All Forum Posts by: Michael B.

@Omar Khan you just shattered my dream! This guy on the Youtube commercial says he is wholesaling houses while sitting on a tropical beach. He said he does like 4 deals per hour netting like 200k per month. He says it only took him about 3 months of work to get to this point and everyone is stupid for not doing the same thing! Don't tell me he is lying!! :-D

@Shaun Draughn Let's say you have $100k to invest. In the market where I buy, you will be able to get about 2 properties + rehab for that $100k if you pay cash. After you are done fixing those two properties you will have to wait 6 months to 12 months to refinance those two houses until you can get your money back through a refi.

Even delayed financing exception won't help you if you buy fixer uppers because you will only be able to recover your initial purchase cost and not the rehab costs. 

If you buy already rented turnkey properties from a turnkey provider you will be able to buy roughly 10 properties (in the market where I invest) that will cash flow between $400 and $500 per month using conventional financing with down payment. You can achieve that amount of properties easily within one year! After you bought 10 of these properties and maxed out your conventional financing capabilities your monthly income will be $4000 - $5000 Dollars per month from your rental properties alone. That's a nice raise that will help you feed your kids if you lose your job for example.  This will also open way more possibilities for you for future deals and you can get creative with this extra monthly "play money."

On the other hand, if you follow the BRRR strategy, then it might take you years to get to 10 properties. Now the question remains, is it worth to wait years to save a few bucks one each project or are you looking to increase your monthly income quickly, add your monthly rental income to your W2 income and make more deals that way?

The BRRR strategy is certainly good but it's not fast. It's one of the many tools of a savy real estate investor. However, being an INVESTOR, also means you use your tools wisely and look for the fastest and easiest way to make money while eliminating the downside (whatever it may be). Time itself comes with its own upside and downside. Upside: You might get a raise. Downside: You might lose your job in one year and wish you had an extra $5000 per month from rental income. If you lose your job, it will be hard to find a bank that refinances your two properties where you tried to apply the BRRR strategy. 

Are you stuck on Detroit? I know a better market in Michigan

I don't think anybody understood this post. Would you mind explaining what your question is? 

Before you buy this, please make sure everything is up to code. Code violations can be very costly to correct. I bought a house in CA a few years back that had a backyard shed that was transformed into living space (guest house). The city literally hunted the owner down for years and she had multiple liens on the property. Due to her financial situation she was not able to correct the issue and get the building up to code. It was a good deal for me but she might have been able to keep her house without this code violation. So do your homework!

Call Taylor Langford with Lima Capital One. Did you guys already close on the deal? Starting out, most of the time you will get higher cash flow quicker buying turnkey properties.

Hi everyone,

I am looking to start a real estate co and have some questions! If you could help me out that would mean a lot.

How many properties do you manage?

• I don't self manage. Always have a professional property management company manage your assets.

As a business do you value property appreciation or monthly rent intake more?

• Starting out, cash flow. Only cash flow will help you feed your family. It's pretty hard to tap into appreciation if you are in a financial hardship. Banks won't refinance if you just lost your job and only have one rental property that doesn't even cash flow.

When you acquired your first few properties, how did you finance them?

• I paid cash and refinanced out using conventional financing products. However, looking back I would have been able to grow quicker if I would have used my cash for down payments with regular financing buying turnkey properties.

What issues/difficulties did you run into when trying to finance your properties?

• The seasoning period held me up when it came to refinancing my assets. As I said in my last comment, I would have been able to grow quicker if I would have used my money for down payments on turnkey properties. 

 I believe they are national! I have seen a lot of people in the forum that use them. They also insure your property while your are still rehabbing it. 

If they are long term tenants, then I would check if they paid rent on time for the past 12 months. Other then that, I would smell profit. If the landlord doesn't know the going rate for rent in the area, it's your chance to squeeze out a few more bucks of profit! I did that a few months back. Using my knowledge about rent amounts, I bought a property a property for 37k. Not even the agent knew the fair market rent. She was convinced that the max rent for the area $700 dollars per month. Her knowledge was outdated by about 6 years (she even ran her own property management company - scary!!)! I knew I was able to get $1000 Dollars per month easily! The house was rented at $1000 per month within 3 days of vacancy and I had it appraised one month after purchase @63k.