All Forum Posts by: Scott K.

I put in an offer on a property they got at the tax sale. They are asking way way over what they should. I offered half of what they wanted. That got rejected they said they need it a lot closer.

So I went up another grand and am waiting for a reply. I talked to the agent and even said that I know who this guy is and he will never get all his money back.

This guy is going to lose his ***. Like said above most of these houses are not in good shape. The one I offered on was not so bad but I have to get it at my price.

0 Votes

Originally posted by @Scott McMahan:

@Scott K. I think you've got a good plan for your personality. It takes the kind of person who is willing to get their hands dirty and do things that a lot of people don't want to do to be successful in those neighborhoods. It sounds like you have an attitude that will help you to mitigate the risks.

In my view, the two biggest risk factors with your plan are 1) repair cost overruns due to unforeseen structural or costly problems and 2) repair cost overruns due to theft.

If your eyes are wide open to these factors and you have enough financial cushion to learn from your mistakes and keep going I think you can do well. There seems to be plenty of demand for move-in ready homes north of 8 mile in the low to mid 20s. If you can get north of 9 mile, maybe in the high 20s. Better to price it low and sell it fast than to overprice it and let it sit long enough that it gets ignored for fear there's something wrong with it.

I wish you well!

Thanks for the kind words.

I just looked at one today. A 3/2 that with a little work I can make it a master suite. That would be awesome to do a master suite in south warren without adding on. The kitchen would be a gut but all the electrical is in place so that saves time and money. I can save the sink and the garbage disposal. That would be a nice cost saving.

And as all you know the floors and the walls are a mess. Paint paint paint. I am trying to put together a good group of people that I can trust to do most of the work.

I think its important to pull all permits that are needed. That would be a good selling point to a new owner that al work has been inspected by the city.

Thanks for all the feedback.

0 Votes

Originally posted by @Marcia Maynard:

I'm not a flipper, but I know appliances. Dishwashers are the one appliance I would not buy used. Been there, done that. You don't need to spend much to buy a new dishwasher. Used ones are risky and usually don't last that long. Installation of a new one is easier too. I'd rather install one new one, than do two installs on two used ones. But I'm not much of a gambler.

good point I can get one at Lowes for 300. Not worth the hassle to get a used one.

Going to look at some properties today.

0 Votes

welcome. You have great deals right in the city you live. What area are you looking into?

Still deals to be had in this area. Good luck

0 Votes

it just seems that people are not understanding that the prices are way down in Michigan but the rent really did not follow with it. People lost their homes or just walked away but still had their jobs and have to live someplace. My buddy is a worker at a apartment complex and they had waiting list a few years ago. They raised the rent during the meltdown.

Michigan was a one state recession way before it spread to the rest of you folks.

To get back on topic. I would love to own that mf but you need to raise the rents. Maybe paint the apartments to justify the hike

0 Votes

Originally posted by @Stephen S.:

Sorry - I didn't realize you were a gambler. In that case; ignore what I said. If you are in this for the adrenaline and endorphin rush of gambling - real estate investment is probably not for you.

Originally posted by @Scott K.:

. . . . I love to gamble so this will replace me sitting at the 2-5 game at motorcity . . . .

no no no I am saying that my passion will now be focused on real estate. I think having a little bit of gamble in you is a good thing. It helps you take the leap. It helps you believe in yourself. It helps you thinking logically and following through with you have deduced to be the right decision.

I just played poker and never never ever the pit games.

I do get a huge rush when I complete a big project on a property. I get a rush every time I walk into my kitchen after I moved the stairs and added 36sq ft to my kitchen. The wife thought I was nuts on that one also. Now she loves it.

I am not here to just throw my money on "red" and hope to hit. I am here to learn and work hard and start flipping low cost housing.

0 Votes

Originally posted by @Aaron Yates:

Originally posted by @Tom A.:

At that price point you'll have to find cash buyers. Many banks won't do, or make it prohibitively expensive to do mortgages that low. Land contracts from investors to owner-occupants are basically dead in Michigan.
The good news is that a lot of buyers in today's market are flush with cash. The bad news is those that have $29K cash aren't looking to buy a $29K house. The cheapest flip I'd do in metro Detroit would be in the $100+K range.

You'll be stuck with these as rentals, for yourself or as turnkeys. Not that that's a bad idea, but don't look at this as a standard flip strategy.

I do know of two banks that will. One requires a higher credit score than the other but there essentially is no minimum. They dont sell thier mortgages and this is how they are able to do this. One specifically for fha requires a minimum of a 640 credit score. Conventional is 670.

Closing costs will be the same as if it were an $80,000 mortgage but you have to weigh all the options.

So it is possible for those who are interested in financing. I have spent hundreds of hours the past 1 1/2 years. I have spoken with well over 20 lenders in and out of state. Banks, credit unions, mortgage comapnies, hard money lenders, so called private money lenders, and business lenders.

Had my credit run over 30 times all in the pursuit of financing. I now know the ins and outs of essentially ALL financing.

The people getting easy financing are those with over 800 score. But there are opportunities for 620 and higher as long as you have no bankruptcy or foreclosure.

Many may see me as new but the difference is that i do the footwork. I dont rely on other peoples experinces to determine my future in investing. So take my information as you will but if i had someone give me the knowledge i learned BEFORE i had to leqrn ot myself it would have save me a lot of time.

Great info. I will be hitting you up soon. I am excited to get out there and start doing. The biggest mistake is not doing something.

I love to gamble so this will replace me sitting at the 2-5 game at motorcity. HAHA

0 Votes

All Forum Posts by: Scott K.

Scott K. has started 25 posts and replied 663 times.

Post: I need a home in Berkley Mi, please read

Post: Inherited estate - how to make money on house

Post: 627 Homes purchased by 1 investor!

Post: 627 Homes purchased by 1 investor!

Post: thinking out loud on how to do this

Post: thinking out loud on how to do this

Post: New to BP. Very Excited.

Post: Four-plex help in Michigan

Post: thinking out loud on how to do this

Post: thinking out loud on how to do this