purchase these houses 

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Houses that are difficult to 

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PeakPropertiesLLC.com 


11

Before You Buy 

Scout out the range of housing prices for 

comparable properties to yours in that 

location. See what other houses in that 

neighborhood have sold for in the past 

6 months. These are commonly called 

“comps.” This will show you what price 

you should be selling your house and see 

if there is enough profit for you before 

you make your offer. 

Safety Issues 

Having your team members in place 

is also a recommended practice before 

investing in real estate. You don’t have to 

do it alone. Some team members are: 

Real Estate Attorney 

Guide you in your contracts 

Title Company 

Will insure you receive clear title 

Home Inspector 

Notify you of structural and 

other conditions of house 

Appraiser or Realtor 

Guide you in selling prices of 

similar houses 

Contractor 

To give you an estimate of re 

pairs needed 

Sell the House Fast! 

A little trick that many people do who 

sell their own homes is to put chocolate 

chip cookies in the oven when having 

open houses. It makes the house smell 

great! Stay away from sprays as people can 

be allergic to it or sometimes the whole 

house will smell like, well, that artificial 

smell found in bathrooms! 

Great curb appeal is important. You 

want a potential buyer’s first impression 

to be so strong that they’ll want to see 

the interior. After all, if the outside looks 

great, imagine what the inside looks like! 

This sets their mind frame in a positive 

attitude. 

A Short Summary 

With all the things you do to sell the 

property, think, “neat, clean, and goodsmelling.” 

Curb appeal gets buyers out of 

the car and a neat, new-looking interior 

that looks spacious and smells wonderful 

will induce them to buy. If you do those 

things, the property will sell itself! 

When buying, always start with the 

figure that you will be selling the house 

for when you’re done. Then subtract the 

rehab cost along with any and all expenses 

you will incur. Things like legal fees, 

real estate taxes, financing charges, utilities, 

real estate commissions, etc. Don’t 

forget to put your profit in the numbers. 

After you have all expenses and profit 

accounted for, only, then will you arrive at 

your offer price for the house. If you can’t 

buy it for that amount, and you pay much 

more, you will not make any money. 

Lastly, if the numbers don’t add up, 

don’t hesitate to walk away from that 

property. Unless you make money, you 

will not be able to tell anyone about your 

successful “fix and flip” foreclosure deal. 

And you certainly don’t want to be the 

one who has the horror story! 

Now go find ‘em, buy ‘em, fix ‘em and 

flip ‘em! 

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 New York Times in a popular series 

featuring a tour 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 New Jersey’s premier direct private 

lender to other real estate investors. 



13

Q 

newbie 

A 

How Can I Flip 

Houses If I Have 

No Money? 

You would be hard-pressed to find “cookie-cutter” 

or stock solutions to all of the issues that 

arise in renovating a distressed house. Every 

investor has individual needs, and most distressed houses 

do a good job of keeping secrets. These shortcomings and 

surprises often distress and confound both newbies and/ 

or seasoned flippers. There are always questions. 

Q: 

A: 

I would like to start flipping houses but I am 

short on funds. Is there anything I can do? 

There are several ways you can enter the house 

flipping market without a lot of money: 

Try Wholesaling. The objective is to find an offmarket 

deal with equity and make an offer. If the seller 

accepts, you will enter into an assignable contract with 

them and look for somebody that wants to purchase the 

property for more than what you are under contract for. 

Next, you assign your rights to the contract over to your 

buyer and you make the difference at the closing! 

Try Leveraging. If you have some money but not all 

of the money to purchase and renovate a property, you can 

obtain private/hard money loans. Most of these require 

that you put anywhere from 10-20% of the purchase price 

as a down payment and they will fund the rest. Some of 

them will also fund 100% of your construction budget 

once approved. Even though there’s usually a large cost associated 

with these types of loans, it allows you the ability 

to leverage your money and do a deal that you wouldn’t 

have had the capability to do. Some money is better than 

no money! 

Think about Partnering with someone that has 

money. This is great when you have a good network of 

people that like the idea of being involved in real estate but 

don’t have the time to manage the project. Earn your equity 

by putting in the time that others don’t have available! 

