All Forum Posts by: Charlie MacPherson

Massachusetts is a 2-contract state. First, a written offer is submitted to the seller, with EMD. While I've never seen it done, you can close directly from the Offer with no P&S, because the Offer itself is a binding contract.

The Offer normally specifies contingencies like home inspection and financing.

Once signed by the seller, due diligence begins, normally to be completed in 14 days or so, but the time frame is whatever is specified in the offer. 

Once the due diligence window closes, the Offer is followed by a P&S, which extinguishes the Offer, meaning that any terms in the Offer that are not carried forward to the P&S are no longer in effect.

If the terms of the offer allow the buyer to withdraw because of an open permit, they get their EMD back. If not, you get to keep it - but expect to wind up in court.

If it's $7,500 or less, it will probably go to Small Claims. If it's more, District Court, where it will take 3 years+ for your case to be heard, so mediation or arbitration are a smart move. Or the parties can just hash it out on their own. In disputes, it's most common for the buyer and seller to split the EMD 50/50, but that's not carved in stone.

The seller's agent and agency do not have the legal authority to disperse EMD funds without a written agreement from both parties.

The bottom line is that it depends on the precise terminology of the offer.  

This is something that you will have to negotiate, but it should be a simple job, paid at an hourly rate.  At least minimum wage, but if they're good, I'd think it would be something like $20.00/hour.  More if they're working in an expensive locale, like LA or NYC.

I don't think paying someone like that a % at closing is fair.  They can do a LOT of work for no pay, while you search for the right property. 

This person should be a 1099, not a partner - unless they agree to that.  In that case, put everything about the relationship in writing.

House flipping (buy, fix, sell) is a world away from wholesaling (tell a seller that you'll buy their house, even though you won't, assign the contract to someone at a higher price, hope the deal closes, pocket the difference).

Wholesaling is in general, unlicensed real estate brokering and is illegal in most locations - no matter what the gurus say.  Most often the wholesaler is stripping equity by signing a contract that they know they can't perform.  It is the dark underbelly of the real estate world because it preys on the desperate and ignorant.  It's win-lose.

Flippping on the other hand is a true win-win.  You buy a house that's in bad shape and maybe even abandoned.  You fix it up, put it back on the tax roles. The seller gets out of a difficult situation, the buyer gets a newly renovated house and the neighborhood improves.  Everybody wins!

However, you cannot do either without a budget.  Wholesaling requires a huge marketing spend and dodging the state regulators.  Flipping requires a budget to buy the dilapidated property and for repairs.  Don't forget to add 20% for the unforeseen.

If you really want to get started in real estate, consider getting your real estate license. There are expenses there too - pre-licensing classes, license fees, continuing education, MLS fees, NAR fees (sometimes optional, sometimes not), marketing costs (business cards, signs, etc). You might find that it's worth the investment - and you might also ease into rehabbing at the same time.

Good luck!

FOR SALE! Established and profitable Property Management Company and Contracting Company, located in the beautiful Mt. Washington Valley in New Hampshire.

This husband (contractor) and wife (PM company) team was founded in 1993 and has a very good reputation in the community.  They are both looking toward retirement.

The contractor builds high-end custom homes and also offers renovations, additions and repairs - many of which are referred from the PM company.

The PM company provides year-round management for 17 condo associations as well as many private homes.  They provide landscaping, snow removal, professional cleaning and rental management for both short and long-term rentals.

The Mt. Washington Valley is a very popular tourist destination.  Summer tourists enjoy the scenery, hiking and lakes.  Fall foliage is spectacular and draws visitors from all over the world.  Winter brings ski and snowboard enthusiasts from far and wide.

As an additional bonus, New Hampshire has NO SALES TAX AND NO INCOME TAX!

Financials

Asking Price: $500,000
Cash Flow: $208,000
Equipment Included in the sale price: $200,000
Inventory Not Included in the sale price: $105,000
Real Estate Not Included in the sale price: $750,000

Real Estate (approximately 6,500 sq ft) includes office space for both Businesses, garage for equipment and a conference room for use by clients of the Property Management company business to hold association meetings.

One office is currently rented to a tenant, adding $10,000 per year in income. There is room for additional tenants in the surplus office space.

Business Details

Hours of Operation: 24/7 on call.
Training: Sellers will assist in the transition.
Reason for Sale: Retirement
Licenses required: Contractor licenses for trades.  Real Estate Broker License if directly handling rent payments.

For more information, contact Charlie MacPherson, Business Broker with Inbar Group, Inc. at [email protected] or 207-352-1000.

PS - if you know of someone with a business that they are thinking of selling, and make an introduction, I pay a very nice referral fee at closing!  Ask for details!

Check with your real estate attorney, but in the states I'm familiar with, you may have a claim for "adverse possession", where you can go to Land Court and take the disputed property.

Here in Maine and also in Massachusetts where I used to be licensed, a claim can be filed if the use of another person's property was:

1. Open.  (Not hidden)
2. For 20 years or more.
3. Continuous.  The neighbor can put up a "no trespassing" sign on the pathway you've been using.  One time and the 20 year clock starts over.
4. Notorious.  I'm not sure how the Land Court interprets that phrase, but I think it means that you are bold in using that property.
5. Exclusively. (You are the only person using that land).  As I read it, exclusive use is necessary for taking the land by adverse possession, but not for a prescriptive easement.  I'm not a lawyer, so I could be reading that wrong.

