All Forum Posts by: Jim Wellington

@Drew Sygit

Harrison - Logical Property Management is a great choice. Ask for Drew Sygit. 

As others have stated your lender will dictate the minimum amount needed. Generally rent loss is inexpensive and very valuable in the incident of a large claim. Other things to think about are water/sewer backup coverage and sewer line coverage. Older homes have sewer lines that are showing their age and replacement costs can be very high. 

If your insurance company doesn’t offer sewer line coverage there are independent policies that I would recommend. Service Line Warranties of America offers inexpensive coverage. https://www.slwofa.com/

Quote from @Michael Shepherd:

Is it possible to get delayed financing on a home I bought and renovated and rented with my own cash in order to get some money back quickly? And then get the rest by refinancing the delayed finance after a seasoning period? Is this possible? Or legal?

Hi Michael, my sister company Level Up Capital LLC offers delayed financing for these types of scenarios. Happy to connect to further discuss. 

Quote from @Oksana Walls:

Quote from @Drew Sygit:

@Oksana Walls what do you have against hiring a property management company?

Otherwise, suggest you go to Facebook Group Metro Detroit Real Estate Investors and ask there:)

 Nothing against property management companies. I have been getting by with my friend helping for now (at low cost compared to PM company) and it's worked but actually I am actively looking for a property management company now :) Happy to discuss with you on this topic and thanks for the hint!

As an investor I personally don’t use a PM company. Not because I have anything against them.  It seems to me that when it comes to PM companies everyone’s first criteria is what do they charge. My sister company, which is a DSCR lender Level Up Capital LLC deals with property managers all the time as part of our loan process for investors. 

To me it should be what do they do for what they charge. Cost should only be an objection in the absence of value. If company A charges less but is understaffed, slow to respond, has you locked in with subpar marker rents, and as a result picks poor tenants then what benefit are you gaining by saving 25 bucks per month?

Now if company B charges more and that nets you better service, higher rents, better tenants, less damages as a result, and increases your bottom line should you really be haggling over 25 bucks per month???

When we do loans we have to communicate with the PM and I assure you from our perspective it’s clear what property managers operate like a well oil machined and the others that most likely are providing inferior results and services to their clients. 

Quote from @Gavin Asiala:

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Hi, my name is Gavin. I'm just starting out investing and am trying to find and analyze my first investment. If you have any criticism or tips please feel free to leave a comment. Thanks 

Hi Gavin,

The interest rate seems very low for an investment property. As do the taxes and water. Please keep in mind the current property taxes won’t reflect your property taxes. In Michigan the property taxes uncap when you purchase. My suggestion would is to estimate them at 50% of your purchase price multiplied by the non-homestead tax rate for that city. This won’t give me you a perfect answer because many cities use what is called the “true cash value” to asses taxes which even yiur local assessing department can’t explain in my experience. Lol. 

Best of luck!  

Hi Sam,

My partner company does DSCR loans. Let's connect a further to discuss.

Thanks. 
Jim

 Brian,

you can do a portfolio or blanket loan to purchase. Our partner company offers them and would be happy to help. 

Quote from @Kass Farran:

Update here. Found a lender willing to finance 75k loan amount on multiunit investment. Rate in the 5%s, which I consider good in this market. They're out there don't settle for high 6% and 7%s.

Conventional lender?   who is the lender?

With smart investments in real estate, the real estate can also pay your student loan debt. A perfect example would be to purchase a rental property.  With the positive cash flow you can use that to pay down your student loan debt.  In addition you’re holding onto an asset that will appreciate, a tenant pays down that debt and builds equity for you. Lastly it provides that benefits for the expenses including depreciation. 

Derek,

I’d suggest a market with strong employers, room for appreciation, areas where other people are investing. I like markets that provide good cash flow and appreciation such as the Metro Detroit market. Here we’ve got areas that would allow you to purchase a home for around 100k that will generate very strong cash flows and has room for appreciation. My team offers a one stop shop to help you acquire and fund deals in the Metro Detroit market. Happy to connect and further discuss.