Dip into your savings and/or 401K retirement funds. 

Raise money from family and friends to invest 

(often having them use a self-directed retirement plan account). 

This provides easy lending for you while offering a 

good service to the ones you love. It’s a win-win! 

Flipping USA seeks out investor (and contractor) 

questions—especially from the newbies—those 

investors and renovators who are new to the industry. 

(Of course, we also welcome questions from more 

seasoned pros, too.) 

For our part, we will present your question to experienced 

and knowledgeable industry authorities to 

get an appropriate solution. If selected, your Question 

and the Answer will be featured in the Newbie Q & A 

Column in an upcoming issue. 

Please submit your house flip questions to gailsteckler@ 

flippingusa.com. Use the subject line house flip question in 

your email and we will get back to you. 


Hassan@FlippingUSA.com 


15

NJRESN 

Changing and Personalizing 

the Dynamics of House Flipping 

by Gail Steckler 

For a newbie house flipper, 

the seemingly easy process of 

purchasing distressed property 

and flipping it for a profit, as shown on 

TV, is something like Alice stepping into 

Wonderland. It can be wondrous, even 

awesome—but how to get from the dream 

to the reality can seem more like drawing 

a cherry pitfall card reminiscent of the 

childhood game of CandyLand. 

Even for a seasoned real estate professional, 

there is always much to learn 

about buying, financing, renovating, and 

flipping distressed houses…and the truly 

unexpected, but never absent surprises 

that pop up and demand attention from 

every nook and cranny, municipal code, 

funding arrangement, marketing presentation, 

and so much more. 

Isolation and frustration with a 

learn-by-doing initiation sparked real 

estate investor, builder, developer, educator, 

and business coach, Jon Steingraber 

to form the New Jersey Real Estate Social 

Network (NJRESN) as an innovative 

learning and social networking platform. 

I was privileged to attend a recent 

meeting of NJRESN and witnessed firsthand 

how people and their companies 

fit right in to connect with just about 

everyone who is anyone…or who wants 

to be someone within the New Jersey 

real-estate community. The group motto 

“Seek to Serve” is a highly energized 

community that connects on an extraordinarily 

personal and professional level 

within a culture that is embracing, caring, 

supportive, and educational. Even though 

I was an observer and first-time attendee, 

I was immediately drawn to participate 

with enthusiasm by the sense of sharing, 

helping, and belonging that connected 

everyone. 

Starting with just two members in 

March 2008, NJRESN has grown to attract 

over 10,000 people since its inception. 

According to Steingraber, membership 

is flourishing in a caring community 

that is drawn from a wide range of support 

services including seasoned and beginning 

house flippers, financial lenders, 

home inspectors, plumbers, electricians, 

environmental engineers, architects, attorneys, 

mortgage brokers, construction 

contractors, real estate agents, house photographers 

and videographers, landscape 

contractors, house staging companies, 

remediation specialists, and more…as the 

list of allied providers keeps growing. 

At its core, NJRESN is focused on 

providing first-time and seasoned repeat 

house flippers and others in a whole host 

of allied services to come together, learn, 

have fun, and assist each other while 

building a social and professional network 

of trusted service providers, colleagues, 

and friends. 

The monthly dinner-meeting format 

features a compelling, current, and indepth 

educational program. (The dinner 

by itself, is a delicious reason to attend; 

but the educational presentation is truly 


thought-provoking and out-of-the-box in 

its content and purpose). 

Jon Steingraber is above all, a 

student of people. He is a survivor, a 

life-long learner, and a gifted presenter. 

He is also unbelievably smart, energetic, 

and a natural entertainer. Given all of 

that, I suppose it is natural that he could 

transform what to someone else might be 

a very analytical presentation into a ‘sitting 

on the edge of their seats’ scenario. 

He did. For almost three hours—with all 

kinds of examples and permutations to 

bolster his premise. It was riveting. 

