All Forum Posts by: Charlie MacPherson

I work with investors, but ONLY after I have a signed Buyer's Broker agreement.  (I do the same for retail buyers as well).

My Investor's Buyer's Broker agreement states that should they - or their associate, partner, family member, assigns - buy any property I introduce them to by email, phone, personal visit, etc that they'll buy it through me.  I do have a minimum commission too.

It also states that should they sell it within X years, they will list it with me exclusively at Y%.

No investor has had a problem with it and I suspect one that would was probably planning to cut me out of the deal anyway.  That's not someone I want to deal with.

In short, before you invest your limited time, protect yourself.  Then work hard to serve the investors' needs.

We had a nice start last night.  One hard money lender, 2 real estate agents (my daughter and me) and two flippers.

If I pull together a regular meetup, say the 4th Tuesday of the month at the same time and place (The Tavern in Marshfield, 7 PM), who would be interested?

Can I get a final head count for tonight at 7 PM?  

I'll make a reservation under my name.  Call my cell if you need directions or have questions.

No costs whatsoever - except buying and fixing the property!

You should always go into a business with an exit strategy.  

In most cases, that means an eventual sale.  A business branded with your name is going to harder to sell.  Even if there's no actual "Murdock", I think it still applies.

For example, I'm about to open a new real estate brokerage (we should have licensing in place today).  For the new business (and we're in coastal Massachusetts), I chose the name Clear Sailing Realty.  The Tagline is "It's Clear Sailing.....all the way Home".

I'm not wild about "imbue".  It's not in common enough usage to communicate anything meaningful to your prospects and clients.

I'd suggest something that implies that you are the solution to their problem.  How about ideas revolving around reliability, seamless service, trouble-free service?  Ideas to seed your thinking:

- On Point Property Management
- Reliable Property Management
- One Stop Property Management
- Done Right Property Management

Just a few ideas...  And GOOD LUCK!

I have a fix & flip opportunity in a higher end town, south of Boston.  

The demo/construction estimates came from two different contractors who =
walked the site with me and my clients.

Here's the overview - and these are NOT guarantees, but my own projections. 

Due diligence is absolutely required.

- Expensive coastal town, great schools.
- Short Sale
- Acquisition price $300K (worst case)
- Currently a 2/2
- Needs almost a full gut. Probably $60K in rehab
- ARV $400K, which doesn't make sense - unless you go to the next step, which is:

- $150K gut + addition making it a 4/3 or 4/3.5, with an attached 2 car =
garage (with bonus space above). Then ARV jumps to a very conservative =
$650K

70% rule: $650K X 0.7 = $455,000 - $150K in repair = $305,000 maximum acquisition price.  I'm told by the seller's agent that an offer of $250K should be successful.

Estimated profit calculations: Sell $650,000. Comps strongly suggest ARV of $675K. I'm basing the projections on the more conservative $650K.

Estimated Expenses:

$300K acquisition (worst case)
$4000 legal fees, closing costs, etc.
$150K - design, permit, build of addition and upgraded septic (septic currently passes inspection for a 3 BR)
Carrying costs $2500/month (hard money) for 8 months (pessimistic) = $20000
Marketing cost $32,500 (5% commission at $650K)

TOTAL EXPENSES = $506,500

PROJECTED NET PROFIT = $143,500. $-15K for miscellaneous / surprises = $128.5K net profit.

These estimates (again, NOT guarantees) are at an ARV or $650,000, which I'm confident the house will bring as a 4/3. With a little less pessimism, the comps seem to support $675K.  That brings the projected net profit to $153.5K.

I am a licensed real estate agent in Massachusetts and this is not my listing.  It is an opportunity I've uncovered because I know the local market.  Therefore, I require a signed "Investor's Buyer Broker" agreement before disclosing anything further.

That agreement states that if you buy the property, you'll buy it through me and that I'll be the listing agent for the flipped property.

- Charlie MacPherson, licensed real estate agent in Massachusetts.  Lydon Real Estate and Mortgage. 167 Washington St, Norwell MA 02061. (the preceding is a state required disclosure)

I know and respect another local agent who approaches it a little differently than I do.

She'll show properties once.  Then at the end of their time together, she explains that "agents work on 100% commission, so now that we've met and seem to work well together,  I'd like to ask you to look at this agreement.  You don't have to sign it now, but once you do, we can schedule more time together".

Hi Raj

Have her contact me.  I'm actively recruiting new agents as we're about to open a new brokerage next week.

You CAN start part time, but it will hinder her.  I do this 7 days a week, with time off on Sunday mornings and 2 evenings per week.  

There's a direct correlation between time invested and results.

Hi Jose

Happy to work with you.  I do come across rehab deals fairly often (and have a hot fix & flip now!)

I'm organizing a get together next Tuesday evening you might want to come to.  There are a few BP people coming.  

It's at the Tavern, 1 Proprietor's Dr, Marshfield at 7 PM.  The reservation will be under my name.

Start building a list of your "sphere of influence" - the names and contact information of family, friends, co-workers - basically anyone you can think of.

The moment you're licensed, you want to reach out to them and let them know you're in the business.  Gently ask for referrals,  

I'd also talk with brokers that you want to work for.  Find out what they have to offer.  

What are the commission splits?  Is there mandatory desk time?  (in my opinion, a colossal waste of time)

Are there company provided leads?  If so, is there an extra cost for them?  

Are there desk fees?  What expenses do you have to cover yourself?

- Good luck!  (If you were in Massachusetts, I'd hire you!)