ForeclosuresMass - ForeclosuresMass Monthly - Nothing Succeeds Like Success

As one half of the Cambridge MA, Cyrier Sales Team (along with wife Sarah), Jeremy Cyrier is now in his fifth year as a full time real estate investor and broker. After learning that he recently netted $60k on a house he owned for just six weeks, we were prompted to get in touch and schedule an interview, to find out how he got into investing and learn more about what he's done to be successful.

ForeclosuresMass: Let's start with the question that's on the mind of all our readers. How exactly did you make $60k on a house in such a short period of time?

Jeremy Cyrier: I found the property through direct mail. After meeting with the owner and doing my due diligence, we agreed that I would put a note on the property that included an option to purchase. What that means essentially, is that I lend money to the owner to help him stay in the property, and he signs a note which says that if he defaults, I take title to the property without it having to go through foreclosure.

JC: He did in fact end up defaulting and called me a few days before the auction. I took title, had the house cleaned up - I didn't do any other work on it other than that - and I put it on the market a couple of weeks later. The $60k was my net on the deal.

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FM: Great story. I understand that you've been investing in real estate for five years now. How did you get started?

JC: Believe it or not, at the time I was in grad school, working towards a PhD in history. I bought and sold a property, liked how it felt, and within six months I bought two more.

JC: First of all, there was the money. The example earlier - making sixty thousand dollars after owning a property for a few weeks - was a great experience. That's more money than most people make in an entire year.

Secondly, it's a dynamic business and I like that. In real estate, no two days are the same and I discovered that I really enjoy the variety.

FM: Clearly not everyone has what it takes to be successful in real estate investing. What is it about you or your approach that makes it work?

First, you need to be able to talk to people, to have a conversation and get to know them. Fundamentally, people need to trust you before they'll work with you. In fact, the best investors are the ones who get referrals from people they've already done deals with. When a friend refers a friend, you know that you're doing something right.

Second, you need to be able to make big decisions quickly. I've learned the hard way on that one. At one point I walked away from a deal that I could have made $100,000 on, simply because I couldn't make up my mind.

JC: Sometimes. There are a lot more "maybe's" than "yes's" in the market we're in right now. And while no one wants to reach out and catch a falling knife, you need to be well attuned to what's going on, so that you can recognize an opportunity when you see one.

FM: You mentioned a third trait that's been part of your success. What's that?

JC: Financial savvy. You don't need to be an accountant, but you do need an understanding of market conditions and market value, as well as know enough about debt and how to manage it so that you can line up your resources intelligently. Particularly in the market we're in now, being financially astute is more important than ever.

FM: You've mentioned "the market we're in now" a couple of times. How has today's soft market changed your approach?

JC: Five years ago, my advice to a new investor would have been, "buy." Find a way to get in and you've got a good shot at doing well.

Today, while I still advise buying, with property values depreciating, you've got to be more careful. You've got to buy with a deeper discount (off of retail), and you've got to be financially prepared to hold on to properties longer before exiting the investment.

JC: Do lots of marketing and spend a lot of time looking at property before you buy anything. Take the time to educate yourself.

Jeremy Cyrier is a Broker Associate and CCIM Candidate of RE/MAX Commercial. He is an expert in leasing and selling office, retail, and multi-family commercial/investment properties in the Greater Boston Area. As an experienced real estate investor himself, Jeremy has first hand experience and a deep understanding of both the market and his client's need for quality investments. 617-674-2043, Jeremy@MassCommercialProperties.com, or www.masscommercialproperties.com