Notes & Pics – June 2017 TBI’s Networking Event

Thanks to everyone who attended The Boston Investor’s Networking event this week.  There were some great questions in the Q&A segment that made for some awesome discussions.

 

  • Has anyone converted a multifamily into condos to get a higher appraised value to then refinance, extract your cash and then live in one unit?
    • Nobody had experience using this technique but some people had other ideas that may be easier to extract cash out
    • Take out a HELOC against the multi-family property
    • Do a commercial loan
  • How do I go about subdividing a lot?
    • Have a surveyor create a plot plan
    • Contact a local zoning attorney to discuss the options
      • Can you subdivide and develop by right or do you need a special permit?
    • Hold off on contacting an architect until the zoning attorney feels that a subdivision is possible
  • How to increase marketing for a house that is not selling on the market?
    • It may be the price and not the marketing
    • One attendee asked how many showings they have had
      • 2 in the past 6 weeks
    • Most people identified the low walkthrough rate as being either the price is too high or not using an in-town agent
    • Solution is to contact some in-town agents to work with them
  • Setting up a partnership, any advice on the dissolution clause?
    • One partner buys the other out
      • Obtain 2-3 appraisals and base the buy out price on them
    • Sell all assets and split based on each other’s equity share
  • How do you manage buy & holds from a distance?
    • Have people you trust in the area
    • Get eyes on property before buying
    • Find a network of contractors, RE agents, property managers, etc.

 

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  • Stacy Travers

    For increasing marketing for a home that isn’t selling that is listed, it is most likely the price. If it isn’t uag or at least close by having several showings and offers within 21 days your price it too high. Also, using an in town agent isn’t your way to get a higher price or an offer. You need an agent who has a network as far as it can reach. The more eyes that see the home, the more money you’ll get. Utilize social media, Facebook boosting, LinkedIn, and twitter! But there is no marketing in the world that will compensate for a high price.

    • Thank you for your insight Stacy. I agree that it is most likely the price. I think this market makes it particularly clear that price is the issue if a house isn’t moving. With that said, there were some interesting details about this particular house which made it seem like it wasn’t just the price. Maybe the team that presented the question will provide an update once they get it under contract.