Real Estate Revealed

#9 - Steve Belesis, Residential Real Estate Agent

Eric Wilson
December 23, 2020

SUMMARY KEYWORDS

real estate,people, steve, hear, investment, work, commercial real estate, investors, buy,north shore, properties, realtor, year, dave, alessi, sellers, bit, home,boston, invest

SPEAKERS

Dave Seymour,Intro Voice Over, Steve Belesis

 

 

Dave Seymour 00:35

Welcomeit's my favorite time of the week this is Dave cmo real estate revealed 104point nine FM here on the North Shore of Boston

 

00:43

How are

 

Dave Seymour 00:44

you Howyou doing? What's going on? Is it whoa whoa whoa or is it hum hum hum what'swhat's going on with you with your Christmas shopping and your and your Christmasaction. I mean a different a different time for sure. Different Christmas thisyear. A lot going on in the world, not only in the world of real estate. Thisis real estate revealed this is a different real estate show than probably mostthat you've you've heard in the past. Real Estate revealed is not your HGTVpaint and carpet Oh my heavens that looks so good type of real estate show. Wego a little bit deeper. As you know, I originally was on the TV show flippingBoston bought houses sold houses bringing on a guest that I actually was anintegral part of the success of that show in the behind the scenes but I don'twant to I want to burst that bubble yet. I'll bring up bring my friend on in aminute. But also the the founder and CEO of freedom venture investments, youcan find us at freedom ventures calm, you can even call us you like what youhear here today and you want to you want to engage you want to have aconversation then feel free to do so you can call us at 781-922-4418. Butanyway, as I said real estate revealed we delve deep into how sticks and bricksare potentially a way to financial freedoms, how sticks and bricks can helpfolks with their with their retirement planning outside of what you hear from afinancial advisor or, or a Stock Advisor or any kind of advisor out there. Notmy wheelhouse, not my expertise, not my Fast Lane, if you will. But when itcomes to sticks and bricks and everything that goes with it. I'm the guy I'veexperienced all aspects of real estate from the investment standpoint, andthat's what we talk about on this show. But today, we're dialing it into theresidential arena. The market is absolutely off its rocker right now. And myguest is a realtor, he's a very dear friend of mine. He was instrumental inhelping us not only locate some of the assets and houses that we bought on theTV show, but he was also incredibly instrumental in bringing us the right buyerwill talk about that in depth of how he has systematized if you will, the bestway to locate buyers for properties, the best way to market properties The bestway to price properties, an absolute professional and in my opinion, a rockstarof real estate when it comes to residential and also some some skill sets inthe commercial arena. And we get time we'll talk about those as well today.He's also a sponsor for this show. Very, very, very proud to call him a memberof my team. And also Stevie call your friend. His name is Steve Alessi. Andhopefully Stevie is on the line because I tend to take up a little bit ofoxygen when I get going here. So Stevie, are you there?

 

Steve Belesis 03:49

I'mhere, Dave. I miss you, buddy. Hey, Matt. It's

 

Dave Seymour 03:52

good tohear you appreciate Oh, I miss you too. What do you think of the intro? I mean,that's gonna come with a drum roll or something. Right?

 

Steve Belesis 03:59

I mean,you're you're just you rock a crowd, whether or not it's in a studio or infront of 500 people in Vegas. I mean, I've seen both ends of it. It's equallyas impressive. And

 

Dave Seymour 04:11

I loveit, man. Thank you, brother. And look where I do. I miss you, too. I miss you,too. I haven't. You know, we haven't come together on a deal in a while now.Other than the one that we sold right here in Danvers. When was that about ayear ago? No longer than that? maybe a year and a little bit? You bought me afantastic bio. Yeah, about a year ago bought me a fantastic buyer for thatproperty that we rehab. Right in my own neighborhood. So Steve, tell me tellthe folks listening to this show. Tell me what your journey been like man. Imean, you know I've only ever known you as Steve the guy the realtor the go toguy to get a get a deal done. How long have you been in the in the real estatemarketplace? share a little bit of that journey with me where you're so folkscan begin to get to know you better for

 

Steve Belesis 04:58

surethey've Well, I jumped Sit with both feet. And 2008 perfect timing right? YouIt was perfect timing. It was the world's on fire real estate is sort of a WhatWhat the hell are you doing buying that right now? Yeah, yeah, sort ofenvironment. But you know, I was I was in real estate before that just not onthe professional side, I've done some I've done some purchases of my own someflips, things of that nature. And it's just, you know, I dove into it, reallywith a small background, sort of through family investments and things likethat. And again, so my own deals. But it really is something that I realized,you know, what, this is what I want to do, I want to do this every day, sevendays a week, this isn't working. To me, this is just having fun. It's hangingout. Talking to like minded people, it's meaning buyers, meaning sellers,meaning investors, which is really kind of my thing, what I enjoy the most isreally the whole investment side of the business. Sure. But um, you know, Iinitially got inspired, even just through structures and things like that, Ithink a pivotal point for me was, at the age of nine, my parents bought thishunk of rock, and like a wooded piece of land, and they drove us there, me andmy sister, they're like, oh, we're gonna build our house here. I'm lookingdown, like, where what do you what do you mean, it's just a rock. And it wasjust in those formative years, you kind of see how things can come together.And just the way my family is, they're just very hands on. So we were thereevery day. And just seeing the pieces comes together. And from you know,blasting to point your foundation is the framing and I was just that annoyingkid, I'm sure to all those contractors, Hey, what are you doing? Like, how areyou doing this? Why are you doing that? But to me, it's just it was verystimulating, just seeing that entire process come together. And honestly, I washooked ever since then, obviously, the business side is it's having a goodfoundation of what you're looking at in homes, in structures and whatnot. Ithink that that comes in handy as well, when you're trying to talk to clients,educate clients and whatnot.

