All Forum Posts by: Michael Helfant

Victor - SFR or 1-4 unit MF buy and holds are about as safe as it can get when it comes to REI. Certainly, there is always going to be at least some risk. But, if you purchase a cash flowing rental, not only are you protected by cash flow, but you get the added benefit of appreciation, equity pay down, tax write offs, etc. For me, this is as safe as throwing money in an index fund, but you have a higher potential to build wealth.

There is still a ton of value in BRRRRs, flips, or other real estate investing strategies, but there is just going to be more risk there. 

Hey @Matt Von Bargen - I have the same question, but for Ohio. Our business is in Michigan, but wouldn’t mind having an Ohio license for family/friends in and around Columbus.

I agree with @Austen Mueller that there are some pros right now on the buy side, too. Obviously, the prices in some suburbs/markets have made the numbers tougher to make work; however, there are still plenty of markets (in and around Metro Detroit at least) where there are great deals. 

We continue to get more and more feedback that the rents are crazy good right now also. While MLS comps may lag behind a bit, a lot of our clients are getting higher numbers and better returns than we initially projected. Similar to the sales market where houses are going for over ask and right away, a lot of the listed rentals are seeing the same scenarios.

While forecasting future price drops, "crashes," etc. is going to be speculative, I tend to lean towards the current knowns which is that interest rates are still low and rents are high. That being said, we are currently still actively looking and so are many of our clients. 

Similar to what @Wayne Brooks said, it simply needs to be something that has buyer's name on it and basically a dollar amount that covers the purchase price. We've had buyers submit screenshots of myriad different types of accounts. Ultimately, seller just wants to know you've got what you need to actually close the cash purchase. If they have concerns about what was provided, listing agent typically asks clarifying questions. That very rarely happens for us. 

Just the rents. Utilities you'll call and put in your name and water bill will stay with the property (at least here in Metro Detroit) but sellers will put some money with title in escrow in case they don't get a final water reading or pay that water bill before leaving. 

💪🏻💪🏻💪🏻

Hi Justin - We've worked with non-US citizens before to help acquire properties. Are there certain specific questions you have?

A couple things to keep in mind right now too...

1.) Longer rehab time - Contractors have been crazy backed up since last Spring (at least here), and getting them in there and getting the jobs done may take longer than you thought. Like @Alexander Szikla said, don't be afraid to subcontract out. A lot of times, you can get a handyman in there to do some of the smaller jobs that you're paying extra for a general contractor to manage. I'm not sure if you are purchasing a BRRRR type property locally or out of state, but find some recommendations and call a few.

2.) Be prepared for some Covid-related changes - Could be doing virtual walkthroughs instead of being in person. Could be limits to how many people can be at a property at once, etc. Everything can still be done, but something to keep in mind. Again, this could vary based on if your buying local/out of state and what their current health guidelines and protocols are. 

Know your criteria, and when you see that deal trust yourself when it comes time to buy. Don't be afraid of going through the process and not getting EVERY dollar back out when you refinance or hitting that crazy Home Run you mentioned. Obviously, that's the goal. But if you get most of it out, are cash flowing, and now have an asset that is going to produce for you long-term, that's a win. 

@Drew Sygit nailed it as far as some general context for an out of state investor here. We are lucky that the cost of entry is pretty low in that Metro Detroit area like in the city, and there are good deals to be had there with less headaches. Depending on REI experience, many of our California or other coastal investors start in those ring cities and see good results.

Have no idea what the area, market, condition is of the property we're talking about here, just to preface...

But if the deal works at asking, the numbers meet your standard, and your going to start building equity and cover all of your living expenses and even potentially cash flow a little bit, why not get started? A lot of times, buyers get caught up in the listing price and won't offer asking because it doesn't "feel" like you're getting a good deal b/c its not below the sometimes arbitrary number it was listed at. Of course, if you can get something off-market that is below market or below asking because of the myriad reasons/motivations that come with a distressed seller, that is great and ideal. But also, its not "wrong" to get something at full asking price that builds momentum AND meets your criteria. Just my take. 

Again, though, if its not a good deal because the numbers DONT work or the market/rents/condition dictates that you're going to lose money, forget about it and move on...