All Forum Posts by: David Rawls

The Option was sloppily thrown together and has no clauses explaining what happens if the seller fails to perform.. and it definitely doesn't have an assignment clause in it. We also find it highly unlikely that the lessor would agree to assign it to us because the house is worth a fair amount more than it was when the LO was first entered into - which also explains why they're stalling on every possible step.

At this point though I'm less concerned about the lessor following through with the sale. If it came down to going in front of a judge, I doubt he'd have a leg to stand on. A double closing would probably be the way to do it but we aren't entirely sure how we can "force" the lessee to follow through with the agreement we have. Hopefully our attorney can draft something up that protects us.

We can't be the only ones to have ever tried to do this. When there's money to be made, people always find a way!

Welcome @Brandon Benson!

My partner @Ryan York and I invest in the Southeast Michigan area, Metro Detroit to be specific. There are plenty of turnkey cash flowing properties around here and we come across them rather frequently. Our business plan involves more of a value-add strategy so these properties are of no use to us.

If you'd like to connect and learn more about our market, all you have to do is reach out! I'm a licensed Realtor as well.

Hi everyone,

I just got a call from the owner of a nice condo in Michigan. Her situation is that she has until the end of the month to 'buy back' her property from the county before it goes to auction. 

What she wants from us is basically a partnership. She wants us to give her enough money to get her house back plus a little of her equity. In return, we would have to do light rehab to the property and then we sell the house and split the profits. There's plenty of room for money, however, I'm not entirely sure of how exactly we would make this happen from a legal standpoint. According to the seller, she is the only one that can buy the house back for that price. Makes sense, but if her name is on the deed - How could we enforce the terms and make sure she sells?

We would obviously have to have an attorney involved. I'm curious though if anyone else has any experience dealing with situations similar to this one and if they can shed any light on the pitfalls.

Thanks!

@Doran Brooks I wont throw my hat into the ring for where to look, however, I don't think buying a single family with 3.5% down is the right move. With the market being this high and most metrics starting to trend down, in my opinion being that far over-leveraged isn't the best move. Once even the slightest of corrections happens you'll be underwater on your mortgage. Not only that, when you go to move out the market rent could drop 20%+ and you'll be cash flow negative. Multi Family on the other hand allows much more wiggle room and has historically performed better through a recession.

Just something to consider.

Hello everyone,

My partner and I came across this complex recently on the MLS and it's everything we could've asked for minus one thing.. It's a cash sale only.

I'm not sure how realistic this is because it's needed on such short notice.

We're seeking a loan for 220k and we need it no later than 10/3.

The pictures included are the plan to get the place rehabbed and occupied as well as the reposition numbers.

If you need any other information please let me know.

This thread is making my keyword alerts BLOW UP! Lol

@Tony Gazetti, @Christian Hutchinson knows what he's talking about. My advice would be the same. The tenant base in the less expensive areas like Roseville, Warren and the like isn't so bad. Sure, you'll have to screen your tenants and be a little more choosey - but the cash flow is worth it.. Especially for the price of entry.

Shelby, Utica, Sterling Heights are nice B areas but the true deals here are few and far between.

As a first deal, in my opinion, find a place with financial room to make mistakes. Be as conservative as possible by planning for every eventuality. Lying to yourself on the numbers will only hurt you.

Hi @Michael Witz,

You can find that information in these forums! Use the search bar at the upper right of the website and you'll find something.

What are you looking for as far as investments go? Looking for cash flow or appreciation? Do you want to own rentals or employ a different strategy?

@Joe Homs

I'm 100% disabled from military service. The VA pays me disability each month and thankfully its tax free.

@Christopher Phillips

Its an investors brokerage and I receive 100% of commissions earned.