So heres my my situation. My cousin is a resident of virginia and wants to gift me 2 handguns. I will apply for 2 permits from my local pd but i know we cant just do a private sale because hes not an nj resident. He will be coming up here to do it but im assuming we will need to go through an ffl correct? Thanks for any help.

Correct.  The transfer will need to be done through an FFL here in NJ, as you are the recipient, and reside in NJ (handguns must be transferred in the state of residence of the recipient).

You will either need to ask the FFL to hold on to the second handgun for 30 days, or you will need to apply to the NJSP for an exemption to the 1-gun-a-month law.

Is he coming up here anyway, and just bringing the handguns with him?  Or is he making the trip explicitly to transfer the handguns to you?  If the latter, it's unnecessary - you and he can simply arrange the transfer with an FFL over the phone, then he can ship them to the chosen FFL.

And here's the other kicker...  TECHNICALLY, there is no exemption in the laws of NJ to permit one to transport handguns to a given destination for the purposes of selling them.  For repair?  Yes.  For target practice?  Yes.  But not for selling them.  Best advice - use an FFL that also has an on-premises range (like Gun4Hire, RTSP, TTC, or others) - your cousin will need to drive straight there (no stopping off anywhere else once he gets into NJ), and he's bringing the handguns there to shoot them on the range (which is legal under NJ laws...  2C:39-6f, if you care to read it).  Once there, complete the paperwork, decide which one of the two is going home with you, then transport directly back to your home (since you are now the owner, it's legal for you to transport it to your house...  not legal for your cousin to do so prior to the transfer).

Shipping them to the FFL...  even if he still makes the drive up here for other purposes...  saves a lot of hassle.

Thanks alot for the info. He is coming up here anyway not just for the selling of the 2 handguns but we wanted to figure out the best and easiest way to do it.

make sure he knows Nj transport laws