I'm a resturant owner transitioning to Real Estate Investing. I've been soaking up as much information as I can on the podcasts, youtube etc.
I think I have an opportunity however I don't know which direction to take.
I have a friend that owns a lakefront property in Massachusetts (where I'm located). It's 3062 sqf, 1/3 acre, waterfront property home with 3 beds and 3 baths. She does not want to use a realtor. She's asking 700K. Comps are 750k - 850k in the area.
Other information: The home is located 10 minutes from Gillette Stadium (home of the Patriots and Patriots Place) and a specialty outlet mall.
The house does require some repair however nothing foundational.
I'm sure there is an opportunity here to help her and myself jump into the game however, I get caught up in calculating and figuring out which deal would be the best option. PLEASE HELP I'M OVERWHELMED WITH INFO AND NEED GUIDANCE.
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
2y
@Nikki Irving-Miralrio Have you run this through any STR calculators? (AirDNA). Does the seller own it outright (is seller financing an option), would the seller be open to assuming the loan? With rates where they are at now creative financing is worth exploring if the seller is willing.
I'm thinking STR. Similar homes in the area range from $300-$500/night. It has great potential for football season and summer. My estimate is $50k (padded) for repairs.
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
2y
@Nikki Irving-Miralrio Have you run this through any STR calculators? (AirDNA). Does the seller own it outright (is seller financing an option), would the seller be open to assuming the loan? With rates where they are at now creative financing is worth exploring if the seller is willing.
I'm a resturant owner transitioning to Real Estate Investing. I've been soaking up as much information as I can on the podcasts, youtube etc.
I think I have an opportunity however I don't know which direction to take.
I have a friend that owns a lakefront property in Massachusetts (where I'm located). It's 3062 sqf, 1/3 acre, waterfront property home with 3 beds and 3 baths. She does not want to use a realtor. She's asking 700K. Comps are 750k - 850k in the area.
Other information: The home is located 10 minutes from Gillette Stadium (home of the Patriots and Patriots Place) and a specialty outlet mall.
The house does require some repair however nothing foundational.
I'm sure there is an opportunity here to help her and myself jump into the game however, I get caught up in calculating and figuring out which deal would be the best option. PLEASE HELP I'M OVERWHELMED WITH INFO AND NEED GUIDANCE.
THANK YOU!!!!
@Nikki Irving-Miralrio, I've got a handful of clients in and around the Boston area. For me, based on your angle, unless your friend can pull off some unique situation, a highly executable scenario here would be to purchase the property with a rehab loan. You mentioned that the property didn't need much BUT you also mentioned that you thought you'd be able to buy it at a decent discount to market. If you use the rehab loan route, you get the money financed to complete the modest rehab AND you have built-in justification to a 30-year lender that the property is worth the $850k+. You could then refinance all of your money back out as quickly as 90 days.
You get a freshly rehabbed property, with none of your own money in the deal and you can STR really well up there. I've done similar situations with a handful of clients specifically in that area.