Western MA Investing

[Zachary Ferrara]

Recently discovered Bigger Pockets and looking to dive into the world of real estate investing. I have worked on a couple flips in Springfield with my father Who's a broker and have been house-hacking a duplex in Palmer for three years. I never really intended on becoming a real estate investor but the possibility of financial freedom is driving me to make it my career. In the process of obtaining my real estate license currently and searching for any investors who know the Springfield / Western MA market and whether or not wholesaling is possible around here.

[Alan Brown]

Hi @Zachary Ferrara,  Welcome!  Sounds like RE Investing is calling your name!  Go with it buddy!  

I don't know Springfield at all, but have been focusing on Pittsfield area, and I think the area is really prime for Wholesalers as well as flippers as well as buyand holders... As you probably know, Mass laws seem to be some of the worst for landlords in the whole country, but if you can get past that and screen tenants like crazy and be pickey, the numbers are pretty strong for buy and hold.  

There seem to be new jobs coming at a nice strong clip as well,  which means more and more new homebuyers who want spanky shiny renovated houses, and there's very reasonable median pricing, which might mean room to go up!  I love flipping, so if you start finding deals, put me on your buyer's list. 

We all need jobs to get some money for working your way into buy and hold, so why not wholesaling?  I try to use my flipping income to grow my investment portfolio.

I"m a big proponent of getting your license, mainly because you become an expert in the area you work in and you get to know deals when you see them, and can most effectively determine ARV's which are the backbone of the business I think.

Ask your dad though;  he would know best if you put yourself into any kind of legal jeopardy as a wholesaler who has a real estate license.  You might be held to a different standard than an unlicensed wholesaler.  The idea goes that as a licensed professional Realtor, you automatically have the upper hand over an ignorant desperate seller, and they might sue you (and your Broker) later for having taken advantage.  Some Managing Brokers won't allow you to do it, for the legal liability AND because they would need (and want) you to run any transactions through the brokerage.  It makes sense that they would want you to earn them money, and if you have to cut in your broker, it may put a few more constraints on the profit margin of a wholesale.  I always figure if you're just super up front with people, put it in very very simple writing that you may make money off the resale of this property, you're unlikely to run into trouble.

Good luck and listen to EVERY BP podcast-- it's really a Phd in Real Estate.  Over 400 hours of amazing insights from literally hundreds of amazingly successful Investors who share their brilliant moves, and more importantly, their worst MISTAKES!!  That's key, because you get to learn from THEIR mistakes, and hopefully make less of your own.

Cheers!