Q & A Saturday – Should an Investor have a Real Estate License?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Should an Investor have a Real Estate License?

License and Registration - Investors getting a Real Estate License

In this video Shaun talks about some of Pros and Cons of being an investor with a real estate license.

 

Some of the main points covered in this video are:

1)      Advantages of having a license.

2)      Drawbacks of having a license.

3)      The disclosure requirements.

4)      Costs of maintaining a license.

 

Having a real estate license as an investor is a topic that gets continuously debated.  Recently I have been asked my opinions on the topic a couple times so thought it would be a good question to answer here.  To start off I do indeed have a MA real Estate license so know that my opinions are based on my experience having one while being an active investor.

My personal feeling is that is has been very useful for me as an investor.  There are some other benefits but the biggest advantages are having access to the MLS which makes evaluating properties much easier.  After that having the ability to schedule my own showings and putting in my owe offers on listed properties.  I often work with other agents and will have them represent me, but I am not restricted to only doing that if a property is on the MLS.  Final obvious advantage is the ability to collect commissions.  On these places I see and offer on without another agent I can often get the agent’s commission which allows for either a bigger cushion for the deal or the ability to offer more without changing our numbers.

Most arguments against it have to do with disclosures, legal actions, seller distrust and costs.  The first issue around disclosures I have heard people say that as an agent you have to disclose more things about the property you are selling than others.  Generally laws will require any known defects so this one does not really hold up.  If you plan on lying then being bound by a code of ethics will not stop you.  In regards to the other disclosure issue, letting the people you are working with know you have a license that again is not really a big deal.  You do have make sure once you start talking with someone about buying their property you let them know you are an agent and should have forms signed to that effect.  This goes to the argument that many people that want to work with investors do not want to work with agents.  This may be the case sometimes but for the most part it will not really matter and even when it does explaining you do not want to list the house but buy it will often be enough to negate these feelings.  Next the worry is that if you are sued or other legal action is brought against you that you will be held to a higher standard as an agent.  This is kind of true but if you are a professional investor that has done several transactions you will be held to a higher standard of knowledge regardless of if you have a license or not.  Maybe if this happens on your first transaction or two you might not get hit as hard but unlikely much after that.  Finally as to the cost of having a license, that one is a legitimate criticism.  While maintaining a real estate license is not super expensive there are definitely costs associated with that.  You will have to pay for coursework, pay to take the test and initial licensing fee, ongoing licensing fees and continuing education to get recertified, MLS fee, as well as fees to your broker that can vary widely.  If you are not going to get any use out of the license than this is a waste of money but if you are going to utilize the benefits above then it is not a big expense that should pay for itself fairly easily. 

 

 

Do you want to sell a house directly without listing your property?  Do you need to sell a house in Massachusetts or New Hampshire and don’t really care if the buyer in a real estate agent?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

(Image credit: License-Registration via foodsafeyhelpline.com)

 

Q & A Saturday – How Do You Estimate Repairs?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Do You Estimate Repairs?

How to Estimate Repairs - Massachusetts and New Hampshire Real Estate

In this video Shaun discusses how to figure out what repairs to do and estimate how much they will cost on a rehab project.

 

Some of the main points covered in this video are:

1)      What level of repairs are you doing?

2)      The best way to estimate – Don’t, get a pro to tell you!

3)      What to do if that is not an option

4)      Getting out and finding out costs

5)      Online resources to help you figure out repair costs

 

Finding the repairs for a rehab project is the biggest factor, after the ARV.   It is a little bit art and a little bit science.  Some things can be straight forward like getting the measurements for flooring in a normal room and getting a price per sqft installed.  However deciding what that flooring should be is more of an art.  It is important to know if you are going to have a rental or going to resell the property quickly to a home owner.  This will greatly affect what repairs and upgrades usually.

