Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Pete M.

Pete M. has started 32 posts and replied 235 times.

Post: BRRRRing in West Michigan

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Scott Matthew C.  A lot of the answers depend on the market, which hasn't been nailed down yet.  Nor am I familiar with any of them, frankly.  We're using all cash to buy and fix up in OKC right now, but prices are fairly low there ($60-$70k purchase + $5-$15k rehab).  I'm targeting 4-5 per month in OKC (50+ over the next year), but that could also be split with another market if things come together.

If I'm using all cash, I could potentially close within days to a few weeks--depends on the mix of cash, lender, and/or hard money. Typically waiving all but inspection contingency (and will sometimes waive that if I have trustworthy boots on the ground who can walk it and give me solid, reliable numbers). I have around $270k available for funding, though most of that is tied up in OKC right now. As mentioned, the goal is to BRRRR, so pull all of initial capital back out of each deal to keep reusing, and be left with a cash-flowing property--then repeat. Aiming to keep seasoning periods as low as possible, so typically working with a portfolio loan from a lender for the flexibility (which I have not identified in SW MI yet; still early in the process, as mentioned). ROI will basically be dividing by 0 if we're doing it right, since we'll have none of our initial capital left. End goal is build out a team and portfolio of buy-and-holds (starting small, eventually moving toward apartments) in my home area of SW MI, hopefully partnered with my lifelong friend in the area.

Have talked to a couple brokers in the GR area, but not sure any of them quite fit the bill for finding BRRRR-type deals. As I've learned in OKC, not all brokers can reliably dig up and identify the BRRRR gems. From there, will need to find local contractors, portfolio lender, insurance, etc. In other words, still very early in the process for the SW MI market.

Thanks.

Post: BRRRRing in West Michigan

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@David Edwards  Good to know!  Any useful contacts for the area you can share?

Post: BRRRRing in West Michigan

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

Hey, folks,

I'm interested to hear if/where others are successfully BRRRRing in western MI. I grew up a little southeast from GR and now living on the west coast (summers here remind me a lot of MI... with the bonus of way less mosquitoes and more mountains). I'm currently investing and BRRRRing in Oklahoma City, but looking for a second market. I also have a friend in the Wyoming neighborhood who's interested in taking a closer look at RE investing, so wanted to find out if (and where) others are finding a steady flow of BRRRRable properties (likely SFR or small MFRs to start). Besides GR, I've seen others mention Kzoo and Muskegon. Also appreciate any pointers to good agents who have a line on BRRRRable deals.

Thanks in advance.

Post: OKC Investors, who do you use to insure your rentals?

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Cassi Justiz @Dylan B.

Thanks!  I'll definitely reach out to them as well.

Out of curiosity, what what deductibles amounts and % of reconstruction are you carrying with your SFR policies? I'm looking at $5k and 80%, but curious as to what others are doing.

Pete

Post: REI = Commercial Loan???

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Rodney Phillips Joe is right, 4 or fewer units can be on conventional loans, which is often the cheapest money. However, Fannie Mae will limit the number of loans you can have, and they have traditionally needed to be in your personal name. Recently Fannie Mae changed their policy and allow the property to be in the name of an LLC if that LLC is owned by the same person as listed on the note.

Commercial loans typically have more flexibility in the terms, but will come with a higher interest rate.  I've opted to put all of my future investments directly into LLCs on commercial loans due to the speed and flexibility it allows.  Obviously it's up to you to determine which is best for you, but make sure you talk through all of the options with the lender (and preferably several lenders).

Good luck.

Post: OKC Investors, who do you use to insure your rentals?

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Landon Whitt Thanks for the recommendation!

Post: OKC Investors, who do you use to insure your rentals?

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

All,

Hopefully closing on my first investment properties in OKC later this month.  Any suggestions on insurance agents/brokers who work in the area is appreciated.  Already have one quote, just looking to shop around and see what is available from others.

Thanks in advance.

Post: Vacancy dragging out - what are we missing?

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

Personally, I'm pretty unimpressed with the PM's marketing abilities, if we got 50+ responses in an FB group.  Who knows how many of those are qualified, though. 

It is a bad time to have a vacancy in general--this is why most landlords structure their leases to end around late spring or during the summer.

Pete

Post: Vacancy dragging out - what are we missing?

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Tina S. Still empty at the moment, unfortunately.  We ended up advertising it on a private FB group and got 50+ responses, though, so there's definitely interest out there.  We even got an application that passed muster, but PM has not heard back from the applicant after notifying them of the approval, so we're in a bit of limbo.

Pete

Post: Getting rentals on an LLC

Pete M.Posted
  • Financial Advisor
  • Issaquah, WA
  • Posts 241
  • Votes 141

@Mike S. @Scott Smith

What are the legal/liability implications of deeding a property from a person to an LLC? Does the LLC still afford protections, or was that broken through the conveyance?

If you buy a SFR property in your personal name, get a conventional loan in your name, and then transfer to land trust (with beneficiary as an LLC), do you then essentially have a SFR property protected by an LLC and on a conventional loan? Or what am I missing?

Thanks.