All Forum Posts by: Michael King

Good morning everyone! I’m looking for creative financing options for a unique property. I’ve stumbled across a 4-fam property with a 5th unit on the 3rd floor that is roughed in (down to the studs with roughed plumbing and electrical). My wife and I want to purchase the property, continue to rent the four existing units while the 5th unit is being renovated, and then move into the renovated unit ourselves. We’re estimating that the renovation can be busted out in 3-6 months (tops). The catch is, most financing (including owner-occupied options) only allow for up to 3 units, or require the owner occupant to occupy the property immediately. We don’t want to have to kick a tenant out of one of the existing units and move into it (losing income from that unit) just for the short period of time while the renovation is being done. Additional information: property is zoned for 4-8 units. Classified with the city as currently having 4 units. I am familiar of the process for changing occupancy and the potential need for a special permit from planning, and the possibility of triggering the need for a fire sprinkler and fire alarm system. I’ve done this type of thing before but it was a 3-fam so there were different financing options available at the time. Much appreciated! Thanks, Mike

Hello everyone,

    I was wondering if anyone has a rough idea of how much a real estate broker surety bond would cost? From what I understand if varies, but I am looking for a rough idea. Are they under $100? Are they over $1,000? Literally no clue... Just looking for a ballpark figure.

    Thanks!

                   Mike

Hi everyone, I live in Massachusetts. I work a full time job, and have time to work as a real estate agent in the evenings but it doesn't leave me a lot of time for prospecting. If I spend a lot of time prospecting, my quality of service suffers. So I am looking for creative ways to advertise. I'm looking into making a short video ad that can be marketing for me while I work. I would love to be able to offer referral fees or gifts to non-licensed people for referring business to me, but from what I understand giving referral fees to non-licensed consumers is not legal. What about gifts? Does anyone know where I can find these laws and regulations? Thanks much! Mike

Wow, another great reply! Thanks Joel Owens I will definitely do that! It makes a lot of sense! Thanks!

Thanks Ronald and David for the replies! My daytime plan is to have a lockbox in place for daytime showings, which of course means a buyer would need an agent representing them as well since I wouldn't give the access code to anyone but another licensed agent, but I do plan on working with another agent. I'm glad to hear that my process sounds good! I haven't heard from too many agents about what they do on their listing appointments, so I appreciate the feedback! Thanks! Mike

Thanks for the replies everyone, but I think I may need to rephrase the question a bit. The listing process is not a problem. As far as training, I have gone to quite a few of them over the past 2 years, but can't regularly attend. I've spoken with my broker and have been guided. I'm confident with the listing process and am comfortable doing everything exactly the way I mentioned before (meeting with client, explaining my process and going over how I will market their property, what I will do differently from other agents, signing the exclusive listing agreement, then leaving for the evening). Then I would come back as soon as possible to begin the listing process (taking all the photos, uploading the listing to the MLS, etc.). Every agent has a different process for listing appointments when they meet clients for the first time. I am simply looking to find out what other agent's processes are for going on listing appointments? I meet with sellers frequently. I am comfortable working with people. I am confident with paperwork. I am just looking to compare how I plan to conduct myself versus how other licensed agents conduct their first meeting with a listing prospect. As far as I am concerned, a seller will get much better service if I can come back on a bright blue skied sunny day with my professional photographer and snap some nice shots of the property. Not only that, but I will be able to conduct a much more thorough walkthrough of the property if I am allowed more time. I am curious if other agents do all of these things during their first meeting or come back. Also, I'm curious if people bring a CMA with them to their first meeting? Thanks again, Mike's

Hi everyone! I've had my MA real estate sales license for 2 years now specifically so I could utilize the MLS for investing purposes (analyzing comps, etc.). Now I am ready to take on some listings for clients! The problem, is that the broker I work for has all their trainings during the day, and I can't make it to any of them because I work a full time job during the day. Bottom line, I have created a listing presentation, put an ad in the newspaper and put up some online advertisements, and expect to get some calls soon. I was wondering if anyone out there could give me a sort-of step-by-step rundown of what to do on a listing appointment? What do you typically show up to the property with? Do you prepare a CMA and discuss property price the same night? Do you bring an entire plan of when/amount of future price reductions and average DOM for similar properties? I know I go, meet the client, walkthrough the property with them, build some rapport, present my listing presentation, etc. . But what I am not sure about is stuff like; when do you take pictures of the property, when do you fill out the MLS information sheet (do you do that at the property or from memory after you get back to the office?). What I'd ideally like to do, is meet the client, sell them on my service and sign a listing agreement, then get out of their hair for the evening. Then I would go back the next day or a few days later with my professional photographer, and my MLS listing sheet and take care of both at the property... How do you guys typically go about this process? Thanks much! Mike

    Yes, I did use a script. I have since stopped my cold call campaign however, because of the time it was taking up after work. So I am re-adjusting my marketing plan to include free online marketing (Craigslist, Backpage, & Ebay Classifieds - which I already utilize), vehicle magnets, printed classified ads, and direct mailers. Then when there is enough capital, I plan to pay someone to cold call for me. In my opinion, having only a little time after work in the evenings, I feel my time is much better spent going on appointments and learning/preparing the proper paperwork and researching properties.

Now, back to the cold calling... The script I used came from the book "Buying Real Estate Without Cash or Credit" by Peter Conti and David Finkel, but I tweaked it a bit so it would flow more naturally to my personality and the way I am used to talking. Then I paid for two lists of leads with phone numbers - FSBO leads (a lot easier to pay for them than to try and find them on your own - possible, but time consuming), and Expired Listing leads (which I don't believe you can get unless you are licensed - also you can just look these up on the MLS yourself, but they don't have phone numbers). Then I called them and kept track of them in an Excell program (which my mother, a programer, created for me).

One important thing to note (in regard to being a licensed agent) is that prior to making any call I searched the address on the MLS to make sure it hadn't been listed by another real estate agent. I was not calling to solicit them about listing their property, but rather about buying their property. But I still did 't want to step on other agents toes. If it was listed with another agent, I didn't call them.

    I don't know if I left anything out, or if you have any more questions, but feel free to ask away if you have any.

    Mike

Alex Hamilton Hi Alex. I just read your response above. I am just curious how/why you would lease option the property back to the original owner? I understand the lease option approach, but if the original owner couldn't pay their mortgage for some reason, wouldn't it be dangerous/risky to lease option it back to them? Plus if you paid any delinquent amount to their lender (which I assume you would need to if buying "subject to") where would the previous owners come up with the money for a nom-refundable option payment? Thanks, Mike

I tried cold calling because I had more time than money. It can be effective, but time consuming. You'll find a lot of different things when you are cold calling. One thing that I haven't seen mentioned above that I thought I would add, is that you may find yourself having lengthy conversations with older lonely folks. I recall on several occasions having getting a really nice older lady on the other end of the phone who will just talk your ear off for an hour or more. Not a bad thing per say, but unproductive. I was setting aside 2 hours every night to make cold calls, and next thing you know you've spent most of it on the phone with someone. Just an added thought. Mike