All Forum Posts by: Adam Cole

 I am going to give that a read for sure! I figured that the screening process is the biggest factor in having confidence that your tenants won't hang you out to dry. Thank you for sharing that :)

Do you have any lenders that you have had great experiences working with in the area? My goal is to accumulate faster than I can produce capital on my own. So in addition to raising capital, I am planning to begin developing some lender relationships!

Thank you again for any help/advice

Adam

That's truly a great problem to have! Thank you for giving me that information, it helps me rationalize it a bit better and get a grasp on what I am going to be getting into!

As investors in Michigan, do you have a lender that you like to work with? I know that some of the projects can be purchased with cash but at a point using a lender becomes inevitable.

Thanks again :)

Adam
 

 Hi Darius! Thank you for your reply. 

Have you encountered problems with collecting rent or having tenants damage your properties?

I know that a majority of this can be avoided with background checks and thorough screenings but I am curious about how you handle that situation if/when it comes up

Thanks again!

Adam

Appreciate your response Drew, that is the one thing I am hesitant about. My current rentals are all in Flint, but I am dealing with students at Kettering as opposed to actual residents.

Have you run into any major issues renting to Class C tenants? Or any issues collecting rent? I am curious as to what strategies you might utilize to avoid no payment tenants.

 Starting out, capital is scarce for me so I am trying to accumulate lower cost homes before moving on to bigger and brighter things.
 

Hello fellow BP Members!

I have been trying to find an area where property values are still low but the potential for future growth is constantly increasing. This resulted in me finding Pontiac, Mi. This area has seen some truly hard times BUT lately there has been a ton of industry moving there.

Amazon distribution warehouse built on the entire Pontiac Silverdome land

United Wholesale Mortgage headquarters moved in and purchased a lot of surrounding land

M1 Concourse Racetrack and Luxury Car Condos built

Has anyone else looked at Pontiac for a potential area for investment? If so, how has your experience been?

Thank you for any help!

Adam C.

That's a great question. The current deal I am looking at is a nice candidate for a BRRRR property. My goal for this house is to be able to learn the process of rehabbing a property from beginning to end, being that I've never done it before. I have a potential partner that runs his own renovation/custom build business, therefore he is bringing a wealth of experience to the table. However he is quite busy with his own projects, thus my plan would be to take on the full responsibility of getting the project from A to B so that his roles and responsibility would resemble something like:

1. 1) Down payment capital investment (split between us so that I have some skin in the game too)
2. 2) Be an advisor for the project in order to ensure that I am heading in the right direction
3. 3) Using his network on contractors to get the jobs done while also staying within the reno budget

Hey Joe! 

I just started doing this last year after finding a house that I could both rent out and enjoy living in. Currently located up in Auburn Hills.

Now I am trying to figure out the next steps on expanding my rental property portfolio. I'd love to hear your experience!

Adam

Hey Jason-

I'm contemplating this very same thing right now in Michigan! From what I've learned on previous podcasts that Brandon has put on is that this is a common occurrence, especially for us beginners that are low on capital. I think another big thing to remember is that the first deal that you do doesn't have to be a homerun. So if you have to give up a chunk of your percentage, but you are afforded the opportunity to dip your toes in the water and gain experience through the means of using someone else's money then it is well worth it. 

My plan is to find a deal that I want to pursue, and lay out a full fledged plan to a potential partner. So hopefully at the end of the conversation I'll end up with either a check or the resources I need to rehab the house.

I would agree with what Nathan had said. Refinancing the property, especially after doing a full rehab job, would be the easiest route for liquidity. Using a hard money lender can result in much higher interest rates and then you'll end up in this tight spot again in no time. Whereas if you get the home refinanced and pull out some equity with a bank loan, you'll be able to have sustainable funds for a longer period of time with a lower monthly payment. And plus, no debt collector will be coming to bang on your door looking for their money.