All Forum Posts by: David Hall

Raising Capital.  It's coming, just slowly.  I'd like 2017 to be the year I purchase a large apartment or mobile home park opportunity which will require more capital than I've raised before.  It is definitely an exciting time and should be an exciting year.

Welcome Aaron,

We have a local REI group you can find on Meetup.com. We meet the last week of every month in the Holt area, we'd love to have you. I would suggest doing a lot of research to find what you want your first deal to look like, then try to find a mentor who is doing deals like that. I saw in your profile your plan is to get up to 200 units, I'd work backwards from there based on a timeline and come up with annual, monthly and weekly goals to help you towards your goal. Where ever that leads you to today, start there! I am happy to help anyway I can, I own rentals, am currently doing a few rehab projects and am a licensed realtor.

Good luck, hope to see you at the next meet up.

I've had good experience with a business credit card. If you have never gotten one before. My local bank allowed me to get one under my LLC for $5,000. Soon after I got another one for $5,000 from a different person. It sounds like you may need to put in some sweat equity to get through it. I also recommend possibly doing minimal rehab (since money is tight) to whatever unit is in the best shape to get it rented ASAP. That will help to find the remaining repairs. Typically banks won't fund on properties that haven't been performing on your tax returns. I hope that helps.

I have an opportunity to buy a duplex in Lansing, Michigan for $20,000, it needs $10,000 to bring it up to a quality rental.  My current projects are tying up my investment capital and I don't want to lose this deal.  Anyone know of hard money lenders or (preferably) any private lenders who are interested in lending to an experienced investor for a 6 month term?

Any other creative ideas or strategies are appreciated.  Thanks!

Kyle, I could help you pull some comps for the home.  Reotown is on the up swing so there may be some growth opportunity there.  However, until the area comes up, that area is a little rough.  There may be a great opportunity there, especially if your plan is to bring the units up to the "hip/cool" style that Reotown is moving towards.  Good luck!

Matt! Nice to meet you face to face last night.  I would encourage you pick a few homes currently on the market and do all the due diligence as if you were going to buy them.  All estimated calculations for closing costs, repairs, holding time and sale.  Then watch the area to see what homes are selling, how long they are on the market, etc.  The more you get familiar with running the number, the more comfortable you will become and the easier it will be for you to identify a GREAT deal when it comes around.  I'm happy to help in anyway I can!

Greetings!

I have accepted offer on Fannie Mae Homepath deal.  Inspection yesterday discovered some shifting that appears to be a result of the pressurized wood foundation (PWF).  House is 15 years old and these foundations are rumored to last 100 years.

At this point I don't know if I can/should renegotiate with Fannie Mae, or if Fannie Mae refuses to negotiate since although it wasn't disclosed, the house is sold "as is".

Any input or experiences with post inspection negotiations are appreciated! 

Depends on the spread.  If it's 10s of thousands then you can always buy it and resell it quickly.  You can use credit cards or an unsecured loan.  

Otherwise you can try to wrap it up under contract and advertise the heck out of it to get it sold for more before you close.  Everyone will know what you paid and what you're doing, but it can work.  

Make sure the current tenant is someone you would want to live under/next to for a long time.  Sometimes Landlords sell houses because they hate the tenants that live there, so do what you can to feel out and visit the current tenant.  Look at the lease and the pay history for the tenant.  I've lived in the same buildings as tenants and it always made me more selective of who my neighbors would be.

It's best to either have a little know how to have some cash for when needed repairs arise.  As well as a plan for if the tenants moves out and you need to rent the unit.  How will you advertise, how will you prep the unit for the next tenant, what would you do and who would you call if the tenant needed to be evicted or trashed the place?  Having these numbers on hand makes things way easier if they happen.

Read the Bigger Pockets Forums for starts, there is a ton of good advice you can gather.   Books I like are obviously Rich Dad, Poor Dad - Robert Kiyosaki, Real Estate Riches - Dolf De Roos, The Millionaire Real Estate investor - Gary Keller are a few good ones to start.

After reading and studying for a while, you just need to do it!  You'll learn more from doing it than reading a book.  Good luck!

Bankruptcy shouldn't be an option.  I don't know if you have kids, but either way, buying a duplex or triplex and living in it is a great way to get out of debt and gain an investment at the same time.  If you rent currently you need this all the more.  If you own, you can always rent your current home, even if it's just temporary to allow you to build more equity, build your credit back and kill your debt.

I would look on craigslist and work with a realtor to find Land Contracts.  I bought my first 4 unit with $6,000 down for $30,000.   The seller was motivated and had already moved out of town.  It was a great learning experience.  Next my family bought a three unit that we bought as "owner occupied" and we moved into it.  When we found something better we moved into that and rented the unit we were in.  We actually rented it for more than the mortgage of our new house so we still had no mortgage and positive cash flow.

Deals are out there you just have to look hard and not be afraid to pull the trigger.  If you've been studying 5 years, you know enough to start.  

Try not! Do or Do Not, There is no Try - Yoda