All Forum Posts by: Ray Hurteau

I echo Dan's comments. Congrats on your business, being a great asset to our team and I look forward to seeing your new business take off! 

@Josue Velney - we ran into the same issue a few years back.  it's better to wait for a good person than rush with someone bad.  they will just cause headaches and you'll likely have to redo their poor work after firing them.  be sure you check their current work, get references, check their online reputation, ask for a certificate of insurance, and their CSL

best of luck on your project!

@Pete Schwan would the seller entertain a ZBA contingency in the offer? there's always risk going to the ZBA these days...

@David Cahill okay thanks for clarifying, yes at 545k, you can definitely cash flow and get those rates of returns. I was going based on your statement that 1M could cash flow at 15-20% COCR.

i think @Sergio V. makes many valid points and I've heard the same thing from many others who invest in subsidized housing areas.

@Jay Hassey - what kind of condition are you looking for?  i can give you some leads on places that need a good amount of work if you're looking to build some sweat equity...  what's your budget?

@Jesse Andrews  in my opinion, you're trying to determine what someone would pay so you can wholesale, right?

do you have stamped plans and all the approval documents from the city indicating what can be built?  who is the seller of the land and plans - are they the current owner or another developer?

i have no idea what the lots look like and how much additional site work is needed, but utility companies will charge a new construction/hookup fee.

if you'd like, I can talk to a builder I know who might be interested...

@Craig Moore

http://www.cityofboston.gov/assessing/

or just search the town name + assessor database

everything near boston is online

you should also become familiar with:

http://www.masslandrecords.com/

you can see all recorded property info... it can take a few days and lots of reading of documents to become familiar with all the various types and ways to search

go get 'em!

@David Cahill Hi David, can you expand and provide a high level example of how you would get a dorchester property to cash flow the way you describe when you're paying a million dollars for a triplex?  

Assuming you can get $2,500 per unit and the tenants pay their own utilities (besides water and sewer). Sure, you're cash flowing, but it's going to take a long time to get your initial investment back (15-20+ years) and i can't see how you'd get more than 5% COCR, assuming a 25% downpayment and having all that debt service. Your debt coverage ratio is borderline acceptable for most lenders at that point also.

If you self manage and spend $0 on maintenance and repairs, you'd still only be looking at 15% COCR.

Maybe you don't want to give away your secrets, but i'm very curious how you and others are pulling those numbers.

@Maureen F.- there is some great advice here about what to do and not to do - the IRA info was definitely great.

Adding to the other comments, I would not recommend your son attempt anything other than painting if he has no experience with it.  

What seems like a simple project can quickly get out of hand or you won't get the same polished look compared to someone who does this for a living.  Plus it will take forever if there's a laundry list.  

I'm semi-skilled and having two jobs last year while trying to fix up my fiance's two family proved to be a major stress.  Yes, we saved thousands on contractors, but at what cost?  

I only did things like drywall repair/replacement, door repair, new bathroom floors, toilets, bath fans, vanities, some basement work, sidewalk repair, etc.  It added up... paying a little extra for a turnkey property could be the way to go.

The second bit of advice for sourcing leads would be to drive around the more desirable neighborhoods in Dorchester based on your opinion and target some homes, maybe 25-50.  

Have him hand write letters explaining his situation about wanting to buy a home, live in it for a long time, keep the house's character but losing out to investors/developers right now.

My friend did this when he was looking for a home and his response rate (after sending 2-3 letters per house) was over 50%. He was looking in one very specific part of Dorchester, and at the time nobody was in the market to sell, but that's your key to getting out of the MLS mess.

Dealing with a wholesaler will likely mean quick turnaround, limited inspection (or no inspection), and "cash" offer - aka no financing contingency.  Too many risks.

Also, call around various banks (the local ones) and see what programs they offer where you can avoid PMI. Someone I met recently said he found a lender who would do 5% down and no PMI and I know someone who got a 15% down loan with no PMI.

Keep looking on the MLS, but have him try to source off-market leads with a personal, hand-written message. Best of luck in the hunt!

@Peter Bowring- steer clear of that group and anything with marketing for "investors summit".  i did the FF course and it was exactly as people on here describe.  got my money back by earning it doing real work and not from this group who keeps upselling until they know you're a dead lead.  never any support after the sale beyond 2-3 calls and then more upselling.