All Forum Posts by: Eric Medemar

Our Michigan market is one of the worst in the nation right now, I hope it never improves, our slow market has all but eliminated competition for buying, so it makes for a perfect time to buy rentals for long term holding as well as a great time for flipping/wholesaling if you know how to find buyers.

With that being said, I can remember when I used to sell properties to other investors when things were "good". I used to see the same investors at properties every week and all it takes is one stupid investor with money, to screw up alot of deals for everyone else. It was to the point where you could bid on a home that needed complete rehab, in the 100k range, the most you could make was 10k and you would still lose bids.

The market was way too saturated, but a smart investor who knows how to find sellers correctly could have done great in that market. If the market is bad learn to find buyers, if the market is good learn to find sellers, its about that simple.

One more thing to ad to mikes list to be in that 2.5%, is not fearing risk, and learning to control risk through proper education, and study. Risk is what keeps people poor. I hear it all the time, but what if all the tenants dry up, and rents rates drop to $1 dollar, and they take your house and 1 st born child? My answer is always, what if you continue to do what you have always done? Yep, youll continue to get what you have always gotten (if your happy with what you have always gotten then thats fine, but most people arent.)

My dad asked me the other day if it bothered me to be $1,400,000 in debt at 31, and I told him the truth, they can only take my house once, and I have been at the bottom, and its not that bad. I would much rather have it all and lose it, then to live my life being a "woulda, coulda, shoulda person. Plus if Im 1.4 million in debt at 31, if I play my cards right by 46, I should be about 1.4 million richer, than the 31 year old that did nothing.

I have sold alot of homes to investors as a realtor, and speaking from experience, the ones that make it worth my while I treat the best. Prior to buying most of the homes myself, if I found a great deal, I would send it first to the investor that I knew would list with me at full commission when the rehab was completed, then I would go to the guys that tried to beat me up, then to the fsbo guys. So were the fsbo guys and commission cutters saving a commission, maybe a commission but while they were saving pennies they were losing dollars

I never use inspectors on anything that I buy, I just figure something will be wrong with everything, then when its not, I get to celebrate. I do know what to look for though when doing a property preview

I do, I wouldnt have it any other way. In fact I couldnt have it any other way. I always joke with my wife that if I ever had to get a real job, I would be the most annoying co worker ever, because all day I would sit around the office telling "back when I was an investor stories".

I dont know how to clean up meth but I have bought some homes that were very rough, one for instants the old owner left 9 cats for dead in. So until they died the home was the bathroom. I used killz and sprayed down the home twice, then recarpeted.

If you do decide to recarpet, be sure to call some investors in your area and find out where they buy, dont try to reinvent the wheel.

Since I have around 30 rentals I have worked out some awesome deals on all aspects of flooring nice berbr .46 ft, nice laminate .99 ft. Typically these sell for 3 times as much, so definately do some negotiation, if you decide to repplace carpet.

great responses so far I would also like to add buying at a below market value price. also I have found that finding duplexes in area of single family homes to work out good because the areas seem to appreciate faster than areas that are primarily rental, buying in areas that have a consitant rent rate accross the board also works out great, problems can be experienced if you buy in an area where many of the apartments are owned free and clear, those landlords can afford to have tenants pay below market value on rent, which can drive tenants away from leasing your unit. These are just a few of the things that I have experienced that many investors seem to overlook. these are just my experiences others may have different opinions.

I have found that 3 bedroom homes are the eisiest to rent, but I dont rule out anything if it can be bought right. If I can buy low then I can rent lower, and keep tenants longer and fill vacancies sooner.

Depending on your market conditions and how long you plan on owning the home 1% or less could be fine. Almost as important as cashflow is buying the home at a very good price 80%FMV or less is a good number to shoot for, that way if you dont like ownership then you can sell and get out, plus you can sell in 2 years and take tax free gains on the portion of the home that you lived in. There are so many variables that go into picking out rentals that it is hard to take care of in a single post. Cashflow can often be made up for in owner occupant situations, with strong equity potential but it all varys depending on your market.

Be sure you have your buyers lined up ahead of time, be sure you have an out in the contract

I used to believe that I wanted to retire by the age of 40. My idea of retirement is doing what you want, when you want and how you want. Then I realized that by following through on my dreams of being a real estate investor, I was already retired at 30, I drive my corvette or harley to look at homes all summer, then relax at the pool with my wife when I want. I never have to get out of bed, but because I like what I do, I want to get out of bed to see what each day hold.

I am with Mike I am retired as I could want to be already. Once you realize what your lifes passion is and then start doing it, each day is like being retired.

We are all only given a limited amount of time on this earth, so I sure as heck dont want to spend it wasting away at some job that I hate.

I have found alot of success working with realtors, and becoming the go to guy for good deals, just last week monday I got a call for a $22000 deal and by friday I had it under contract for 31k. So after expenses I make $8,000 and I only had 20 mins in the deal. I have done countless other deals working with realtors