All Forum Posts by: Nick Luongo

Do you have any insights on how to validate the addresses? I use listability for lists and click2mail for the postcards.. click2mail is the usps service so you would think they could validate the addresses but I haven't seen that option. Checking them myself on usps would be crazy with the number of addresses I have.

Thanks

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Bottom line is if you choose to not pay any fee, it costs you nothing to list on mls and/or through multiple agencies. To me there is no downside there.. you will get more potential leads for clients for free. And you can also advertise yourself as no fee. As others mentioned, postlets is great and syndicates to multiple other websites. Also recommend daily posting/renewing on craigslist

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Originally posted by @Beau Blinder:

@Dennis Hernandez Thank you very much for the reply!

Nobody that I've worked with (yet) has struck me as particularly unscrupulous, but it just seems like this process is akin to dragging a dog for a walk on a rainy day. I feel like little progress is being made. Perhaps that's my own anxiety speaking, but given the relatively few showings that seems to be reflected at least in part in reality.

If I choose to go exclusive with an agent, do you have any recommendations on picking one in particular? What should I be looking for? Most importantly, what can I expect from an exclusive agreement -- are they going to be more responsive / keep me in the loop more?

From my overview of the Boston scene, it seems as though there are a few very large rental agencies out there. Most of them seem to operate in Allston / Brighton just due to the huge volume of young professionals and students in that area. Given my units are NOT in that area, am I better served looking at a smaller agency more local to the area?

In terms of paying or splitting the fee, I'm open to it as an option. As a long-time renter in Boston, I know that most people moving in May or September are used to picking up the rental fee, but I guess that isn't the case during the off-season.

Sorry for the flood of questions, but as you can see this entire process has been a learning experience for me!

I've been a leasing agent for over 6 years in Allston (3 companies, 50+ agents), servicing anywhere in Boston proper. Where are you properties? This makes a big difference. The higher the demand, the less chance you need to pay a fee. However, while the hot areas of the city have usually been clients paying the fee.. this past september showed a surplus of inventory and much more vacancy than years past. Basically, if your listing is in a lower demand area and during this slow fall season for renters, I would recommend paying the fee. Most agencies use yougotlistings so if you give one agency the exclusive its still ok because with that listings database they can blast it out to all over offices using ygl. To be honest a lot of offices outside the city don't know a thing about leasing. And for every good leasing agent there's 10 that are clueless (because they will literally give the job to anyone breathing with a license). Find a good office specializing in leasing and go from there. A good enough office will know how to get the word out to all offices, giving you the best of both worlds.

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While an area closer to the city holds stronger values and has higher appreciation, I'm sure most investors will tell you not to count on that. Consider it an added bonus if it becomes a reality. Personally I don't think considering a low or negative cash flowing property is necessary. Decent cash flowing multis can be found on or off market in or right around boston.. its just not easy and more likely to find off market. Usually they'll require really knowing how to maximize the rents by adding value (adding bedrooms and/or smart renovations), using multiple leasing companies to find highest market rents and to show/rent the units. As others have pointed out your cash position is always nice to have but may not be necessary with some sellers. I would encourage you to research different neighborhoods and run numbers on what has sold and what they are cash flowing for based on the market rents. You'll find that some of the up and coming neighborhoods actually come out pretty good

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Originally posted by @Ben Howard:

Originally posted by @Mike Hurney:

@Ben Howard "I recently considered the possibility that I might not really know what I'm doing." My first thought was that even a broken clock is right twice a day;-) But sounds like you're doing ok. How are your rents compared to others in Somerville? Have you thought of going into Boston?

My average 3 bed/1 bath is currently about average for the Davis Sq area as of about 3 years ago when the current tenant moved in. Unfortunately for me, they bought a house and are not renewing. But, rents have gone up around 20-25% in this area in the last three years, so it ultimately means I'll adjust up to the current rates and (hopefully) end up back near average.

I'd definitely consider Boston. I'm interested in Boston/Cambridge/Somerville for a second property. My biggest concern is that by the time I have 20% down for an $800k multi-family, it will be a $1.2M multi-family. I've actually considered the possibility of selling my existing multi-family, as well, to take advantage of the equity to use as a down payment on a triple decker. I'd still only have one property, but I feel trading from a 2-unit to a 3-unit (or 4-unit) is a deal not to be passed up.

This is part of why I'm here. All I really know is the conventional loan method. I need to learn what else is available to me or I'll be sitting on the sidelines most of my life waiting for my savings to never reach some ever increasing number.

