All Forum Posts by: Brian J Allen

@Scott E.. I guess my curiosity is how the buyers' agent and the buyers didn't know the age of major components.  This should be addressed prior to making an offer.  Roof, Windows, HVAC, Electrical, Plumbing.  These are as important as the rent roll, and the expenses.  But on the flip side, Sellers and their agents often do the same.  Take a higher offer from someone who they think will Retrade after inspection instead of the offer from an educated buyer.  They hope they end up with a higher price from uneducated buyers.  The goal of these transactions is for the agents to level the playing field on both sides so there is a mutual gain from trade.

@Kyle Curtin.  I try not to ever go back on anything in the deal, I would rather have my client walk after an inspection then try to renegotiate.  This is one of the biggest issues with agents that I encounter.  If you do not have the expertise to evaluate a multifamily and know 95% of the issues that will come up at inspection and price for them, you should sell single family houses and worry about colors and wallpaper.

The best way to address these issues is to PRE NEGOTIATE them.

eg. If the appraisal comes in short the buyer will pay X over the appraisal, or both parties agree to the bank's appraisal as the purchase price.

Negotiating after you have the property under contract is typically sign that you have not done your due diligence as an agent.  I had a listing earlier this year on a Flip that was great.  The buyer's agent tried to renegotiate so we told the buyers they could have their money back.  Turns out they were willing to take the house as is for the original price. Imagine that.

@Jourdan Mercer if you are looking for off market deals in Worcester, They are mostly with the agents. I have buyers who are searching for bigger properties and when they find one they have to unload smaller stuff right away. There is a constant stream of off market stuff that is just about to be sold. Additionally, the way the market is now, agents reach out prior to listing properties on the MLS. They would rather have a guaranteed sale than put things on the MLS and let them sit, even if they get less money. This allows you to negotiate on price, terms and timing which are very hard to do with an MLS property. Find yourself a good multifamily agent who does 10 or more multis a year and they will have a constant deal flow. We typically know of 10-20 off market properties at any given time that can be sold. If you like one, then they will agree and go shopping for something bigger. When you look at the MLS you will often see properties that are there, priced appropriately that don't sell, or drop in price. This is often because they are looking to 1031 exchange these properties so they want the best buyer at the best time. Best of luck with your search!

is there a link to this you can share?

lots of old heating systems in Worcester

It is all about value add.  Find out what rents are.  Find out what repair costs are.  Learn all the projects that are going on in your area.  Familiarize yourself with zoning.  Meet the people who are doing deals and learn from them.  

@Rehan Uddin

Congratulations on beginning your journey. I would like to echo the sentiments of the others here on the forum. Also, Welcome to Worcester!!! I had the honor of putting 2 first time buyers into Multis last week, 2 great days! The key is to know what you are looking for and what you are willing to settle on. In terms of loans, FHA is great, but the Mass housing loans are often better. One of my buyers bought a $470k 3 family with $7k out of pocket and will live for almost free! We have a great team, ready and willing to help if you go the multi route.

@Joe Villeneuve and @Kyle Curtin. Guys i think these are flip sides of the same coin.  I agree with Joe that making $ should be the goal.  I am an economist so the only way to know if you win is to make more $.  However, in Behavioral Economics, the goal can be to acquire and stabilize the asset and perhaps make your area a better place.

As we are all aware with family, we would rather have our kids have a job/life where they feel purpose and are able to enjoy that, then to have them have a lot of $ and not feel like they have purpose.

When we read all of these testimonials we hear about so many people who got into REI because they hated their day jobs. I think that is sad, but it is often the case.

One of the things that makes me happiest as a real estate agent is seeing someone else make a good investment property decision.  Sometimes it is getting someone into their first 6 unit or 12 unit building.  Other times it is like this week when I was able to help 2 first time home buyers get 3 family homes where they can build wealth long term.

I am not sure what the goal is or should be.  This year I am trying to do 50 transaction sides while still keeping my standards and actively talking investors out of bad decisions.  I could do 75 a year if I just was an order taker like most RedFin agents, but that is not my goal.

The hope is that by helping people buy things right, they will trust and come back for more.

I don Think @Kyle Curtin has something going here.  Find something you want to do, and know that the $$$$ will follow.

What does everyone else think?

Nate, 

I worked for AT&T Wireless as a Real Estate consultant for 20 years, and I got upset at how I was supposed treat our landlords and I refused to lie to them. 

At thanksgiving of 2018 I decided to try Real Estate full time and since then I have personally viewed 2,168 investment properties for myself and clients.

in 2018 I sold 1 property

2019 13 properties

2020 14 properties with higher price points

2021 35 houses, and 43 Transaction sides and over $20mm in sales, this made me Top 8 of agents and a Diamond Producer for all of Central MA

2022 25 sales so far in the down market, with another 6 under contract, many of these off market.

The key is hard work and support from your colleges and your broker.

Do you want to sell million dollar houses?  Do you want to be the best condo guy around?  Do you want to make money as a property Manager or rental agent?  Or be a general practitioner?

The choice is up to you, but you need to be in the right FIT.

I have new agents I worked with who decided they wanted to be Wholesalers and hit for the fences, others wanted to do things part time, others wanted to do rentals until they could support themselves doing purchases/sales.  Another agent had the skill to be great and wanted to be in Boston, so I set her up with a broker from another company who took her under his wing.

If you want to do this you can, but you have to work extremely hard and stay focused.

I would be glad to help in any way I can.

is buildium worth using for people with 1 or 2 properties they use for themselves?  Or do you need scale to make it worth while?

@Plato Asadov, sorry I am late to the conversation. As mentioned above prices have peaked and are dropping. You will have one of the top 5% most expensive houses in Upton so in any market it will be hard to sell, that is probably why they are not going on MLS. You can build new/custom in Upton for $900k as there is still land. Also keep in mind the traffic patterns as Upton has a large land area. You need access to 495, and likely the Bellingham Train Station to have the most value, if you are TOO FAR WEST, then property values drop. Also, keep in mind that the appraisers will be likely give you less than market value on your appraisal due to the circumstances, and the HELOC appraisals have been coming in soft as well. Make sure you have a couple outs in case the appraisals don't live up to your expectations.