New to Wholesaling?

Great post by Bernadette from @BostonAREIA regarding wholesaling. Too often, people try to get into real estate investing by wholesaling properties, instead of rehabbing, as a less expensive alternative. However, when you don't have experience rehabbing, being successful at wholesaling can prove to be difficult, because you don't know how to properly analyze a deal. Whether it's the cost of the rehab, the cost of the money, the holding costs, or the cost of the broker who will list it on the other end when the project is completed, there is always something that gets left out when an inexperienced wholesaler is analyzing a deal. Read Bernadette's article here.

If there are new wholesalers out there who have never been to a Boston AREIA meeting, and what to jumpstart their business, get yourself to this months meeting! Chris Coute from Brownstone Realty-Group will be presenting on how to analyze a rehab and account for the costs. They also offer training and partnership programs for both rehabbing and wholesaling. You can learn more about that here:

Auction in Brockton, MA

We hope everyone is having a great start to Summer!

Last week we attended an auction for a single family house in Brockton.  We got in on some of the bidding action which is always exciting, but the price was driven up quickly by retail buyers so we had to bow out. As with any purchase, doing very thorough due diligence is a must!  A plus on this auction was that we were able to view the inside of the property prior to the bidding so we were able to really get a firm idea on was our maximum offer could be based on the amount of rehab that was needed and the ARV that we came up with during our initial research.  This property was a split level ranch and was in fairly good shape — needed mostly cosmetic upgrades and either repair or replacement of the back deck which was not structurally sound. 

As far as due diligence is concerned, the auction had advertised the property as a 4 bed, 2 bath.  However, when we viewed the property, we realized the 3rd bedroom didn't have a closet as they had reconfigured it to provide extra space for a master bedroom addition.  It's possible that we could have added a closet back into the room, however the lesson learned is never take things at face value.  It's very possible that the public record for the property or the auction advertisement may not have accurate information.  If you are attending an auction and are unable to view the property before hand, you must really get a strong number and consensus on the ARV and build in extra costs because you never know what you are going to get when you walk through that door!

We are planning to attend auctions in Lowell, Tewksbury, Billerica, Somerville, Randolph and Weymouth over the next several weeks so stay tuned for more lessons learned.

Happy early 4th!





Christopher Court, New Bedford highlighted at this months Boston AREIA meeting

Happy Memorial Day weekend everyone! We had a great night at last weeks monthly Boston AREIA meeting. We were honored to present a recap of our recently completed project in New Bedford. We presented along with our partners, Brownstone Realty Group and discussed how the deal was sourced, the work that we decided to do and all of the in's and out's of rehabbing. We are starting to make progress on two other rehab projects we're working on — a single family in Taunton and a multi-family in Attleboro, so we'll be posting updates in the weeks to come. Enjoy the holiday weekend and stay safe!

Property Auction in Woburn, MA

Last week we attended a City ordered Auction in Woburn, hosted by the Zekos Group.  It was a very well organized event which started off with a walkthrough of the property.

We had a firm number in mind and did not waiver, although the fast paced auction environment certinaly gets your blood pumping -- which makes it very hard to refrain from lifting your auction card and being part of all the action.

The property sold for well over what our max bid was, which was no surprise.  It's very difficult for investors to be competivie in auctions in hot markets because oftentimes retail buyers will be willing to bid much higher to get a property at what they "think" is a good price.

This particular house had been vacant for many years and was very distressed.  We estimated that the rehab costs would be somewhere around $90,000, however the city had already approved permits for the footprint to be expanded, which would be a good opportunity to rebuild a much larger house.  Unfortunately, the comps in the area wouldn't support the costs involved so we ultimatley decided the best way to proceed would be to rehab the property, but only for the right price, which this was not.

Rehabilitation project in New Bedford

Happy Spring! We have been hard a work on rehabbing a property in New Bedford these past few weeks with our partners, Brownstone Realty Group. This property is a 4 bedroom, 2 full bath in New Bedford.

Most people will say that you can never just assume a project will be smooth and boy are they right! Although most of the project has been a breeze, we started off with a problem about 30 minutes into our first day of the project. The house had been winterized and when we went to go fire up the system, we heard running water…which is never a good sign. As it turned out, there was a section of copper pipe in an exterior wall that had burst. Luckily, the plumber was on hand!

The lesson learned was you absolutely need to account for miscellaneous things that will pop up during your project. There is no way to account for problems that may be lurking behind walls, so giving yourself some extra budget to deal with surprises is a must! We have about a week left on the rehab and we'll post some before and after pics for everyone to see the makeover.

Enjoy the weather and happy house hunting!

Short Sales, Snow, Snow and More Snow!

Man it's been crazy out there! Hope everyone is safe and warm.

We've been going a bit stir crazy and it's been really difficult getting out there to see properties. The abandoned ones are really hard to go see - they aren't shoveled out and have massive snow drifts so it's nearly impossible to get a peek inside.

We have had the opportunity to check out a few properties lately though. The first is a potential short sale deal in Randolph that came in through one of our mailings. The owner is in a tough financial situation because of health reasons. He tried to work with the bank, but the bank didn't want to work with him. They're basically harassing him about getting current on his mortgage even though he's explained that he can't work. He's about ready to give up, and just wants somebody to take the house off his hands. He is very sweet and we introduced him to a short sale agent that we know will take very good care of him throughout the process. Hopefully, it'll be a win-win-win situation for all of us; he gets out, we get the house, and the bank gets some money.

