All Forum Posts by: Tyler Fontaine

Congrats on being able to take on a deal with your family. That's awesome.

You need to speak to a real estate attorney in your area and ask if they have an operating agreement you can use. You could also ask some of the investors in your area if they have one that they will let you use.

Most likely this will cost you money. Could be hundreds, could be a couple grand. Depends on if they have it drafted or need to create one. It WILL be money well spent.

Ensure the agreement outlines all the parties involved and has explicit expectations as to who does what. For example ours outlines what party is the purchaser, who's carrying the debt, who needs to pay who on what days, Party X is responsible for ........ and has/does not have the power to make the following decisions..... , Party Y is responsible for ....... - and so on.

It's your parents but money is involved. Get it all in writing.

Hello hello, you are in the right place for sure. 

House hacking is a great way to get started. I did it myself and would definitely recommend it. You should start by getting a good realtor who specializes in the multifamily space. Ideally the agent has bought property before, maybe house hacked before, and understands the investment philosophy well. 

You should also start by talking to a lender. Find out what your budget is or what you need to do to get a pre-approval. If you don't have a pre-approval - most agents won't take you seriously as you are basically window shopping without a wallet. 

In terms of finding off-markets I would spend some time on youtube looking at how you can get that done. It is a skill that takes time ti grow and learn. A few good tools that people use for this are Propstream, Deal Machine, building relationships with attorneys/wholesalers/other investors.

Hey there, welcome to BP. You're in the right place.

I live in RI and know some agents that work in the Boston area. I stick around the SE MA and RI area myself just for convenience. Househacking is a great way to get started in the investing game. Im actually cashing out on my househack this month. 

You should definitely check home base and start looking around to see what you can make work. Prices are high where you are but so is rent. What ever agent you work with I would recommend making sure they have bought property before themselves and be sure they niche into the multi-family asset class. They will have better relationships established, they will understand the strategy you're utilizing, and will be of more value to you in general.

Also, I would check out the Rhode Island area. I've had a few clients who have moved down here because it's more affordable so they could get more bang for their buck. Of course your lifestyle will have to allow you to move 1-2 hours away from home base but its a great option if you can make it work.

I've seen multiple referral fee set-ups.  Some are a flat fee, others are a percentage of the assignment fee. Usually though it is because the connection was made to a wholesaler and a seller lead. Generally just connecting a buyer with the wholesaler doesn't garnish much other than you building relationships.

Stage the home if you can. A good staging will garnish you better photos, attract more qualified buyers, and help to sell the property for you. 

All the homes we remodel or flip get staged for this reason. Think about the frame that a buyer is operating in as they shop. Viewing a home is an experience in itself. We want that experience to come as close to "I could live here. I have to have it." as possible. We even use scented room sprays before showings so that ALL the buyers senses are attacked as they go through. Things like this will help the property stand out in the buyers mind when they viewed 4 other homes that random Saturday. 

I know you said the property is slightly dated and you are listing below what the comps are, but in my experience you can bump up what a buyer is willing to pay if you utilize staging. 

So, yes. If possible I would stage the home. 

Our ROI has grown on the staged properties versus the non-staged. They also seem to sell quicker (I know most markets are hot right now as it is, but thats just my perspective)

Should you stage - try to use a professional that does it often. Ask how long the contract is for the staging. What if you need to extend that contract for some reason, is it an option. Make sure they showcase the rooms appropriately - for example we had a large room that lacked a closet in a flip soooo it wasn't a "true bedroom" - so that room was staged as an office.

Hope this helps.

It's going to depend on your strategy and how much you really want to be involved. I will say that if you do go with a PM then make sure they are local and actually do STR. They should be able to speak to their experience with this and give you insight as to what to expect.

Not all PM's are the same. Not all PM's specialize in every asset class or investment strategy. Who ever you do bring on (if you do) you should really consider as a business partner. They will be directly affecting your ability to succeed with this. 

When looking for a PM you want to make sure they share a similar investment philosophy to your own.

Anyone know how to pull lists of mortgages that were in forbearance?

With our first deal we simply used a regional bank that we had already been using for personal things. That said, it is much better to get in with you local banks in your area as you scale. They will get to know you and will be able to provide more for you - potentially taking more risk on you and such as they know who you are, where you do business, etc. 

Being smaller they will want to accommodate more for you so that they can retain your business and keep the cash flowing. Generally they will get things done in a timely manner, maybe have less hoops to jump through, and could get you better rates potentially. 

How did you get into the first property and with what kind of funding?

Chasing them down for the rent will cost you a lot of time and money in the court system. All for you to probably not even collect the rent from them. You may get it flagged on their credit or something but at what cost?

Hopefully you have a security deposit you can utilize for the expenses you've incurred. That said this is going to be one of those scenarios where it's most likely best for you to just bite the bullet. Sorry to hear you got the shaft :/