All Forum Posts by: Joshua B.

What's the name of your company, Yoann? How can i get on your list? I don't usually do wholesale deals. This one just kind of end up going that direction naturally, but I'm interested in seeing your inventory in SE Michigan. 

 Well this deal just closed so looking for the next one! Onward and upward

I'm a pretty dedicated Craigslist checker, which mainly consists of sifting through the same ad for a BRAND NEW (mobile) HOME for $89,900. Pretty boring most of the time and on most days it's fruitless.

However, a few months back I spotted a listing for a house in Royal Oak, MI. I generally scroll through Craislist quickly only looking for listings based on the area (i.e. A or B areas). Royal Oak is definitely an A. I scheduled a showing thinking it would be a nice BRRR. It was a cute house from the exterior and sat on a street full of new builds that replaced teardowns. When I stepped inside, I immediately realized the interior had some significant challenges that would make the BRRR approach a lot more difficult. My wife and I were ready to walk away, but didn't want to waste a trip. Instead we stepped outside, chatted, and picked a number that would let us either complete a complete interior gut or just sell it as a teardown. I was very clear that I was absolutely prepared to purchase the home, but that I might also look to wholesale the property. I outright said that putting it on the MLS was the best move, but they had reasons for not wanting to do that. The seller accepted within about 24 hours.

Shortly after I had it under contract, I called a few local builders, including one who built the house across the street. He ended up making the best offer. One bidder did approach try to scoop the deal from me after I presented it, even though it was under contract, but fortunately the other party was honest and nothing came from that. A good reminder to always have your paperwork in order, be transparent, and good to work with.

I took a $22,500 assignment fee. Definitely left some meat on the bone but it was outside my geographical area so I was fine with that. I won't become a full time wholesaler, but it was interesting to use it as a different tool to achieve a successful deal.
 

@Ander Lantigua I think you should be willing to close on any property you get under contract assuming your due diligence outcome is acceptable. You should always be honest and transparent. “I will buy your property and am prepared to close. However, before I close I may try to find another buyer who is an even better fit for this property. If I do, I will assign them the contract. If they don’t come through, it doesn’t matter because I’ll still close.”

@John Cannon Hey John, I am an Ann Arbor investor and a realtor. Ann Arbor is quite difficult if you’re looking at on market deals. However, if you’re open to broadening your search to nearby areas you’ll have better luck. Happy to chat if you want.

@Trevor Thomson There aren’t any mastermind groups that I know of in Ann Arbor. I’d be game for doing a meet up in AA though. All the meet ups seem to be out in the Detroit suburbs. My brokerage has me +4 other experienced investors who are all bigger pockets members. We do meet ups on occasion.

Anyone on here have significant experience turning around medium-small sized parks, particularly in the Midwest? Have a lead on an off-market deal that I'm interested in but it's a bit outside my wheelhouse. Never done work with mobile home parks before.

Oh man, just had one the other day. I bought a 4-plex in 2017 in Ann Arbor, which is an incredibly stable area that provides awesome appreciation. Michigan's version of Denver. It was two duplexes on one lot. The place was a bit run down and the units needed some work, but the whole area around it was still developing. Even in its run-down state it was bringing in about $4,400/month. I could've fixed it up and bumped the rents to $6,000/month. That's what my gut told me. Unfortunately, I was afraid of the $000s associated with the renovation and thought the market would take a downturn after a 10 year upswing, so I tried to time the market.

I contacted 5-10 local multi-family buyers and did some off-market showings. Everyone told me I was asking too much, except for one young local broker who bought the property (with an FHA loan if I recall correctly) and house-hacked it. I usually take it as a good sign when 90% of buyers say I'm asking too much but one is willing to pay it. I bought for around $415k and sold 7 months later for $548k. Paid short term capital gains on all of it.

The buyer did some cosmetic changes and held for a little over two years. Fast forward to early 2021, and I see it listed again for $695k. "No way he gets that" I say. It sells it for just over $680k. Total gut punch. I could've held it, sold a few years later for $130k+ more and done a 1031 into something $1mm+.

If it cash flows well, keep it...especially if it's in a solid area. Don't try to time the market. 

@Frano Buhovac what’s the over under on the number of BP folks scurrying to Google maps to find the property, contact the owners, and steal the deal?

@Felix Daj Washtenaw County is great. Ann Arbor, in particular, has one of the most stable real estate markets in the state (probably the most stable). There are a lot of high potential areas outside of Ann Arbor that are more affordable. Let me know if you have any specific questions.