Have you thought about pulling out the equity using a home equity loan? That's what I'm thinking of doing this year myself with my somerville condo to use to buy a multi. Takes a bite out of your cash flow but you won't have to sell the first property

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Originally posted by @Bill Gulley:

Originally posted by @Nick Luongo:

It's beyond the scope of an agent to take on the appraiser, architect, or developers job. I can certainly evaluate (and have) the value based on current usage. Zoning, architectural, development.. that's not an agent's job. But I see what you're saying about referring a commercial broker

You're saying your broker wants his agent to get an appraisal to get a listing price? Come on, it's the agent's job to set a price most probably to sell a property in a timely manner in an open market environment. Once you have a contract, the buyer gets an appraisal for financing, the seller doesn't pay for it.

Now, if your client needs development costs the that is beyond the scope of an agent's duties, but not setting a listing price for the land. :)

I've given him the price of them based on comparable sales for how they are currently used. What I am not sure of is what can be built there based on the zoning regulations and architectural integrity of the lots... which, if known, would affect the value. He was the one who initially told me he wanted it appraised now, but was surprised of the cost of a commercial appraiser

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Originally posted by @Bill Gulley:

Nick, hate to point this out, but it applies to others too.

Because you don't have the ability to assess the value of what you're dealing with, you probably just lost 4 to 5K. That amount could have come off the sale price to you if you could justify an acceptable price for the seller to agree to, adding value to your being involved. Getting it appraised will likely complicate your position, your value in the deal as the owner could simply drop the price and advertise it himself, why use you?

To wholesale deals you really need to be the expert in the room to justify you acting to facilitate the deal, that includes the ability to value the property.

Land only isn't that difficult, you can get comps with or without improvements, without is best but look to the other thread.

Good luck :)

Well my goal from the beginning is to wholesale multis, which is definitely something I can value in this area. This one just threw me for a loop because the seller wants it valued based on development potential. So I guess the end game is to help the seller any way I can and if I can make some money in the process then it's a bonus. Already learned a lot just from looking into this. Thanks will do

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Originally posted by @Will Barnard:
What is your role in this property? Are you an agent representing the seller, are you a wholesaler, or the buyer?

A highest and best use report would be most beneficial. Yes, this report will cost several thousand dollars as would a proper commercial appraisal.Originally posted by @Bill Gulley:

Just answered a very similar post, "Land Value" that applies. Need to deduct from that the cost of demo and debris removal for a buildable lot. Need to educate the owner, show comps on similar buildings and land value assigned to those comps with the deductions mentioned.

What the seller has will be defined by the highest and best use to a buyer, not their perception of the use.

The other side is making improvements to the subject, look at the ARV and deduct costs, fees and management required to bring the existing property to it's highest use or at least an acceptable use. :)

Thanks for the replies. I found the seller through my postcard marketing which originally is aimed at wholesaling, buy and hold myself, or last resort list as agent. Since he's looking to sell as a package and it's not something for me, my goal is to list it for him and get him the most for the properties. @Will Bernard - yes that was my thoughts in regards to the appraiser. Will need to convince him to spend the 5k. It's beyond the scope of my skills to value it based on development (thus the post) so it's a bit tough to tell him confidently how much more it will potentially be worth after appraisal.

Bill Gulley - Thanks I will check out your other post. I assume the appraiser would need to do all of this, as I'm not the guy.

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I am working with a seller on a unique property in Somerville / Cambridge, MA line in a very hot area and am wondering the best way to attack this. Basically its 3 small abutting lots (1 residential, 1 mixed, 1 commercial). I can easily gauge the value based on its current usage, however anyone that buys is likely going to knock it all down and build condos. I want to bring in a RE developer to take zoning into account and value it based on that, however the seller probably won't trust their value because they'll have a vested interest in the property. The other option is to bring in an appraiser (which I've been told with run 3 to 5k for something like this). Can anyone provide any insights on this and how to get the seller the most for the property? Thanks

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All Forum Posts by: Nick Luongo

Nick Luongo has started 7 posts and replied 49 times.

Post: Direct Mail Returns

Post: First Time Using Rental Agents in Boston as a Landlord

Post: First Time Using Rental Agents in Boston as a Landlord

Post: Multi-family buying strategy for beginner

Post: New Member from Boston

Post: Assessing the value of a development project

Post: Assessing the value of a development project

Post: Assessing the value of a development project

Post: Assessing the value of a development project

Post: Assessing the value of a development project