All Forum Posts by: Aaron Yates

Aaron Yates has started 47 posts and replied 625 times.

Originally posted by @Jerry W.:

@Aaron Yates thanks for the mention, you mention buying in Texas, I am trying to think where that is? Is that in southern Wyoming? hehe The property is located in Indiana, and it was really hard to bring myself to buy it. I had 3 separate folks tell me about the neighborhood, I had it inspected, watched a few videos of it, and look at it on Zillow and google earth. We will see how it turns out. I bought it through a management outfit, there contract is horrible, but will probably try it for a year. Has had same tenant who is very handy for at least 5 years. It makes the 2% rule. Wish me luck.

Sorry Jerry. I dont know why I typed Texas...

So far then it has been working? Im not ready to make a long distance investment like that. I hope the management company works out. That seems to be the biggest issue with investing out of your own state.

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Originally posted by @Lisa Phillips:

@David Beard - no, I have been doing this successfully since 2009. Is success or failure a 5 year pass or fail? So, does it matter what has happened in years 1 and 2?? Where did this arbitrary 5 come from? That sounds like more YOUR metric, not necessarily anyone elses. Should I throw my properties away now, or am I still a failure (even though i cash flow mightily and investing is as smooth as a baby's bottoms most days)?
For me, a year or not makes no difference on whether I get tenants: The state that I keep my properties in and the price I charge has more to do with that. Does it mean anything for the rents?? Well, in 4.5 years since its been stable rental income.

Here is my view: Im not trying to convince you that 30k properties can be very profitable and successful (they can be). I really just want to deal with people who 1) Believe this investment strategy works and 2) Are willing to find a way to make it work out for them

This isn't for you. And that's fine. But putting your arbitrary 5 year mark out there to tell me or others that what we have done is valid over the last 1, 2, 3, or 4 years? Well, that's a bit out of order to denigrate anyone's hard work because it hasn't passed your muster.

And, have YOU tried properties in this price range? Did you Fail or Succeed? Because, it doesnt take 5 years to know whether you have or not.

I couldnt have said it any better myself! Especially because Im not always the best with words and it can come off as mean, argumentatibe or rude... ha ha ha.

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Originally posted by @Sharad M.:

It's important to network as much as you can. Tell as many people as you can that you are in the market looking for properties. You never know where a deal will come from.

I have had my contractors bring me deals that were not listed and some of the deals have worked out great.

Hey Sharad. Im going to be working in South Chicago for a few months starting the weekend of the 14th. We should try to meet up while im there.

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Originally posted by @David Lee:

I have seen that a lot of you guys post that some of the properties are in the hood. Not all properties under 30,000 have to be in the hood. One of the most recent houses that I have purchased is within a half a mile of a big search engine. Some of you may know what it's called Google. It's not in the hood the house just needed work. That's what I look for when I'm purchasing these homes. I look for homes that need work and most people aren't willing to do. Allio them Lenoir North Carolina it used to be called the furniture capital of the world, in the last 10 years the furniture factories have almost completely went out of business. I think my area is starting to come back up for example we had Google to move in a couple of years ago.

This is a fact! Same thing in my market. Seasoned investors who have cash dont want the hassle of a rehab and many dont want to do any work themselves.

I personally look for these properties for two reasons. Most newbies get scared away from the trashed property and the second is what I mentioned above.

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Originally posted by @Jerry W.:

I am aiming for this market ATM I will follow this thread and maybe we can help each other out some. I have an accepted offer an a under $30K property I plan to close on next week.

Hey Jerry. Do you guys have a market like this in Texas? I love it here in Michigan. My only hold back is not enough capital and now the deals are harder to come by as so many investors discovered our gold mine.

But there are some places that many still wont come to because they domt want the hassle (or so they think there is) so thats a bonus for us locals who love these areas and they are not in Detroit as many will surely think.

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Originally posted by @Pyrrha Rivers:

@Elizabeth S. and @David Lee I am trying to get this specific strategy going in DeKalb County, Georgia. I keep hearing from brokers, Realtors and PMs that $30K or under may not be feasible. Well, in addition to my lack of experience, I have yet another hurdle which is extreme long distance. I'm in Japan! I just found out that in addition to not being able to see and touch my prospective holdings, getting money will not be easy. I contacted a lender about getting a HELOC on my personal property which is paid off and although the property is there, I'm a federal government employee with good credit, the answer was that because I am not there they can't help me. I will keep working on that but for now I have to work with what I have which is the $30K and below entry point. Like Elizabet says, I'm jumping in and will learn as I go. Any tips? Can I join this group although I have a great big nothing right now? Willingness to work and learn...I have that! :)

Hi Pyrrha. First let me say welcome to starti g your investing venture. The first tip I will give you is to take everything you are hear with a grain of salt and dont take 'No' for an answer.

You will have your ups and downs and get discouraged but if you truly want this you will figure out a way to make it happen.

So with that said, I only want to touch on one thing in your post. No disrespect to Agents but you will not find many agents who will work with you on cheap properties. Remember they work on commission. 3% minus their broker fees doesnt leave them crap on a cheap house. So dont listen to them when they tell you its not feasable.

