All Forum Posts by: Mitch Monmouth

I'm looking for software that will pull data from across the country - employment trends, population trends, rental yields, pricing data, etc... for analysis and finding the best hidden markets for investment.

Does such a thing exist?

Here is what I was thinking:

1) Buy rental properties under an LLC in cash to get the best deal with quick cash closes.
2) Perform any needed repairs and install tenants
3) Get a business loan (personally guaranteed) for 60-75% of asset values against the LLC and properties based on assets and cash flow, hopefully at 5%.
4) Repeat either under the same LLC or a new one.

Not having much experience, I may be totally off here as to why this may not work, so please shoot me down! Thanks :)

Thanks for all the replies!

Sounds like I'm a little late to the game, but hope there's still opportunity. I'll be looking at extending my geographic range. Hopefully that will help.

I'm starting to wonder whether reputable "wholesalers" actually exists.... do they?

Doubled in price? I suppose that's good for your capital investment.

Can anyone refer a reputable area wholesaler?

So what's the catch? What additional costs are there that mitigate that return? Are the neighborhoods vanishing? Factory closing? High tax? Just seems like something is missing.

Thanks Jason Brodovsky, those are some clever strategies. I like the idea of multi-tenant buildings and certainly portfolio folks, though I doubt I could afford those strategies w/o financing.

At this stage, I think wholesale may be the way to go, but how do I go about finding a reputable wholesaler? I can see the value they bring in sifting out distressed buyers and clearing back liens, taxes, etc, and think that is worth something - however I've been reading the horror stories about Urban Detroit Wholesalers and am a bit wary.

What are some of the best strategies to start with when a reasonable amount of cash is on hand?

My initial inclination is to purchase cash flow potential properties at distressed prices from wholesalers and/or struggling owners in the Detroit metro area (as I have a partner there to do contracting).

How can I best leverage cash on hand to get discounts?

How can I releverage cash once a property is purchased for cash? Is purchasing cash even the best strategy?

How can I maximise return?

Is it possible to get a line of credit for purchasing multiple properties?

Thanks for any tips or suggestions!

I find many listings in Detroit Metro suburbs that appear to have a 30% cash-on-cash rental value - e.g. $40K in a decent neighborhood with $1100/mo rental value.

I'm sure some of these require work that would reduce that, but it still seems an astronomically high return. Any investor would probably be happy to buy such properties outright, provided the vacancy rates are low and the neighborhood isn't being abandoned, which at least for these listings is true.

Am I missing something? As we all know - if it seems too good...

I'm pretty new to REI, have some capital, and am looking to dig in as US REI seems to be the best investment opportunity around the globe right now. I'm leaning toward the familiarity of residential cash flow properties, but am getting sucked in by all the different alternatives - from wholesaling to commercial property.

I have a partner (and old friend) in the Detroit area who has a team of fix-it people who can refurbish properties, and given that partnership, Detroit's high yield, and depressed market, I plan to target that area first. I'm also considering Las Vegas, which seems to have better fundamentals of employment and population for appreciation.

I have a decent amount of capital to get started and am interested in leveraging where I can since rates are so low. One thought was to purchase wholesale or wholesaleable properties in cash, fix them up, rent them out, and keep refinancing, though now I see banks may limit this to 4-5 properties.

What in your opinion is the best way for someone like me to get a high return with minimal risk? Any advice is appreciated!

Thanks!