Market update, Julie and Anthony & Leah.
Market Update – Peabody, MA Single Family houses
SOLDS last 3 months (11/27/2017 – 2/27/2018
Single Family Listings: 60 Avg. Sale$: $436,746
SOLDS previous 3 months (8/27/2017 – 11/27/2017)
Single Family Listings: 125 Avg. Sale$: $434,822
SOLDS last year 3 months (ending 11/27/2016 – 11/27/2017
Single Family Listings: 85 Avg. Sale$: $406,919
Single Family Listings: 21 Avg. List$: $463,552
any questions about this market update & how it may affect you and your business, you’re welcome to email me at [email protected]
After Movers and Shakers, Julie, a savvy new Investor (who is especially savvy in that she’s taking my course “How to Become a Real Estate Investor in 12 Simple Lessons”) had a couple of questions on running a Property Management company, then back to the course. We’re now working on Lesson #4 Make an Offer so here’s a little of our communication…
Ok, I’m not clear on how to figure out carrying cost and commissions. I know when using private $$ there’s points (1% of loan amount = 1 point) and a high % on the loan. I’m not clear if payments are made monthly at the start of the loan or everything is lumped sum at the end.
Then there’s insurance and utilities.
Commission’s I’d be paying mostly to myself, right?
Say the ARV is really $570,000
It leave $120,000 for carrying cost, commissions, and profit.
Ouch…just thinking points and even 10%
Have to start somewhere. 😁
Then a new member, Anthony (and Leah) called me with a Killer Deal that’s not so Killer and not so easy to flip…
Hey Mike- Anthony informed me you wanted a brief summary of what we spoke about yesterday, see below:
After discussing our deal, it was evident that our deal was not the strongest, but in any case you encouraged us to SELL IT! Since our email blast already went out, it was time to contact our cash buyers directly by phone. Keep things a bit more simple. Give them a few details but eager to want more, essentially getting them interested in the deal. Moving forward- our craigslist ad’s should, similarly, include the address without the city. A good way to reel them in for wanting more info. If they are interested get them over to the property ASAP. Contact all our cash buyers via email, personalizing it, but limiting the details. State we have a property under contract and would like to know if they have anyone that might be interested in it for a small fee. Loose the professional signature at the end of the email and just keep a first name. Maintain a professional, confident yet friendly/relaxed approach. Finally, if the deal does not work for them, ask what will and renegotiate the numbers with the seller.
I think that covers it, besides- Don’t be naive, people are snakes and will scoop your deal if you cant close it yourself! HA!
Mike, greatly appreciate you taking the time to help us yesterday! we are determined to make real estate investing work for us and value any assistance/input we receive from those who already have success!!!
For me the big takeaways were… give less info over the email blast and our Craig’s list adds to ensure a call back. Then keep it simple and and concise over the phone. Sell that thing!! create a bit of a sense of urgency, get the buyers over to see it. If I have a few that are interested but think it’s a touch slim, ask them what they WOULD do it for… try and renegotiate. Keep positive and confident while speaking to the buyers. However it works out learn from it and improve.
Mike we really appreciate what you’re doing for us. I know time is a precious commodity and we are grateful that you’re so generous with yours.
Sent from Anthony’s iPhone
Of course if Anthony and Leah were taking my course “How to Become a Real Estate Investor in 12 Simple Lessons” (only $599. for non-members and only $499. for members) they probably would not have done THAT deal at THAT Under Agreement price but I’m impressed with their Energy and Zeal for success;-)
I usually ask Students or anyone I help to summarize our conversations on Investing, Landlording and Contracting, this reinforces the information and allows me to make sure the right information was received!
Mike Hurney, Director MassRealEstate.net NewHampshireREIA.org
PO Box 307, Marblehead, MA 01945