All Forum Posts by: Jason A.

Before you get into any numbers, analysis, etc., I would recommend getting to the bottom of exactly why he wants out. Dig and then dig deeper. Consider carefully if you want to actually pay money to buy into his problems and whether or not you have the skills and resources to not become another "him".

Hi Marjorie,

Sorry I'm a bit late to this party, but I just noticed your note. Here's something you might want to look into. I recently sold a property in Framingham to a buyer who used the MHP One Mortgage program, designed especially for first-time home buyers with lower incomes, limited assets, etc. It's very low down payment, low interest and subsided (you can get cash back under certain circumstances). You can purchase a multi-family home with this loan. The link below will describe the requirements and limits of the program:

MHP ONE Mortgage Program

Additional information on this and other MassHousing loan programs can be found here:

MassHousing Programs

Now, much as I would not encourage anyone to be a MA landlord for reasons beyond the scope of this note (you can find tales of MA landlording miseries elsewhere), in your case you mentioned you might consider taking on such a thing. If so, one of these loans might be just the ticket for you.

Let me also take exception to your bias against Framingham. There are decent, moderately priced areas in Framingham. For example, I just did a quick MLS search and saw a 3-family in the Saxonville area (nowhere near downtown) listed at about $500,000 (which is below the MassHousing loan limit for a 3-family). No need to choose Framingham, I am just using that as an example of something you might be able to get into that would seem to meet your criteria, and at the same time would suggest the possibility of expanding your scope to include other similar properties nearby.

Anyway, check that out for starters and see what you think.

Happens here all the time and it has always puzzled me, too. Contractors who are supposedly in business who won't return phone calls or who spend time looking over your job and from whom you never hear again.

I disagree with the notion that people who bid out a job are simply cheapskates willing to sacrifice quality for price. People usually want both, and contractors unwilling to compete on price as well as quality are sometimes astonished and indignant to find themselves out of work in tight markets. They usually come around quickly enough if they want to survive.

As far as referrals, I've had some pretty good luck using HomeAdvisor and Angie's List. Both of these do some prescreening of their contractors and both have detailed rating systems where people can describe what they liked or disliked about their experiences. HomeAdvisor is free to use. You type in your requirements and get three or so referrals, all rated. The referrals also get your contact information, and I think many of them are very actively looking for your business, so I have had cases where I have typed in my requirements and gotten a phone call back within a few seconds. They also have customer service people who will follow up with you to make sure you've found someone to your satisfaction. If not, they will help you find someone else. Nice service. Angie's List is another good one. It does cost a little to join, but if you get on their mailing list, you'll frequently get offers for cut-rate subscriptions. I think my Premium membership (the highest one) wound up costing me about $4.00 for a year. It's also good because if things go wrong, you have recourse through them (rather than just the contractor) to help resolve the issue(s).

I've had my own business for many years and will offer this observation. To have a really successful business, you don't have to be exceptionally good. Simply show up and do what you said you were going to do. To the extent you can exceed that low threshold, you will be considered a superstar. The reason is that so many contractors so frequently overpromise and underdeliver. So, nothing fancy, just do what you said = fame and glory. 

I owned some properties in just such neighborhoods. Stabbings, shootings, beatings on a regular basis...and those were by the certified tourist guides! (I tell ya, I got no respect)

No, seriously, it really was no joke doing things like going to collect an overdue rent payment, knocking on the door and having it answered by a guy with a drawn gun. Cleaning up vomit in the hallways and syringes in the backyard also got pretty tiresome after a while. At some point, heck, every day with properties like these, you are likely to question not only your sanity but also your reason for being.

So for these kinds of properties, I would argue that you need to go beyond the traditional investment analysis, beyond the numbers, and ask yourself how much is your peace of mind worth. Heck, if you must analyze it, calculate the present value of your life and weigh that against whatever "IRR" you think you'll derive from that kind of investment.

So many stories, so little time. In case you haven't guessed already, I would never in a million years consider revisiting that mess. So glad to be out of it.

Great...except that in MA, if (and only if) the tenant has previously agreed in writing to pay a late fee, a landlord cannot impose that fee until the rent payment is 30 days past due.

For this reason, many knowledgeable MA landlords consider a "best tip" to be: serve a 14 Day Notice to Quit For Non-Payment (the document that starts the eviction process) 24 hours after the date and time that the rent is due, every time, with no exceptions.

The MA landlord-tenant laws...the gifts that just keep giving...I'll let you guess to whom.  

I almost never sent out these kinds of letters, but here's something perhaps you might find useful:

Letter of Denial of Application to Rent

In a word: no.

In two words: no, no.

In three words: no, no, no.

Hi Luis,

I was bored in a log cabin, from poor but humble stock...

No, seriously, my real estate investment career began perhaps like many others, by doing a lot of reading, research, and talking with others about what was involved. I was (and still am) a licensed broker, but broker's training, while imparting valuable real estate knowledge, does little if anything to prepare one for the reality of being an investor/landlord. Eventually, in my travels as a broker, I came across a property in Worcester that I felt was nicely priced and from which I seemed sure to obtain positive cash flow. That was the first step in a long string of purchases that followed fairly soon thereafter. Soon, I was fully immersed 100% (like a baptism of fire, you might say).

To make a long story short, before very long, and through no fault of my own (other than the stupidity involved in buying into these problems), I became involved in a series of what I will call "tenant situations". Very bad situations. It turned out that just about all my assumptions about what a landlord can and can't do in Massachusetts were completely wrong. You'd like to think that you have some control or rights to a property that you just paid a small fortune for (or at least at the time that's how it seemed). Unfortunately, once you have given someone possession to the premises, that turns out to be no longer the case.

That is why I am recommending that you spend some quality learning time at the housing court as your first step, as a (low-cost) investment in your education. The other technical stuff (financial analysis, property selection, etc.) are all important and can be dealt with in due time. But if you're shocked and/or dismayed by the goings-on in the housing court (and not to scare you, but be prepared for it), you will really need to do some serious soul-searching about whether or not this "investment" is the best way to deploy your hard-earned $$.

There's lots more, but I ran much longer than intended. Hope it helps...

Greetings, Vatche!

My father's side of the family is all from Watertown. They all lived in a house on Elton Avenue that they eventually sold to the adjacent church and I've heard the church has converted it to a school. My dad, aunts, and others worked mostly at the BF Goodrich factory there and my aunt became vice-president of the Union Market National Bank way before women generally held such positions. She knew just about everyone in town had some great real estate stories.

If you plan on wholesaling anything in the Watertown area, by all means keep me on your list. I think it's very desirable and needless to say, I've always been sentimentally connected to it.

Hi Luis,

My advice (and unfortunately, advice I wish someone had given me before I started) is before committing one penny of your capital, become as familiar as you possibly can with the Massachusetts landlord-tenant laws. You are about to play a potentially very hazardous game and need to thoroughly familiarize yourself with the ground rules.

You are lucky -- there happens to be a housing court right in Lynn at 139 Central Avenue. For an eye-opening and educational experience, I recommend you spend at least a couple of days (the more the better) attending sessions in that court and observe how it goes for one side or the other and take notes. If possible, talk with some of the players -- landlords, tenants, court personnel, attorneys will all be there.

This is a business you are considering starting and owning; at least that is how the court will look at it. A business where you will have to live on the premises 24/7. Spend some time at the court, watch, listen, and ask questions. Then at least you'll have some real-world data with which to decide whether or not this is the kind of business you want to commit your life (and $$) to.