This particular presentation that I 

attended detailed five separate possible 

scenarios for flipping a house. Really… 

Five ways. From the questions asked and 

the member response, both experienced 

and new house flippers and seasoned 

trusted advisers, too, thought there is 

just one way to flip a house—you buy a 

distressed property, you make repairs (or 

hire contractors to do the work), and then 

you sell it…right? 

Well…not really. 

In the educational presentation 

(which was professionally recorded and 

is also available online to the 650 annual 

paid members), Jon Steingraber made a 

delightfully detailed and provoking case 

for each of the four different flipping scenarios 

that he presented using the same 

house, bought at the same price, to arrive 

at multiple solutions and profit points. 

These he worked through in detail, with 

compelling photos, slides, and graphs. 

Each example was presented along with a 

thoughtful and detailed consideration of 

time, talent, cost, and profit. This was an 

eye-opener to all in attendance. House 

flipping is certainly not a one-solution 

process! 

For those members that may have 

missed the presentation, or for members 

who want to review the detail more 

closely, the entire NJRESN was captured 

on professionally filmed video that is 

available for viewing in the NJRSN Online 

Library accessible to paid members. 

NJRESN members have access to 

an archived library of filmed monthly 

presentations that covers meetings and 

presentations for the past four years. All 

collateral material including slides, checklists, 

and other educational tools are also 

available online to members. 

A lot of thought goes into deciding 

upon and preparing relevant and 

timely educational topics for the monthly 

meetings. Presentations are developed 

in response to current issues, upcoming 

opportunities, member challenges and 

member requests. But they also need to 

encompass the full spectrum of house 

flipper and the support service member 

interests. In addition, topics for consideration 

are chosen to stimulate questions 

and comments in order to foster the 

social community. To this end, NJRESN 

authors frequent blog posts to keep the 

members connected with conversation, 

recommendations, and introductions that 

are fresh and inclusive. 

Comments from NJRESN members 

on the website provide a glimpse into the 

experience of attending the events: 

“It’s been my experience that these 

meetings are more like reunions where 

you meet great relatives that you had 

no idea were part of your family. Everyone 

is truly interested in helping each 

other achieve their goals. 

“I always walk away feeling even more 

passionate about real estate after listening 

& learning from Jon Steingraber.” 

“Truly a game-changer for real investors 

with a soul and passion to do right all 

the time” 

“A pool of never-ending knowledge” 

“This was an excellent group with high 

caliber people. Open networking, organized 

networking, great education & 

vendors, and oh yes, awesome food!” 

“This is THE MEETUP group in NJ that 

you want to attend if any!! Always a 

great and friendly crowd of investors 

from long time rehabbers to newbies 

and all treated with utmost respect and 

all looking to increase their network! 

You can go to this meeting and literally 

walk out with a deal in place.” 

Perhaps the strength and success of 

NJRESN is not really surprising. Founder, 

Jon Steingraber, is a driven real estate 

investor who started house flipping in 

the pursuit of financial independence. 

He began with nothing and did not come 

from wealth. 

He is a man on a mission—a mission 

to teach others how to move beyond 

“Money frees you to become more of who you are, it 

doesn’t change you. I want to help people who are 

willing to work hard to achieve that kind of freedom 

and do more good in the world. I believe that when 

good people have more, they give more.” 

– Jon Steingraber 


17

At its core, NJRESN is focused 

on providing first-time and 

seasoned repeat house flippers 

and others in a whole host of 

allied services to come together, 

learn, have fun, and assist each 

other while building a social and 

professional network of trusted 

service providers, colleagues, 

and friends. 

adversity—to grow, and to give back. This 

year, after a decade of learning, teaching, 

and coaching others towards financial 

independence, he is personally set to flip 

12 houses in a part-time endeavor that 

occupies somewhere between 5-10 hours 

a week. 

It is Jon’s belief that for far too long, 

too many people have severed relationships 

over money. Some say “money can’t 

buy happiness” but Jon also makes the 

point that “neither does poverty.” Jon 

says, “Money frees you to become more 

of who you are, it doesn’t change you. I 

want to help people who are willing to 

work hard to achieve that kind of freedom 

and do more good in the world. I believe 

that when good people have more, they 

give more.” 

