All Forum Posts by: Michael Smythe

It's only 25 minutes to Lansing, so it may be a cheaper rental solution for people living in Lansing.

Don't really know either market, so recommend you compare average rents to determine how likely it is someone would commute.

@Kiefer Cheney your best "farm area" is your personal network!

Why does everyone want to chase strangers – and ignore their own personal network?

Which do you think will be more competitive, buying from wholesalers or your own referrals?

Per this NY Times article, the average American knows around 600 people.
https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3F

Per the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.
https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20year

So, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.

How many of those moves do you want to be involved in?

To maximize the number of transactions you’re involved in you will need to:

• Be Top of Mind when they think about moving - which requires consistent reminders.
• Be seen as an Expert – which requires a consistent message and Evidence of Success stories
• Gain their Trust – which requires communicating integrity

So, start out by listing everyone you know in an Excel spreadsheet.

Why Excel? Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.

IMPORTANT: do NOT ask people for THEIR business, ask for referrals! Why? Because they will get defensive if they feel you are pressuring them. Remember, they can always refer themselves😊

Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:

• Just inherited a home
• Had a loved one pass away
• Is behind on their mortgage or tax payments
• Has a relative that can’t take care of their house anymore
• Has a house they’re having trouble selling
• Is facing bankruptcy
• Knows a probate attorney
• Knows a bankruptcy attorney
• etc

Why only three off the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything!

It should only take you about a month or two to contact everyone on your list and then the tough part – you start all over again.

Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!

Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?

One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.

As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.

One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.

@Chase Wright do you own a primary already?

If not, buy a 2-4 family to rent out the other units or buy a 1-family and rent out the other rooms.

@Luke Carl what better questions have you learned to ask possible PMCs after all your bad experiences?

Hope you have great attendance!

When you buying the next one?

@Varun Sharma What Class of property/tenant are you expecting that will meet the "1-2% Rule"?

We find many investors chase cashflow by buying Class C & D properties/tenants, but then expect Class A results!

a) Depends on above, but Detroit fits all the criteria

b) Work with agents at a PMC that know investment real estate (we can handle)

c) Work with a PMC that does renovations (we do)

To succeed at the above, you probably want to work with a PMC that is fully transparent and supplies videos for property walk-thrus and renovation progress. Otherwise, it's way too easy to get ripped off and charged for shoddy work or work never even done.

PM us if we can help with any other questions.

@Margaret Dreesen

1) You typically cannot use the SD to cover damages while the tenant is still living in the property w/o the tenant's written approval.

2) Even if tenant agrees, not a sound business strategy as now you have nothing to cover possible damages when tenant moves out.

3) Filing a claim on your own insurance is also business-foolish, as now your claim will track you in the insurance world for about 5-7 years and if you have another claim - may lead to cancellation or spike in premiums.

4) Tenant is 100% responsible for the damages! PERIOD. Of course, this assumes you have a well-written lease.

5) Yes, this is an unfortunate event and we all feel sorry for the tenant. Still, he's 100% liable. Do NOT make the DIY mistake of being nice and covering this for the tenant.

@Avery Oblepias in general, paying for something you can learn online, is really paying for convenience and discipline.

It's no different than paying for a personal trainer at a gym.

Regarding S8, it's a pretty basic program that $5k seems a bit excessive for.

Maybe, $1500?

You can pretty much learn everything you need to know about S8 within 2-4 hours online!

Guessing that "GC License" more or less equals "Builder License".

Then, yes you have to be licensed to pull required permits to develop a property you will not be owner-occupying.