Anyone else excited about the Grand Rapids market like I am?

18 Replies

Exciting things are happening in Grand Rapids with the medical development, and the GVSU college area.  Not to mention all our new breweries.  This town is hopping!!

I have several success stories involving our investors in this area but and just concluded the remodel on another large project that I wanted to share.  

One of our new investors purchased a few properties in the HOT GVSU student zone in the last three months.  We just completed one  property that was purchase for 39,900  with $50,000 invested into the remodel project.  This property includes all new windows, siding, insulation, down to the studs remodel, HVAC, Central air, 2 full bathrooms and new kitchen, and 5 bedrooms. This property was rented to the first person that saw it before completion for $1995.00 (they pay all utilities).  These numbers are GREAT, and this house will be a long term, low maintenance property.  

There are still these deals out there.  If you need help identifying properties or even advise of remodeling them let me know.  I have a steady stream of leads coming in, that I pass along to our owners.

Whats your most recent success story?

Hi @Tim VandenToorn ,

Funny you should ask..I've been analyzing different out of state markets and Grand Rapids is one that I'm honing in on.  Currently, I'm only invested in California, but Grand Rapids looks like a market with some growth potential that also offers good cash flow.  Maybe you can answer some questions... 

What is the housing stock like? Are there any multi-family opportunities or is it mainly SFR investing? Are there any areas or property types one should avoid?

Thanks in advance-

Brent

Brent,

The inventory for single family houses is fairly good.  I evaluate approximately ten houses a week for investors and we might place one or two offers.  We come across duplex's often, but above that it is pretty slim.   I primarily focus on single family properties for our investors.  

I own properties in "A" class Neighborhoods and "D" class neighborhoods. The properties in "A" are purchased for $100,000 plus and rent for $1,500.00 the properties in "D" are purchased for $35,000 and rent for $800.00. In my opinion there is opportunity in both neighborhoods. A 10% CAP in a great neighborhood is going to preform the same a a 10% in a poor neighborhood, you just have to account for higher turn over, vacancy, repair cost, and buy them for much less.

I do have a few properties that we manage that I know the owner is going to sell, including a duplex and a quad.  I also have leads on singles if you are interested.  If you want more information or to see the numbers email me. [email protected]

I am in the process of acquiring my first multi-family property in "D" class Grand Rapids. I really like the market and see a lot of potential for increased equity and start-up business!

Congradulations Shawn

Interesting discussion for sure... 

@Tim VandenToorn , I have gotten a couple of questions for you:

* Are your investors from MI or out-of-state?

* How about a reputable management company?

* Are opportunities in Grand Rapids better than other parts of MI, e.g. Lansing, Ann Arbor, etc?

Flavio, 

I work with investors from 9 different countries however most of my investors are local.  I run a management company in Grand Rapids, so yes I would say I can refer you to a reputable company. =) If you need references, I would be happy to provide them. 

We are only identifying properties in Grand Rapids, although I have been told there is a lot happening in Detroit too. 

Hi @Tim VandenToorn,

Can you please elaborate on how you are helping investors in Grand Rapids?  Is this for turnkey investments or purchasing fixers for cash flow/flip?

Thank you Tim.

@Tim VandenToorn @Flavio Zanetti

 I laughed when he asked you to refer a reputable management company. Guess it's his lucky day, huh? 

Tim's management company is one of the best (if not THE best) in Grand Rapids. They have a high standard for the properties they manage and they don't like to get junk properties to offer their clients... ask me how I know, he's even turned down some of my lower end wholesale deals haha. But it just speaks to their integrity as a business. I also know his dad (Russ) who works the business together with Tim and he's REALLY smart when it comes to rentals and serves on the local REIA board. Russ always says not to work with anyone until you get a couple referrals first so I'm happy to throw mine out there.

Originally posted by @Michael Lerch :

@Tim VandenToorn @Flavio Zanetti

 I laughed when he asked you to refer a reputable management company. Guess it's his lucky day, huh? 