 

Dave Seymour 07:25

So So Isee, I hear I didn't know that, by the way. So I always love the fact that theguests I get on the show, Steve, I learned something about him. You know, everytime we have these kinds of conversations, because it's not. It's not like wereally delve into the history of where we've come from so much. You know, whenwe're out there doing business, I found out the other week that my accountantactually likes to get paid in candy and chocolate, you know, Dave Hall, ouraccountant, and I found out that he'll actually get paid in chocolatesometimes. So, you know, I tried to pay my bill actually got an invoice fromhim this week. I tried to pay my bill with with peanut butter cups, and but herejected it so it didn't work out. So this nine year old kid goes with hisparents. He sees a rock. It was here in New England. Oh, was it back back inGreece? Where was it?

 

Steve Belesis 08:15

Yeah, itwas. Yeah, at the time. We lived in Salem, and they bought a piece of land inMarblehead. Yeah, it was just all wedge, this literally a cliff with some treeson it. And it just as a kid, I just I couldn't imagine anything being builtthere. I'm looking at

 

Dave Seymour 08:32

Yeah,it's kinda I don't know, I don't know how you feel. But I, you know, when Iworked, I worked in the fire department. As you know, I was a firefighter inLinn for 16 years. And as a fireman, we always, you know, work construction onour days off. That's kind of what we did. And it wasn't until I actually gotinto construction. So 2000 and, you know, I got on in 96. So, you know, 2001234567, you know, I was I was working with my hands. And there was a sense ofsatisfaction with real estate, but I've never found in any other, you know,like tactile environment, if you will, right. There was something about youknow, ripping off the, I remember the very first time, I took a saws off,right, and a skill saw, and I cut a hole. And I mean a great big hole in theside of a house to put in a new slide in French door or a pair of double doors,right. And I remember that the fear of doing that the first time and yet, youknow, at the end of the day, there was a brand new set of double doors, Frenchdoors or sliding patio doors in the side of this house. And it just gave me asense of I don't know accomplishment and fulfillment like you said it's youknow, it's passion. It doesn't feel like work, right doesn't feel like workwhen I can when I can transform and and I you tell me it's you know, it's youYou're the guest on the show. But I think that's a big part of what drives, youknow, the interest around the TV shows the flipping shows the developmentshows, I always say it's a it's a honey do list, right? You get to the weekend,and your honey gives you a list of things to do that they saw, you know, on theon the shows that we can. I mean, would you agree with that, because I knowthat you go in there, and you give some interior tips and suggestions tosellers and buyers, right. When you're dealing with the properties. I mean,what do you like to see? And and what what gets the biggest bang for the buck?in the marketplace? When it comes to that stuff?

 

Steve Belesis 10:39

It's,uh, you know, the typical things that you hear about is the kitchens, thebaths, curb appeal, go a long way, a couple of gallons of paint goes, that goesa long way. But and the thing about real estate is, you know, what's that firstword, it's real, it's tangible. So it's not a stock, a stock is something thatsort of, it's almost a conceptual sort of concept, right? Where real estate issomething you can touch, you can see you could feel you can live in, itactually produces returns if you're getting into residential income properties,right? commercial properties, it's really, it's really a big pie. Everybody hasto live somewhere, right? That's, that's what homes are. Every single personhas to have a roof over their head, right? But in real estate, there's just somany different aspects. And it's, um, I think it appeals to everyone. Becauseit's, again, it's it's sort of, it's sort of in the same lines of therestaurants, you know, what everybody's got to eat, everybody has to goshopping for food and whatnot. Yeah, and everyone needs a home as well. But youknow, what, not everybody wants a cheeseburger, not everybody wants a lobsterroll. Everybody has different tastes, everyone has different ideas on and alsoneeds as well, right? So you might need, you're getting a little older, youmight need something that's one level, you don't want too many stairs outside,or maybe you want to Ranch, no stairs to go upstairs to your bedroom. It's ait's constantly evolving. But the main, the main aspects of real estate arealways be you know what, it's something that's tangible. It's something that'salways a long term, great investment. And it's something that you can raiseyour family in, you create memories, and there's just so many aspects to itthat I love. It's hard to hone in on just one or two or three aspects. It'sreally just, it's, it can be a passion, but once you get into it, I mean, Iknow you feel that same exact way.

 

Dave Seymour 12:45

Oh,sure. It's,

 

Steve Belesis 12:47

once youonce you're in it, you're like, you know what, thank God, I found somethingthat I'm passionate about, because this is, this is really easy to get up everyday, and sort of devote my life to this.

 

Dave Seymour 12:58

I can'ttell you, I can't tell you what, you know how often it's, it's like you'retalking in when we used to actually interact with each other, you know, thatthe conversations would be, you know, what projects are you working on? Right?What are you doing at home? Are you doing this? Are you doing that? So it'sbeen a it's been a an under tower current, if you will, within communities fromday one, even if back in the rental days, having the nicest, you know, a rentalunit as a landlord, being able to give my tenants the very, very best housingas a tenant, taking some pride, you know, some pride in my, in my living space.And I like what you say, Steve? Well, I like the concept of it being look,because real estate isn't passion for everybody. It's passion for the fewhowever, the upside of real estate can be passionate for everybody I'm talkingabout and you mentioned it what's up what's on its mind a minute, we're gonnago to break in a second state. But I want to start to look at you know, howdoes real estate from from your perspective become a an income producingscenario, if you will, I mean, what what do you see out there in that arena,locally here and then also let's let's begin to talk about the journey becauseyou touched on something which is important. And I was the same way you and Istarted when everybody else ran out, right? When everybody else was runningaway when everybody else said it's it's over the skies falling chicken, littleyou and I stepped into this arena. So I want to talk a little bit about what itwas like then in comparison to what it's like now, and we'll begin to unpack alittle bit of that going forward. So Stevie, don't go away. I've got I've gotmore questions for you. Okay, you're gonna stay with me? That was great. Quick,quick break. You're listening to Dave seawell Real Estate revealed here on oneon 4.9 fm.

