All Forum Posts by: Rick Santasiere

@James Denon, there are markets that exist in CT where the cash flow can far exceed the prospect of what any future appreciation can give you. Filipe mentioned his scenario, which was a great one. His property "appraised" for almost 10% less than what he paid for it, however, the property ended up creating a nearly 40% Cash on Cash rate of return. It is virtually impossible to find everything you want in a property, and I find that sometimes we (analytical investors) can paralyze ourselves if we try to put too many stipulations on what we need in an investment property. With that said, patience is key, as well as the understanding that you need to adjust your views based on the property. Be open to different situations that could change your perspective from a prior deal you may have analyzed. You had mentioned a property that most likely required a full gut rehab a few days ago in an area that is considered to be a potential "war zone." Discussing the turn-key options is certainly another way to think about value (in terms of your time spent). Your return will be much less on a turn key investment (someone else does all the work and drops the "performing asset" in your lap to manage), but will afford you more "time." Time is the most important commodity that this world offers us, because you never get it back, ever. With that said, there are investors who make a business out of buying non-performing assets (like the one you mentioned in that bad spot), then spend a great deal of time, effort and energy getting it occupied, then they re-finance and do it all over again, or sell to an investor who doesn't who want the asset to be performing right out of the gate. Decide what is most important to you. Mike's comments above about creating "value add" is by far the best way to invest and repeat, and most of us thrive in that area. IF we have "time." If you are working 40-50 hours per week, time may not be in decent supply for you, or it might due to your level of passion towards REI. Either way, keep on analyzing, and reach out to some investor friendly brokers like myself, or agents like @Michael Noto who can help you hone in on your prize.

@Arthur Kraamwinkel you received some extremely valuable advice on this thread. In the business an offer on real estate is pretty valuable. It always makes sense to work with the person you clearly know "wants the place." If you are confident, stand strong. If there is a lot of activity and you and your agent feel good about the comps coming in higher, hold out.  I would just caution you on your price per day (carrying costs) if you opt not to take the offer. Sometimes selling for a little less (but in quick time) is actually earning you more money in the long haul.  Someone mentioned terms though, which are extremely important. Non-government loan or a purchase and sale with less contingencies also make a case for your willingness to provide them with a better credit or lower purchase price. Good luck, sounds like you have a "nice" problem on your hands.

@Steven Valencia, welcome. Great goals! What @William Brown said was great. There will not be hand holding here unless you are willing to put in the work too. There are so many great people in the area to network with, and there are local meet-ups monthly all over the state. I will not mention this one by name, but if they ask you for money, don't go. There are free ones where we meet just to bounce ideas off of each other, and hope to provide help to one another. No charge, no sales games. There is on in Manchester and Rocky Hill, as well as one down in Fairfield as well. Find a real estate broker you can click with for help. There will be several that will offer you help, and most of them are good. Just do your due diligence; get referrals, and look into their experience to determine if they have what it is you are looking for. As an investor (and broker), I am certainly aways willing to provide advice and my REI experience to people who are like minded and have a passion for this. Reach out to me any time Steven.

@James Denon. I am just copy pasting this from the site (trulia) you back linked to:

02/13/2017	Robbery	Armed Robbery. PD o/s of a robbery at 7-Eleven. Hispanic male with a handgun fled on foot.
02/06/2017	Assault	Shooting/Stabbing. PD o/s with a victim stabbed , FD & EMS enroute
02/03/2017	Other	CRIMES AGAINST THE PUBLIC. DIS-CONDUCT. NEIGHBORHOOD: FROG HOLLOW
02/03/2017	Other	MISC. CRIMES AGAINST PROPERTY. CR MISCHIEF 3. NEIGHBORHOOD: ASYLUM HILL
02/03/2017	Theft	LARCENY. LARC4 SHOPLIFT. NEIGHBORHOOD: PARKVILLE

This information is a matter of public record, and appears to be fairly consistent within some areas of Hartford.  With a building built in 1880, you may as well do a full gut rehab, because most likely, items that went wrong in the past were not handled properly (yes, this is an assumption).  Doing a full gut rehab won't make sense either, because that would cost more than the property can support.  Even at $1,000/month, your putting yourself at risk, physically, as well as financially.  We manage property and work with investors, and this does not seem like a good deal, at all. Buying something sight unseen you always need to assume the worst, but hope for the best.  In this case, hope, would even be far fetched. Linking up with some other landlords in the area and networking might be the best you could do to truly decide if you are up to the challenge of managing and renting Class C - C- property.  I have a pretty simple formula: If I need a bullet proof vest to collect rents, I don't bye (or manage for that matter) those types of properties. If I couldn't "stop by" with my wife after a Saturday afternoon lunch just to say hello to tenants, then I am out.  This IMO, is a definite pass.  If you ever want to link up and get some input from another investors perspective in the Hartford area, feel free to reach out privately.

Ginger G. Welcome to BiggerPockets Ginger. It's a great first step to come out and introduce yourself, share what you do, and talk about ways that you're excited about getting into real estate. I would be careful about paying for advice regarding real estate investment. Most real estate investors enjoy being part of a community where they're not looking for pay to share their experience wisdom and knowledge. While there are people that think paying for mentor ship and guru programs are worth the cost, Bigger Pockets was created to directly contradict those thoughts. The fact that you have made it out onto BiggerPockets, is half the battle. With that said Ginger, you should spend time networking with people on the forums and in your area that you might be able to click with. We work with several investors in multiple states to help them all with varying degrees of experience. Our firm covers most of Connecticut, with agents located in most of the major County's. please feel free to reach out to me anytime and we can chat over coffee, or over the phone.

YES! @Craig Hansen, as a real estate broker, I see this all too often, and while it doesn't make much sense (if you can show the #'s working for a buyer), the "stigma" of electric heat is burned into a New Englanders mind as something that can be dangerous (regardless of how well insulated you claim to have made the place). Spend the extra $ on propane, you will get it back, trust me.

@Javier Sanchez I love the why! Please let me know if you ever need anything. I am an active investor and real estate brokers.  I help investors often. Welcome to BP and congrats on taking the first steps!

Jason Piccirillo welcome! There are several Meetups throughout the state. Come check them out. There are some really great tools in this site that can help you learn more and network with others. Feel free to reach out any time. We have a small portfolio and also, and assist investors throughout the state. Don't hesitate to reach out!

Motivated seller in Hartford at $265k near Trinity. The highest priced 3 family sold over the past year in the vicinity of this home sold for $202k. Mr. Gamble had this listed with a licensed professional at $265k for quite some time (see MLS history). Here are the rents disclosed:

1 2 Bedrooms 1,260 5 1 $950 Month to Month Dishwasher, Disposal, Oven/Range, Refrigerator

2 2 Bedrooms 1,260 5 1 $975 Month to Month Dishwasher, Disposal, Oven/Range, Refrigerator

3 2 Bedrooms 1,260 5 1 $980 Month to Month Dishwasher, Disposal, Oven/Range, Refrigerator

Just be careful how you handle "motivated sellers." The only way this guy could be considered motivated, is if he were int he $150-$170k range.  I would say the value is between $190k-$205k tops. I won't ever get those last 15 minutes back, but I wanted to share the insight with you so that you are careful not to market houses as motivated sellers, when they are really "unrealistic sellers"

@Brian Cam. We are expanding into all markets in CT. We are a small real estate brokerage with some pretty aggressive expansion plans.  Feel free to reach out directly via cell or messaging. I would love to hear what you are working on and how our businesses can help one another.