All Forum Posts by: Kase Knochenhauer

@Dylan Tanaka - good to meet another Michigander! I'm from Grand Rapids.

I use a 11"x18" graph paper and a daily morning workflow - combined with Google Calendar. Tried other things but can't make anything better since it gives me space, allows me to prioritize and delegate, and is practically free.

@Jaron Walling - do it now - don't wait until your next birthday.

@Charlie DiLisio - I would first recommend talking to your lender/agent to generate the most accurate closing costs.

However, if you don't like asking other people for driving directions (like me), check out the following website, it's free. It will give you the quick and dirty on closing costs for buyers and sellers throughout Michigan. 

It can help determine your local and state closing costs and give approximations for lending costs for your FHA loan.

Closing Cost Calculator

@Joshua W. - you've got some pretty solid answers from @Jack Ropp and @Andri Grullon already. 

I would add three things:

1. Invest where you have connections first - it will provide a path of least resistance and build a business that you can duplicate to a different market when you are ready. 

2. Flipping in Grand Rapids tends to be more successful due to the complete lack of affordable (and clean) homes available as Andri mentioned.

3. Deals are everywhere. Don't be feel like you need to blacklist a market because you heard it was expensive. We've purchased dozens of properties at 20-40% market value from sellers who literally begged us to buy their home because they just wanted to be done with it (in expensive markets).

Build your team and use them to find, rehab and rent your properties. It won't matter much if its Grand Rapids, Kalamazoo, or elsewhere in West Michigan.

I'm curious what your income to car value is. I drive a rusty Nissan Altima so mine is 250:1

Here's how you can determine your ratio with a fictional example:

$250,000 income: $10,000 Camry = 25:1

@Eli Sorey - I think that this answer will vary depending on the production of the agent.  I'll break it down as I saw it as a previous real estate coach:

Low producer (0-6 deals/year) - They want more leads and want to know what CRM to use.
Low/Medium producer (6-12 deals/year) - They want more leads and will start talking about automation.
Medium producer (12-24 deals/year) - They want help building systems to scale or work less.
Top producer (24+ deals/year & single agent) - They want help building systems to scale and knowledge for hiring.

Teams (less than 100 deals/year) - How do we hire and train agents? Whats the best cheap lead sources?
Teams (more than 100 deals/year) - How do we recruit more agents? How do I train squad leaders? What's the best way to brand? How do I create other streams of income? How do I start an expansion team?

@Hayden W Gibson - very cool. Not a lot of college students can ask this question.

Before I can answer the question, a few more questions I think need to be answered.

1. Do you have debt? If so, pay it off.
2. What type of cash do you have available? Depending on your next steps as a student and professional having a large cash pool can be VERY helpful. Will your scholarships cover your expenses next year? Will your grants continue if you are making more money? etc.

As a college student, I saved and didn't buy a home. Do I wish I bought a home now? yes. However, I didn't know what the market was going to do. That savings was the seed money to several startup companies that I was able to start now.  A rental would have likely reduced my financial capacity to start my entrepreneurial ventures and reduced my current income. 

For you you - you're going to have to answer a lot of questions, look at your next few years and decide what your financial/familiar/job situation looks like. 

Lastly - having loads of cash in college can really reduce the stress and open up options that otherwise may not exist. Take it easy and don't rush into any decisions :)

We've had great luck with the following company: Allied Loan Servicing & Foreclosure Services

@Austin Montgomery - you've made some great progress with your real estate business! Thank you for your service - I'm in the Army myself.

I've got a few quick tips:

1. Talk to another commercial lender. Typically, if you have the 25% down and the property cash flows you can find a commercial lender that will support the mortgage (no matter your income or lack of it).

2. If you bring on a silent partner, the best course of action would be to open another LLC where the ownership and operating agreement spells out the responsibilities of each partner. That way your liability and financial expectations are set properly. You can also determine ownership shares, exit strategies, or buyout options.

**I'd push hard on the first option: I'd bet my annual income that if you met with 3-4 commercial lenders that you would find one that meets your needs.

@Luwani N. - two quick tips:

1. Treat a contractor to lunch in exchange for a quote for a renovation. Meet him there and ask him lots of questions. Tell him your story and give him your vision. You'll learn a ton, gain a relationship, and have a potential flip crew when you find your first property.

2. Check out HomeAdvisors calculator (https://www.homeadvisor.com/cost/). It's not perfect, but it gives you a general idea of what each type of repair would cost. Compare these expenses to the book and see how they come out. 

Good luck on your first flip!