Once you know what kind of repairs you will need to do then the question of how to figure out what the costs will be to do them rises to the surface.  The best way is to get multiple contractors to give you estimates, which is rarely possible (and impractical even if it is possible).  After that if you have a contractor you know well and have a good relationship with getting them to walk the property with you before making an offer is the next best option.  After that if you have a construction background of some sort that is valuable obviously.  If you do not have that experience or a contractor that is willing to run through some places with you then you need to get out and figure out some pricing.

I still think that there is a lot of value in actually going out to some home improvement stores (Home Depot, Lowe’s, Local hardware or construction supply shops, etc…) and looking at materials and jotting down notes of what things cost.  That being said there are also several online tools that can help get you started (several linked below) and are things to look at while doing all of these other things as well.

 

Do you want to sell a house that is a fixer upper?  Do you need to sell a house in Massachusetts or New Hampshire and don’t want to figure out the repairs?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our recent video on How to find the ARV.

–          Our recent video on How to find MAO.

–          The HomeAdvisor “True Cost” Guide.

–          Hanley Wood, LLC Remodeling 2016 Cost vs. Value Report 

–          Video explaining the (defunct apparently) HD PRO Estimator Tool.

–          Our Main Article on Selling a Home As Is.

–          All of our Articles and Videos on Selling a Home As Is.

–          If you want to sell a house that needs fixing in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Home_Improvement via Integrity Realty and Management)

 

Q & A Saturday – How Do You Find MAO?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Do You Find MAO?

MAO - Maximum Allowable Offer - Massachusetts and New Hampshire Real Estate

In this video Shaun discusses what the Maximum Allowable Offer (MAO) of a house is and how to find this number.

 

Some of the main points covered in this video are:

1)      What is MAO?

2)      Why you need to find ARV first

3)      What percentage to use

4)      Figuring out your repairs

 

Finding the MAO (Maximum Allowable Offer) of a house is critical.  If you want to rehab and resell houses, or sell properties to people that do, you need to know how much to pay for them.  Everyone can have slightly different ways to calculate this number but the quick method usually involves taking a percentage of your After Repair Value (ARV) and subtracting off the estimate of repairs needed to get it worth that ARV.  As discussed in our last video ARV is the most important number you have to figure out since it is the biggest factor in getting your MAO.  Of course getting your repair estimates close is very important too but since the ARV is so much bigger than the repair costs small changes here will effect your MAO much more than much larger changes (on a percentage basis) to the repairs.

 

Do you want to sell a house that is a fixer upper?  Do you need to sell a house in Massachusetts or New Hampshire and want to see what are MAO is?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our last video on How to find the ARV.

–          Our video on All the Costs to Rehab a House

–          Our Main Article on Selling a Home As Is.

–          All of our Articles and Videos on Selling a Home As Is.

–          If you want to sell a house that needs fixing in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Adaption of MAYO via instituciones.sld.cu)

 

Q & A Saturday – How Do You Find The ARV?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Do You Find The ARV?

 ARV - After Repair Value - Real Estate Investing

In this video Shaun discusses what the After Repair Value (ARV) of a house is and how to find this number.

 

Some of the main points covered in this video are:

1)      What is ARV?

2)      The Comparable Sales Method of finding it

3)      What are the most important factors to consider

4)      How old can they be?

5)      How far away can they be?

 

Finding the ARV (After Repair Value) of a house you are looking to fix and resell is the most important number you will need to figure out in evaluating a potential opportunity.  This is important for any rehabber doing a project, for any Wholesaler looking to sell deals to a rehabber, any real estate agent looking to work with investors as well as agents working with retail buyers and sellers as well.  The retail agents need to be able to tell sellers what value they can add if they do work vs. selling as a “fixer upper” and for buyers they need to let them know if it is worth buying a place that needs work and if the discount they are getting is big enough to not put them underwater after paying for the work.

