All Forum Posts by: Casity Kao

@Roy Gutierrez Join Metro Detroit Real Estate investors facebook group. Once you join that group you will not need BP. That is a good start and go to the meetups in Troy for the group. There is no profile of the typical real estate investor that lends but if I had to put the two categories, it's investors that are very seasoned that still want to be part of the game yet may not want to hustle like they did when they were younger and the future was uncertain and W2 corporate investors that have large self directed IRA and solo 401ks to lend off of. There really isn't just one type, all that matters is you build relationships.

@Mike Abramov  Ask alot of questions and do not cut your due diligience short.  The best relationships are where your realtor and you have have complete trust that you can are willing to buy something based on their saying so because the market and even wholesaling market is so hot that requires it.  I work with alot of out of state investors and alot of time in the screening process I ask my clients what they are looking for and find out they are really just investors trying to find bird dogs all over the country to get them an awesome deal.  If you have a great agent, it's going to be hard for them to take you seriously if that is the mindset you have.  When you find an area you like commit to that area and try to learn a little about the area.  I personally like it when my investors new or not ask me alot of questions because it shows they are invested in the area and cultivating the relationship.  Also keep in mind you may have to take a good deal to get a great deal.  When I find an absolute great deal that I cannot afford the buyer to back out on and close cash fast, I have a short list that I go to first.  Trust is a two way street. Other questions I'd ask that realtor.

How many investments do you own an in what areas?  

What type of help can you provide to me once I close the deal?  Also do you take compensation on that additional assistance.  (We will also our investors to use your sphere of influence, but if they actually want us to project manage then we do charge a fee)

What would separate you from other agents that also work with investors?

What specific neighborhoods or city would you invest in and why?

Can you send me an example of a deal you aligned an investor with?  We are very detailed with the why, so when an investor asks we will actually give them the deal analysis that shows the financial analysis as well as the subjective reasons to invest in the subject property.

Are all of the investments you align your clients with from the MLS? If the agent is truly and investor and a good one at that, they will have multiple sources to get you investments.

@Brandon Mix Once you do a few deals credit issues affecting rate go away.  If you have a really good deal you will always find private financing.  Keep networking and you’ll find them.  After this post I had alot of hard money brokers private message me so I did want to point out we have not used a hard money lender in a long time because we paid our dues and established a reputation that finding private lenders is not an issue.

@Pete M.

  There is alot of investors flooding to the area driving up prices but strong trends to support the market has room to grow even more because od job growth, low vacancy, and still very low cost of living and rent rates compared to other metro areas.  Definitely a good area to invest for cashflow, rent growth and appreciation because the marker is still so affordable. I particularly do like Wyoming and Kentwood because of easier rental certs and less capex, but you can get higher rents relative to price in city of gr.

@Chris Ellis  Let me preface this response that I have not sold a multimillion dollar home before but also keep in mind that I am not even sure there is a 30 million dollar home in Grand Rapids, MI.  With that being said I have bought and sold high end homes, so I would say the client's agent should be setting realistic expectations with them.  Are they listing it with an agent?  I would contact that agent to discuss the clients expectations first and maybe ask the mutual client questions about what indicators they have to make them think the home will be sold quickly.  When we work with clients that have realistic expectations we show them the numbers.  What is average days on market for homes in those price ranges, and show them the numbers don't support what they are expecting.

@Dean Wissing I would ignore their price and offer what makes sense for you. I have offer 20k below asking on a 80k offering and they came back to me 4 months later and said they would take it. When you make an offer to a wholesaler they generally will want to be paid the EMD directly. Normally it is only $1000 and we deal with wholesalers that others can vouch for so we don't have a problem giving it to them, otherwise I would ask who is being used for title and give the EMD to the title company.

@Gilbert Lugo

I would not recommend a newer investors to purchase a home sight unseen. First thing to do is try to offer with a very short inspection contingency window, as you still have an out if the home's condition is significantly different from pictures and or what you expcted.  If they accept then really it is not an issue that you cannot see it.  If they are selling AS-IS then that is a going to be much harder. I know a number of investors that purchase sight unseen including ourselves but we can take a loss because we have the volume to purchase many more so the numbers are in our favor.  For a newer investor if you are one, avoiding a loss on the very first deal is crucial.  Now if you can walk the grounds of the house, and see inside the windows with no tenants available then that is a different story.  Speaking candidly if there are no tenants and it says no trespassing you should be able to "snoop" around a little.  Now some people will say that is illegal but I can tell you no cop is going to write you a citation if you are merely closely observing without touching.  In general, we like to neighbor knock and ask the neighbors if they know anything about the house next door.  Based off how long the home has been vacant, the exterior condition of the home we will make assumptions.  If I see a bad roof, I am assuming water damage, and if the neighbors tell me it has been vacant for a full winter, then in my market I assume 3k or more from plumbing issues.  If the home is newer, and utilities are on I can assume a more cosmetic rehab, but in order to make these assumptions you have to have experience.  The only other way would be to assume the worst of everything but problem is in this market for an on market offer, I don't think your offer would get accepted.  

@Gilbert Lugo

I would not recommend a newer investors to purchase a home sight unseen. First thing to do is try to offer with a very short inspection contingency window, as you still have an out if the home's condition is significantly different from pictures and or what you expcted.  If they accept then really it is not an issue that you cannot see it.  If they are selling AS-IS then that is a going to be much harder. I know a number of investors that purchase sight unseen including ourselves but we can take a loss because we have the volume to purchase many more so the numbers are in our favor.  For a newer investor if you are one, avoiding a loss on the very first deal is crucial.  Now if you can walk the grounds of the house, and see inside the windows with no tenants available then that is a different story.  Speaking candidly if there are no tenants and it says no trespassing you should be able to "snoop" around a little.  Now some people will say that is illegal but I can tell you no cop is going to write you a citation if you are merely closely observing without touching.  In general, we like to neighbor knock and ask the neighbors if they know anything about the house next door.  Based off how long the home has been vacant, the exterior condition of the home we will make assumptions.  If I see a bad roof, I am assuming water damage, and if the neighbors tell me it has been vacant for a full winter, then in my market I assume 3k or more from plumbing issues.  If the home is newer, and utilities are on I can assume a more cosmetic rehab, but in order to make these assumptions you have to have experience.  The only other way would be to assume the worst of everything but problem is in this market for an on market offer, I don't think your offer would get accepted.  

@Preston Gealy  What is the pricepoint you can flip the modular homes to and what kind of spread do you have? Hard to say with lack of description and pictures but can't you remove the textured paper and then paint?  If not I imagine your budget cannot be that high on a modular home so I would consider wallpapering over it if you cannot remove the textured paper.

@Matthew Fullam  Personally if it were me I would go on AirBNB and try to determine from reviews how often he is renting it out and at what price.  If the numbers are better than what you are getting for rent I'd kick him out of the lease and start renting it out on AirBNB yourself.  Whatever you do, do not threaten to evict him if you are not prepared to actually do so.  I personally would probably evict because AirBNB renters going in and out can be more wear and tear, and personally if he is the type to accept any AirBNB renter you could have an issue where the place gets trashed.  It happened to us and AirBNB is not easy to work with to get repairs fixed let alone it's not his place.  If you AirBNB it yourself, always put a camera onsite to avoid parties and bad guests.