 

Intro Voice Over  14:50

RealEstate revealed We'll be right back.

 

14:56

Today,the real estate market is booming mortgage rates just at historic 30 year lowsand the New York Times recently reported that investors are snapping up realestate at rock bottom prices. And now savvy investors are buying real estateusing their IRAs that allows them to access their retirement funds to buyproperties without paying any penalties or early withdrawal fees. If you havefunds in your retirement account, and you are interested to learn more callhorizon press today at 866-712-2007. That's 866-712-2007 unlock the power ofyour retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago, callhorizon trusts retirement specialist at 866-712-2007. And for a limited time,get our free Ultimate Guide to buying real estate with your IRA that's866-712-2007 or visit horizon trust.com slash date. Horizon Trust Company is anindependent passive custodian and it's not associated or affiliated with anddoes not recommend promote or advise any specific investment investmentopportunity investment sponsor investment company or investment remote or anyagents employees, representatives or other such firms or entity horizon trustis not providing investment advice, advocating or endorsing real estate. Theseoptions may or may not be a fit for individual investors investments are notFDIC insured offer no bank guarantee and may lose value or rising trust doesn'treceive any commissions or fees if I invest with any other sponsor.

 

Dave Seymour 16:19

You everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? What tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flipping Boston's. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now how by tuning in every Saturday.For all investment details, visit us at info at freedom ventures.com slash 104point nine call my team at 78192 to 4418.

 

Intro Voice Over  16:51

Thinkingof purchasing a new home second home or investment property or mayberefinancing to get a lower rate consolidate debts drop PMI or need cash out todo home improvements. George cuartos mortgage Officer of cross country mortgagein Danvers is just a loan officer you will need as Essex County's top loanofficer with more than 8000 past happy clients in over 30 years experience.George and his team will be happy to assist you with rates the lowest inhistory Don't hesitate act now you may be able to save 1000s of dollars callGeorge at 978-777-4663 listening to real estate revealed with Dave Seymour fromAmy's living Boston.

 

Dave Seymour 17:30

So thereyou go. Look if you're looking you're looking for that, that professional touchfrom your mortgage broker give give that guy George Cujo. Suppose Georgia hasbeen serving the North Shore for for decades, decades. And you've got the thehonor and the privilege of listening directly to Steve Alessi. Northshorerealtor extraordinare as far as I'm concerned, he's on the on the call with usnow. And then, you know what, what is your retirement account doing? Is it lazymoney? I said this last week, I said every week, you know, I challenge you tolook at where money and capital is moving without velocity and begin to explorewhere it can go to work at a high rate of return commercial real estate, thefund that freedom venture investments where we are what we do, it's been ableto do that and continues to do it. But anyway, before we go down that road,Steve, Steve, Steve bioessays, talk to me, my friend, you started in 2007 2008.I think you and I've had this conversation in the past, like everybody, right?Everybody is a genius in real estate when it's going straight up in value.Right? Everyone's a j Oh, Real Estate's easy. It's easy it right 2000 and 456and seven, everyone was a genius in real estate, then 2008 hit. And obviouslythere was some incredible challenges that we went through in our country. Talka little bit about that state. What were you doing at that moment in time? Whatstrategies were you using as a broker and investor that maybe you're maybe notusing now?

 

Steve Belesis 19:06

Sure.Well, when I first started, Dave, it was I'd always knew that. Once I got intoa full time and I made the decision, this is going to be my world from here onout. I kind of sat down and I said you know what, no matter what environmentI'm operating under, be it an overinflated market, a depressed market? Nomatter what I need to have the same set of rules for myself. same set ofmorals, right. Yeah. So I try to keep myself at at a point where I would nomatter what I just didn't want, especially when everything was going sour,right. I kept myself to this sort of standard. I said, You know what, I want tobe known not as a salesperson, but as an advisor, somebody who's going to helppeople make good, really good decisions for their family, right? Why? termshort term advice for us right now. And it's a little easier to do it wheneverything is so depressed and prices are so low, it's easy to tell people, youknow what buy this buy that it's gonna be a long term win, right? However, if,you know, in a market like today, where everything is pretty high, pretty hot,you sort of still have to have that, that set of rules that you've sort ofinstilled on yourself. I think it's, you know, sometimes can be challenging. Itwas really challenging in 2008. Just getting going. Yeah. But you know what, itgave me an opportunity as well, I learned the business. I had a great mentor atthe time. Her name was Virginia, she used to work for the condo King. And a lotof you as offshore might remember her from the 70s and 80s. Yeah, so she kindof ran his his office. And I guess, you know, he was super successful, but thenran into some issues. But he was I mean, he was an absolute monster. on theNorth Shore, he basically developed all the revere beach kinds of stuff in Boston,tons of stuff in Florida. And she was basically his right hand man, all thoseyears. So there's a lot of time, there, it was a lot of downtime, where you'renot meeting with clients and not meeting with potential buyers or sellers. AndI would just sit in the office, and I would talk to her, and I would just pickher brain. And she was great. I really learned a lot from her in a short amountof time. I feel like I had a decent base going in. Again, because I've sold afew properties. I've purchased a few properties before jumping in as someonewho's licensed. But, you know, it was definitely looking back at it. It was ait was a big challenge. It wasn't easy. I think I went into it with a goodamount of savings and thinking, Okay, well, I know I'm not gonna make any moneythe first year or two. And, you know, this is my buffer, at least I'll be ableto sustain myself and whatnot. And guess what that savings plan out the window?Very quickly. You're not you're not making money in the beginning. But again, I'mnot I wasn't going to sacrifice my, my, I guess my ethics, my morals, and justtry to sell something that I sell a building to someone that I would take itwas a good fit for. Yeah, I really,