Tim's management company is one of the best (if not THE best) in Grand Rapids. They have a high standard for the properties they manage and they don't like to get junk properties to offer their clients... ask me how I know, he's even turned down some of my lower end wholesale deals haha. But it just speaks to their integrity as a business. I also know his dad (Russ) who works the business together with Tim and he's REALLY smart when it comes to rentals and serves on the local REIA board. Russ always says not to work with anyone until you get a couple referrals first so I'm happy to throw mine out there.

 Thanks @Michael Lerch We definitely try!

@Michael Lerchundefined

Originally posted by @Aaron Gil :

Hi @Tim VandenToorn,

Can you please elaborate on how you are helping investors in Grand Rapids?  Is this for turnkey investments or purchasing fixers for cash flow/flip?

Thank you Tim.

@Aaron Gil It really depends on the investors goals.  We don't have very many long distant partnerships with investors when it comes to flipping.  The amount of labor that goes into identifying, purchasing, rehabing, and selling is very time consuming, and unless the lender is funding the deal at a percentage and points its usually not worth the time on our end.  

We primarily identify long term properties to hold, once we understand our investors goals. Many investors are looking for a 8-10% CAP. We will identify either a turn key property for that investor and facilitate the transaction, or identify a property that will required an extensive rehab. To us, the functionality of the property is just as important as making sure the property is rehabbed with quality material to keep maintenance calls at a minimum. We will prepare a quote, coordinate the project, over see the work, and finally lease and manage the property. Ultimately we are looking for long term relationships with our investors so we work very hard to identify and accomplish their goals.

I have heard great things as well happening in Grand Rapids. Great friend of mine with no real estate experience has been begging me to make a purchase out that way. Great little city with huge potential downtown. Do you see a bigger gentrification happening in the area? Never been to the GVSU campus or area

Mike, I would encourage you to look very closely at it.  I don't have any home-run deals right now, but I am previewing a few this week.  The development that is happening is mind blowing, especially for a city with just under 2 million residents.  I have a few available in the 8-10% range that I would be happy to pass along.  

@Tim VandenToorn

2 millions residents in Grand Rapids? Never realized it was so big.  Been through several times on my way to Cadillac snowmobiling figured it was a few hundred thousand 

 So what's driving the growth?  I get Detroit because Automotive industry

Also what classifies a D property in Grand Rapids?  Just turn over and price?

@Tim VandenToorn

Great thread about Grand Rapids Tim.

Even though the population of Grand Rapids is under 200,000, our Metropolitan Statistical Area (MSA) is over 1 Million.  That's part of the reason we're seeing all of this new development, and why businesses like Trader Joe's are now opening in the area.

The 1 Million MSA population's effect on Grand Rapids shouldn't be underestimated.  A few years ago Grand Rapids would have been considered a smaller 'tertiary' market, now with all of our growth we're increasingly being considered as a 'secondary' market, behind cities like Chicago, New York, LA, which are 'primary' markets.

In addition, Grand Rapids ranks 3rd in the nation for economic growth, behind only Denver and Houston.  Among the world's cities, the Grand Rapids/Wyoming region's economy is ranked 69th, Kent County (including Grand Rapids) is leading the U.S.'s employment recovery, and we have the lowest rental vacancy rate in the country.

I have links to articles about these statistics on my website at www.higinvestor.com.  Just click on the news & blog tab at the top.

Grand Rapids Metro is such an exiting and thriving market. I am shocked at how large the demand for quality rental properties is here. I fantastic place to work and live. Tim fantastic topic. I am also excited about the market here.  

Thanks for adding to the post @Brian Hamrick .  United Properties has worked closely with Brain for several years, and he is a great example of a successful Grand Rapids investor. Brian is a wealth of knowledge on what is happening in our city and has a remarkable story of his journey into becoming a full time investor  www.higinvestor.com for more information!

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