All Forum Posts by: Tony Molina

we are currently located in central mass, but looking to expand into western mass.  would like an invite to the group if still running.

We are located in central mass and have about 200 units.  We normally run all our property management and repairs/renovation inhouse, but are considering expanding into western mass.  To accomplish that, we would need a local property manager.  Does anyone have recommendations for the western Massachusetts area?

Thank you in advance

we had a similar situation but with a tenant on a lease who we were evicting.  Our lawyer had us write something on the check to the effect that we were accepting the payment unrelated to the eviction.  I would recommend getting a real estate lawyer.  You will need the for any purchase and sale and the good ones will give you good and necessary advice on issues like this without draining your pocket

I have about 50 doors between 3 companies and have been making due with Quicken.  It is not meant for real estate, but is very affordable and i can keep track of all our expenses over our various companies and bank accounts.  Our accountant would like us to switch to Quickbooks or another more robust software.  I tried QBO and did not like it as it did not seem well suited to real estate.

My partner's cousin was in a similar position to you.  Young, with a good job and interested into getting into real estate.  She started by buying a 3 br condo from us and living in 1 room while renting the others.  This generated income over and above her expenses and she was able to develop a relationship with the bank that loaned her the money for the purchase setting her up for her next purchase.  Unless you have a large cash reserve, it will likely take a while between your first and second purchase, but it will get shorter with each successful one (not all will be successful so choose the earlier ones wisely).  

Another strategy i have seen new people use is to buy a two family.  Live in one and rent the other.  Then after 2 years if the value has gone up, sell it and buy a three family (2 families are easy to sell as they are in high demand).  The more doors per building the more income generated.  

Whether you do 20% down on each property or the whole package the amount down will be the same.  The issue will be closing costs vs interest rate.  Commercial loans have a higher base interest rate, come with prepayment penalties and usually go to floating rate after 5 years.  Residential loans will often pay the taxes automatically so that’s one less thing to worry about.  I have also found that residential loans close quicker (but that may just be our bank)  For those reasons I prefer residential loans.  You can have the bank compare the increased closing costs va the increased interest paid based upon how long you are planning on holding the loan. 

Thanks Michael, we will look into them

Thanks Cory.  We will look into them

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $117,000
Cash invested: $97,000
Sale price: $330,000

Found nice house to flip on auction

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

We do a coupe of flips per year to generate cash to buy mulitis

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

auction website

How did you finance this deal?

cash

How did you add value to the deal?

new HVAC, electric panel, recessed lights, added bathroom, tiled bathrooms, opened up kitchen, new cabinets and appliances, granite counter tops, refinished floors.

What was the outcome?

Sold for a profit

Lessons learned? Challenges?

Everything always takes a little longer than you want

Investment Info:

Large multi-family (5+ units) buy & hold investment in Leominster.

Purchase price: $315,000
Cash invested: $25,000

Great building with excellent cash flow. Always get offers but won't sell this one for a while.

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

local contact put us in touch with current owner who couldn't handle the building anymore. Took a couple years to work out with bank

How did you finance this deal?

cash

How did you add value to the deal?

updated appliances, pulled up linoleum and refinished floors, added electric panels in units, and added instant hot heat/hot water for units

Lessons learned? Challenges?

These deals can take a while, but they are worth the wait.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Avidia Bank is a local lender we like to work with.