 

Dave Seymour 22:28

youknow, what, Steve, you're touching on something that, you know, it can get alittle dark, but it needs I think it needs to be addressed. There are there aredifferent. How can I put it still be politically correct? Uh, 104 point nineFM. Not sure. But I'll try anyway, right. There are some people that don'toperate with a high ethical integrity, there's some people that are justchasing the money, chasing the deal, and not really looking at the, you know,the the win win without it being too cheesy. And, you know, one of the things thatthat I found early on in my career was, is that, you know, and a very dearfriend of ours uses this all the time, Steve, he talks about trust, but verify,alright, I trust the information that's being given to me, I trust theindividual. But I've also got to, you know, also got to verify and, you know,without getting too heavy on the details, you know, you helped us outdramatically with that lady in Malden, who had, you know, found herself in arather predatory situation with a with an attorney and another realtor. And inessence, there was, there was some pretty shady stuff going on there. And, andit was, it was good to know that when we did that deal together, and we helpthat lady, you know, we didn't make any money. I think you maybe got a listingout of it. I personally didn't make any money as the investor, but, you know,passing on good business, good values, good relationships, I think is somethingthat, you know, especially when a lot of money is moving around, can get lostin the mix. You know, what I'm saying, Steve, like, we've we've, we've talkedabout some of the, some of the other investors out there that aren'tnecessarily you know, just because I make an offer on a property and I controlthe property with a contract. There's investors out there that don't have thecapital to execute on the contract. And they're just out there playing gamesand trying to put themselves in the in the middle of a scenario. So, you know,that integrity piece is important. There was a lot of people and I know thatyou saw it as well. So there was a lot of people in 2008 910 that believe therewas an opportunity, and yet they didn't have the skill sets to execute, youknow, with with transparency and decency and a lot of those situations. So myquestion to you is this, you know, were you involved at all with short sales in2008 910? And if your work can you give us a quick description of what thoseare? And do you see any similarities between them Now on that high price as of2007, because we were maxed out now in, you know, in 2020, and pricing,

 

Steve Belesis 25:07

I thinkyou make a good point. I think everything is cyclical, right? Yeah. And I wasinvolved in short sales at that time. I wasn't really concentrating on them allthat much. Because to be quite perfectly honest with you, it is frustrating.It's frustrating to deal with the banks and negotiators and whatnot, especiallyin the beginning, because they just weren't ready for the sheer volume. didn'thave a clue. Yeah, they didn't, they just had no idea what was going on. Soonce they sort of figured out, okay, well, we're gonna have to deal with this.So we better figure out how best to deal with it. Right, let's let's put insome systems entirely, I think that it became a little bit easier. And I mean,let's face it a short sale is, well, I need to sell my house or I'm not payingthe mortgage, and the bank is owed money. But given the situation, the house isworth less than what I owe the bank, and I need to sell. So a short sale isessentially, the lender forgiving a portion of what is owed to them. Got itbased on basically allowing you to sell your home,

 

Dave Seymour 26:20

and thenallow it also allowed, it allowed in 2008, a lot of people to not have thatforeclosure on their credit report, which is, you know, sits around for many,many years. Whereas a short sale, you know, gave them the option to move on.And a lot of those people ended up being renters in 2000, and, you know, ninethrough 1415. And then, you know, the memory is short, Steve, we talked aboutthat a lot. People forget, you know, forget what happened. And then they, youknow, it all started to get traction again, it was amazing the amount ofindependent real estate offices that no longer existed in 2008 910. Right?There was very few, right? Nobody was a realtor anymore. And you look at it,too, you look at it today. And if I threw a stone out of the window here inDanville square, I could probably hit three or four real estate offices, andmaybe another 10 or 15 realtors getting a cup of coffee downstairs. So, youknow, it's, it's interesting how that all plays out. We're gonna take anotherbreak, stay. But when we get back, I'd like to touch on what you see going onnow. You know, 2020, the high prices of real estate where it's at, you know,it's cyclical bias seller's market. And do you see any similarities? Are thereany indicators? as an expert in the business? Do you see any indicators thatcould tell us, hey, you know, things are going to change. Nobody can predictwhen, but we can have a pretty good idea that it's it's closer rather thanfarther away. Does that make sense? And if you're worried I'd love to get yourtake on that when we come back from the next break. Cool.

 

Steve Belesis 28:03

Great.Great. Thank you. Awesome.

 

Dave Seymour 28:05

Allright, you're listening to real estate revealed We'll be right back.

 

Intro Voice Over  28:10

RealEstate revealed We'll be right back.

 

28:15

SteveAlesis of Solaris reality, has intimate knowledge of the North Shore market.With over a decade of experience and record of 300 real estate transactions.When it's time to buy or sell property. Give Steve a call directly at617-763-1001 that's 617-763-1001

 

Dave Seymour 28:44

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? Well tune in for all the answers on my showreal estate revealed this is Dave see might recognize me from the hit TV showflipping Boston's. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now by tuning in every Saturday. Forall investment details, visit us at info at freedom ventures.com slash 104point nine call my team at 781922441. A

 

29:15

todaythe real estate market is booming mortgage rates just at historic 30 year lowsand the New York Times recently reported that investors are snapping up realestate at rock bottom prices. And now savvy investors are buying real estateusing their IRA that allows them to access their retirement funds to buyproperties without paying any penalties or early withdrawal fees. If you havefunds in your retirement account and you are interested to learn more callhorizon trust today at 866-712-2007. That's 866-712-2007 unlock the power ofyour retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago. Callhorizon trust retirement specialist at 86671 22007 and for a limited time, getour free Ultimate Guide to buying real estate with your IRA that's 866-712-2007or visit horizon trust calm slash date. Horizon Trust Company is an independentpassive custodian and it's not associated or affiliated with and does notrecommend promote or advise any specific investment investment opportunityinvestment sponsor, investment company or investment remote or any agents,employees, representatives or other such firms or entity arising trust is notproviding investment advice, advocating or endorsing real estate. These optionsmay or may not be a fit for individual investor investments are not FDICinsured, offer no bank guarantee and may lose value. Horizon trust doesn'treceive any commissions or fees if I invest with any other sponsor.

