Financial Coach in Grand Rapids, MI?

[Sean Larson]

Hi all, I'm in Grand Rapids, Michigan and I'm looking for someone I can pay to sit down with, show them everything I have to work with and look for ways I can continue to grow. I have a couple of properties, substantial savings but property #3 has eluded me for 2 years now. 

Thanks for any suggestions!

[James Orr]

Thanks for the reply @Sean Larson.

> @James Orr , I'm looking to share with them everything I have. Cash, debt, rents, mortgages, expenses, cap. ex funds and allocation and basically have them give me an "If I were you" plan.

The challenge with this is that each investor has their own plan. What I might suggest to you if I were you might be very different than what you want. There is no single, definitive plan.

Consider an example of going out to dinner with me, telling me all about what you have eaten over the last week and asking me: if you were me, what would you order for dinner if you were me? I can make a suggestion, but you might not like McDonald's cheeseburgers.

> The BP podcasts make me so motivated and then depressed because I keep getting stuck at some point in the process.

Yes, I can totally appreciate that.

> I hear the stories of credit unions working wonders and I make lots of calls but I guess I haven't found that kind of relationship yet. 

What specific wonders do you think credit unions are going to offer you?

> People are saying it's the realtor-it's not.

I believe you.

> He's been through so many dumps with me and made so many offers that I'm sticking with him. If an investor/realtor gets a home run deal their way why would they share it with me anyway? 

I can't speak for every Realtor out there, but I can tell you how I think about this myself. I have a limited number of deals that I can personally do. And, I personally take the fiduciary obligation to my clients very seriously. If they have an Exclusive Right-To-Buy Listing Contract (aka Buyer Agency documents) in place, I have an obligation to present them every deal that matches their criteria in that agreement. I can't just *not* tell them about it.

From time to time, there are even deals that come across my desk that I don't have anyone with a buyer agency agreement that fits and I would take it myself personally where I turn them over to my clients. I have one under contract like that right now with a client. $30K below market that I personally had under contract and my best client wanted it, so I went back to the seller and got permission to have my client replace me in the contract. Instead of buying it and getting $30K in instant equity, I'll make about $10K in commission instead. This is an exceptionally good client and I was happy to do that.

> Anyway, my debt: Income is the biggest thing holding me back I think.

OK.

> I put about 48k into a property over the last two years-good for equity and rents but not so good for the tax return viewed by lenders.

Yes, that's definitely tough. I tell clients all the time, the first couple of deals are easy. It is the later non-owner occupant ones that can get more challenging with loan limitations like having to use portfolio lenders after 10 loans on your social security number, DSCR, reserve requirements, etc.

> They stuck me with a -$1000/month for what they could count for income on my rentals.

Yes, that hurts.

> However, after 2016 falls off and 2018 taxes are done my rents will then be +12k and 3k (3 unit and sfh). So, then my income for those should go more like +$1000/month.

Nice... that should definitely help.

> I have about 45k to play with but If I refi and pull cash out to buy property, I don't qualify because the cash out pushes the debt up.

Is that $45K in savings or $45 in accessible equity... very different in my opinion.

> I can't go owner occupant because I already have an FHA and even when I look to do conventional owner oc. I keep getting told that the underwriters are going to see that I'm taking advantage of the rate/down payment (even if I truly move there which I would).

We have clients do the Nomad model of buying a home as an owner occupant with low down payments, live there for a year and then convert it to a rental after a year all the time... sequentially... doing it more than once and have not had any problems at all. They are NOT doing FHA unless they're buying a duplex, triplex or fourplex for one of their first units. Otherwise, they're usually doing 0% down or 3% down for the first one or two (two local banks and VA for 0% down or 3% conventional). Then, after they've exhausted those, they're looking at 5% down payments from then on out. No hard limit beyond qualifying for each one on doing the 5% conventional loans for single family homes if you're moving in to each one, staying there for at least a year and then converting them to rentals.

> I started a remodeling LLC which has grossed/netted 15k/10k since June working random nights and weekends but they won't count that until it's been established for 2 years (although that extra cash helps).

Yes, that would make sense to me as well.

> So, maybe I just need to suck it up and wait for the tax season to clean things up a bit...?

Maybe. Or, buy an owner occupant for the next year with 5% down while you're waiting and then convert that to another rental.

Hope that helps and I suspect there are lots of others with alternative opinions (as referenced above with the McDonald's comment). This is just my opinion.