There's an example of a successful lawsuit here: https://www.fitchlp.com/blog/2...  Here's another that's a long read, but pretty interesting: http://masscases.com/cases/lan...

It seems that you do not need to start a new 20 year clock with the transfer of the property, but check with your attorney.

Good luck!

TIGHT TANKS!  That's when the property has no access to town sewer and cannot have a leaching field due to proximity to a water source. 

In that case, you install a giant (2500 - 5,000) gallon buried tank to hold all waste water and sewage.  Every time it gets filled, you pay several hundred dollars to pump it out.  Want to run the shower until it gets nice and hot?  You're filling the tank.  Running the cold water to wash your vegetables?  You're filling the tank.  Rinsing the dishes?  Getting a glass of cold water?  You're filling the tank.

This is where the saying came from "If it's yellow, let it mellow.  If it's brown, flush it down."  Living with that would drive me nuts.

These kinds of negotiations can be tricky.  The escalation clause should include language that says something like "Offer amount will be increased by $5,000.00 over a bona fide, arm's length offer up to a maximum of $930,000.  The competitive offer must be shared for verification."

If this strategy works properly, you might beat a competitive offer.  The problem is that you have now exposed your maximum offer.  A sharp seller will counter at that maximum offer, but it sounds like your seller wants even more than that.  He is playing the "over-pay me and I'll remove the competition for you" game (canceling the open house).  That's risky for him because somehow he (or somebody) told you that the competitive offers were lower than yours.

Now it depends on how much you want this property - and at what price.  If you're willing to play a little hardball, you might resubmit an offer at $925,000 or $930,000 with no escalation and include a tight expiration, i.e., "this offer expires 4 hours from [whatever time you send it]".  And have your agent tell the seller that this is your highest and best offer and you will not submit any further offers.

If you are afraid of losing out on the property, you can either counter at something like $940,000 or just pay the $950,000, but if other offers came in lower than yours, my bet is that you're over paying by quite a bit.  If the new jacked-up price no longer works for you, don't be afraid to walk away.

I'm a Business Broker, meaning that I help company owners to sell their companies, and I'm always looking for new business. 

If you make an introduction to a seller for me, I will pay you 10% of my commission at closing.  That's generally about 1% of the sale price.

We sell any kind of business, except those that are "adult" or marijuana related.  We sell the business with or without real estate. 

I recently sold an FBO (fixed base operator) at a small regional - that's the company that runs airport operations. 
The finders fee on that would have been about $37,000. 
I also sold a precast concrete company.  That finders fee would have been $13,000. 
A pair of small motels would have yielded a finder's fee of $6,700.
I currently have a group of assisted living facilities under contract.  That finder's fee would be $135,000.

Mind you, this is your fee simply for making an introduction!

What are good candidates to talk with?

Gas stations
Convenience stores
Dry Cleaners
Pizza shops
Pubs / restaurants
Heating oil dealers
Supermarkets (privately owned)
Distributors (food, alcohol, medical supplies, industrial supplies, etc)
Manufacturing companies in any industry
Health care - (home care, assisted living, nursing homes, addiction treatment, medical spa, etc.)
Car dealers
Laundromats
Car Washes
Staffing agencies
Cleaning and disaster restoration companies

The key things to remember when talking with an owner are:

1. There are no upfront fees.  We get paid ONLY upon success.
2. We offer a no-cost, no-obligation opinion of value.
3. We maintain STRICT confidentiality.

Terms:

You make an introduction and forward their contact information to me at [email protected].  Let the seller know that I will call or email - whichever they prefer.

Your referral has to be new business.  Not someone we're already talking with.

The business has to be large enough for us to sell.  Ask the seller "If we were to find you a buyer, how much should we tell him that he can make?"  If the answer is less than $125,000, it's probably too small for us.

We cannot interfere with an existing contract, so if the business is already listed elsewhere, I have to walk away until that listing expires.

It cannot be in one of the 17 states that require a real estate license to sell a business.  Those states are

• Alaska
• Arizona
• California
• Colorado
• Florida
• Georgia
• Idaho
• Illinois (Illinois does not actually require a license, but registration with the state securities commission is necessary.)
• Minnesota
• Nebraska
• Nevada
• Oregon
• South Dakota
• Utah
• Washington
• Wisconsin
• Wyoming

That's all there is to it.  Make a referral, send me the contact information and sit back.  When we close, 10% of our fee goes to you!

Charlie MacPherson
Inbar Group, Inc. (Over 25 years in business!)
[email protected]
207-223-3000

www.InbarGroup.com
See my listings here: https://inbargroup.com/busines...

Your local/state laws will dictate what must be disclosed but in order to avoid liability it has always been my practice to disclose EVERYTHING.

Your contract should have either a section on the form itself or an addendum for disclosures.  It would go there.

@Brandon Quinones I'll echo @Garland Best's comment. You need to find a different brokerage - and be careful to read your contract to see what happens with your existing listings.  Some will let you take them with you and others wont.

KW and EXP are both worth consideration.  You might also talk with a smaller family brokerage.

One thing you might try is to look around your area and see where the top 5 agents are.  That might be a good place to be.

Good luck!