All Forum Posts by: Account Closed

There are many areas in the suburbs of Detroit that are moving fairly quickly. However, I would not invest in the actual Detroit area at this time. What are your investment stratgies?

Greg

Marc,

Some leg work is involved in making this model and just like other models used in economics this just shows you the broad picture of what is going on.

First, I determine my comparables that are in close relations to my property. The obvious sort of things such has square footage, bedrooms, baths, basements, etc… Then I check public records to determine when the property was purchased and assume that the last major rehab was done at this particular time.

Then I determine market rent for these comparables using the MLS or other rental websites such as Hotpads (I have no relation with this company) Calling on some to verify they have been rented and that my data is current and accurate.

Once all information is obtained I narrow my list down to an even closer relation to mine in a schedule format

Next, I structure the graph with the information I have obtained, which is normally a dozen or more properties within a short distance of my subject property.

On the y axis (vertical) is the range of rent prices is entered based on the information I have obtained

On the x axis (horizontal) is the quantity of the homes rented based off price.

Once both the supply and demand lines are plotted on the graph, find the location where they both intersect with each other (equilibrium) and this would be your target rent price for your house and for the current area you are in.

Now, once again this is just used as a base model to determine the broader picture of the particular investment area; other variables will play a factor. However, you will be able to determine suggested market rent in an area and determine if your price was too high or too low to begin with. (In most cases experience investors know their areas well enough, but if they try out the model they can see where their price range falls in the broader picture)

The MLS by far is the best source to determine market rent in an area. However, I found that Hotpads.com is a pretty solid source as well.

Typically I combine the data on a basic supply and demand graph. This helps me determine what market rent equilibrium is for that particular area and for my particular property. It seems to be a little overboard for some however, I found out that I was 25 dollars short on what I could be charging for rent by this method. It also proves to be a good marketing strategy to potential tenants. (Stressing fair market prices)

If your on the Deed, then this would be a refinance. I'm not sure if there would be any seasoning issues. This property was purchased in cash, therefore there are no other liens on it.

If you can prove value ~ such as the work you put in to it, active reasonable listing, and comps sold within the last 3 months you might be able to find a lender to close your deal IMO.

Greg

Here is a link to a fellow BP member who had great idea for pending real estate.

http://www.biggerpockets.com/renewsblog/2010/04/08/mls-bargain-hunting-tips-and-tricks-part-3-the-pending-hijack/

Sorry to psot again. You have to make sure when you apply for business credit who they report too. That is very very important. But to answer your question YES staples uses a PG and reports to DnB and experian.

Greg

Kevin,
I have touched on this topic before and I'm currently working on building business credit. There are several things to consider when building credit, and the length of tiime it takes to achieve it.

To start did you provide a EIN to Home Depot or was it your SS#? Home Depot is a level 2 teir and is extremly difficult to achieve a business line without a PG. Are they reporting to DnB or experian or are they reporting to your personal credit profile?

A duns number is something that you have to apply for, its not something that is given. You must go to their website and apply for this number which can take up to 30 days to get.

As far as starting to build credit without a PG you need to established 5 trade accounts which typically are net 30 terms.

Some companies that offer this our:
uline.com
quill.com
granger.com
northerntool.com
nebs.com ( they might not report to DnB anymore would verify before purchase)

Their are several more that are more suited for rehab/outdoor work as well.

To start with these companies you will have to a business address that is not your home, your cell phones listed under a business directory or under 411 directory.

Make a purchase for 25- 50 dollars at 2 accounts first then wait 2 weeks and make another 2 purchase at different trade accounts.Making sure that the invoices are paid 2 weeks before due date. You will have to keep doing this before you even get a paydex score usually takes anywhere between 4-6 months. There is another way to get a paydex score faster but you have to pay for this service through DnB.

We can go into further detail on this tomorrow when we meet for lunch.

Hope this helps a little.

Looking forward to meeting you tomorrow.
Greg

Biggerpockets offers a credit screening program the link is below where you can find more information.

http://www.biggerpockets.com/tenant-screening.html

Ron LeGrand should be reported to the SEC, BBB, and the FBI. I have heard so many people getting charged the "fees" for signing up for a free CD. It is clearly wrong

We have a contact in Charlotte that has several REO listing under contract. Most of these properties are 50 cents on the dollar and require 10k - 20k in rehab.

If your interested in these deals please send me an email (provided in signature) or respond here.

I look forward to hearing back from you