To find the ARV we find the “comps” which are recent sales of similar properties in the same area.  The most important things to start to narrow down things are first make sure they are in the same city or town (If you live near the town line do not use ones in the other town), next make sure they are close to the house you are evaluating (Always try to keep it within half mile but closer is better) and finally they need to be recent (within 6 months but again the more recent the better).  Once you have this narrowed down try to find places with the same number of bedrooms and bathrooms and then as close as possible in the square footage (best to be within 10% but can go up to +/- 20%).  Other factors can go into it as well but these are the big ones.  Once you have a list you can adjust the prices if there are differences.  But you are now wondering “How do I find these comps?”, that is a big question.  The easiest way is if you have access to your local MLS service.  This is very easy to use if you can get onto it.  If you are not an agent or are not working closely with one that can help you do this you need to find other sources.  You can use things like Zillow, Trulia, Redfin etc. but it is a little harder and make sure you do NOT use the value estimates given like Zillow’s Zestimate which are terrible (See our Video on how bad those are).  Once you have 3-5 good comps then you can make a good estimate of the final ARV for a place!

 

Do you want to sell a house that is a fixer upper?  Do you need to sell a house in Massachusetts or New Hampshire and don’t want to do the work to get that ARV?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Main Article on Selling a Home As Is.

–          All of our Articles and Videos on Selling a Home As Is.

–          Our Video on how Inaccurate Zestimates Are.

–          If you want to sell a house that needs fixing in Massachusetts or in New Hampshire we can help.

 

 

 

 

Q & A Saturday – What Houses do you buy in New Hampshire?

 Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What Houses do you buy in New Hampshire?

Southern NH Map - Southern New Hampshire Real Estate

In this video Shaun discusses what types of houses in what areas and what conditions we buy in New Hampshire.

 

Some of the main points covered in this video are:

1)      What type of houses we buy in New Hampshire

2)      What areas of New Hampshire we like to buy in

3)      What is the condition of places we will buy (Hint: Like we said for Massachusetts that is pretty much ANY condition :) )

4)      What other areas do we work in 

 

This is a question that I am often asked by real estate agents and real estate wholesalers.  We buy all over Southern New Hampshire.  We are based out of Massachusetts so we do most of our work there but I grew up in Dracut, MA right on the NH border so I am familiar with that area.  While the Greater Boston area is our top area to look the Greater Lowell/Merrimack Valley (including Southern NH) is our 1A area.  We focus mostly on Hillsborough and Rockingham Counties but will look out to the Sea Coast as well, just less of a focus area.  More generally being out of Newton, MA distance does become a factor and like border towns and one town up from that the most.  In general we don’t actively look past Manchester, but as always that can be pushed a little for the right deal and we also can help you even when the project might not be a fit for us.

We have experience in many types of properties and look at most anything from small studio condos to 3 family buildings for both rentals or rehabs (and larger properties as rentals only).  We also have bought properties that have needed little to no work and ones that have needed full gut rehabs so any level of work is possible for us, and we can deal with any number of concerning issues (see some links below).

Do you need to sell your  New Hampshire (or Massachusetts) house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Resources mentioned in the video and some other useful resources and good articles:

–          All of our Articles and Videos on Selling a House As Is

–          Our specific article about the Advantages of Selling a House As Is

–          A look at a Hoarder House we tried to buy

–          Our Video on Selling a Fire Damaged House

–          Our Video on Selling a House with Mold

–          Our Video on Selling a House With a Failed Septic System

–          Our Market Trends page for Hillsborough County

–          Our Market Trends page for Rockingham County

–          Our page on Market Trends in MA and NH to get an idea of where we buy in Massachusetts as well

–          Also our video we just did on What We Buy in Massachusetts

 

 

 

 

(Image Credit: Southern New Hampshire Map via US Geological Survey)

 

 

 

Q & A Saturday – What Houses do you buy in Massachusetts?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What Houses to you buy in Massachusetts?

Eastern MA Road Map - We Buy Massachusetts Real Estate In These Areas

In this video Shaun discusses what types of houses in what areas and what conditions we buy in Massachusetts.

