All Forum Posts by: Mark Yuschak

In addition to being a very active investor, I'm also a broker.

I just recently listed a bulk deal for two investors who pooled their assets to form a large bulk package. There is a total of 42 properties in this package. 40 single family homes, and two multi family properties, for a total of 46 doors.

All of the properties are located in Flint, MI.

The properties are cash-flowing to the tune of nearly $17K a month. The 20% cap-driven asking price is $502,800 cash. Local, professional property management is in place.

This is a great turn-key package for an out-of-the-area investor looking to stay out of the day-to-day operations.

Please send me a colleague request and/or PM me for further details.

I had this come up multiple times with my properties.

In three of the four instances, I had the system installed at my expense, for the tenant's use. When the tenant moves out, I simply delete their security code, and create a new one for the incoming tenant. It's never been an issue and the incoming tenants really like the additional sense of security. These are non-monitored systems and just noise-makers if there's a fault. For the measly $450 it cost to have each system installed, I think it was well worth it for having a competitive edge over other properties.

The fourth property was a different story. The tenants wanted a high-end, monitored system, similar to what started this post. I allowed the tenant to have it professionally installed at their expense, with the agreement that the system remains affixed to the property upon their vacancy. The system was professionally installed and beyond anything I'd even put in my own home. It's sure to also add intangible value to future tenants.

J Scott, thank you for starting this thread! And, even bigger thanks for sending out the 123Flip newsletter with the link back here for the case study. I've been away from BP for a long time just doing my own REI thing, minding my own business. However, this thread is perfect timing for me since I just bought a vacant lot three weeks ago in an upper-scale neighborhood. I'm nervous to go down the path of this new territory, but something I am excited to venture into. Your thread and open discussions are right up my ally!

I've never seen the site before.

But it doesn't look to be anymore useful than what Google Maps provides.

Thanks for the mention, Geof Greeneisen.

Yes, I am very active in Genesee County and have a lot of rentals, and flip tons of properties in the immediate area. Feel free to send me a colleague request and we can connect.

Yep, I have my license and am a very active investor.

If YES,
1. I'm a broker.

2. In Michigan you can be an Associate Broker for a different Principal, and be a Principal of your own firm. I'm both. I do all my deals under a different broker for various reasons, and still maintain my own brokerage.

3. I really see no cons with being an agent/broker and investor. There is only upside, if you properly disclose that you're licensed.

4. Since I'm a very active agent and investor, the time is split rather well. Back when I was doing a lot of flips, the agent side of me helped keep that side of my business going strong. Now that the flips have slowed down, I've leaned more toward the agent work and let the rentals continue to produce the cash flow.

5. Never once have I lost a deal with having to disclose I'm an agent.

6. There was not much to negotiate with the Principal broker of the company I'm an agent under. The deal was already fair as it was presented. Things have worked out well ever since.

Most investors who are also agents will confirm that being both has helped them far more significantly than those who are not both. Of course there are the exceptions to this. Being a person who likes to have control over finding my deals, getting them submitted, and presented the way I want, I find having the license to be invaluable in getting my portfolio to where it is now. Plus, you're one step closer to the agents who get the listings to the deals you desire. The relationships built can be invaluable.

I have been bidding on multiple properties through hubzu.com (formrely gohoming.com).

Most of their inventory is quite distressed. For a rehabber, they can be a great source of potential deals.

Their auction process is pretty lousy, in my opinion. For example, I was the highest bidder on a property at $52K. The reserve was $55K. After the auction ended I received a system-generated email that I did not win because the reserve was not met. The following day I got a call from their customer service department advising me that the house will be coming back on the market in 5 days and to immediately resubmit an offer for $49K so that the AM can immediately review it and accept it. Even though I was apprehensive, I did. That bid sat out there for 6 days and someone else came in and bid 59K and got it.

The site shows the property as "Under Contract". I have to assume it was bid up by someone who has not seen the property since (like mentioned), all the pictures make it look like a real nice home. Nowhere is documented that there's 18" of water in the basement or have mold!

Through one of our channels of advertising we came across a motivated note seller. We're not in the business of buying notes and have no interest in buying it for ourselves. However, we don't want to let the lead go cold since this note seller is quite motivated.

What are some strategies we can use to make a few bucks off these notes?

We had the seller complete a standardized note questioner. There are some holes and gaps in the info since the seller inherited the property as part of a family estate. He has only been personally servicing them for approximately a year. They are performing and have been for 5+ years (albeit, the seller cannot prove payment history past the latest year due to the estate situation).

Like Rob K, I use the exact same insurance company. In fact, we likely even share the same agent.

They have also reminded me of the importance of switching between the vacant and occupied statuses.

I love seeing articles like this!

It makes me wish I would have started that young!