Meeting notes 8/26 & Wholesaling Flipping

6:30 PM Buy/Sell, Networking, Refreshments
Local Real Estate Market
Robbie gave everyone a complimentary copy of her latest Special Report “How to Avoid These 13 Mistakes of Beginning Investors” (regularly $27.97).
DOM, List to Sale$ price, Inventory, Lending Rates – Mike Hurney
We began with Peabody
#Sales    DOM    Avg.Sale
Q42012    71    86.06    $318,018.
Q12013    55    105.35    $284,250.
Q22013    95    70.03    $328,767.
Q32013    114    46.75    $334,467.
Q42013    76    55.71    $347,019.
Q12014    49    86.22    $359,141.
Q22014    115    58.26    $345,643.
Q32014…    54    68.67    $353,561.
Q32014ActU+C115    73.07    $389,837.
Q32014    61    75.48    $401,435.
Please note we’re only into 2 months of Q32014 and there are 54 SF houses Sold. Then checking inventory there are 115 SF Active including Under Agreement and Contingent
take UAG and CTG out and we’ve only got 61 available SFs meaning Inventory is at or less than 2 months! Price still seems to be going up maybe attributed to the low inventory.
if you’d like to get on Roberta’s Search List to see Properties coming on the Market in your area or the occasional “Off-Market” Deal? You can email her at [email protected]
We next went through the treasury data to check the 10yr Tbill for 2014. The year began (1/2/14) with that rate at 3.00 now it’s down to 2.39 just about the lowest for the year. Think this is the trough?

7:00 PM
Landlords Where are your Rents compared to the local Market? Why having Market Rates is so important to your Succes$? Boy Scout Motto “Always Be Prepared!”
The point to be made was that it’s tough to catch up if you haven’t increased rents in a while. You’re better off with a $25/month increase every year
(if your analysis of the market indicates it. Just about everyone agreed that they advertise and research on Craig’s List).

Often when we’re analyzing property, especially Multis, we’ll use a “Rent Multipler” to compare similar property in a specific area. So the example I used was a $575,000. Assessed 3 family with annual rents of $33,000.
About a 17.5 Multiplier. If we were to raise rents to market (given the Competition dictates other amenities would be required: New Appliances, Dishwashers, Garbage Disposal) at $37,000. annual the multiplier could indicate a value of over $640,000!
When you do raise rents be prepared for some resistance. I make sure an excel spread sheet is up to date for every Tenant with:
Move in date.
Original Rent.
Last increase.
Also if/when that rent comes in Late (after the 1st of the month) Quick action is needed. A 14 day notice starts the Process. Remember You can always slow it down but you can’t speed it up!

Contractors – you may be busy now, but how do you prepare for work in the Fall/Winter? Seed planting for your Winter Harvest. Learn THE most effective Marketing.
I’ve found the most effective marketing is a Business card with a message (reminder of follow up or reference to something we spoke about). Then Follow up with a call every two weeks.
Home Depot gave us an advanced copy of their flyer for 8/28. I pointed out that Depot spends millions on the market research that produces the advertising flyer so we should take advantage of it. For instance there were two full pages of Appliances. I believe Contractors should mention this in their calls and emails to customers because who gets new appliances without getting a new kitchen or at least a new counter or floor?

Investors – What’s your NICHE? Where’s your NICHE? Are they working as well as they did before? “Acres of Diamonds” part II
Several investors told us how they’re carefully broadening their Niche (rehabs to New construction) and area (now going further West in Massachusetts) with good results.
I hammered the point of Acres of Diamonds to work your own Town first before going anywhere else at the Wholesaling Subgroup. And of Course the universe laughed at me when Bill accompanied an Investor and ventured to Clinton for a good deal;-(

Wholesaling/Flipping A-Z Bill is probably making more Flipping part time than most folks with a Full Time job. Join us to learn how with 6 Simple Steps which you ca else at then start that night 8/26.
Bill was great with his six steps especially MAKE THE CALLS.
His next Wholesaling/Flipping SubGroup meets at Panera in Swampscott Sunday August 31 10:00am See you there!

Have a Happy Labor Day and we’ll also see you at Movers and Shakers Friday, September 5, 2014 7-8:30pm Denny’s of Danvers

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