All Forum Posts by: Matthew Perry

@Patrick Wheeler I am run the real estate portion of the PE fund- in the last couple of months we have about ten deals nationwide. Would always love to hear your thoughts on the market.

@Steven Baty where on the Cape are you? My wife and I have a place down in Yarmouth starting to see more and more Keller Williams signs on the cape- good on you folks.

99% of new investors that end up in front of me are spending their time looking for the dollars first. Find the deal first. A good deal is a rarity and will be easier to setup for funding but put the effort your putting forth in terms of the getting the HLM into finding the deal or project.

Hello everybody,

I realize I skipped this step so I am backtracking to say to officially say hello. Name is Matt- I am from Boston but have nationwide experience from LA to Atlanta to Charlotte to my native Boston. I work for a private equity fund that is growing our real estate network and have and looking to grow my network. Always looking to talk to people and hear what they are doing, thinking, and seeing in the market. Drop a line saying hey always enjoy meeting new people and talking about this great thing called real estate.

Simple game of would you rather:

Deal #1) Three Unit Multi-Family

      Cost: 950,000- minor costs for updating (paint, buffing hardwood floors, minor electrical work totaling 7,500)

1. Two units rent for 2600 per month (target of 2800 year 2018)
2. Penthouse luxury unit rents for a premium of 3000 per month (target 3200)
3. Parking on site rents for additional 250 per month
4. Taxes: 7200 Insurance: 2200 Various Additional Costs: 640 per year
5. It rents year over year and has never been on the market more than two weeks

Deal #2) Single Family Flip 1.  5200 Square Foot Home 2. Five Bedrooms 3.5 Bath 3. Purchase Price: 875,000 Rehab Price 500,000 4. Comp sales: 1,900,000 to 2,148,000 5. Timeline from purchase to sale closing is 9 months. 6. Taxes: 8900 Insurance: 2800
Lets say all things on the financing side are equal- joint equity financing where partner is bringing 50% of all costs, and then shares 50% of the profit however will give you the opportunity to buy out at cost after three months or with 5% interest at sale closing.
Pick your deal and make your case.

Depends on when you say complete rehab- are you talking down to the studs? I have done deals for as little as 75,000 to as high as 500,000. Wide range figuring out what direction you want to go in terms of luxury and size.

1) Invest in yourself

2) Stick to a budget

3) Surround yourself with people who want to solicit their views on things

4) Create goals for the short term instead of long term

5) Find what challenges you figure out why it challenges you and work in and around those.

Failure is not a bad thing if you learn something from it.  

There are new rules, though somewhat lax about those who can invest heavily in real estate those articles are out there. The biggest thing that any hard money looks at honestly is the deal that you are bringing to them and then what your economic position is. You can have an amazing pitch and great economics but if the project is not great the pitch is not so important. A good deal travels fast and people will start coming to you, but if you have a so-so deal it will be harder. When you know you have a good deal it is easy to be excited, and that will come through when you discuss it and how you discuss it and then it is about knowing your numbers backwards to fronts. Look for the deal first and then find the money lender, putting the cart before the horse is a taletell sign for investors and they will prey on you in returns of interest and how they structure the deal.

I am an advocate for property managers for situations like this. The first call or contact I would be reaching out for is social services in your area. There is a line between business and charity and sadly in this case that line is growing closer and closer. As the landlord you have tools in the toolbox at your disposal, but so does the tenant and in this case it sounds like you have both reached the limits of both. There is an answer here for both you and your tenant. If you make a couple of phone calls out to your local town in regards to health and safety and social services everybody involved might be able to gain help they need. You could keep your tenant because you want to continue to provide help in the form of housing to someone who could certainly use it, and depending on the rules in your community there could be help rendered in the form of vouchers and other subsidies provided.

I have two rules of real estate #1: Never overpay for real estate #2: refer back to rule number one. Yes you could pay out of pocket to narrow the gap but that is overpaying so that violates rule number one. The biggest step here is how much extra work you willing to put in- pull closer comps and ask for another appraisal. More than likely though it falls back on the agent, if you used one who got you the deal in saying that they did not get as good of a deal as you expected and it might be time to either walk away from the table or to try and renegotiate the deal. If you have done the number crunching and feel like it is a good deal you know how much you are willing to fight for it and then becomes a question of finding an answer to the problem- there is one out there just a question of how willing you are to find it.