All Forum Posts by: Brandon Krieg

Hi @Ryan Brunworth ,

I think a hybrid approach might work well for you.  If you are able to put enough time into it, you can buy some good rentals AND do some flips.  

If your bank will approve it (assuming a 25% down payment), you could likely get 4rentals using about $100k in cash (say, $15k-$20k down, with money left over for cash reserves).  Then, you could use the remaining $100k to start doing smaller flips.  This way, you have some positive cashflow, but still have your profits from flips.

This would very likely require you to have a good team of real estate agents, contractors, property managers, and wholesalers working with you, but is feasible.

As other posters said, just make sure you are watching and understanding your numbers.

Good luck!

Hi @Matt Gehrls ,

Welcome!  There is a great community of folks on here from West Michigan, and even more from across the state.  I think you can find some great deals on 2-unit properties here, and hopefully work your plan to perfection.

Have a great one!

Hi @Shawn Grinage ,  I wouldn't recommend purchasing a list, or anything like that.  Save your money for coffee out with other investors.  (:

Unfortunately, the best ways are the slowest.  Attend real estate investor meetings, go out people for lunch, and introduce yourself to people in your area on BiggerPockets.   Find good deals, and then present them to people.  If there's a 'shortcut' to a good buyer's list, I've never seen one. 

Good luck!

Hello Everyone,

I am working on putting together a bulk package of rental homes in the Grand Rapids, Michigan area and thought I would turn to the community.  In the past, I have worked mostly with 1-4 unit residential homes, and have not worked with the purchase or sale of this type before.

It would be a grouping of about 20-30 homes, ranging in the $1M - $2M range, most (or all) of which are currently rented at (or slightly above) market rate.  If folks have experience in this type of transaction, I'd love to hear your advice, either about the pitfalls or the positives of putting these together.  If you have worked in the Grand Rapids area, have purchased properties in this way, or have looked at similar packages, I'd love to hear from you.

Thanks, and feel free to send me private messages if that is better for you.  Have a great day!

Hi @Scott K.  - I feel your pain.  I know there are a lot of people that claim to be wholesalers that really aren't, and it can feel like a big waste of time.  However, this is true of any industry.  There are a lot of realtors, insurance people, cable companies, auto repair shops, and and tech companies that don't deliver as they promise.  In my opinion, it really comes down to the individual or company, not the profession as a whole.

As someone who has both flipped houses and wholesaled good deals to other people, it makes me sad to see that some bad apples have turned some investors off to the idea of wholesaling entirely.  It is a service like any other, and I would say you just need to find the good people that do it well.

To the original topic - @Mike Mitchell , they are just very different tasks, and you can do well at either.  If you want to make wholesaling your full time business, be prepared to do a lot of networking, marketing, talking to sellers, analyzing deals, negotiating, getting turned down, following up with buyers, and focusing on a lot of volume and work.  It is highly people oriented, so only pursue wholesaling if you actually like people.  Otherwise, you will get very sick of it very quickly.  Also, always be honest about what you're doing, with everyone.

If you want to be a flipper, be prepared to analyze deals, work with contractors, oversee projects, negotiate with lenders and/or money partners, be very diligent at hitting budgets and timelines, be very careful with finances, and focus on knowing your market very well.  While you still need to be very good with people, as a flipper you need to be good at running projects with long- and short-term goals, and be able to change between the bird's eye view and the microscope quickly.  I'm sure those that have flipped more houses than I have could add to this as well. (:

My point is, you can do well with either, and rather than focusing on 'which will make me more money,' choose the work that fits your personal style better.  I believe that if you do that, you will make much more in the long run.  Good luck!

Hi @Joseph Blauwiekel  - first, I think you're smart to invest in Michigan - it's a good place to work.  (:

Secondly, I'll send you a private message with some folks that work around this area as wholesalers.

Hey Jim,

I don't have any direct recommendations, as I have not flipped any in Ohio, but just keep digging. Even call a Toledo REIA and see if they have any members that are insurance people. It's a pretty basic operation for the agent that knows what they're doing, so hopefully you won't have too much trouble.

Also, probably goes without saying, but make sure you have an EXCELLENT understanding of what's going in to your policy (what's covered and what's not).  It is worth it to pay a few extra dollars for the peace of mind, in my opinion.

Have a good one!

Welcome @Jason Bejger !  Thank you for your service.  This is a great community, with investors from all over Michigan here.  Dig in, and have fun!

Hi @Damian Smith ,

If I had other advice too, it would be to treat BiggerPockets like an online REIA. Introduce yourself here, and then find a time to meet up with people for coffee or something. I've formed some great relationships that were started on BP, and know you could do the same.

Welcome!

Hi @Brett S.  - It looks like I'm posting on all of your additions today... keyword alerts are nice.  (:

Definitely talk to @Jake Thomas , and there are a couple of other reliable folks you can count on around here as well.  I'll send you a PM, so as to not promote anyone to the whole world at once.  Happy hunting!