All Forum Posts by: James K.

Hi Mark, try Berlin insurance out of Worcester. They have given me great rates. 

Jim

Hi all, I'm thinking about getting into the STR market. Just wondering about how to acquire a STR loan. I'm assuming it will be a DCSR type loan. Is there anyone who could recommend a lender? I'm based out central Mass.

Thanks in advance,

Jim

 Hi Amanda, I had a rental in that area and know it well. Just to give you confirmation,  I would agree that you're somewhere in the 1800-2000 range based on how nice it is. I would also estimate heat is worth $200 a month. If it's deleaded I would advertise that also. As far as water and sewer that's standard. 

Keep in mind if your empty for 3 months it will take a long time to make up the difference of advertising it for a little less.

If you decide to go the MTR route I'd be curious to see how you do. Good luck with your investment. 

Jim

Thanks for that Brian. Unfortunately, Worcester is not being smart about things, making it harder for people to improve properties. It's too bad there can't be some middle ground with what is required. What this is also causing is the incentive for people to not pull permits. Now things are going unchecked and increasing the chances of unsafe situations.

 Ok, that makes more sense now. You're dealing with multi family. I recently heard the Worcester fire department is requiring sprinkler systems to be installed in 3 families being sold/rehabbed, which I assume could drive up the cost significantly. I not sure how true this is.

Is this something you've heard?

Jim

 Hi Jordan, 

I assume you plan on keeping your W2 job in order to qualify for the refinance on the Brrrs. In that case are you planning on working nights and weekends on it. I'm asking for 2 reasons. First, it's probably going to be hard to make the numbers work unless you have subs that can give you great rates. Second, I'm flipping a house now and should be done soon (providing the contractor I'm working with gets his act in gear). I self fund my projects and have done the majority of the labor in order to make the numbers work. 

The problem is I could use some help to get things done quicker in the future. In have done 3 flips in the past 3 years maybe another by the end of the year. I also know that in order to retire I need to acquire rentals. Maybe we could help each other out, who knows?

Jim

 Hi Brian, 

From what I have seen at the local auctions, investors are paying way to much for some properties. It seems to me that some think they couldn't loose in the recent market. Hopefully people start to be more conservative making it a little easier. I am surprised though the in the last 2 years your clients only made 5k on a flip? Did they grossly underestimate rehab cost? or was it the ARV?

Jim

Hi Shane,

I wondering if your ARV numbers are a little off? I usually get a second opinion from my realtor if I'm unsure of the ARV. I'm also wondering what kind of properties are you looking at? Are they total guts that need to then have everything brought up to code? Which as you know, in most cases break the deal. I'd maybe look into finding something that needs less and avoid doing something that would require a complete overhaul.

I'd be curious to see what numbers your coming and if you want a second opinion I'd be happy to give it. 

Hi Shane, 

Questions, Have you considered a partnership? Is this land ready to go? How long would it take to build? If you're up for it, I have many more questions.

Jim

Hi Shane, 

From my experience in order to flip you need to be able to come with cash quick. Deals in the last year on the mls go quick (hopefully this will slow down a little) and they usually require cash or rehab loans.(I use cash so I don't have to worry about bank approval) The other option is fore-closer auctions, which require either a $5,000 or $10,000 bank check at the time of the auction in order to bid. There tends to be a lot of competition from other investors/contractors who are more seasoned than me and can afford to make less per deal. You then have to close in 30 days. I find auctions on Auction.com and BankerTradesman.com which gathers all the local listings for you. 

The I'm on my third flip, hoping to put it on the market within the next 3-4 weeks. I'm doing most of the work myself and having a contractor help with the permit required work. This has proven to be a huge stress for me due to a lack of communication and time-frame for when the plumbing and electrical have gotten done. I've had to work around them for the last 6 months. I'm far from the top priority on his list. 

Anyways, I think in the future I'll be looking for flips that don't need extensive repairs and possibly a different contractor. I toyed with the idea of getting my GC license, but from the research I've done it looks like you need someone who can sign off on your experience. I'm Still thinking I might take some courses to get a better understanding. 

I'll be going to my first local meet up this Wednesday 6:30PM at Bay state Brewery in Worcester. It happens there will be a presentation from some investors who flip homes and find off market properties. 

If you'd like, I'd be up for talking more and maybe about future opportunities. 

Jim