 

Intro Voice Over  30:39

You'relistening to real estate revealed with Dave Seymour from Amy's living Boston.Okay, we're

 

Dave Seymour 30:45

back.We're back. What are you doing Saturday afternoon? Well, the one of you wrappedup your prezzies Do you have an elf on the shelf? Steve, you don't have anykids so you don't have an elf on the shelf in your house?

 

Steve Belesis 30:58

Youknow, I just thought of a cute little dog. No Elf on the Shelf over here they

 

Dave Seymour 31:02

wellthat's what you should do is get an elf on the shelf right and tie it to thedog's collar. So that the elf on the shelf is right right in around you yourlittle dog there all through the Christmas season. Yeah, Elf on the Shelf. Ouralphas Nazi dresses up in New England Patriots gear. He shows up in a littleCanada Goose jacket every year. He like sneaks around. He's crazy turns thelights on and off on the Christmas tree. Pretty amazing. I mean, he's got ahe's got a pretty, pretty good life Elf on the Shelf. Anyway, I digress alittle bit. Let's get back to real estate. So Steve, tell me Why is everythingso crazily priced? Because we talked about this, I think, what was it maybe twothree months ago we touch gloves? And I said you I don't know what's going on.I'm looking at and I'm looking at these three Decker's in Linn. Right, theselling for 756 5800. And I keep on I keep on expecting a correction. And I'mstill not seeing it. I'm not seeing it in the single family market. I'm not seeingit in the in the multifamily market right now. What's going on? Do you see anysimilarities from from you know, 2000 and 767? Because you know, everything waswas going up back then as well? What's your take on it? Man? Is it just chaos?Is it marketing? Is it What's happening?

 

Steve Belesis 32:27

Reallyis it's almost you want to scratch your head. And I have no problem saying youknow what I was wrong, because I thought this was gonna be the beginning ofsome sort of correction. But you know, it's it's sort of like 2006, seven, buton steroids. It just, it gets ongoing COVID affected everything, including realestate. And I think anytime the government sort of wants to step in and say,You know what, we can't let this crisis sort of, you know, drag everyone down?Or what do they do they drop rates, right. So the rates are just ridiculous. Imean, I've sold the two family investment property a couple months ago, aninvestment property, now these people already had a primary residence, and theygot a rate of 299 unheard of on an investment property without an investmentproperty. And it's, you know, when you're dropping rates, prices are gonna goup. That's just what it is. Because people are looking at that monthly payment.That's what they're really looking at, they're doing the numbers based on that.Now, if you're looking at investment properties, and you're, you're sort of init for the long term, you know what the more assets you can acquire over time,the better. That's, that's just a given. But if you're looking to sort of jumpin and out, you got to be a little bit more selective these days, you got to bereally careful. You can't, you can't say, you know what I'm looking to buy myfirst home, I'm gonna buy a little cape. You know, I have a wife, two children.And I'm planning on having another couple of kids the next couple years andthen at that point, I'll buy a 4000 square foot colonial Well, you might not beable to sell that, kay for a profit. Come two years from now, you might beselling it a lot. Right? So there's, there's definitely some similarities Isee. But I think every real estate cycle is different. And this is where it'sreally important to have met through mentors who have sort of seen one or twomore cycles than you have. And you try to compare and sort of say, you knowwhat, this kind of feels like 2007. We look in 2008 next year. Is that what'sright around the corner, you kind of you want to just throw those thingsagainst the wall and see if you can come up with some consensus, but guesswhat, 2020 it came in hot as the easy the easy answer for me is, you know what,I don't I have no idea. I yeah, I

 

Dave Seymour 34:59

appreciateThat honestly.

 

Steve Belesis 35:01

Yeah,yeah,

 

Dave Seymour 35:02

no idea.I look at it the same way. It's let me ask you this question. Have you seen anyany issues slash challenges, if you will, around the the moratorium and alsoaround the the the rents not being collected? I mean, have you seen anychallenges around that? Is there anybody that's, are there any whispers outthere that you've heard with regard to potentially pre foreclosure becausewe're getting it in Florida, Steve, but I haven't heard anything up here as ofyet. Have you?

 

Steve Belesis 35:39

Well,I'm hearing some rumblings. So one interesting piece of info I came across justlast week was that over 12% of FHA loans are more than 90 days in default.Yeah, so I that's significant. That's about three times the average. So I thinkjob loss, especially with FHA buyers, where they're putting down 3%, sometimes5% down so for, those people just don't have that, that sort of kiddie fun onthe side to be able to write out a job loss sometimes for three to six months.So we're sad to see that sort of work through the system. But then we havelenders sort of giving three months, six months sort of grace periods, theborrower's Right, yeah. So that's sort of keeping things afloat, but I feellike that's that sort of, sort of like a dam with water building up higher andhigher behind it. So I think once these safety sort of valves are removed, andthey have to be at some point, right. I think at that point, we could see aninflux just have huge inventory. And that's the problem. Nobody's sellinghouses, there's very limited inventory. And like we were saying earlier, peoplestill have to live somewhere, you know, that young couple that's starting out.And, you know, he's got a promotion, and she just started a new job, and she'smaking plenty of money. And he's, he's doing great. And it's time for them tostep out and purchase a home. You know, what, they're not going to wait, whywould they wait another two or three years, they're ready to buy a home now.And there's a lot of people who are in good financial positions who want tomake those purchases. But the problem is there aren't enough sellers out there.So that's part of the reason we're seeing these inflated prices, which is, in away, it was counterintuitive. I think a lot of people in the industry weren'treally factoring that in net prices were actually going to rise during COVID.It's rising naturally. I mean, sometimes you're sitting at a 10%, which issignificant, to say the least.

