Rental Property Investor · Ann Arbor, MI · Member since 2015 · 8 posts · 2 votes
Hi All,
I'm just turned 60 last month, and worked for an automotive company for 20+ years, they laid me off the day after my birthday. I've been looking at rental properties before the layoff, now feel even more urgent to start my real estate journey.
I have a little bit of savings for some investment properties but do not want to pay all cash for any houses from what I've learned about leverage. But at my age, I doubt I will be able to find a new job and get loans. I can get a home equity credit with my primary residence at 50% of its value, but the terms are not ideal- 15 years at 5.5%. Any suggestions on how I can get started? I'm hang up on the financial side of this without a conventional loan.
A 15 year loan at 5.5% interest is very favorable for investment property. The larger question is: do you really want to risk your residence in an endeavor that you do not yet understand? It is possible to get financing based, primarily, on the value of the property if you find an excellent deal. That financing will, most likely, be at a rate significantly higher than 5.5%, but if the deal is strong enough that can be alright. There are several recurring REIA (real estate investor association) meetings in our region (SE Michigan). Look for @Tom A., he hosts one near you. @Wendy Patton, does also. There are other groups: Renegade Detroit Investors, REIA of Oakland, Wayne, Macomb, etc. A web search should reveal most of them. Attend some meetings. Meet other investors. Start building a network. Real estate investing is not always easy but it is fairly simple, especially if you find others to guide you on your journey. Best wishes.
A 15 year loan at 5.5% interest is very favorable for investment property. The larger question is: do you really want to risk your residence in an endeavor that you do not yet understand? It is possible to get financing based, primarily, on the value of the property if you find an excellent deal. That financing will, most likely, be at a rate significantly higher than 5.5%, but if the deal is strong enough that can be alright. There are several recurring REIA (real estate investor association) meetings in our region (SE Michigan). Look for @Tom A., he hosts one near you. @Wendy Patton, does also. There are other groups: Renegade Detroit Investors, REIA of Oakland, Wayne, Macomb, etc. A web search should reveal most of them. Attend some meetings. Meet other investors. Start building a network. Real estate investing is not always easy but it is fairly simple, especially if you find others to guide you on your journey. Best wishes.
Hello @Jeffery Leon, i have wrote blog about 3 things every real estate investor in Michigan should be doing. It might answer a lot of your questions. click here
I am also a real estate agent with Keller Williams in Novi Northville office. Let me know if i can help finding a deal
Hi @Fady F. Thank you for the link, it has lots of good information. I'm going to attend some meetings next week! I actually don't have an agent at the moment, so I could use your help on finding some deals. Cheers!
Sorry to hear about your situation. So much for corporate loyalty. Like I have heard so many times, which is really safer. A job, or self employment.
There is a wealth of talent and information on here. Dig in up to your shoulders.
Hi Richard, I live in Rochester and the youngest one will be going to Umich. I've been looking mostly in Ann Arbor (too much competition), West Bloomfield, Royal Oak. Any Suggestions? Thank you, Jeff
I guess that depends on what you are looking for and how you want to structure the purchase. Those are nice cities but the cash flow is going to be limited. If you are going for rentals and want to stay in a nice area I would recommend looking in Ferndale. Then there are the typical rental markets that may require a little more work but have better cash flow like Warren, Eastpointe, Roseville, etc...