All Forum Posts by: Paul Leason

Hi @Tyler DeNooyer !  Welcome to BP.  I’m also in GR and use Aaron Sal at Hungerford Nicols. He’s done a good job for me. Hope you get off the ground here soon with your first investment.  

Welcome on board @David Welch  Hope we can put a deal together one day! The property market was a little different 3 years ago than what it is today here in GR huh?!

@Jay Hinrichs I’m assuming in the house is AZ, but I was just chiming in with my opinion. Guess with the time zone MI is awake before AZ! 

For sure the price point in AZ is higher than MI and especially GR. The properties hat I mentioned were all located in the lakeshore of Lake MI. I still think though that $30M is high end in a lot of markets and you’re not going to have multiple bids and a fast sale. I would think it would sit on the market for months, not days/weeks. 

A local realtor would be able to pull those comps and give statistical data for DOM in that price point. 

Define “Very Quickly”!

Another agent/investor from the Grand Rapids market here. I just check past SOLDS in the GRAR region over $10M. Nothing. Over $5M - 4 listings.  One sold before broadcast on the other three were anything from 102 days to 282 Days in Market.  Can only think that that would increase with properties in the $30 million range.   Just think of how the captive audience decreases as the value gets up into those dizzy levels!   I hope he has enough backing to be able to carry the property for a good period of time.  I also hope he’s well-connected with some high-paying executives and some Hollywood superstars! 

I wouldn’t recommend Quicken, especially for a Duplex. Great for the cookie cutter new home but not for investment properties. PM mail me for some local GR lenders who will get the deal done if you need. 

@Ben Hoffman  I would be more than happy to help and even have number of investors currently looking to buy. If you’d like references, I’d be happy to send you a list of people you could call.  Check out my website PaulLeason”dot”com

Dan, happy to discuss Grand Rapid Real eatate with you.  Feel free to give me a call to discuss your specific needs. 

Jonathan Roberts have you had a neutral party look at the property for you? Or have you seen it in person. I would be very cautious if you have not done either of the above. What a lot of people consider acceptable is not in my opinion! I did a Commercial refi on 10 Properties (SF and Duplexes only) and they wanted to see rent rolls from me for the past year. I would think that the greater the maturity of the rent roll, the better the value will end up being, though I am no expert. I do know of a Commercial Lender here in GR if you want to have a conversation with someone. I would recommend you have the same conversation with about 3 lenders and see what the common theme would be. On the Land Contract, what’s your balloon period and what’s the interest rate. Are you allowed to break out of the LC earlier than the stated balloon without penalty? Is the balloon period long enough for you to rehab, rent and refi? $35k in repairs equates to $5k per unit which is what someone might have been eluding too as low. Can’t do much with $5k these days.

Aamir Shah if you’re looking for a 1% rule property, you can find those here in Grand Rapids. Most duplexes I see that hit the market are now listed at the 1% rule and often times can be purchased with a better return. Examples being a duplex with $2k in rents for $165k, another with $1600 in rents for $115k. SFHs here can rent for roughly $1/sqft and the home can be purchased between $80/sqft to $100/sqft depending on condition and location. I aim to get around 1.3% for my investors, who come from CA, CO & IL, aswell as locals. It’s a nice place to visit too! Especially if you like craft beer, fishing on the Great Lakes, ArtPrize, or if you’re in the Medical, Automotive or furniture industries!! Happy investing!

It sounds like you are dealing directly with the seller on an off-market deal, if you’re not involving a Realtor. In which case, you need to understand the specific needs of the seller. If they need cash and fast, then seller financing will not work for them. If they are not desperate to sell and they like passive income, Seller financing would be more attractive. Discuss options with the Seller, explaining the differences and then write that offer. 

If you really want to present both, write 2 PAs and have them sign one. Also depends on the PA you are using. Maybe it has provisions for Option A and Option B? In which case put both on one PA if the rest of the terms are the same. 

Hope that helps some.