All Forum Posts by: Nelson Taylor

So, I have found myself in a pickle.  I have a three family investment property under contract in Providence that I did not make subject to seller providing firecode compliance.  Why would I do this?  Because Providence allowed wireless systems, which were inexpensive (about $1300) and easy/quick to get approved and installed.  

After the fact, I come to learn that Providence has reversed its decision on wireless.  No more.  I have a no-contingency closing scheduled for 5/27, though I am getting financing.  So, here are my questions:

1) Does any know an electrician who can get a 3 family fire system approved and installed in 3 weeks, or

2) Does anyone know of a lender that will close on a three family investment property before it is firecode compliant, maybe escrow so that system can be installed within 60 days of closing?

3) If the latter, does anyone know what I can expect as far as a cost for insurance on property that is not fire code compliant, which will also be delivered vacant as I am doing upgrades to the units prior to re-renting?

Thanks!!

Yes. Elevation cert would help. That sounds high to me. But I ave never looked into it for investment props.  I use Matt Amaral at Ocean Point Insurance in Barrington. 

As a client said to me the other day: I trust you, you’ve seen 10 houses a day and sold 70+ properties a year for the last 18 years and I have done less than 10% of that. I agree, there’s lots of very bad agents in the business, but a good one is worth more than their weight in gold. 

@Tyler Barker et al, great conversation. There was mention of a formula for capex over time with consideration for # of units. Obviously generalization, but jumping off point formula would be good to have.

The value of a buyer's agent is endless.  Find a professional who knows the nuance of each of these areas.  If they are not close to each other, multiple agents may be necessary.  Remember, you don't pay for having a buyer's agent represent your best interests and help guide you.  Many people feel they will get a better deal if they go directly through the seller's agent, when reality it just means the seller's agent is making more money, has more motivation to get you to close on the deal and their fiduciary responsibilities are to the seller and not you.  Be loyal to your agents, make them part of your team, and they will make you more money and save your butt.

This is a question in regards to the Providence owner-occupied tax break on real estate.  As I understand, you can get the full break on 1-4 units if you owner occupy the property.  What about 5+ units you owner occupy?  I know you don't get the full amount, but can you get partial?  And what is the formula for calculating if so?  Thanks!

I am not sure if this is the right place for this question, but I am a real estate broker and an investor.  I recently joined an equal partnership with two others--1/3 investment, 1/3 work, 1/3 equity.  In pursuit and through the closing of our first deal, it became apparent this structure was not working.  I was equal money, but given my 18-year real estate knowledge and the top-prioritization of this endeavor I was doing nearly all of the work.  And I worry that this will be the case in most partnerships given my knowledge of the market and industry. So, I have two questions,  1) If these two want to remain as "silent" investors, what type of "sponsor" equity is standard for me?  What is standard for the amount of investment expected of me as the "manager" (I presume any "silent" investor would want me to have some skin in the game)?  And finally, what % of equity is standard for "managers"?  2) Second question involves trading equity for work--for example, with someone who will provide all aspects of project and property management?  Are there any standards here?  And how would I protect myself should a person I trade equity for work decide to stop the work and just keep the equity?  I hope this all makes sense.  Thanks for any advice.

Knob & tube is the first generation of wiring and still prevalent in Providence, RI, where I live, work and invest.  Are there any companies that currently write policies for multi-family investment properties with knob & tube wiring?  Rewiring these big houses often kills a proforma.  Many landlords I know just don't tell their insurance companies they have any in their buildings to get the lower rates.  Way too much risk for me.  Is there some sort of umbrella policy that could cover something like this?

I think people will always pay for nice/quality. I know that market a bit. And $1200 is not crazy at all. What’s sqft?  Is there a yard?  Dishwasher?  Laundry?  Yard space?  What are you getting for #1 and #2? I say finish it. Take professional photos. And then relist it at $1200 w/ $200 move-in bonus. 

Coastway was purchased by HarborOne. I've had great HELOC luck w/ Centreville Bank.