Estimating & small bites 7/7 7-8:30pm, Market update, haves and needs

This evening
we get together and see what’s going on, share our latest successes and see if there are any partnering/services others can use.
1. Update on where the market is headed and more importantly what I do to avoid getting stuck in a “Musical Chairs” situation (that’s the game where each time the music stops there is one less chair – no place to sit, you’re out. The equivalent in Real Estate would be –  I’ve got to buy a house because I need a place to live, 1031 exchange limits are coming up fast or I’ve got to have a rental right away. But the market is so hot that properties coming on the market are bid up, way over asking price (way over actual value too) so it doesn’t make sense even if there was the “musical chair” to sit on.
Case in point – one of our speakers last month had “luckily” gotten an offer accepted on a 2 family in Lowell that was listed for $428,000. (Tax assessed $295,000) accepted offer for $499,000:-( I know rents are high because of availability but how could this 2 family ever “Cash Flow” (positive)? So, only a Retail buyer could do this who would live there and count on long term appreciation, also it might not go through unless the Financing company has it Appraised high enough to do the purchase loan.
Good article that gives a little insight to the current Hot market: Boston Globe July 2, 2017 “MASS. HOME PRICES REACH RECORD HIGHS” KATHLEEN CONTI basically “… selling might be easy but buying a new place to live in a market with overcrowded open houses and bidding wars is discouraging.”
This evening we’ll have the local market update and if you’d like a quick analysis of your “farm” (area where
you’re working your Real Estate) send me a quick email. At least before 6:00pm today for our meeting tonight at 7pm;-)
2. Round Robin where everyone has a minute to let us know what you have and need.
3. Estimating Rehab/Construction Time/Costs. How have you been estimating and which Software/Apps are you using?
4. I’m starting a lot of kitchen work with Peter THE kitchen Design/Build guy who hosts our meetings. I’ll have an update how you can Fast-Track your projects in the area that has the most potential payback, the kitchen!
Also a “small bite” technique where you can work in phases towards completion which are independent. In other words, gutting an entire house leaves you at the mercy of the smallest segment of the work.
e.g. One of our Contractors had a shipment of custom windows come in that were frosted (for a kitchenwith a landscaped yard to look upon). Mistake in ordering between the supplier and manufacturer which they’ll eat. However it takes 6 weeks even when fast tracked! So the walls can’t be roughed, plumbing stops, electrical stops, wall cabinets wait, base cabinets and appliances are delayed or stored (hopefully not dented or scratched) the owner is ticked off and the subs can’t sit around so they’re not available at a moments notice. Maybe “small bite” technique could’ve helped. Incidentally I offered him 25 cents on the dollar for those windows being returned…
More tonight Friday, July 7, 2017 7-8:30pm, I look forward to see you at Kelly’s Roast Beef for Networking, Updates, soft drinks, wraps and YOU!
165 Endicott Street, Danvers, MA 02123 7-8:30pm
No charge to Members, Only $5. for Guests (tip for our waitstaff) or Only $99./year to join.

PO Box 307
Marblehead MA 01945
USA

Loris’ Weekly Round-up 5/5/2017

Your Weekly News & Updates
Here is this week’s “Weekly Roundup” from Real Estate Investing Today, the news & views site from the National Real Estate Investors Association.
Real Estate Tops for Long-Term Investment
According to a recent Gallup poll, once again, for the 4th year in a row, real estate remains the top choice of Americans best long-term investment.  The results found that 34% chose real estate, 26% chose stocks, 18% chose gold, 13% chose savings accounts/CD’s, and 5% chose bonds as the best place to out money for the long-haul.  Click here to read more.
Home Sellers Realized Highest Average Price Gain Since 2007
Data powerhouse Attom Data Solutions (parent company of RealtyTrac) recently released their Q1 2017 U.S. Home Sales Report which showed that homeowners who sold in their homes in the first quarter realized an average price gain of $44k, which represented an average of a 24% return on the purchase price.  This is the highest average price gain for sellers since the third quarter of 2007.  Click here to read more.
Average HELOC Faces $250 Increase After 2017 Reset
According to the latest Mortgage Monitor Report from the Data and Analytics Division of Black Knight Financial Services, the average borrower of a HELOC (home equity line of credit) resetting in 2017 will face an average increase of $250 per month over their current HELOC payment – in some cases doubling their current payment.   Click here to read more.