This past weekend we checked out another short sale opportunity in Woburn. The owner is an elderly lady who can't handle the upkeep of the house any longer. The main house has 3 bedrooms and a basement that could likely be finished for a second living area. They had also converted the garage area into an in-law suite, however, it's possible that it was not permitted. If it was, it could potentially be used for rental income. They installed a propane heating stove in the living room, but it wasn't done right, so the siding by the vent is charred and melted. They had also started to do some work in the main house, but never finished, so everything was a bit of a mismatch of old and new. The bank has a price in mind for what they think this house is worth, but in my opinion, it's about $75k too high. There is trash everywhere, lots of holes in the walls, needs a new roof, needs a new heating system, possible permitting issues, new plumbing and electrical… the list just goes on and on.

Sometimes getting through to the banks can be tough. We're the boots on the ground, we know what's going on in neighborhoods and what local property values are. Banks don't see what we see, and that can prevent them from approving a short sale. The way I see it, short sale opportunities are similar to slow cooker cooking — you "set it and forget it". These types of deals takes months to materialize, if at all, but can be great opportunities for investors who have the patience to wait it out.

Stayed tuned!  We'll have some updates on these and a few projects we will be kicking off in the coming weeks.


Busy start to kick off the new year!

Hi Everyone,

Sorry it's been so long since we've checked in, life has been hectic with the holidays and the start of the new year. I'd like to start off by wishing everyone a happy, healthy, and prosperous New Year! This weekend has been crazy and exciting. We've driven all over Massachusetts, close to 400 miles, visiting properties in Taunton, Weymouth, Worcester, Braintree, Dorchester, and Revere!!

We're currently working on a deal in Taunton that we've partnered with Brownstone Realty Group on. This one is extra special because we get to help out a Vet! The couple contacted us. They had a VA loan, but were unable to purchase the house they wanted because it didn't meet the strict "move-in ready" guidelines of the loan. The house had been vandalized, pipes stolen, wires cut, etc... They needed someone to go in, fix up the house, and get it up to VA standards. We stepped in and are working on making their dreams a reality! These are the parts of the job that make it a joy, it feeds the heart and the soul. Thanks for serving our country!

One of the great things about getting out there and visiting properties is that you have the opportunity to meet and chat with neighbors. We were doing a walk-through on a property today that was presented to us by someone we met through BostonAREIA. When doing a final walk-around of the perimeter, we met someone who was able to give us all sorts of feedback about the neighborhood, the schools, and the area transformation over the last 50 years. He was a WWII Vet, and had purchased the house with his wife back in the '60's. Sweet as pie, and a jokester! I love those moments.

Shopping for Christmas! Gifts or houses?

Hope everyone had a fantastic weekend! Everyone seems like they are on a mad dash to get Christmas gifts out of the way and we were no exception.

We spent some time at the Natick Mall (with what felt like everyone else in Massachusetts) and then decided to do some Driving For Dollars on the way back home. We were able to find a few hopefuls in Framingham and Wayland and will be sending out letters this week. Check out a few pics below.

In the meantime, we're going to wrap all the goodies we bought and get ready for the next @BostonAREIA meeting on Thursday, which is always a good time! Hope to see some of you there!



Two Family Property in Clinton, MA

Hi all!  Hope you all had a great Thanksgiving!  We're just starting to come out of the turkey coma now and have been focusing a lot of our efforts on getting things set up for our business.  

Last week we received a lead from a wholesaler we were introduced to for a two family property in Clinton.  Most of our focus so far has been on single family rehabs in the Waltham and Framingham areas but we decided to check it out. The numbers seemed to work on paper, but when we went in for a closer look, it was pretty clear that the outside alone would eat up a good part of the budget...and we were told it was going to be a gut job so it wouldn't leave much money to do a quality flip. Take a look at the pictures below.

If anyone out there has any leads in the MetroWest (Waltham, Watertown, Belmont, Framingham, Natick, etc.), North Shore (Lynn, Salem, Nahant, Revere etc.) or South Shore (Quincy, Braintree, Weymouth, etc.) give us a shout. We offer a $1,000 referral fee upon closing!





Shopping for REO's

We had a few appointments over the weekend to see some REO's. Actually, one of the properties had sold at a foreclosure auction a few months back, and the new owner couldn't handle the rehab project, so he put the property up for sale in a partially gutted condition. I didn't think we could make the numbers work on this because the house was massive, close to 4,000 sqft., and every inch needed rehabbing. Based on what the owner was looking to get, and the comps in the area, it didn't make sense…

However, we did see one bank owned property that we really liked. It's located in Fitchburg, MA and we're in Waltham, MA, so it's a good hours drive away. It needs a lot of work, i.e. new kitchen, new baths, all the flooring needs to be done, new heating system, even the copper pipes were stolen by looters. We're getting in touch with a few contractors this week to see the property again and get quotes. We're super excited about this one and hope we can make the numbers work. I've attached some pics, take a look.