Asan investor, you have every advantage in 2016 in Ma investment property purchases. If you are fix and flip or rehab investor banks want to work with you all the time, and a multifamily or buy and hold investor you have leverage anytime you submit an offer cash, whether it is 25-30% down for commercial or 10% or so for residential. With commercial investments , you can partner with like minded investors and have them put down your 20-30% acquisition costs and get the rst from a commercial lender. The great thing is with commercial, the lender does not care where the money comes from as long as it is present in the deal to leverage your purchase, and afford the bank to not take all the risk in the transaction.
Residential lenders are not that loose or flexible and will evaluate your credit and ability to repay the loan and care about how you perform, not the asset. Commercial is evaluating your experience and your management team in place, and the performance history of the asset in question. They will review your credit but it is they use it as the least amount of consideration of all reviewed items.
As an investor in Framingham, Foreclosures that are bought by rehabbers sell fast, so you need to have a way to find off market properties that not everyone has their eyes on. I find off market deals for my investor clients usually every week. This is another service that I Offer to my clients. In a market with so low inventory in Metrowest towns, and Norfolk County towns in Ma, you need to think outside the box to come up with creative ways to get your clients what they want. Framingham , ashland, holliston, wellesley, sudbury, wayland , marlborough, southborough and Wetsborough are all within 10-15 miles of Framingham and properties are selling quickly.
The great thing about investors is their knowledge and ability to act quickly without hesitation to get the property they want by paying cash, especially fix and flip investors in Ma. Multifamily investors dont usually pay cash for the whole deal unless they can get a deal under the asking price, because these properties are more costly than the typical rehab or foreclosure priced properties.
There are so many different ways to strcuture investment purchases , whether you are paying cash, getting some owner financing, raising acquisition funds from partners. It really depends on your knowledge and experience as an investor, and the motivation of the seller you are working with. Off market, motivated sellers in Framingham and others Ma.towns, will allow you more flexibility in your investments, because residential realtors will always try to get the highest and best terms for their sellers. This is really what they are hired to do and succeed at. You can still find motivated sellers on the MLS, you just will have to search far and wide for them and the there is more competition for these properties. Your ability to pay for investment properties with cash gives you more flexibility then one going to use bank financing.
For a free no obligation investment consultation on your real estate investment needs, or how to maximize the sale of your Ma. investment property, contact me anytime at 774-286-9161.
Thanks again,
Dan Greenberger
RE/MAX Executive Realty
www.dangreenberger.com
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