- Grand Rapids, MI
- Votes |
I apologize for my long winded first post. I have been lurking on these boards for the last 6 months, what a great forum! I am looking to solicit advice from some of the veterans (especially flippers).
My background has always been in real estate; financing, buying, rehabbing, developing; you name it and I've probably done it. I had a very profitable building / developing company that went belly up in 2010. My bank went under and the new bank (god bless their heart) refused to extend all of our lines of credit and loans that ballooned (did I mention how happy I was)? I was forced to liquidate all of my properties / land at bottom dweller prices to keep from filing bankruptcy. I was able to fight off bankruptcy and pay off all of my recourse debt. I packed up from Chicago and headed back to W. Michigan where I grew up, with a very small amount of money in the bank and lots of debt. I've spent the last two years paying off all of my debt and I am finally pointing upward. I do not have enough money to purchase any properties out-right; I do however have access to private money at a steep price. I have been offered money at 10% (origination) and 2% per month (they are local friends, not a company). I've never EVER seen money this expensive. I do realize it's cheaper than a partner but I am having a hard time not only stomaching the cost, but finding a deal that works under these guidelines. The W. Michigan market is ridiculously competitive right now, it's next to impossible to find a great deal. The REO's aren't making it past the 15 day investor bid period. So here are my questions:
Knowing how expensive the money is, would you wait until you found cheaper money?
I’ve tried networking and working with different agents, but I am having a hard time finding a deal that has enough meat on the bone. While I build relationships and network, what are some other tactics I might use to find a good deal? Any advice?
Are most of you guys doing 10+ deals a year buying strictly off of the MLS, or do you find most of your deals through non-traditional marketing tactics?
Thanks guys, sorry I am so long winded! I look forward to getting to know people.