All Forum Posts by: Rick Santasiere

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $190,000

For years, I managed a single-family home for a client, only to discover that their debt-to-income ratio prevented them from refinancing. Motivated by our strong relationship, we overpaid to purchase the property and assist them in achieving their goals. Despite modest returns as a rental property, the value has since appreciated, providing both a source of extra revenue and a sense of reward for helping those in need.

What made you interested in investing in this type of deal?

At the time, this was not a particularly advantageous deal for me. However, I had some additional funds available that were not being used, so when my client approached me with an urgent need to sell, I was happy to assist.

How did you find this deal and how did you negotiate it?

The price I paid for the home was determined in an interesting way. We calculated the amount that the owner of the property would have netted from a traditional sale, after factoring in all of the typical expenses and closing costs. This amount then served as the basis for our purchase price.

How did you finance this deal?

We paid cash

How did you add value to the deal?

Over the past several years, we have installed a new roof, new C/Air.

What was the outcome?

Over the past several years, we have invested in some significant upgrades to the property. These include the installation of a new roof and new air conditioning system.

Lessons learned? Challenges?

Through this experience, I discovered that I find great satisfaction in creating solutions for others. The potential future rewards of this investment taught me to approach opportunities from multiple perspectives, considering various viewpoints to determine the possibilities. Fortunately, there were no significant challenges that arose during the purchase process.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $190,000

I managed this single-family home for one of my clients for a few years. However, when he tried to refinance the property, he discovered that his debt-to-income ratio was out of line. As a result, he approached me with an offer to purchase the home. Despite feeling that we overpaid for the property as an investment, our relationship with the client motivated us to help him achieve his goals.

Fast forward three years, and the home has appreciated in value, while we have continued to hold it as a rental property. Although it is not a significant source of income, the opportunity to assist someone in need and generate some extra revenue for our business has been rewarding.

What made you interested in investing in this type of deal?

At the time, this was not a particularly advantageous deal for me. However, I had some additional funds available that were not being used, so when my client approached me with an urgent need to sell, I was happy to assist.

How did you find this deal and how did you negotiate it?

The price I paid for the home was determined in an interesting way. We calculated the amount that the owner of the property would have netted from a traditional sale, after factoring in all of the typical expenses and closing costs. This amount then served as the basis for our purchase price.

How did you finance this deal?

We paid cash

How did you add value to the deal?

Over the past several years, we have installed a new roof, new C/Air.

What was the outcome?

Over the past several years, we have invested in some significant upgrades to the property. These include the installation of a new roof and new air conditioning system.

Lessons learned? Challenges?

Through this experience, I discovered that I find great satisfaction in creating solutions for others. The potential future rewards of this investment taught me to approach opportunities from multiple perspectives, considering various viewpoints to determine the possibilities. Fortunately, there were no significant challenges that arose during the purchase process.

Drew, thank you. This is definitely the issue. It has become very difficult for me to continue being an awesome realtor/broker for my existing clients, while also bringing in new ones, when the PM side can drag. It’s definitely not why “Why…” This is exactly why I want to split my businesses. I would hate to leave revenue, but absolutely see the value of giving up control of something I am not passionate about. 

This is great perspective. Thank you. I could be looking for something that doesn’t exist. The thought process on my end was that if there was a person who wanted to build something that already has a base, it would be an easy transition. Very great points. Thank you Nathan. 

Well done. Keep it up!  

I run a small brokerage in north central CT representing buyers, sellers, investors and also do some property management, usually for legacy clients, or people that I have known for a long time.  Looking for some guidance, advice, direction on bringing in someone to help me grow the business, while stepping away from the day to day management responsibilites.  It has become pretty clear to me, that my strengths are not in this space, but I have the perfect platform form someone to thrive, if they wanted to work it. Anyone have any experience with passing off a portfolio to a younger, ambitious go-getter who wants to grow exponentially?  Any advice or perspective would be super appreciated. 

Best way to do it. Reach out anytime if you ever need anything here in Connecticut. Happy to help with some Perspective as an investor/broker. 

Hi Evan. Are you going to be house hacking and living in one of the units, or are you looking for a complete investment property?

@Jeremiah Akindele that $4k is a 7 day cruise for you and a guest. If you spent 3-4 hours a day of that cruise reading the top 10 real estate books that are suggested here on BP, you most likely would have gotten some similar knowledge (and got a trip to boot!). However, some people do find the lecture  or classroom environment helpful, but most of these, sadly are in business for getting people in their chairs, not necessarily for coaching others to be successful. Lots of great advice out here. I wish you the best of luck, and glad you didn't take the $40k plunge.

@Connor O'Dwyer, get a picture for your profile or at least put a giant pizza like @Mat O'Grady HAHA. Seriously though, Mat made a great suggestion. I am doing this now with a newer agent. Only downside is the time at takes to reciprocate. Ends up being nearly a month (MA drags their feet on preparing a "good standing" letter which is required for the reciprocity to happen. Before you start though, why are you getting your license? Are you planning to be a full time agent or a part time one? What are your goals with it? I am asking for a number of reasons, but most importantly to help you. Having your license, insurance, MLS, Realtor Association memberships, etc costs north of $1,200/year. I see 50% of people who get licensed, that do less than a deal a year, which is not cost effective. I would be happy to chat with you any time if you would like some more insight.