 

Dave Seymour 37:48

I think.Yeah, I think it's, look, I it's tough, because it's like, I don't want to be adoom and gloom guy, right? I mean, I like all right. I like the idea of goodtransference of goods and services, and, you know, real estate transactionsthat make sense. Just to give you a little taste of how crazy it is, right now,I had a 104 unit complex. We had a letter of intent on this thing for nine, 9million. And I was going down to Florida on Friday to walk on sorry, on Sundayto walk the property on Monday. And my partner, Walter called me up and hesaid, You're not gonna believe this. He said, that letter of intent was was,you know, verbally accepted. But I just got a call. Because the the seller justaccepted a counteroffer from another guy for 19 million. I said, Wow, he goes,Yeah, I go Hold on a minute. The numbers based on the cap rates in the Floridamarket, say at a six cap, right, the tradable rate of return for these assets,was, you know, nine to 10 million, we went in at nine expected to maybe go upto 9.5, take down the asset and put it in, you know, put it in the portfolio,and then somebody pops up and offers 19 million. So you know, they they've havethe return on investment on what that would be. And then when I delve a littledeeper, I find out that because it's it's the wild wild west with pricing. Thiswas an investor offer. And what they did was they just tried to get in themiddle of this transaction, knowing full well that this guy will never get $19million for it. But they're just out there trying to, you know, create a littlemore value in this thing for the seller to say, Okay, I'll take 10,000,200 Doesthat make sense? So it's like there's a lot of there's a lot of offering outthere at the commercial level. And I guess we're seeing it also at theresidential level. I mean, is everything going over asking Steve Is there? Isthere bidding wars on the table? In your opinion? Is it is it lost? It's commonsense, I guess is my question.

 

Steve Belesis 40:09

No, itreally depends. Dave, it depends where you're looking, I think in areas like inSouth Boston, he spots has been, you know, it's been on fire last couple years,a lot of developers showing on their show really absurd pockets. it's cooledoff. It really has, especially in the more condensed areas, Somerville,Cambridge a bit. Yeah. I think we're starting to see it in the condo market,more so than anywhere else, first and foremost. But things are starting to pullback a little bit. When we're looking at single families and multi families. Ihaven't seen that yet. I'm still seeing it go up. And it's really down to alack of inventory, because you're looking at some premier towns in this area.And you're looking in Linfield, I think had five single family homes for sale.And if

 

Dave Seymour 41:00

you'reseeing this specifically, Steve not sure. Is that what you're saying?

 

Steve Belesis 41:04

NorthShore and then parts of Boston as well? Yeah, it's the suburbs on fire,absolute fire. And I think it's gonna stay like that through the year. And then2021 that's anyone's guess, at that point. But

 

Dave Seymour 41:19

Right,right, for sure. As it shows, as this breakdown really settles, yeah. Yeah.

 

Steve Belesis 41:25

Youknow, con condos in the city, I feel like have taken the half a step back.rents are down as well. They're down more than 10% of the city. I was talkingto a landlord, they have about 600 units, mostly around the colleges, alsoright in the area, some of the north end. And this is a family business goingback 40 years, and they've always been essentially 100% occupancy. year in yearout. And this year, they're about 85%.

 

Dave Seymour 41:58

Wow.Wow.

 

Steve Belesis 42:01

That'shuge. It's huge. And that's after shaving their rents. 5% across the board.Yeah. And so hold offers.

 

Dave Seymour 42:11

Yeah,it's always interesting. If you pay attention to you know, I don't watch a tonof television. But if you pay attention to the to the commercials that are outthere, all I'm seeing now is mortgage commercials, real estate commercials. Andnow I'm beginning to see apartments.com Have you noticed that like, like, alltheir commercials are out again, like there's four or five different apartmentcommercials out there? I'm not sure how accurate the stat was the but there'ssomething like an 18 to 25% reduction in Boston itself. In, in tenants, NewYork City has I think it was 333,000 people have left New York City, leavingsomewhere around like 18,000 or 20,000 apartments, which were occupied, whichare no longer occupied in the city. And we don't why don't we hear about that,in in the mainstream media? Why do I Why do I only hear that the mortgage ratesare so low, and bye, bye, bye. What Why do you think that is? Why does nobodydelivered the other side of the coin when it comes to this stuff?

 

Steve Belesis 43:22

Youknow, that's a hell of a question. It really is. It's I'm not sure, Dave? I'mnot sure. But I think, you know, in other parts of the country, though, I mean,I think you're, you're making a great move going down to Florida, because,yeah, there's really like, a migration of people. You hear people leavingCalifornia go to Texas, you hear people from the northeast, going to Florida.And I think I think there's so opportunities, especially in the biggerbuildings. You know, I think, you know, I own a building up in Maine. I haven'tseen any sort of haven't had any vacancies up there. It's, which is kind ofsurprising as well.

 

Dave Seymour 44:02

Yeah.But yeah, we quit. We liquidated all of our stuff. It may, we saw that all theprices were so high, but didn't make no sense to hold on. Oh, I get it.

