All Forum Posts by: Rob Lehmann

After referring numerous people to my favorite mortgage broker I've recently tossed around the idea of becoming a broker myself. Ideally, it would be a semi part-time thing for me, mostly originating loans for other investors but I am sure that some of my local contacts would also bring me some business as well.

There are a few things that I am unclear on that hopefully some of you brokers out there could help me with.

1. Would I be able to broker loans for myself, thereby saving myself some closing costs and be able to have a bit more control?
2. Are there any other benefits/disadvantages to being both a broker and an investor that I may not be considering?
3. How feasible is it to make this a part-time gig rather than a full-time job?
4. Once licensed, how would I make contact with underwriters if I am just working as a small operation for myself?

Thanks ahead of time for any help and advice!

1. If cash flow is not profit then what is it? 

2. I disagree. I guess we'll have to agree to disagree.

3. My cash flow is quite passive because I have management running my property. It was dependent on the fact that I bought well. Appreciation does not always happen regardless anyway.

You are obviously quite hard-and-fast with your opinions and there seems to be no room for discussion. I like to have my properties cash flowing AND I try to buy properties where capital appreciation is likely. Am I wrong? Maybe in your opinion, but it's working quite well for me and I'll continue down my path.

@Account Closed

I think that capital appreciation is going to happen in both areas, and in the mean time I am cash flowing in NB, something I would not be able to do in Boston. Does that answer your question?

@Brandon Ingegneri

I'm going to have to agree whole-heartedly, and I DO actually know what I am talking about because I also own property in New Bedford. It's a great place to invest, the cash flow is there and the capital appreciation is right around the corner. 

New Bedford is making some strong moves in the economic development department;

• The train to Boston is being built. It is, don't let people tell you it will never come. The government funding has been allotted and the bridge construction is already underway.
• Cape Wind signed a contract with the city to run their multi-billion dollar company's ships and supplies all out of New Bedford.
• Downtown development is moving FAST and those class A neighborhoods right downtown are expanding outward in every direction.

I'll send you a colleague request Brandon, maybe we can compare notes on contractors etc.

Saying that apartment buildings get an 8-11% annual return is a very generalized statement.

I'll assume that those numbers refer to a buy and hold investment strategy with apartment complexes and are taking in to account the annual return on investment through calculating net profit after all payments and expenses. Generally when you hear numbers like that quoted they are referring to my assumption, so that's what I'll go with even though the statement is so broad that it could refer to anything.

There are so many variables; What type of apartments? What market? Why not SFH or Multis? What about capital appreciation? What about principal payments being applied (gaining more equity)? What about being able to leverage your investments with a mortgage? How about tax benefits?

All of the above aside, real estate investing comes with one major (for me) advantage over the stock markets and that is the fact that I can personally investigate, choose, and manage my investments. That personal touch has allowed me to ALWAYS earn (much) more than I have on my index funds, which I do have and I think are an integral part of my portfolio.

I can assure you that many (probably most) experienced investors on this forum are earning greater than 11% returns. They are doing that all while property prices and rent are increasing faster than inflation, while they have a tenant paying down principle, while enjoying greater tax benefits than with index fund investing, and most importantly while being in direct control of their investments.

@Robert Andrade I did hear about that fiasco. Shame.. That being said, the (smaller) cruise ships are coming. Have a look at this schedule of itineraries.

I honestly believe that investing in the NB area as you are currently doing will put you in a good position in the future. Maybe focus on properties closer to the whaling museum and nicer bits of downtown. 

@Molly ArmandoThe rail project is definitely underway. Funding has been allocated and they've started construction. This article has lots of information on the project, and specifically this section highlights how it's all underway. 

I appreciate your input @Robert Andrade. I certainly agree that New Bedford can be.... well... challenging.

Being based there you certainly know more about the area than I do but I do think there are lots of positive things about New Bedford as well. Good things are happening to the New Bedford market and the nice part of town (albeit small) is without question expanding and gentrifying the surrounding neighborhoods. I also believe there is capital value increase on the horizon. The South Coast Rail Project IS going to happen. The funding is there and work has already begun. That will link NB to Boston, providing a place to live for the people that are quickly getting priced out of big money Boston. Other possible projects on the horizon like increasing the size of the offshore wind farm have been proposed, which would also add high paying jobs and demand for properties.

Value is is already gone in most of the nicer parts of New England. Look at my market in Newport, RI. It's tapped. Prices have gotten to the point where people are now buying 3 family homes whose rents JUST cover mortgage and expenses. Sure, it's a nice area that makes for a safe investment, but the returns just aren't there for a buy and hold investor any more.

I know your outlook is more grim than mine, and maybe I'm giving the area more credit than it deserves, but I truly believe there is value there.

Thanks Paul, that's great information and I'll be sure to follow those leads!

Hello BP members, and thanks ahead of time for any help!

I'm primarily a buy & hold investor. The market where I primarily invest is heating up, and good deals are becoming fewer and fewer. Given that, I am looking to branch out and go up the road a bit to find the next deal.

I've been doing quite a bit of research on the market in New Bedford, Massachusetts and believe it is my next target market. While my contractor, RE agent, lawyer, and other contacts are all willing and able to work there it is out of my property manager's service area. With New Bedford being a more challenging market in terms of tenant quality I strongly believe that having the right property manager can make or break my investment there.

That being said, do any of you invest in the NB area? Any tips or things I should know? Are there any up-and-coming or fringe neighborhoods that represent good value there? But mostly.. Does anyone know of a good PM in NB?

Again, thanks for all your help.