All Forum Posts by: Kevin Kaczmarek

Karim,

70% of our business is land contracts in SE Michigan. We used to be 100% wholesale but we started selling on terms because we structured our notes in such a fashion we became whole on our investment quickly and gave the homeowner a good deal.

We setup our's asking for a 20% down payment (which has been fairly easy to get) we give them a straight $500 a month P&I payment at 10% interest rate. They are responsible for the taxes and insurance which we audit on a regular basis. We always put a 5 or 6 year balloon on the contract.

With lending as tight as it is, we love land contracts.

Thanks for sharing Ted. Pretty interesting. It's amazing to realize that in markets like we are in now, its better to rent instead of being a home owner in most locations. Yet, it has never been a better time to buy and hold investment properties.

I buy 10 properties a month personally, but I rent the house I live in. Go figure!

It can vary by state, but generally if you have a buyer on a lease option your exit strategy is a lot quicker. Land contracts can be a forfeiture or foreclosure depending on how your state looks at contracts. I would be on the safe side and do the lease option personally. Especially considering your primary concern is default.

You would get some of your money back, less some fees. They truly are a buyer beware auction company.

I am a huge advocate for Equity Trust. I have found that if you can establish a good relationship with your account rep, you can get your deals processed faster. Specifically what I mean by that, is you can call your rep and he/she can connect you with the right department to let you know how to title your investment, what direction of investment form to use, and any other little tidbits to make processing faster.

My contact, Amanda Holbrook is fantastic at handling all the minor details that go with the 20-30 transactions we do a month with Equity Trust.

I can also say that I have addressed the same issues you discussed on the processing side with top management there, and they have responded by hiring a lot of new people and improving their service.

Hope this helps.

We do nothing less than 30% returns here in Detroit. I know most people turn their nose to the area, but you would be amazed at how much NY, Cali and UK money comes to Detroit to gobble up properties because of the returns.

My best advice and the safest advice for you, don't estimate rehab costs for them. There are too many factors outside of your control that contribute to rehab costs. As the wholesaler, your job is to find a great property and leave a lot of profit on the table so that you can move onto your next deal and they can rehab and retail.

Now, if you have an inspection report you want to disclose that to the buyer and let them make the decision from there. Your job as the wholesaler is to buy at the right price and sell at the right price.

We use Neon Green. It allows for the black font to pop off the paper much better and is less overwhelming than say a red.

Karim,

Let me know how many you currently have and we might be able to help. We are the largest Wholesaler in Metro Detroit and we are connected to several companies in the area.

[email protected]

Kevin

I can tell you we have tried all of the auction companies in the past few years, and Williams auctions we avoid altogether. They reject approved bids, take forever to close (if they even do) and charge high premiums. I would suggest against them. Try REDC, they run a good auction and once you are established will work with you. Good luck