All Forum Posts by: Greg Scott

Whether your are selling via owner financing or hoping to buy using owner financing, engage a lawyer who has experience in real estate.

FWIW, I am not a lawyer and always hated paying a lot of money for stuff that appears like it should be easy.  As my real estate business has grown I realize now that this is just a minor expense necessary to protect you, just like insurance.  If you are doing a deal worth many $ thousands, why not spend a few $ hundred to do it right.

I have a friend that just had a total loss due to a tornado and I've been talking with him about it.  That gave me a couple more ideas for you:

1) Talk to some local insurance agents.  They will know when a client has a total loss.  Offer to give them a $500 referral fee for any burned out property you buy as a recommendation from them.

2) Talk to local government building staff.  No community wants a burned out hulk sitting there.  They may help you find these things so you can make them beautiful again.

Alex: Your background is ideal for starting this undertaking and where most investors fail. The rest is less risky. In terms of lenders, there is always somebody out there that will fund you, particularly with your background. If you can't find a hard money lender, seek private lenders. Check with your local real estate club for more contacts. As far as finding fire damaged homes, why not ask the people that you work with? Someone must be able to give you a lead.

Scott

There are lots of small MF in SE Michigan, many dozens in Royal Oak alone.  You are probably better off starting with a more traditional purpose-built MF where you won't run into neighborhood or zoning problems later on.   

Just for kicks and to practice running the numbers, there is a 10 unit in Melvindale on Loopnet.  Looks like a nicely maintained exterior.  By my estimations it is premium priced and assumes no/low vacancy and does not factor in any property management costs.   

BTW, I would always run the numbers assuming you have to pay someone else to mow the lawn and run the place.  That way you can afford to fall back on it if you either burn out or can't manage it.  If, for example, you got sick and couldn't manage the property, you might lose it when you can least afford to take a financial loss.