As you can see from all these posts, lots of us are investing this way. Ive gone through 7 agents in 2 years and I do all the footwork myself. I use them solely for paperwork and still have issues with finding a good agent.

So dont give up. Hit me up anytime if you have some questions. Ill try to help if i can.

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Originally posted by @Matt R.:

I would like to add pre screening tenants before closing. Or even before offer. I run test ads first. This will let you know quickly the demand and rental rates and more importantly what type of tenants will be paying your bills. You could also check the PMs which you are going trust but verify.

I definitely want something special or unique with the property from a renters perspective. Cool location, walkable, views, large lot, corner lot, schools etc...something that a renter can't find so easily.

So you essentially lie to people about owning a house to see if it will rent or not? Strange way to invest.

Maybe not intentionally, but its almost like that gives you an excuse to not move forward for fear of failure.

One thing interesting about BP is reading all the different ways people use to decide whether to buy a property or not.

Mine has always been pretty simple. No percentage rules. I have specific property details... 3 bd, 1 bath, garage and/or basement, no warzone, and a total cost of under $30K. Originally the budget wasnt even a consideration because my market was so cheap.

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Originally posted by @Account Closed:

I am curious to know if I can fix & flip properties with bad/no credit??? In my location it seems that's the best way to get into real estate due to the fact that Detroit has many vacant homes! A lot of homes here have GREAT potential. ANY advice from my fellow Colleagues or BP members would be appreciated.

I have researched this now for the past 1 1/2 years. I know exactly what you have in mind and what you will go through in the search for the answer to this question.

Many variables come into play in your situation. I was there and still am. I have spoken with literally over 30 types of lenders. Spoke with dozens of underwriters. Spoken with HML, self-acclaimed private lenders as well.

In the end, unless you have money, your friends have money, your family has money, or you havr a credit score above 720... you are up ***** creek without a paddle. This is where creativity comes into play.

Hit me up sometime. A good lunch is a great way to bribe me... ha ha ha... I stopped offering my results here on BP because i got tired of the crap responses and disbelief I had to read from people NOT in my situatuion or market.

1 Vote

Originally posted by @Scott K.:

Originally posted by @Account Closed:

@Carson M. @Scott K. if this area is a "warzone" area would it be a good idea to scope the area out for potential properties to put on my list? I would also like to go across 8mile into Ferndale territory &the other surrounding cities & maybe grab a few properties to wholesale. Are there a lot of investors in these cities Carson?

Let give you how Ferndale was and what it is now. My dad had 2 Duplexes in Ferndale he paid under 40k for each. He rented them out for 20 years had them paid off in full and after he retired he sold them for about 120k each.

Ferndale exploded in value as soon as it became cool to live there. You are from the area so you know what I mean. The hillbillies moved out and the younger gay people moved in and made it a very nice city to live in. They invested in their own properties and made it nice to live there.

It takes people that care how their property looks and it takes a city Gov that knows what it is doing.

I am currently looking for a rental prop in Ferndale right now. I already have a renter if I can find on.

Royal Oak Twp is not Ferndale. They just lump it in with Ferndale since it shares a zip code. You can get dirt cheap junky props in Royal Oak Twp.

A fellow BPer is waiting to close on a deal in Ferndale right now. There is some title issues. But hes getting it for under $30K with about $1500 in maintanance needed from what he told me. 3 bed 1 bath i believe.

He actually posted here looking for advice but i do know him personally as well.

Deals are still out there. The only thing holding me back is thatbi ran out of capital and am still working on fixing my credit so hopefully i can start using some financing for deals.

Abd yes there are alot of investors in these areas. But we dont all look for the same criteria.

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Originally posted by @Chris Clothier:

@Joe Delia - I don't think we met at the BP conference and can't imagine where we would have met otherwise, so I'm gonna let your rant slide off my back and chalk it up to a bad day for you. You don't know me well enough to suppose you know what I meant from a few typed sentences. It looks from the other comments that there are plenty of Michigan investors who are telling the a different on the ground story for Detroit. I will let you fight it out with them. Best of luck to you.

@Account Closed both of you made posts about staying positive. I originally tried to highlight your post Aaron and commend you for those 3 sentences about a positive attitude and approach. If you believe in what you are doing, then you can have a positive effect on your city. It may be small, but it may also be the most one man and one company can do and that can make all the difference. I have not a clue where Detroit will be in 5, 10 , 15 or 20 years, but I know that Memphis overcame a lot since the 70's and has continued to go up and down over the last decade. Stay positive and just make your little piece happen.

Thank you chris. I will say that even with my drive and motivation, i have my days where it would just be so much easier to give up. This is one reason why i try to share and stay active on here so newbies dont get scared away before they even start.

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All Forum Posts by: Aaron Yates

Aaron Yates has started 47 posts and replied 625 times.

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: Anyone out there specializing in under 30k properties?

Post: I am curious to know if I can fix & flip properties with bad/no credit???

Post: Who thinks Detroit will turn around within the next 5 years?

Post: Who thinks Detroit will turn around within the next 5 years?