All Forum Posts by: Nick Aalerud

GREAT idea, guys & gals.  I'm exceedingly familiar with Metro West and North of Boston, if anyone needs any assistance.  Accountability is a must for this biz - especially when things get frustrating!

Nice work @Steve Bracero!

@Rich Hupper... not knowing your town, and being very frank...  but that's probably a deal all day long for condo conversion, NOT for buy & hold!  Let a large hedge fund who's happy with a 4% return buy that one.  Otherwise, run all your numbers on a condo conversion basis (if it is where I think it is) and then get HM and a partner to do the deal, OR wholesale it to Legit local buyer (I know of at least one AAwesome one!)

I literally think you get our quarterly AA Premier Properties agent meeting dates list from @Shaun Reilly ,  say "hmmm... I'm going to pick the SAME NIGHT as them EVERY quarter, as a joke," and you book your networking nights.  LOL.  I don't know how this ALWAYS conflicts, I'm sorry bud!  

Hey @James Guerriero!  Welcome to BP!!  I second everything @Shaun Reilly just said, LOL.  

As for the 25% down payment - if you're having trouble coming up with it, you have a couple options, although each one should START with you getting acquainted with and following the advice of your new commercial mortgage professional (if you need a referral, let me know and send me an e-mail!).  Your mortgage pro will essentially run the deal and tell you what funds or income DO and DO NOT count, etc.

A few options:

1.  Borrow from friends & family -- this may  be obvious, but see if they'd be willing to accept a loan at a slightly higher int rate (7-10%?) to invest in your deal!  Check with the mortgage pro though to see if they disallow 2nd mortgages on the property... you may have to structure it privately.  

2.  Get the seller to hold a 2nd mortgage -- if you're going after motivated sellers, or even market sellers, many of them may be in a position where they can take a large chunk of the cash now from your primary and hold a soft seller 2nd, at a slightly higher interest rate.  Part of your negotiations - but remember to check with your mortgage person first to ensure they'd allow this!

3.  Start wholesaling or partnering on rehabs:  Wholesaling is a great strategy for those who don't have a ton of cash or credit, and is a way to pick up some $$ in a few months after you start your marketing machine up... BUT EVEN better, I support it since it will teach you how to bring in off market deals over and over again, despite market changes and even after you are flush with resources.  

BP, CREONLINE.com and lots of blogs around here can assist.  Wishing you luck!  And I love Topsfield!  :)  

Hi @Marko Scretchen!  Welcome to BP!!  I'm also here if you have any Q's about Boston, Boston North or Metrowest.  Congrats on moving into the "more passive" income phase!

Cristina, come meet a bunch of us this Wednesday at the Chelmsford New England REIA. Lots of us go there and network, we'd love to meet you and you'll learn a bunch, too.

Hi @Rich Hupper !  Long time no talk, and welcome to BP.  

As a local rehabber / developer, and a former wholesale "pro", AND as a licensee, happy to help in any way I can.  There's also a bunch of meetups / REIAs I'd invite you too, so you can network with fellow local rehabbers / wholesalers - most of what I know today, I learned LOCALLY.  

Check out a previous post of mine where I linked to my blog, I did an article specifically on What NOT to do as a Wholesaler & Licensee...might give you some basics on the legal stuff (disclosure, etc)  link is here:

http://aarealestatementor.com/investing/licensee-investors-listen-up-how-not-to-handle-a-deal/

As many said above - having a BUYER already lined up, or at least having a buyers LIST is your first step in wholesaling.  There are a bunch of us on here that are buyers, and I rely heavily on wholesalers in the area for my deals.  I try to do 15-20 a year.  

I'm happy to help as I can, though I'd strongly suggest reading a lot more online to get some basics down, and then coming to a local REIA meeting to fill in the blanks - you can get a TON of info without paying any $$ just by connecting with us here.

Looking forward to seeing you at a meeting.  As a shameless plug - hard money lender @Ann Bellamy, @Daniel Stroe , Julio Vega and I run a free networking event called Black Diamond, we're having a party tomorrow night at Leo's Restaurant in Worcester, at 6PM - if you can make it, we'd love to have you.  

@Zachary Clough :  I don't use that PRINT disclaimer, unless I'm sending them my first "professional" piece, i.e. not a greeting card or a yellow letter, but a form letter or flyer.  

My rule of thumb tends to be that until I send out that professional, branded & typed letter, or until they respond to any of my marketing efforts, disclosure being an agent doesn't necessarily have to happen until that point.  You DO run the risk however of sending them a YL or handwritten note, and if it's now listed and they call you... then you disclose to them that you see it's listed with an agent, and since you're also a licensee you're happy to work through them"

Good thing I logged into BP this week!  Hahaha.  Trying to be more active on here.

Thanks @Shaun Reilly for the shoutout, and happy to clarify my POV on Wholesaling as a Licensee.  @Becky C., @Victoria Avery, @Justin Silverio , @Douglas Snook, @Chuck Langonzi     I actually posted a blog on the topic a couple months back, discussing how INTENT is extremely important, you can check it out here:

Licensee Investors, Listen Up - How NOT To Handle a Deal

Essentially - YES - it's intent driven.  

And to clarify -

1.  I'm a principal BUYER for rehab & development projects, 

2.  I'm occasionally a WHOLESALER of deals when I'm at my limit of active projects or something doesn't meet my criteria, 

3. I run a real estate office with licensed "AAwesome" AGENTS who occasionally find projects that work best for both seller & them as regular LISTINGS (and not wholesales), either through MLS or NON-MLS (depends on situation and client/seller's needs).

So one could say I'm all 3, depending on the seller, the project, the timing, or if we break it down to the raw "how do I handle this deal," the default answer I go to, while thinking of all the options is, "What's my BEST win-win scenario here, where everyone leaves this transaction thinking I'm a rockstar - whether I buy the deal or not?"

Hope this helps some of you clarify a bit - as Shaun & Douglas and others mention, a slippery slope - but so long as you DISCLOSE your intent, you're *usually* safe.  Over disclose, in my opinion.  

The lovely "T" was in the office the other day wondering why we don't get our deals from MLS. She comes from the retail side, where MLS is the go-to source for retail buyers. I decided to have a bit of fun to show her why! As a training exercise, I pulled up a series of distressed properties (short sales, foreclosures, failed septics, etc.) as an example and told her we would be analyzing and making offers on these four properties. And I got to spend a full day checking out meth labs, which makes me happy, even though I know I'm probably wasting time! The results? We offended 2 of the 4 agents/sellers with our offers, and the other two didn't bother to respond to us.

Lesson complete. (LOL)

Sellers and listing agents still feel their homes are worth top dollar in this hot (though cooling) market — even if it has significant cosmetic, systems or structural issues. And I realize I will not be the person to sway them — after all, even the short sale sellers, who LEGALLY CANNOT accept any proceeds from the sale unless it's dictated and approved by their lender, get angry when they see their $400K house is now worth only $260K due to how the heating needs to be replaced and the roof leaks, with mold all up in the rafters (and their appliances are from 1962, but we're not even counting that).

Needless to say, I'm still on the hunt — for off market deals only!

Been driving by a property every day on your way to work that looks like this? Then give us a call!

We offer a finder's fee on deals we close and can help people with homes in danger of foreclosure, with water or fire damage, or who just need to sell quickly — no renovations needed or questions asked — as long as we get the deal before it's listed on MLS! And if it IS on MLS, we're still happy to make an offer on it, but the seller may be a bit shocked. Remember, we have to figure in a minimum profit figure, where a homeowner making an offer would not.

Ok, now it's back to the hunt. ‪#‎ShutUpAndDoIt‬!