All Forum Posts by: Brandon Krieg

I'm excited to see this getting going. I'll be moving that way by the end of summer, and I'll be a regular attendee from there on out.

Big thanks to Michael Lerch for getting this going... it should be great!

Hi Rodney,

Brett Russell is right - if you can make it out, the Ann Arbor REIA is quite good. I also recommend the Renegade Detroit Investors club (in Berkley) for a closer-knit feel, and the Michigan Real Estate Investors (in Troy) for a lot of information with a lot of people. Good luck!

Good responses here. I think William R. might be on the right track, but at the same time, I'd be hesitant. I'm pretty conservative with deals, so I would have to be very confident in my numbers and market to even try it. I would at least recommend talking to some others about your value, the market forecasts, and rent before making a decision on this one.

It's an old Robert Kiyosaki-ism, but here's how I look at it:

If it puts money in your pocket each month, it's an asset.
If it takes money out of your pocket each month, it's a liability.

There's a lot that goes into this equation (taxes, depreciation, etc. etc.) but that is the basic division for me. I know that my accountant looks at it differently, but in investing and spending, I try to keep it simple.

If the rent doesn't cover all of your costs, I would define them as liabilities (if they were in my portfolio). Can you increase the value of the properties? Is your rent below market rates? If so, you could make these places work in a hurry.

Hi Isaiah,

Great to see you. I'm from Michigan as well, and will be living on the West Side starting in a couple of months. From your picture, it seems that you may be in the Military - thank you for your service. There are a lot of very smart RE people on here, so this is a great place to go!

Here's are some quick answers, although not thorough enough.
1. It depends if you would like to utilize a realtor to find your properties. If you'd like to to use one, start developing relationships now. I know a couple of good ones over there if you'd like an introduction.

Otherwise, there are a lot of ways to find deals (doing some of your own marketing, utilizing bird dogs and wholesalers, etc), and often for cheaper than you can find on the MLS - other investors can be your best friend with this one!

2. Try to find all of the numbers you can about a house. What is the market rent? What might your payments be? Cap rates? All of those kinds of things are really helpful to know. In the end, I think the most important thing is cash flow for those kinds of properties. So ask questions that get to the true root of the financials. Also, get a good contractor to inspect it - those costs can hurt if you don't know them ahead of time.

3. There are A LOT of financing options, as long as you find a good deal. You can look into private loans ('hard money'), although be VERY careful about terms if you need a longer term loan. You can partner with other investors and give them a flat percentage or an equity partnership. You can partner with family or friends (if you think the relationship can handle it). And the better relationship you have with a bank, and the more solid info you have about the home/market/etc., the more likely you are to get a loan there.

4. With property managers, I always say find find an investor who's already working in that area, and ask them. Word of mouth recommendations are very helpful. There are a couple of investor groups in Grand Rapids, and good people there can point you in the right direction.

Again, that's just a brief overview, but hopefully it helps. Good luck!

Hi Brett Russell, welcome!

I'm in Ann Arbor as well, so if you want to meet up for lunch or coffee sometime, let me know. There are some great resources around our area for RE investors, and they really helped me get rolling.

Now on to your main question. For me, I did a lot of reading and learning at first. At some point, I hit a moment where I felt like I was reading everything for the 2nd, 3rd, 4th time. Of course, that wasn't true, because there is so much to learn, but I suddenly felt that I needed to act to learn more.

At that point, you need courage to act. It will be scary, and you won't know everything (none of us do), but you don't score any goals from the bench! Also, once you get rolling, keep at it. Success is not immediate, and often you'll fail 19 times in a row before succeeding on your 20th try. So don't give up!

Good luck!

HI Duane,

It's great that you're jumping in. It's a fun world!

I think Geof's question is a good one. What areas are you looking in? Also, make sure you have a little extra money budgeted for unexpected costs (which WILL come up).

I would recommend a couple of things. First, I would tend toward a place in better condition for your first time around. Even 'little' fixes, like paint, trim, carpet, etc. take longer than you think, and to tackle a huge renovation might be difficult for your first go-around.

Also, make sure you're buying for value, not just for price. If you can get a house for 10k, but the houses in the area are only selling for 15-20k, that's not necessarily a great deal once you factor in fix-up costs. But if you have to spend 25k for a house that's worth 55k, you'll be putting yourself in a much better situation. Always check recent sales, consult with other investors, and talk to realtors to get a good sense of value for the area.

Also, know that good deals can take time to find. If you find a good one, by all means, go after it! However, don't 'chase' deals if the numbers aren't there.

Good luck!

John Bender

Hello John,

It's a small world... I have extended family in Big Rapids, and my wife's whole side of the family is from just a little south of there. I'm in Ann Arbor right now, but will likely be coming west in a few months. I would love to have lunch with you, and figure out how we can best help one another.

Good luck!

Nice topic!

I think that I fell victim to this when I was getting started as well. I had to just keep on calling people, looking at houses, and making offers until a good one finally came up. This took longer than I initially thought, because I didn't know what I didn't know!

It also required more flexibility on my part. I was dead set on doing a certain kind of deal, and once I took off my blinders, I found success in areas I did not expect. This could be helpful for you too, although it sounds like you've got a very solid plan laid out already!

Finally, I'd say just don't be afraid to mess up. Start slow, make conservative offers, and keep learning. We all screw up! Just 'fail forward' as some guru I can't remember said, and you'll be fine. Good luck!