All Forum Posts by: Charlie MacPherson

 Just a comment as a Realtor.  It is against my client's interest to overprice a property - and yes, I've had clients do so against my advice and to their detriment.

The result is that the property just sits on the market, until after a series of downward price adjustments, it finally hits a price that the market is willing to pay.

Properties that have had multiple price decreases over a long period get stigmatized. 

 When they first hit the market, local agents know that they're over priced and don't waste time showing them. 

It's kind of a vicious cycle. I can't put my finger on the source, but I remember that NAR did a study that said something like this; A home that is initially priced correctly will sell at a higher price that an overpriced home that is eventually sold at a reduced price.

Of course, it will sell more quickly, and if you're flipping with hard money, that becomes even more important.

Also be aware that mobile homes are normally considered personal property, not real property - i.e., not "real estate".  

That means that most home lenders won't finance them. You'll need a specialty lender who will finance it with something resembling a car loan.  Talk with a mobile home dealer to see if they can recommend one.

I know yours is on owned land, but for the benefit of others, mobile homes are often placed on leased land.

www.pipl.com might help.

In addition to local / regional banks, be sure to talk with local credit unions too.

First, thank you for your service.  You really do have a grateful nation behind you!

Second, don't ignore USDA Rural Development loans if you're going to owner occupy for any time at all.  These are available in less densely populated areas of the country.  There's an online map here: http://eligibility.sc.egov.usda.gov/eligibility/we... You'll be surprised at how loosely they interpret "rural".

You might want to save your VA benefit for your own home. Or not. Either way, check out USDA. I'm using that to move renters into homes they never thought they could afford because of the down payment.

Other than that, keep your overhead down.  No unnecessary debt.  I wish I had learned that at your age!

- Charlie

Right.  I routinely execute a buyer's broker agreement with clients and charge them nothing.  Our fees are always paid by the sellers.

Everything is explained in excruciatingly thorough detail and clients receive copies of every document.

I suppose it happens in every profession.  I just saw a news story about a dirtbag physician who gave patients unnecessary chemo.  But Realtors in particular don't need the bad press.

I heard of a local real estate agent that was charging a buyer's broker RETAINER of $15,000.

Legal? I suppose so.  The parties signed the contract.

Ethical? Hardly.  This jerk was targeting recent Haitian immigrants who probably had no idea that this was virtually never done.

It really irks me that I spend 7 days a week working as an agent, and jerks like this are out there giving agents a bad name.

The bus can not hit him hard enough.

I met with a potential client this morning who is about to list a 2 BR / 1 BA upgraded cottage at the junction of a river and the Atlantic ocean.

In the interest of full disclosure, I do NOT yet have a contract to market this property, but expect to have one within a few days.

This home has an astonishing 0.27 acres of waterfront land with spectacular ocean and river views.

It seems to me that the highest and best use is to tear down and build a 4 BR / 2 BA, ~2000 SF with upgraded decks to maximize the views.  

You could also rehab and flip.  It's currently 813 SF and has a 1 car garage under.

Of course, your own due diligence with town officials is required.

It's in a flood zone - most likely AE and with a tear down can probably be elevated above the flood plain fairly easily. The seller's niece (who has POA) tells me that the basement gets a small amount of surface water in flooding periods. Perhaps an inch or two according to her.

As a bonus, it's already on town sewer (no worries about private septic) and has natural gas.  Both are big selling features in this area.

COMP: 12 Parker St, Marshfield (Rexhame), MA.  4 BR / 2 BA, 1878 SF, 0.13 AC (less than half the land of the subject property). It sold in Jan 2015 at $635,000.

The client is not desperate - it's not a wholesale deal.  They have already turned down $320K.  However, they have prioritized closing quickly over maximizing income.

If this sounds like a flip or tear down that interests you, please message me ASAP through BP or text 781-412-4151. We plan to go to MLS shortly, unless we have an interested investor.

- Charlie MacPherson, Realtor.  Lydon Real Estate & Mortgage
Norwell, MA

I'm a Realtor just south of Boston and have a client who has identified a 3 pled that looks attractive.  He will not owner occupy so lenders are requiring 20% down.  He has 5% and is looking for alternative financing. I've advised him to find a portfolio lender, but I'm not optimistic.

Any other suggestions?

Thanks in advance.

-Charlie

UPDATE!!  The seller now appears willing to sell at $285K.  That's another $25K that drops right to the bottom line.

Acquisition $285K

Repairs $65K

Taxes $1400

Insurance $2000

Interest $18750

Commission $21,750

Closing $5000

TOTAL COSTS $398,900

ARV $435,000

Profit: $36,100

With that change, would you do the deal?