NJRESN creates an environment in 

which members are encouraged to pursue 

financial independence as they connect 

with each other on an emotional level to 

learn and share what they have learned as 

the way to grow and develop. 

For more information about membership 

in NJRESN, or to register as a guest to attend 

an event, log onto NJRESN.com. 


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Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. 


19

Renovation 

of the Month 

— A Call for Entries — 

Every successful flip thrives 

on solutions—so we want to 

know what issues you had to 

deal with—both those you saw going 

into the renovation, and those that 

were surprise discoveries along the way. 

Each month we will spotlight one 

of our readers’ success stories. 

What did you see initially? … 

and what surprises may have caused 

concern? 

Every flip tells a story. So starting 

at the beginning, we want to hear what 

potential you saw in the house you 

bought. Fill us in on the opportunities, 

expectations, and profit-goals that triggered 

you to make the purchase. 

For the middle—what did you find 

that presented problems…and what solutions 

did you ultimately decide upon? 

Which experts did you call upon…and 

what did they recommend? 

For the end—How was this flip 

different than you thought it would be? 

Was it on budget? On time? Did it sell 

quickly at the price you asked? How 

long did the entire flip take? 

We are looking to showcase the 

best of the best flip-house stories sold 

within the last 12 months. 

Email a brief description with 

before and after photos to tell us about 

your journey in flipping the house. 

We will select and highlight a different 

flip-house of the month to inspire 

the FlippingUSA readership—and to 

bolster brand recognition for you—and 

the solutions-driven contractors that 

worked on your flip. 

Send your entries to 

gailsteckler@flippingusa.com. 


Recruiting Real 

Estate Agent 

Apprentices For a 

New Category of 

Brokerage 

WE WILL GIVE YOU ALL THE 

SUPPORT YOU NEED TO EARN 

YOUR FIRST LISTING IN 60 DAYS 

(908) 262-2289 Ext. 119 

info@ufreeagent.com 


21

MILLENNIALS 

Are They a Good Fit For Your Flip? 

Millennials, the 18-36 yearolds 

who are forming their 

own families and beginning 

to think seriously about home ownership, 

are well-seasoned in economic realities. 

In many cases they are paying off student 

loans and credit card loans that have 

fueled a lifestyle filled with gadgets, accessories, 

conveniences, and entertainment. 

Salaries for most millennials grow 

slowly, so it is taking longer to pay down 

their debt. According to a recent 

National Association of Realtors’ 

Home Buyer and Generational 

Trends Report (NAR 2017), almost 

half (46%) of millennial owe loans 

averaging $25,000; and yet this 

same report notes that millennials 

make up the largest segment of 

house buyers. 

So how are millennials balancing 

life costs and a desire for home 

ownership? 

It seems from this report that 

they are buying less expensive 

homes (24%) that are smaller in 

size (24%) and require some remodeling 

work (20%). While Millennials may prefer 

to buy a brand new home, pricing realities 

may be driving a significant number of 

them to buy resales. 

The availability of new single family 

homes—which is what the Millennials 

may prefer—is either not in this market; 

or available at very high prices that 

are not typically within reach of young 

couples or families. 

Is this a market segment house 

flippers might want to target? 

Millennials appreciate convenience, 

“newness” and affordability. They have 

an image in their mind that has been 

reinforced by TV house design shows. 

They kind of know what they want. While 

the cost of a new construction may be out 

of reach, a flipped house can capture the 

very similar “newness” feel—at a price 

they are willing to act on. Once a flipper is 

done with renovations, the house is 

essentially “new”—never lived in. 

So—why not think first of 

the demographic to which you are 

targeting the property, and then 

make your offer, floor plan layout, 

materials selection, and design all 

with the targeted buyer in mind? 

Millennials may not like to compromise 

and they have high expectations, 

so if you can deliver their 

dream in a made-over flip, in a nice 

neighborhood, at a price-point 

they can afford you may be ahead 

of the game in getting it sold. 


CONTACT 

www.vrrealtours.com 

(908) 262-2289 

sales@vrrealtours.com 

399 Campus Drive, Suite 310 

Somerset, NJ 08873 

Share your space. Save your time. 

