All Forum Posts by: David Hall

When this happens to me  you have to tighten up your criteria.  Narrow the search area to that specific block if you can.  Also, only count comps with similar layouts.  Maybe bungalows are hot in your area which is why they sell for more even though they are identical in sq ft to other homes.

Days on market is very important.  Using the search you already did, consider the homes that have less than a week or two on market.  This price point is where the greatest demand is, hence the quick sales.

Hope that helps.

Hi Claudia,

I am in the Lansing Michigan Market and can find flips that are all in, purchase and renovation for within your budget.  What type of return are you expecting?  PM me and we can talk further if you are interested.

My market is 20% down, and adequate reserves and income to cover the mortgage potentially.  In my experience, once you have landlording experience they will count some of the rents from the investment property towards your income, but not all.  Most banks I've seen will factor 60%-75% of the rental income as income, if that doesn't cover the mortgage they'll look at your income.

My advice would be to get a good paying job.  If real estate is your passion, get a job in the industry.  Assistant for a developer or realtor, property manager or work at a title company.  Anything where you can get paid to learn about the industry.

Once you have an income high enough to get a mortgage, buy a house. A multi family is best, but even a SFH will work if you can rent out the rooms. Do anything to make the property cash flow for you so your experience, income and comfort levels grow. Once stabilized, but another one every 6-12 months using 3-5% down owner occupied financing. As long as you don't mind moving, this is a great way to get your first few properties.

All along start networking at local REI groups or start your own. The more people you meet the more likely you'll meet someone who can mentor you or trust you to partner with you for future deals. i'm happy to discuss further, but I think getting an income and buying your first house are doable, actionable items you can complete by the end of the year!

I am advising my clients to lock up 30 year fixed rate debt mortgages while rates are low.  If you don't need the money, being that it is a 4 unit, you can get 30 year fixed rate debt.  This debt alone is an asset and worth considering.  As the market gets stronger and rates increase, having a property that is renovated, stable and cash flowing might turn out to be a great long term hold for you.

I've found great people using facebook.  Ask your friends who are local who they would recommend.  You'd be surprised.  Everyone lives somewhere, and most have had to hire people to fix things on their own home.

I would send them a "notice" letter.  Spell out that they are infringing on the quiet enjoyment of the property residents.   They may not know it was even a problem.  I ALWAYS, give the tenant the benefit of the doubt.  I would hate to get kicked out of my home for something I didn't know was happening that I could have easily have corrected if someone asked.  The tenants are your customers.  

Send it certified mail, and document that you sent it.  If the problem continues, you can think about removing them.  Depending on your laws, on a M2M you may be able to just not renew their lease, either way you'll have the certified notice in your file if you need it for court purposes.

@Kyle Pockat one other thing that just came to mind is, maybe ask a wholesaler or flipper you know to partner with you on a deal.  It sounds like you don't have much time.  Maybe ask they to go 50/50 with you, you put up the money, the find the deal and run the rehab.  This will give you experience and credibility and give you some passive opportunities to keep your money working for you.

I am an agent/investor in Lansing, MI and I love partners who have the capital and want to split profits.  I can find more deals then I can do myself so it's really a win win.

Banks are definitely tightening up their lending.  We are going to see less and less 0% interest options and more and more increases in interest rates.  This is actually a sign of a growing stronger economy.

I would suggest you shop around at different banks.  I called a few local credit unions and was able to secure $20,000 unsecured credit line at 8% interest and another $20,000 at 12%.  Not 0%, but not 20%+ either.  

There are plenty of investors doing deals with 20%+ interest rates as well. Although highly not ideal, you may need to find deals with more meat on the bone and keep the BRRRR going. I would rather make a little less and still acquire an asset then lose out waiting for lower interest rates.

Brandon Turner briefly mentions this on podcast #294 that people can spend a lot of time worrying about interest rates and potentially miss out on stellar opportunities along the way.

Seeing opportunity where others overlooked it or buying off market deals sounds like the way you need to go.

Have you attended your local REI groups to find wholesalers? You may try bugging the ones you aren't giving you the time of day right now to let them know you are serious. Maybe even send them proof of funds and specifically what you are looking for as a reminder you are ready and able. Instead of marketing for motivated buyers, maybe market yourself as a motivated buyer and see what comes.