 

Some of the main points covered in this video are:

1)      What type of houses we buy in Massachusetts

2)      What areas of Massachusetts we like to buy in

3)      The condition of places we will buy (Hint: pretty much ANY condition :) )

4)      What other areas do we work in 

 

This is a question that I am asked all the time by real estate agents and real estate wholesalers.  We buy all over Eastern Massachusetts (as well as Southern New Hampshire) and a bit farther out sometimes.  We are based in Newton, MA so the Greater Boston area is a preferred area for us but are highly interested in most places in the Eastern counties of MA, i.e. Middlesex, Essex, Norfolk, Suffolk, Plymouth and Bristol counties.  While we concentrate in these areas buy we will regularly out to Worcester and have done projects west of that in Sturbridge, Monson and Chicopee so if you have a property in central or western MA you can still get in touch with us for help.

We have experience in many types of properties and look at most anything from small studio condos to 3 family buildings for both rentals or rehabs (and larger properties as rentals only).  We also have bought properties that have needed little to no work and ones that have needed full gut rehabs so any level of work is possible for us, and we can deal with any number of concerning issues (see some links below).

Do you need to sell your Massachusetts (or New Hampshire) house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Resources mentioned in the video and some other useful resources and good articles:

–          All of our Articles and Videos on Selling a House As Is

–          Our specific article about the Advantages of Selling a House As Is

–          Our Video on Selling a Fire Damaged House

–          Our Video on Selling a House with Mold

–          Our Video on Selling a House With a Failed Septic System

–          Our page dealing Market Trends in MA and NH (over 130 articles looking at over 100 communities)

  

 

 

(Image Credit: Eastern Massachusetts Road Map via MarchAndMartin.com)

 

 

Q & A Saturday – What is Assigning the Contract?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is Assigning the Contract?

Assignment Contract - Massachusetts and New Hampshire Real Estate

In this video Shaun discusses assigning a contract when wholesaling a house.

 

Some of the main points covered in this video are:

1)      What is real estate Wholesaling 

2)      Different ways to Wholesale a property

3)      When you can’t assign a contract

4)      Issues a wholesaler needs to avoid when marketing a contract

5)      When you are acting as an unlicensed real estate agent

 

Wholesaling real estate is a very popular entry point to the investing world that is hyped up by a lot of real estate educators and gurus as it is a pretty simple concept and can be much less cash intensive than other strategies.  Case in point is that one generally needs very little money to assign a contract (outside of the marketing costs to find the deal, but that is a different topic…).  Contract assignments are governed more by contract law than real estate law so it is important to understand that one is selling their rights to a contract secured by real estate and NOT selling that piece of real estate (unless you are in fact buying it as in a double closing situation).  Massachusetts has not really tried to crack down on any wholesaler issues but it is happening in some other states so it is important to keep things correct and follow the correct formalities to avoid acting as an unlicensed real estate agent.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Resources mentioned in the video and some other useful resources and good articles:

–          Our Previous Video on What Is Real Estate Wholesaling?”  

–          NOLO article defining and explaining contract assignment.

 

 

 

 

 

(Image Credit: Assignment Contract via Goodman Realtors)

 

Q & A Saturday – What Is Real Estate Wholesaling?

 

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, landlording questions, local market questions and many others things are all fair game. 

Today’s question is “What Is Real Estate Wholesaling?

Real Estate Wholesaling - MA and NH Real Estate

In this video Shaun gives a quick overview on the basic aspects of Real Estate Wholesaling:

 

Some of the main points covered in this video are:

1)      A brief explanation of what “Real Estate Wholesaling” is

2)      The benefits of selling to a wholesaler

3)      The benefits of buying from a wholesaler

4)      Some of the costs involved with that business

5)      The potential pitfalls involved with working with a wholesaler

6)      The surprising profile of the BEST wholesalers

 

This is a pretty big topic and I encourage anyone interested in it to Google search for more information.  There is a lot of stuff to read out there so check out the good, bad and ugly of what people have to say.  If there are questions you might have about selling to, buying from or becoming a real estate wholesaler put them in the comments below and I’ll be happy to elaborate on anything.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

 

(Image Credit: Wholesaling via christopherseder.com)