We are the PREMIER, all-in-one virtual tour solution. 

From providing trained photographers to setting up your 

dedicated Real Tour Gallery, we've got you covered. 

Flip over for 

more details! 

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Make an account at 


This will set up your very own 

dedicate page which will house 

all your Real Tours. 

Let's get in touch. We cater to 

each of our clients unique 

needs. Let's discuss all aspects of 

your project so we can provide 

the best service possible. Call us 

at (908) 262-2289. 

Clean your space, schedule a shoot 

date, and relax. We'll handle the 

rest. 

You're now the proud owner of a 

Real Tour! You will have a custom 

portal to direct your audience 

towards, and you can 

even display the Real Tour on your 

personal or business website as 

well as your Facebook page. 


23

CONTACT 


(908) 262-2289 

sales@vrrealtours.com 

399 Campus Drive, Suite 310 

Somerset, NJ 08873 

So, Why Use VR Real Tours? 

For Realtors 

For Builders 

For Businesses 

For Rentals 


How to Hire a 

Contractor 

by Joe Otero 

Congratulations on buying a distressed 

property and entering 

the ranks of successful house 

flippers! Here are some useful tips on how 

to get from that run-down property you 

bought to selling a market-ready house at 

a good profit. 

When it comes to hiring a contractor, 

the three biggest concerns are credibility, 

reliability, and cost. The success and profitability 

of your project hinges on your 

ability to control the process by managing 

time and cost. 

To be sure that you won’t get caught 

later by what you can’t see now, I recommend 

that you hire a licensed home 

inspector. It will be his job to prepare a 

detailed report listing the scope of work 

to be done (and what remedial action is 

required). The inspector’s report will serve 

as your guideline or checklist. 

If you intend the house to be a flip, 

then you either should hire an experienced 

full-value property appraiser 

(one who can appraise the property as it 

should be when finished; and not as it is 

in its current state), or work with an experienced 

realtor to find three comparable 

market-ready properties. 

With your price-target in mind and 

your renovation work list in hand, you are 

now ready to set a budget and timeline 

goal for getting the property fixed up and 

ready to market. You already know what 

you paid for the property, and with the 

appraisal in hand, you can determine the 

expected spread between your costs and 

the approximate expected sales price. 

Allow for some profit, and the remainder 

should be your working budget. Now you 

are ready to make some contractor hiring 

decisions. As you narrow down your list 

of choices, ask the contractors you are 

considering to submit copies of recent 

licenses and current insurance along with 

their bid. 

There are two ways you can hire 

contractors. One way is hire an experienced 

and reputable General Contractor 

who provides you with a single point of 

contact. His job will be to hire and orchestrate 

the various specialty work crews. 

The other way to go is to hire individual 

specialty contractors as needed— 

plumbers, electricians, remediation specialists, 

carpenters, etc., and essentially 

act as your own “general contractor” to 

oversee the project. 

In any case, I recommend that you 

obtain bids from three different contractors 

before deciding on who you will hire. 

In the case of a general contractor, that 

means evaluating three firms. Get recommendations 

and a clear understanding of 

the scope of work the estimate represents. 

If you choose to hire independent 

contractors, you will need to obtain three 

different estimates and recommendations 

from each contractor category. While you 

may (or may not) save money assembling 

and managing your own contractors; you 

will be definitely be more hands-on in this 

capacity—taking a larger chunk of your 

time and responsibility. (I only recommend 

this route if you are experienced 

in the various trades and have the ability 

to manage scheduling of multiple teams; 

since your cost-savings can easily end up 


25

ecoming cost-overruns.) 

As you may see, there are benefits in 

both approaches. 

With a general contractor, you can expect 

a full renovation by a seasoned team 

that is done efficiently so you save time. 

Also, all inspections and permits will be 

obtained as the job progresses. So there is 

less stress, but it may cost you more, or it 

may work out to the same amount, or it 

may actually save you money. 

