All Forum Posts by: Tom Meade

@Drew Farnese

"thread jack" - I love it!

I can't imagine there are any state specific rules about dealing with UST prior to conveyance, even in today's "Big Brother" environment. If the property is conventionally financed, however, that is a different story. Likely will have to go through the whole process of testing the tank and soil for leaks, and then abandon in place or removal. Definitely get the professionals involved where UST's are present. Don't be afraid or walk away from a deal just because there's a UST - many times this is just another "opportunity" for a knowledgeable investor to solve a "problem" for a homeowner.

no probs. thanks again for jumping in. Fairly new to BP, but love the site.

@Joshua Dorkin thanks for jumping in...Brett had posted a question earlier today looking for a Lender in the healthcare space. I was able to respond to the post on my iPhone, but the thread was gone when I got back to my desk and wanted to follow up more thoroughly...any idea what happened there?

@Jonny C. - congrats on staying positive! And I love the title of the post.

Full disclosure: I'm a licensed RE agent, but don't make my living doing that.

You ask if you can make a livable wage in your first few years. I know its just words, but the idea of being an agent is that there is no "wage". In fact, there's a cost of doing business - MLS access, desk fees, marketing, business cards etc - you'll probably have to pay to go to work in some respects. The first year or two may be sort of lean, but its definitely do-able (at least that's my perspective from the outside looking in), especially if you can live off the money you make tending bar.

I wanted to respond to the post to suggest maybe there's another way for you to break into the real estate game. I myself quit a job in the financial services industry to go to work for a General Contractor, doing residenital remodeling and some new construction. I wanted to learn the business literally from the ground up, and started a small remodeling business myself after learning the business from a well-established GC. After that, I decided I to go back to an "office job" and, have worked at an equity syndication shop and a national commercial mortgage company.

I guess my point is, there are many ways to get into the industry, being an agent is just one!

To me, if this is a long-term hold and the numbers work, definitely consider putting in the second heating system. Check with your local utility companies - they may have significant rebate programs if you buy a high efficiency unit. I'd be surprised if you couldn't get this done for less than $5k.

The advantage of a duplex over a single family is not that you'll never have both vacant units, its that one tenant moving out doesn't bring your income to zero - might be semantics, but that is a huge difference.

Completely agree with @Account Closed 's comment about the operator. Typically the operator would master-lease the real estate, then fit out and rent up the space as needed. Can be a nice deal for the owner, but having a solid, experienced operator is the key to making it work.

Utility easements are very common in multifamily, as @Chris Winterhalter

points out. If you're using conventional financing, the Lender will require Title Insurance, and you can ask to review the title report and coverage to understand how/if the Title Company has gotten comfortable with the easement.

Shouldn't be an issue on re-sale, and definitely not something that should keep you from pursuing the deal if the numbers work.

Good Luck!

The best answer I've heard for "is that your best price?" Was from the guy I learned the construction business from. He was a really talented carpenter but also a great businessman. Like Rick above, he was picky about who he worked with; and was comfortable charging on the high end for his work because he believed he was delivering value at the price he quoted. And to "retail homeowners, he definitely was. Anyways, he'd provide a bid on a job and the homeowner would occasionally ask, "is that your best price?" As an example lets say it was a $50k bid for the job. He'd say, "no, MY best price would be $10k higher, but I'm willing to do it for $50k." He never negotiated on price. Never. He figured out what the job would cost and what he wanted for a margin. He'd quote the price and if they agreed, he'd do the job for that price. No re-trades or change orders unless they were truly warranted. That's integrity. Consistently deliver on what you promise and you'll be known as a closer. Consistently back out on deals or re-trade after you have a deal locked up and you'll be known as a "sleazeball". As had been stated, I don't think that your opening offer in relation to asking price is really the yardstick you want to be measuring yourself by.

What city? Rockland Trust can get aggressive if you're in their market. Potentially Sovereign/Santander as well.

The answer to how much are you willing to pay in carry costs each month HAS TO BE "ZERO". Sorry for shouting. In the go-go days of the early 2000's I put myself in this position on a 3-family, thinking I could carry it for a while, and it would appreciate or rents would increase and I'd be ok. BIG MISTAKE. I lost the house and about $20k.

If you can't buy something that is cashflow posititve, don't buy it. That's my advice, gleaned from bitter experience. Good luck!