All Forum Posts by: Jason Regan

Title 5 is not required by the state, but rather by the mortgage company.  You can guy a home cash or with hard money with a filed or un tested septic.  This is a good way to get some deals as not every investor wants to deal with the variable of a new septic. You really have to do your research to see the ledge and the water table in the area

I agree hard money would be am easy way to pull this off.  There are large companies like lending Home and smaller more local companies that would look at it.  Once the renovations is complete you can refinance to a traditional loan is you are keeping it and sell the home and pay back the hard money lender.  The lender will also evaluate the deal to ensure its going to be a good deal. They really don't want to foreclose on you. As a newer investor its nice because you do get a second set of eyes on your deals.  In my area I am seeing terms between 10% - 12% and 1-2 points.  The other idea is to partner with an experienced investor and split the profits as you both negotiate.

Conventional Financing needs the home to be in livable condition when you begin. These properties normally sell at a price that's higher then what can be BRRR in my area as they are currently cash flowing. You are now fighting other BRRR investors and the buy and hold investor that doesn't fix anything up. I find the more people involved the more the price will be driven up. The other hard side is a traditional conventional loan will not give you money for the repairs. This would all have to come out of pocket. The only traditional loan types I know that give repair costs (besides construction loans) are loans such as FHA 203k. This would work good if you are house hacking as a requirement is its your primary residents. They are also a giant PITA if you dont have a lender and an agent that knows them and how to get through the loopholes.

I saw leominster come up on here. That is my home town so I know that and Fitchburg well. Leominster will not make the 1% rule when it comes to rent, but will appreciate well. Fitchburg on the other hand offers very good cash flow, but appreciation is low. The lowest price points in the area that have the highest CAP I have seen is either Fitchburg or Southbridge. They will get you cash in your pocket, but you wont be selling for much more when you decide to offload it. Id be glad to talk to you about these areas

We are currently working on two projects with septic issues.  When I offer on a home that says Septic is buyer responsibility then I assume its dead and bake in the $30k+ to my offer.  This is almost always.  However I recently went to offer on a  home built in 2002 with a septic and did not deduct for that one.  It is a gamble.  The other way is to do a title 5 test yourself during your due diligence period.  That 500-800 dollars may be well worth your piece of mind

I recently went through this.  I am managing a few small properties in MA.  Rental fees cannot be done and you will be called out on this if you advertise on facebook (learned the hard way).  We can however pass on the cost of a background check.  I use Buildium and they do a full credit and background check for $30.  The system allows me to have the applicant approve the fee for it.

@Thomas Mosely I ama  Real Estate agent that is transition to investing myself.  I recently had a client buy and renovate a home for flip.  I stayed close to the whole project.  I stopped in often, talked to the investor about what was going on, and was able to pick his mind on decisions.  I learned more from this process then all the books I have read.  I was paid nothing for all this work (besides Commission to sell) and time and I didnt expect to.  I was working to learn in this instance.  Is there a accomplished investor near you that could use some free labor in exchange for tutoring?

@Lien Vuong I never knew that was down there.  Thank you for posting that!

Hey everyone we have completed the Leominster project and would love to get together to talk about the project and have some refreshments.  I hope to see you there for some networking and to get your opinion on the project!