If you hire and manage the various 

sub-contractors independently, you may 

be able to save money…if you choose the 

right contractors at the right price—but I 

recommend this approach only if you are 

experienced. In addition, you will have to 

manage the permits and inspections to 

make sure that they are filed and done as 

needed. It is essential that everything is 

done up to code standards. Inspections 

are necessary and cutting corners can cost 

you aggravation, frustration, time, and a 

lot of money for violations and remediation 

rework. 

Once you make your choice in hiring 

a contractor, be sure to add that contractor 

to your house renovation insurance 

policy and confirm that he has added you 

to his insurance policy before you proceed 

further. 

In any case, whether choosing to look 

at three general contractors or three of 

whichever specialty sub-contractors are 

needed; the bidding process is essentially 

the same. 

From the home inspector’s report, 

you should prepare a detailed list of the 

work that you want done. Give this list to 

each candidate and they should give you 

a price. Some contractors will be all inclusive 

with budget allowances for materials; 

and others may separate the bid into a 

price for labor and a price for materials. 

Have a lawyer draw up a contract 

that details the cost, a detailed list of the 

scope of work, and timelines with start/ 

finish dates…and include a contractor 

agreement that provides for a “clean work 

space” with no garbage left at the end of 

each day. 

The contract can also assign responsibility 

for obtaining permits and inspections. 

And of course, the contract should 

include a progress payment schedule. The 

progress payment should be based on 

the size of the renovation project and the 

amount of work completed. It is not recommended 

to give 50% deposit up front. 

In fact, I recommend a deposit of 20% to 

start if it is needed to buy materials—or 

you can offer to purchase your own materials 

to save on cost. 

In order to maintain control over 

your renovation, I recommend that payment 

is released as work is completed— 

not in advance of work to be done—so 

that your final payment is made when you 

are fully satisfied that all the work has 

been done. 

Finally, keep notes on the project –especially 

with regard to issues and contractor 

solutions. You may also want to rate 

the contractors you used so that you can 

have a ready-to-go team of professionals 

you can use again on your next house flip. 

Good luck and happy flipping! 


21 

RENOVATION PROFESSIONALS 

YOU NEED TO KNOW 


27

Introduce Yourself in Our Directory 


CALL 908-262-2289 ext. 106 for details. 


29

FLIPPING 

NJ 

KEN VAN LIEW 

RESIDENTIAL & COMMERCIAL 

DEVELOPMENT 

GEORGE KHALIL 

JV PARTNER 

CHRISTIAN RODRIGUEZ 

JV PARTNER 

JOE OTERO 

JV PARTNER 

MICHAEL HERNANDEZ 

JV PARTNER 

Lenny Hernandez 

FOUNDER 

MICHAEL KRIECK 

SALES & ACQUISITIONS 

NOAH LUK 

SALES & ACQUISITIONS 

ANDREA SPENCER 

OFFICE ASSISTANT 

HASSAN QAYYUM 

ANALYTICS & MARKETING 

FRANK RUBINO 

ASSOCIATE 

THOMAS HILLER 

ASSOCIATE 

GARTH SANDIFORD 

ASSOCIATE 

YOLANDA PAREDES 

ASSOCIATE 

DOUG HANNIGAN 

PROPERTY PRESERVATION 

HAROLD EDUARDO 

PROPERTY PRESERVATION 


contact Hassan at Hassan@FlippingUSA.com 


31

Consider It Sold. 

A Better Experience 

Unlike traditional real estate which has not changed in 

decades, you don’t have to list your home, repair or upgrade 

it, keep it clean, show it to strangers and then negotiate a 

closing date. We provide a better experience. 

With The Support You Need 

NJ Offer buys your home directly from you. We do all the 

paperwork, we pay closing and title fees, you pick your own close 

date, and if you need to stay in your home a few days beyond 

closing you can. We provide support throughout the entire 

process and we will move you for free. 

And The Value You Deserve 

Different from flippers who offer to buy your home directly – 

at the lowest price they can – we make our money by 

efficiently renovating and selling your home. We don’t try to 

deprive you of the value you have built up in your largest 

investment. 

CONTACT 

www.njoffer.com 

(908) 262-2289 

info@njoffer.com

Flipping USA SEP 2017 New Jersey Edition

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