All Forum Posts by: Brian J Allen

THANK your attorney for going with the U&O instead of a lease.  This way if something breaks it is on them to fix and they have no tenant rights!

Essentially they will pay if they occupy and not pay if they don't.  Welcome to Worcester.  Give me a shout if I can help locally in any way.

Brian

Ironically I sold my investment property in Tempe, AZ last year and invested in Worcester, MA which is where I work as an agent.  Worcester made the list here as well and I agree with their assessment.  Prices have started to come down and there are less investors searching.  But as Mark Twain said.  "There are lies, damned lies and statistics".

You need to be a value investor and a House Picker.  Not just hoping that all properties will go up in price.

Here is my BP blog where I go into this further, and access to other items in my blog about Worcester Multifamily housing.

https://www.biggerpockets.com/...

@Daniel Palmer, pretty good summary of Worcester. The difficulty is that places near WPI and Newton square are essentially bought with Cash. I had 3 buyers purchase WPI properties in the last 6 months, 2 were off market so we had some opportunities, but 2 were all cash no conditions, and as you say, they won't make money for years. Newton Square or Worcester State is harder as there are so few multis and most are 2 families so they don't even come up for sale. Renting at Clark can make you money, but the rents at Clark are similar to normal rents within the city. Just make sure that you have a Realtor that focuses on Multi-Family as we get all the good deals prior to them hitting the market. I figure I know about 25% of the properties prior to they hitting the MLS, so my buyers are ready! Worcester is a great City to invest in, but you really need to know your neighborhoods. AND MOST IMPORTANT YOU NEED TO UNDERSTAND HOW THE TRAFFIC WORKS!!!!!!!! THIS IS THE MOST IMPORTANT THING IN WORCESTER-THE LAST MILE- THAT IS WHY AMAZON IS BUILDING 2 DISTRIBUTION FACILITIES

@James Roche @Jason Regan As another agent working exclusively with investors in WORCESTER, MA only I see the deals are few and far between.  Yes there are deals in every area, but they are slimmer in Worcester then any time prior.  

I feel that the BRRR my have run out with interest rates rising so it is hard to get your money back.

I see a big push right now with people trying to buy things that are on the market in advance of even further pull back in Supply.

Those people who typically want to trade up are simply holding their assets because it is becoming more expensive to replace those properties due to the run up in Rates.

Keep in mind rates are still historically low, but investors are very price sensitive.  They will search for new projects, but often will not release the ones they already have.

Thanks Chris for the shout out! We will find you another one!

Viktor, 

My suggestion is to drive each of these places and see the proximity of them to where you do your normal activities, work, family and friends. Then see if you like the feel of the location. Do your math and see if you can make the math work with places on the MLS. Next, find a realtor who works with investors and can give you the support, not just during the search, but after you own the property, with local contractors, zoning and permit review. And, make sure that you get a full tour of the area that shows you where the traffic patterns are. Where the major places of industry are, and where the grocery stores are. That way you can understand who your tenant will be and how they will live their daily lives. Where they will work, shop and entertain themselves. Find and agent who understands rents, and the local economy. Then work with them to figure out the best place for you. In Worcester if you check the deed recordings at the end of each week you will see that about 1/3 of all multifamily properties are trading off the MLS. A Good multi-family/ investment realtor has access to these deals on a regular basis and will be able to help you navigate the process.

Almost every house in Worcester is shopped off market at a "Fair Price" for at least a couple weeks before it hits the MLS. The key is to work with an agent in a company that does a lot of Multis. I am previewing 2 today that will hit the MLS next weekend. These are perfect for FHA because the seller has a price in mind and as long as they get it, they will go FHA. The key is to know the agents that do a lot of multis. And keep in mind if someone does 20 on the MLS they are probably doing another 5-10 non mls due to their connections.

@Wendell Butler has done financing for a bunch of my buyers.  A great resource

First key here is that you know where you would like to live!  Awesome!  Next is that you would prefer to own/house hack to renting. Also good.  And you are betting on Worcester,MA!  I would be glad to answer any questions you have if you interested in Multifamily.  Best of luck and welcome to BP.

@John Powers. You definitely need to work with an agent that works in multifamily. Most of the deals in Worcester are done pre-mls. That is the listing agent and the seller have a price. If you can hit that price you get the deal. It doesn't help anyone to take an offer for $550k for a house that will appraise at $500k and good agents know that. What they are looking for is certainty that the deal will close. The only time a seller needs to go on MLS is if they want to get more than the appraised price for something. It doesn't matter the market, but get someone in that market that has done a lot of these deals and work with them. We had one of our buyers under contract at $615k on a great 3 family in Worcester and they got cold feet over a couple things, the sellers went on MLS and it is under contract for $700k. You need to have good guidance and be ready to jump when the opportunity arises.