 

Steve Belesis 44:11

I getit. We're still we're still holding on. But I think we've got a little luckyover there. But yeah, it's,

 

Dave Seymour 44:19

here'swhat here's what I kind of think on it, Steve. And I didn't mean to put you on thespot. But, you know, I said to you before we started this, you know, the showtogether. This is a conversation between a couple of couple of guys who knowthe business. Right. And for me, you hit on something earlier on what you saidwas is that, you know, the government, the Federal Reserve, you know, the themessaging that we receive as citizens of this great country is controlled. Themessage is definitely control that there is there is one narrative that always,you know, out speaks another and the narrative has been that that it's apositive landscape. Why because the banking system Stand behind it right needsmore mortgages to make the same amount of money that they did before, becausethey've had to reduce the interest rates to get people to buy, because theprices are so high. So you know, the, you know, the Rocket Mortgage and all ofthe all of the silliness that's out there, you know, the George Coots housecalls him, it's the, you know, the toilet paper. What does he call that toiletpaper proof of funds letter, I pre approval letter. You know, those are outthere because it's, it's being driven by by a bigger narrative. But when wedrill down market specific, like you said, you know, the fundamentals arealways what's important. And I just, I just don't know, I don't know, man. Idon't know myself, Steve. I really don't I have ideas and thoughts around it.But I don't have all the answers. And Stevie, we're going to another break.Look, man, I've, I've enjoyed having your insights. You are a sponsor of theshow. So people do hear the ad that we run for you at the breaks. But ifsomebody wants to talk more about either invest in buying their home, sellingtheir home, an investment piece of property, how can they get ahold of the verybest? Which is you How can they get ahold of you and start that conversationand see what it looks like to have you be a part of their team?

 

Steve Belesis 46:24

Well, Iappreciate you having me, I'd really appreciate it. They can reach me, best wayis all my cell phone 617-763-1001. And, you know, there's always a time topurchase. There's always the time to sell. And it's it's more putting togethera strategy. That's the way I see sort of that client professional sort ofrelationship. I asked people what are your goals? Short term, long term? Andlet's see if we can come up with a plan to achieve all that. And it's fun.We're having fun every day Dave?

 

Dave Seymour 47:02

Yeah,brother we Yeah, we steep Alessi realtor to the stars. That's what I'm gonnacall you from now on you, brother. You've got you've never staved me wrong.I've come to you for a lot of advice over the years. So I appreciate you.You're listening to real estate revealed here on 104 point nine. I'm your hostDave CMOS, flipping Boston. CEO freedom venture investments We'll be rightback.

 

Intro Voice Over  47:28

RealEstate revealed We'll be right back. Thinking of purchasing a new home secondhome or investment property or maybe refinancing to get a lower rate,consolidate debts drop PMI or need cash out to do home improvements. Georgecuartos mortgage Officer of cross country mortgage in Danvers is just the loanofficer you will need as Essex County's top loan officer with more than 8000past happy clients in over 30 years experience George and his team will behappy to assist you with rates the lowest in history Don't hesitate act now youmay be able to save 1000s of dollars call George at 978-777-4663

 

Dave Seymour 48:07

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? Well tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flipping Boston's I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now how by tuning in every Saturdayfor all investment details visit us at info at freedom ventures.com slash 104point nine call my team at 78192 to 4418 Steve Alesis

 

48:39

ofSolaris reality as intimate knowledge of the North Shore market with over adecade of experience and record of 300 real estate transactions when it's timeto buy or sell property give Steve a call directly at 617-763-1001 that's617-763-1001

 

49:08

you'relistening to real

 

Intro Voice Over  49:08

estaterevealed with Dave see more from living Boston

 

Dave Seymour 49:14

so thatwas my realtor can make him your realtor gives people SEO buzz he left hisphone number his details you listen to his his time here with us. So looksingle family I I received quite a bit of feedback over the past couple ofshows. Got a lot of good feedback off you guys listen to Craig Hanson last weekpitcher for the Red Sox, and how he transitioned into to commercial real estatebut there's a theme that seems to pop up every week. And that's mentorship. Youknow, Craig Hanson talked about mentorship how, you know Curt Schilling was amentor to him and the younger pitchers in the bullpen and then, you know, youhear a guy like Steve Alessi from from his investment career into his realestate brokerage career, and how he was mentored by somebody else. You know,the mentorship piece was critical in my my journey as well, you know, you don'tjust wake up one day and be an expert at anything. It takes time it takescommitment and courage. But one of the things that I've always relied upon isthe guidance of somebody who's been where I want to where I wanted to go. AndI'm kind of going around in a circle here, as I tend to do, but, you know,what, where is most of if not all of the financial education and financialdecisions we tend to make where does that come from? It usually comes from, youknow, the generation above us, maybe parents, you know, aunts, uncles,sometimes it comes from our peers, the man or woman that the long side is thecouple that we go to, to dinner with on the weekends when, when we were allowedto thank you, Charlie Baker. And so right, well, I'll do our part, we'll buckledown and get it right. But you know, a guy said to me one time, he said, Showme Show me where somebody gets their financial advice from, and I'll show youwhat that financial future looks like. So if you could, let's say you were astock investor, right? And you could sit down with Warren Buffett, for a halfan hour, if you could sit with Warren Buffett for even 1520 minutes. And whatwould be the value of that time spent? I think we could all agree it would bepretty substantial. I'm not sure the exact number but Warren Buffett actuallyraffles off a luncheon date with him every year. And I think either last yearor the year before that that lunch with Warren was purchased as a charitabledonation is what Warren does with it, but it was $6 million. Somebody said tospend 20 minutes half an hour, Warren Buffett would be worth $6 million. Now,here's how I equate it. And I don't do this out of pride or ego. It's not ait's a pat on the back. It's just an expertise of core competencies. WarrenBuffett looks at a failing business, identifies it buys the business, cleans upthe business repositions the business and makes it more profitable. Well, guesswhat, that's what we do. We do the same thing at freedom venture investments.It's a commercial real estate investment company. And what we do is we identifyunderperforming commercial real estate assets, we purchased those assets withour investors who come in with capital, we take down these assets, we'll getrid of bad management, we'll work with the tenant base, we'll do some minorrepairs. And what we do is we take these and we're able to target double digitreturns to our investors 10 to 12%, quarterly distributions on the money iswhat we target target through our fund. And then when the money is working overfive to seven year period of time, it targets out at like 20% is what we targetfor what's called an IRR or an internal rate of return is the value of themoney working. So if you could sit down with somebody or ask somebody aquestion about leveraging commercial real estate, institutional qualityinvestments that have really only been pigeon holed for the for the elite, forthe for the hedge funds for the, you know, the Harvard's, and the, the theYale, the Yale endowment fund, right? If you could sit down with somebody whocould show you how to participate in one of those, would you do it?

