All Forum Posts by: Drew Sygit

@Nicholas Burrell: appears @Derek Larson has some updated info. 

In general, see if there are any Meetups or any other local real estate investor meetings. Great way to accelerate your learning. 

@Nader Hachem: Are you paying cash or mortgaging?

You can do House-Hacking and BRRRR with either.

With FHA mortgage you only need 3.5% down on SFR or duplex, and can negotiation with seller to pay up to 6% of purchase price towards closing costs.

After you improve the property you can refinance after 6 months to pull your cash back out, assuming you bought at a discount and/or increased the property value.

Then repeat...

@Nader Hachem: So, you're going to buy with a mortgage? You can still improve the property and then do BRRRR.

Are you planning on living in the property for a year? That would be House-Hacking. You can use an FHA mortgage and only put 3.5% down - even on a duplex.

@Nicholas Burrell: Mt Pleasant - college town!

How is the market up there for student housing rentals?

@Nader Hachem: it's highly unlikely someone is going to "give" you a deal here online. Everyone will throw stuff at you focusing on THEIR profit, not yours. So proceed with caution.

Highly recommend you start networking locally in person, via Meetups and other investor meetings:
- REI of Oakland
- MREI
- Macomb REIA
- Renegage Detroit Investors

Not only will this fast track you knowledge exposure, but you can start making connections that will increase your chances of finding good deals and avoiding the scammers, finding lenders, partners, etc. Rapport in this business is built up faster in person than online. 

Are you going to house-hack or BRRRR?

@Tiffany Perry: Sorry to hear about this, it gives Detroit and PM"s like us a bad rep:(

I looked them up and it appears Olivia has her agent license with 

Her broker may not know about her moonlighting as a property manager. So, you may be able to threaten to contact her broker to get her in trouble. You can also contact the Michigan Board of Realtors to file a complaint, but don't expect much.

Your last option to get collect your funds, would be to hire another PM to manage the property and try to take Olivia to Small Claims. She would have to be personally served to make this happen easily. Otherwise, more difficulty.

It all boils down to how much you want to spend to recover your funds. If it costs $5,000 to recover $3,000 than you're better off writing it off to a hard lesson learned.

We are constantly warning investors that you MUST check if a PM has a broker's license or not, as required by the State of Michigan. Many incorrectly assume that a PM company only needs a real estate license. We've even wasted our time trying to argue with competitors about this - that's how uneducated they are!

By the way, why would you do business with a PM that doesn't even have a website?

@David Harris: There are a lot of duplexes in Detroit if you know where to look! 

Ask @Travis Biziorek!

@Brandon Johnson: we RARELY include appliances for Detroit 1-4 family rentals. 

REASON: tenants either break them or steal them when they move!

We do supply them in the suburbs, as we don't really have the theft problem. 

Since there is a direct correlation between how high the rent is and how well tenants take care of the appliances, we supply used appliances for homes in lower-demographic areas and new on higher demographic areas.

@Dave H.: $200k puts you in the suburbs where there's less security issues on worksites.

In what cities has your agent been looking?

What are you all trying to do and what do you have to invest? Can give some direction if you share that info:)