Homeownership & Vacancy Rates Hold Firm

The U.S. Census Bureau is reporting that at the end of Q1 2017 The U.S. homeownership rate stood at 63.6% (virtually unchanged from last quarter) and the national vacancy rate for rental housing was 7% and 1.7% for homeowner housing – both virtually unchanged since last quarter.  Click here to read more.
39 States Saw Increases in Construction Jobs
A new analysis by the Associated General Contractors of America shows that between March 2016 and March 2017 thirty-nine states added construction jobs.  Using data from the U.S. Department of Labor, the AGC noted that while contractors are worried about being able to find enough workers in the future.  Click here to read more.
March’s Construction Spending Up 3.6% from 2016
The U.S. Department of Commerce is reporting that total construction spending in March was estimated at a seasonally adjusted annual rate of $1,21 trillion, which is 3% higher than March 2016.  Private residential construction was at a seasonally adjusted annual rate of $503.4 billion in March.  Click here to read more.
U.S States Without Sales Tax
There are currently five U.S. states without a statewide sales tax;  Alaska, Oregon, Montana, New Hampshire and Delaware.  Using data from the Tax Foundation, the folks over at GOBankingRates put together a quick list of those states along with a caveat for each about the taxes they do in fact collect.  Click here to read more.
Secondary Apartment Markets Outperforming
A recent analysis from John Burns Real Estate Consulting says that secondary apartment markets are outperforming what they call “surban” locations (desirable suburban locations with urban amenities) and that these secondary markets account for the largest current year-over-year rent growth, which they forecast to outperform through 2020.  Click here to read more.
What the kitchen faucet taught me about how to keep great tenants
Blogger:  That late-night maintenance call…So, I got a call last night from Jake – We will call him Jake for purposes of this blog – who handles the majority of the maintenance on my rental properties. My property manager usually just asks Jake to call me when a tenant reports a problem that involves a repair.  Click here to read more.
March’s Existing Home Sales
Infographic:  We recently learned about the record existing home sales that took place in March. Today’s infographic from the National Association of Realtors breaks down those numbers to reveal what exactly is taking place.  Click here to read more.

NH today, Bookeeping, High end protection & Friday 3/31

Good morning, 3/27/17 5:31am

Today I’ll be in Nashua and Manchester meeting Contractors at Home Depots, if you’re around for coffee, you’re welcome to give me a shout Mike 781-405-1845 cell.

One of our members is offering an Excel bookkeeping service for Busy Contractors in NH, you can stop leaving money on the table and focus on what you do best. [email protected]

Another one of our partners, Mir, has an excellent temporary protection system for your high-end renovations: doors, stairs and floors. www.MaxPro.us 781-269-5598

[email protected] keeps us informed with the Builders news Builder & Fine Home Building magazines such as:

*Half of US Cities Now Dominated by Renters.

*Housing trust funds to the rescue?

*Home Prices Hit New High.

*Low Price vs Choice, Does it have to one or the other, but not both?

I look forward to see you this Friday, March 31 for our main monthly meeting. DesignGroup47.com 47 Newbury Street (Route 1 North just before Sonic carhop) Peabody, A 01960 for Spring Market, Construction Contracts and Tony’s Hidden Market. No charge to members, Only $25. for Guests or only $99/year to join.

Mike Hurney, Director MassRealEstate.net PO Box 307, Marblehead, MA 01945

PS Don’t forget to ask our Partners and Service providers for your MassRealEstate.net NewHampshireREIA.org discounts…

NH Real Estate Taxes and they’re Abatement. Deadline March 1, 2017

Notes from our meeting 2/14/2017…

Hey Mark,

Good to see you today. 

New Hampshire Real Estate tax rates vary from Claremont $42.62/thousand dollars of building and land value – Seabrook at $14.79/thousand with a Statewide average of $25./thousand.

Property owners should review their Tax Card (Field Card a/ka property record card, assessment card) at their City/Town Tax Assessors office.

They’ll be looking for accuracy of the land and building descriptions. Then they should get the recent comparable sold properties (sold within the past 3 months and within a 0.5 mile radius) to compare their own Property to these similar properties. No we are dealing with values as of April 1 2016. There is no set time frame.  Sometimes I will use sales two years prior to one year after. Each property is different, for commercial  properties, sometimes you need comps 20-30 miles away.  In Wolfeboro (waterfront properties) I use comps 5-10 miles apart.

If they feel their Property would sell for less than the amount listed in the Tax Assessors report then they should contact you. The window to file is December 1, 2016 – March 1, 2017. The window actually opens when the tax bill is mailed .  It could be November 1 in some cases.

Basically the average City/Town Tax Assessors are approximately 1/3 Under valued, 1/3 Accurately valued and 1/3 Over valued.

When you decide to take on a RE Tax abatement  1/2 of your cases are settled ( half are denied or insufficient) with the initial town Abatement application and 1/2 need an Appeal filed to the BTLA. The appeal has a $65 filing fee.

The New Hampshire Board of Tax and Land Appeals https://www.nh.gov/btla seems to be favoring Cities/Towns (rather than Tax Payers) because of their burgeoning budgets but with recent appreciation that is helping town governments. I don’t think it has anything to do with budgets but there is a bias with the Board in favor of municipalities.

The due date for the final tax bill is December 1 or 30 days after the final tax bill was mailed, whichever is later.

There are two main components to the total tax on your bill.  This is the assessment and the tax rate.

For those interested in lowering the tax rate, you need to get involved with the school and Town’s budget planning, to prevent them from spending too much of your money.

The tax rate is determined by the Town’s budget divided by the total assessed value of all the property in town times $1000.

             BUDGET                .       X   $1000     = TAX RATE
TOTAL PROPERTY VALUE

The tax rate is multiplied by each individual assessment to determine your tax liability.

Most property record cards are on line:

Thanks, Mike

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