All Forum Posts by: Jason Regan

I find the best cash flow I have run into is Fitchburg and Southbridge.  You do have a tradeoff in these markets though.  The appreciation of the buildings will be very low.  

I am currently in the process of closing on my first BRRR and trying to figure out the best way to go about it. Here are the details

Buy at $179,000

Rehab budget $20k (basically floors, painting and some minor things)

Estimated Refinance value: $260,000

Gross Rent: 27,600

Options

1)  Buy the home with a conventional loan. Keep the home as is and don't refinance.  Cash Outlay would be about $65,000, Cash on Cash return 32%, Cashflow $11,500 a year

2)  Hard Money loan to cover the repairs then refinance out at $260,000.  Cash Outlay would be about $20,000, Cash on Cash Return 37%,  Cashflow $7,500 a year

3)  Is there a better way I have not thought of?

All calculations were based on a 10% vacany rate, 20% Repairs and Cap X, 5.25% interest rate, No property management

Long distance flip or BRRR could be hard until you build a team in that area you trust. Finding that good investor friendly contractor seems to be the hardest thing for us in a given area. I am looking at some long distance and that scary part is what keeps me from pulling the trigger

Hi @Naeem Rajaee Sutton I am an investor and an agent in Ma

1. What is the attorney responsible for in terms of closing, contracts, titles, etc.?

The Attorney on the buy side is typically loyal to the bank if their is lending involved. This changes per attorney but the ones I use, their fee includes: Writing or Reviewing the Purchase and Sale (MA is a 2 contract state), searching to ensure the title is clear, setting up and executing all closing documentation

2. Is it common to use the buyers attorney?

Buyers Attorneys are commonly accompanied by a sellers attorney to protect both sides.  If you are assigning I dont see why you would need another attorney.  I would be curious to see what someone with wholesale experience would say here

3. Can anyone recommend me any good real estate attorneys in the Massachusetts area?

Shoot me a message.  I have a few I trust.  I will give you their information

4. Are there any fee's that I will have to pay at closing as the middle man assigning a contract to a buyer?

That depends on your negotiation skills :).  In any negotiation you can pass off fees.  For example a common one for new on market buyers is to write in the contract that the seller will pay all closing costs.  I don't see why in your assignment you cant place in a clause that the end buyer will pay all fees associated with the purchase of the property.  I would gladly pay the fees if the numbers still worked

I agree with @Charlie Cameron.  Many brokerages offer CRMs and many other things.  I am currently KW who has their own CRM and a robust training process.  This doesn't help a ton with my investment business as I don't use their tools for it.  I do like it here as it surrounds me with high performing people who keep pushing me, plus a vast amount of newer agents that, if hungry, can help me find deals.  You are the 5 people you surround yourself with (or something like that)

Welcome Nicholas Mastalerz I am always willing to meet up.

Great Start!  Nice to have you in my home town.  I know Kayla well and she is very good!

I would gladly go to an in person meetup with the proper precautions taken.  As a real estate agent and someone who volunteers for the city I come in contact with many people using the proper precautions and have been tested negative 3 times.

I agree that a live in flip would be great.  You can skip the heavy taxes associated with the quick flip and have a place to live.  Also, you can fix it at your leisure and avoid the high financing costs of hard money.  Yes this wont be quick cash, but the project will net you a much high return on investment.  Also, if you like the property and want to stay, you can use the equity in the property to help fund other flips or buy and hold investments

I am also n ewer at this and beginning the process.  I am looking to flip, not wholesale, but marketing can be a big expense.  How are you going to find the properties.  The cheapest I see is probably driving for dollars as the leads are free.  What do you do after that though.  You can skip trace the leads for under a dollar and call them. That would be the cheapest in my mind but hardest for most to do as you will be met with a lot of resistance.  On average it takes 6-8 calls to gain someone trust enough to work with you.  These is also texting which you need to ensure you are following guidelines then mailing.  Texting for me is 1.5 cents per text and a mailer is 40-50 cents.  These can add up.  As for the costs such as closing costs and such, this can be negotiated so someone else pays them, especially since you are just assigning. I guess to sum it up, I am saying most costs will be in marketing in my mind