 

53:41

wouldyou do it?

 

Dave Seymour 53:44

Would itbe as valuable as the information you would get from from a warren buffett? Ifyou were a stock investor? I think the answer is absolutely a resounding yes.So who is that person? Well, it's yours truly. How is that for a segue and itpretty good deny? We work with what are called accredited investors. These areinvestors who have some sophistication. They're investors who understand thatthere is risk in everything that we do in the investment space, whether it's inthe stock market or whether it's in you know, leveraged against commercial realestate and when we invest in multi families, that's what we invest in notmalls, not offices, not industrial. Just as you heard Steve Alessi say, youknow, it's about it's about houses, homes, communities, that's what we investin. So to sit down with us, it's very, very easy. You pick up the phone, youdial 78192 to 4418. And you tell the folks answering the phone that you heardDave Seymour and Steve Alessi and you heard Craig Hanson and you heard DaveHall and some of the other guests we've had on the show, and it's piqued yourinterest in learning what it could look like to grow retirement, what it couldlook like to get quarterly cash flows. what it could look like to have Capitalworking at a higher rate of return than it does in a CD at a higher rate ofreturn than it does in the bond market at a higher rate of return it does in mostother investment vehicles that are out there in the marketplace. So I challengeyou, I did it last week, I'm doing it again. Now 2020 one's coming, God willingwill will will be, you know, into our vaccines by you know, second, thirdquarter. A lot of the pain and misery that's, that's that we've gone throughthis year will be, you know, just just numbed a little bit. I don't think we'reever gonna forget this. It's been unprecedented. But maybe we can narrow itdown a little bit. So as we begin to move forward, you know, what is yourfinancial journey look like? I've always said, I'm a blue collar guy in a whitecollar world, I bring a bring a fundamental sticks and bricks attitude to afinancial world. It can be confusing, and one of the things that we're veryproud of at freedom venture investments, is we make real estate investing easy,we simplify what appears to be complicated, so that people can understand whatit is. So an accredited investor, according to the SEC, as an individual as200,000, a year or more 300 as a family unit, or a million dollars in net worthnot including their primary residence. And our investors make minimuminvestments of $100,000 with an expectation of double digit returns. And it'slike Steve was saying it's it's exciting. It's exciting to offer this serviceto bring it to the you know, the the average American I mean that that numberisn't isn't exorbitant anymore. $100,000 a year, commitment to your retirementa $200,000 a year you can you can use retirement accounts to invest in thesewe've talked about that before with self directed retirement accounts. So allof these strategies are available to you. But you know, to get a, I'm allowedto get a little biblical, those that seek shall find. What are you going tolook for? Was was something that was asked of me earlier on, they said theywere what are you going to look for? What are you going to do that's different?That you haven't done this past year, this past month, this past week? Right?What are you going to do something different? And, you know, I always throwthat challenge out there. I do it on the show, I do it in my one on oneconsultations, I do it with the with the retirement fund manager that we spoketo this week. You know, I said to this individual, I said, you know, what, whatare you going to do different?

 

57:42

Right?

 

Dave Seymour 57:43

Are yougonna you're gonna look for the same old flavor that you've been investing theretirement capital in, I said, Are you are you ready to make some newrelationships going forward? And the expectation is, is that they're goodrelationships, people only do business with people that they like. So 20 youknow, 2020 What is it 2021 will be going into Could this be the year that youbuild new relationships, new friendships, new financial journeys, partnerships,alliances, and, and make an impact for you for yourself and your family. Sothat, you know the lining can be a little brighter, you know, it's not all doomand gloom, I get it. But some people are out there looking for alternativeinvestments. And that's the world in which we live. So you've been listening tome too steep Alessi here, real estate revealed. Reach out to us freedomventure.com WWE dot freedom venture.com if you are having a challenge with witha single family home, we can help you we combine for cash, we can close fast,we can help you in that situation. And if you're looking to put capital to workwith some velocity, we can help you there as well. pleasure doing this with youevery week. Have a great holiday season. And as I say at the end of every show,take good care of each other, do unto others as you would have done untoyourself. And it's all good. It's all good. And I'll talk to you next week.Bye.

 

Intro Voice Over  59:12

Anysecurities being offered are under an exemption provided by sec regulation Drule 506 c only accredited investors who meet the SEC regulation d 501.accredited investor accreditation standards often provide suitable verificationof accredited status may invest into these offerings. Any historicalperformance data represents past performance past performance does notguarantee future results. Tune in again next Saturday at noon for real estaterevealed hosted by Dave Seymour, the star of ad libbing Boston and CEO of freedomventure investments in Denver.