Young and Excited to Start- Looking for guidance in Grand Rapids, MI

[Nick Meister]

Hi all,
I am new to this forum and really enjoying it so far.
Seems like there is a plethora of information here as well as some very knowledgeable people. I am really interested in the Real estate game, and am just looking for someone to talk with about the possibilities.
I am located in the Grand Rapids, MI area. I'm curious if there is anyone on these forums from this area?
Look forward to hearing from you as well as reading more.
Thanks!
-Nick

[Seth Williams]

Nick Meister & Dawn A., tax delinquent owners aren't difficult to find if you're looking in the right places. Most of the properties I buy aren't listed on the MLS, and while it does take a little bit of searching to find them - they are a HUGE goldmine of equity when you do. The method I use certainly isn't the only way, but feel free to colleague me if you're interested and I can give you the low-down on how I do it.

Also - regarding the property manager issue, here is a short dissertation outlining my thoughts on that...

If I didn’t have access to a good, competent property management company, I wouldn’t have even considered buying rental properties in the first place, that’s the honest truth.

Knowing that I can pay someone a very fair portion of my revenue to handle ALL the headaches that rental properties are known for - is a total game-changer.

Here's what you have to ask yourself:

A. Do you want to create a job for yourself managing properties?

or

B. Do you want to build a significant portfolio of passive income from rental properties?

It's not easy to do both simultaneously, because both are time-consuming tasks (especially A). My goal is to do the latter (B) because I don't want the money to stop coming in once I stop working. I want streams of income for a lifetime.

I’ve heard the arguments that new investors make. They just buy their first rental house or duplex and they don’t want to give away 10% of their rent revenue to a management company.

I understand where they're coming from, but I think they're missing some very important points. Just consider some of the benefits that come with hiring a management company:

- You don’t have to deal with any of the tenant headaches. Most of the time, you don’t even need to know who your tenants are! My management company screens each tenant and makes sure they’re going to be a good occupant and make their rental payments, they handle the time-consuming parts of the job and they deposit money directly to my account every month. I spend about 2 minutes per month thinking about my rentals while the money builds up in my bank account over time. Showings, screenings, house visits and evictions are all handled by my property manager while I'm out living my life.

- You don’t have to be a handyman. Management companies are experts at repairs and maintenance. They know how to do these things quickly and inexpensively because they do these jobs every day. Generally speaking, your management company will know more about how to streamline this process than you will ever be able to learn on your own.

- With a management company running your rental business, you can invest in properties anywhere in the world! Logistically speaking, if you live in New York, there is no reason you can’t buy a property in California and turn it into your own personal cash cow. Just because you can’t drive by and see it every day doesn’t mean it can’t produce a significant stream of income AND be managed better than you could ever do it by yourself. The whole premise behind a management company is to allow you to go about your life without having to deal with the hands-on issues of managing real estate. With a management company in the mix, it makes no difference whether the property is across the street or halfway around the world.

- Management companies can bring a ton of value to the table and can actually help you make better investment decisions. They really are in your corner because if you do well, they do well. Every time I buy a new rental property, I have MANY ongoing conversations with my property manager, getting tons of free consulting from an expert who knows the neighborhood better than I do. They tell me what kind of rent revenue I can realistically expect to make (which coincidentally, is almost always less than what the seller told me), what kinds of issues and costs I can expect to deal with, what the neighborhood is really like, and if they think I’m getting it for a reasonable deal. This information, (coming from a credible source like my management company) is a HUGE benefit that I wouldn’t have access to if I was trying to manage this whole operation on my own.

- If you bought your rental property the right way, the monthly management fee is already baked into your cash flow. Each property should be designed to support the cost of a property manager (because SOMEONE will have to do the job, even if it's you!). Before you make any decision to buy, you should always make sure you can afford to cut out 10% for property management and still show solid cash flow.