All Forum Posts by: Tim VandenToorn

Sharnell, welcome to BP and Grand Rapids investing. When you say you are having a hard time meeting other investors, what have you tried? Have you been to the local REI meet up? How about the Rpoa breakfast every Friday morning? Your future is only limited by you.

What kinds of partnerships are you looking for?  When considering a partnership consider what you have to bring to the table. Evaluating that is a good start,  and I would love to hear more. 

Great discussion 

Bob, I find it interesting you are asking the same questions in every forum. "Please provide comps on CAP rates to support your claims" ... Blah blah blah... Really?? Why don't you tell us all about your successful portfolio, and what numbers your achieving. I am always looking for a savy buyers agent. Let me guess, one of your key words is "CAP" so everytime you see this you can jump on the forum and question how most people analyze deals. Maybe you should write an article and teach us what CAP really is. Then please stop posting around the country in markets your not familiar with, unless your actually contributing something helpful.

This is great new Steve.  Please let us know how the deals turns out or if there were any surprises on  that other investors can learn from. If it was successful all the way around please share the details of that too!  Also please share with us what your looking for in your next deal. 

@Account Closed You rephrased your question to:"looking for cap rate comps on closed sales that I was not involved in." Frankly I am not sure how I can produce this. Since CAP is dependent on current rent price, and total investment, I am not sure how I can find this information out without being involved.

Maybe you are suggesting that Grand Rapids actually has properties currently available on MLS for a greater than a 8-9% CAP. Please direct me to those!!

Are you familiar with the market in Grand Rapids?  

I do purchase properties at a greater than 8-9% CAP. I do come across deals, that achieve great CAP rates (Fremont is my property). I didn't list the property for sale at a 8% CAP rate to take advantage of the market. The property still needs to appraise for the listed value. The purchaser of that property will enjoy a 10% CAP rate. Had I priced it as you suggested I would have been asking $162,771.00

BTW I am looking forward to visiting Hawaii in Oct.  Besides the normal touristy attractions, do you have any tips on other area's of the beaten path to visit?  

@Bob Bowling

Take a look on MLS at 1140 Fremont NW. This was one of my listings and exceeds a 9% CAP. 324 Fransman is also on MLS and will exceed a 8% CAP. This property will require 30,000 in remodel/updating but will rent for $1200.00 plus a month. I can't give you any available properties that are listed that achieve these goals as they get scooped up immediately. Are you looking to invest, or just challenging my calculations? I would love to share with you all the numbers. I will have a few pocket listings coming up that will also exceed 8% in stable neighborhoods.

Jackie, 

I would love to connect and discuss this with you. I would say the 1% rule is going to be more realistic for new buyers coming into the market. There are deals out there that would come closer to the 2% rule but generally are scooped by experienced rehabbers/flippers and buy and hold investors entrenched in the market. The CAP rate (including management fees) typically range between 8% and 9%. Once again the bigger the "risk" generally means the better the reward. Not every investors likes to get dirty. If your willing to get dirty generally you will find better deals.

I would love to meet for lunch to talk about the market.  Feel free to check my profile. 

Tim

Sean, come to Grand Rapids!!  =)

Ram,  I attend every now and then when I see something I am interested in.  It is VERY important to know what your buying when you go to the county court auction.  You may be buying a second mortgage.   In addition the person can redeem the house for up to 6 months leaving your money tied up.  Although there are some ways to deal with it, I would not suggest as a new investor to buy your first property this way.

I would love to get together to help on anyway even if it is just to discuss the market in Grand Rapids and areas to invest.

Lisa, Great to hear from you.  I am amazed at the amount of Grand Rapids investors on this site!!  Tell me more about what you are looking for and what you currently own in your portfolio.  I love to hear what other people are targeting or recent success stories of local investors.  This market is on fire! 

If you would like to sit down or discuss strategy with the current market please let me know!!