All Forum Posts by: Mark Terry

Hey @Rich Hupper

I am going to echo the voices of my comrades here and say that there are too many variables to say for certain. I am an architect and usually we spend a little time doing a schematic plan and then reviewing it with contractors to get a range on the price. If you are working with a developer they have a whole system in place and can sometimes build with a bunch of efficiencies . My real estate partner met with a contractor in a development in Abington last night and he is talking about $210-$250/SF. This is based on developer selections with no upgrades.

Hi @Emmanuel Cedeno! Welcome to the community. I would start out by going to some local Investing meet ups. I know they are trying to build one on the south shore where I am. There is also one in RI and black diamond is always a great one to go to. Immersing yourself in the conversations is a great way to become familiar with the lingo, learning real world scenarios and meeting some people from the area. Best of Luck!

Hi Zarah!

Another big concern to consider is the resale. If you are buying this house with this as a feature you need to make sure that is legal with the town as if you try to go resell it a new buyer would have the same concerns. Therefore if the value is there and the apartment is a bonus then I wouldn’t sweat it. If you are counting on it then you should meet with the building department to review status and see if it can be approved. I have owner multis and in laws before and followed these steps. Good luck

Just to be clear we are talking Sunday August 11, correct? I only ask because it looks like it goes to 7:30AM on Monday - not sure I am pulling those all nighters like I did in my 20s  :D

@TD Wolf hello there. I would take five minutes and become familiar with what work requires a license and what work does not. It is true that you need a license but there are different levels of licenses and different types of contractors. 

Say you need your roof redone, a gas line fixed and some painting. Here are two options:

1. Hire a general contractor who is responsible for all the work. They will hire different sub contractors, manage them and make sure they come out to site and get the inspections. He will charge you what the subs charged him and then an additional percentage on top (say 10%-15%). This means you don't have to worry about anything but it costs you a little bit extra.

2. Painting does not need to be licensed or permit - so you do that yourself. Then you get quotes from different plumbers and roofers. Each will have a license in the state for the work they do and you don't need a General Contractor to pull the permits. Also, by getting multiple quotes you are more likely to get a lower price on the labor. The difference here is that it is more work for you to make sure they come out to the site and get work done. 

I hope that helps, here is a little more reading about the different licenses:

https://generalcontractorlicenseguide.com/massachusetts-contractors-license/

Hi @Stephen Rodrigues

Wecome to the forums! Glad to hear about your interest. Finding that cash flow will have a lot of variables that go into it including money down (via 1031?) and property management etc. It's great you got your license, definitely a great tool to help you out. 

Felix - I am in the same boat. I have met a bunch of accountants who do real estate but no real experts especially when it comes to my different businesses. 

Let me know if you have any luck!

Hi Jacob!

It's great to hear about your interest, its nice to add more expertise to your repertoire. I am an architect that was doing commercial real estate project management. I had some successful investments and decided to have a go at it full time to supplement what I was doing. Last January 2018 I signed up and took a fully online course with Freedom Trail. It was a very interactive program and I definitely learned a lot. Some of the material was slow - but all in all I appreciate the 40 hours spent.  

After taking 9 separate 4 hour exams to get my architecture license - this single 90 minute exam felt like a breeze. I will say that I didn't feel that I was fully prepared for the exam but obviously got enough information to be able to pass it on the first try. Everybody is different when it comes to taking tests - so just as long as you know what you need to do to get ready you should be in good shape.

A year after getting my license I decided to partner with a broker and we started our own Real Estate company. We have been in business for a few months and it has been great! We strongly believe in mentoring others and doing all of our deals above board. It is crazy to see how some people act in this segment of the industry - so I am always happy to see a professional jumping in. 

If you ever need anything never hesitate to ask! We don't have a new agent program yet but have been working on the program and strategy! Best of luck!

What a beautiful job @Kate Murphy! I am impressed with your general timeline looking at the purchase dates, etc. You have a good knack for what needs to be done.

I analyze the price of properties in many different ways and would disagree on the current pricing. In looking at your comps based on what has sold, I see that you are a bit smaller (about 200SF) than anything that has sold in the last year. I combine some formulas of what has sold, cost per square foot, unit types and current market conditions. On my back of a napkin analysis you might be overpriced based on the micro-climate of this specific neighborhood. All in all for metro Boston these seem like a steal but hard to prove at the micro level. 

There are some other tell tale signs your agent will recognize on being over priced like drop in interest after initial listing, open house traffic compared to other available properties etc. 

All in all I think there are two good choices: 1. Refi into traditional mortgage get 1 year leases and advertise next year. 2. Improve the price. I know how tight margins can be on these projects, so option 1 might be the best to let the neighborhood catch up and get some better comps. I wish you the best of luck!

EDIT: One thing I didn't mention on my initial post is that all of your comps have a lot of days on market. From my quick review its 70 days to Offer

Welcome @Sthefany Lamoureux to the great community we have here. This is a great place to connect with like minded people and get the opportunity to learn from others - great way to avoid making the same mistakes others have made :) It's great that you're starting so young. I know starting out can be tough - but getting over the initial deal is very satisfying. 

Great plan with house hacking - I know that's how I got my start. I have owned some multis and done some fix and flips. I am an architect and real estate agent and grew up around construction - so this feels less like a job and more like a full time hobby. Sounds like you have done lots of research but if you ever need help on the process let me know - happy to tell you how things have worked for me! Good luck!

Mark Terry

Architect | Real Estate Agent

Owner of Refined Real Estate