All Forum Posts by: James Dean-Howell

I'm trying to analyse my first deal in Lansing Michigan but I'm having a hard time with the numbers. I'm not sure how to find accurate or near accurate numbers. I've never analysed a deal before. I tried to use the biggerpockets calculator but for a lot of the values I simply don't know what value to put in for my area. 

I'm looking at a 4 bed, 2 bath SFR. It is currently renting at $973. It was purchased in 2010 for 35,000. I'm using Propstream for analysis and I'm not sure how accurate their numbers are. Average comps are showing $73,687.

Estimated value of the property is 74,963. 

I don't know how to estimate costs accurately. I don't know what my potential mortgage terms will be. I'm not sure what the ARV would be on a house currently being rented out. I haven't been to the property but I wanted to be able to have a ballpark idea of what I could expect in returns from the property before visiting. The seller isn't very motivated to sell but they are "open to offers."

I have no idea what the estimated repair costs would be without visiting the property. No idea what to put as the closing costs. 

What's the downpayment typically on a standard 30 year fixed mortgage in my area? Average loan interest rate? 

How do I find the average cap. 

How do I estimate monthly insurance accurately? Elecricity, Water & Sewer, Garbage. 

Repairs & Maintense, Vacancy, and management fees seem to be pretty fleshed out in the calculator. Also I might be able to do cap Ex but I don't see how I can without actually going to inspect the property. 

How do I find these numbers for my area? I typically learn best by someone walking me through processes step by step but I don't know anyone who would be willing to do that. 

Quick question. What's a good resource for learning to use excel? Both as a real estate investor and just in general?

Saving this! Thanks

Does you book on estimating rehab costs have an audio book form?

These questions are going to be a bit random. Just asking them as they come to me. 

1. What is the legality of renting a house "rent to own." Do I need to own the house free and clear or can I have a mortgage on it? I'm thinking about implementing this strategy potentially for the future and just want to know how best to do it or find the best resources in my area for learning about it. 

2. How do I find a good title company in Lansing Michigan who works with real estate investors? They need to be able to do a double close because I am also just getting started with wholesaling on the side. 

3. Should I have a title company or a real estate lawyer? What are the pros and cons? 

4. Has anyone used Propstream for wholesaling and finding deals? Is the 99 dollars per month worth it? I'm doing a trial right now and writing letters but I'm not sure if I can get the same information somewhere else for cheaper. 

5. Since I am getting into wholesaling where can I find wholesalers in my area to connect with? I've joined my local REIA group. Where else should I be going to meet not just wholesalers but real estate investors?

Wow thanks for the advice David. I am actually new to the area. I moved to Lansing at the end of December. If you had the time maybe we could set up a call to chat more about it. People have said a dozen versions of "just get started" yet I still feel there is a lack of guidance when it comes to the step by step process. 

Do you mind if I take down your contact info and the best time to call you?

I attended a real estate investment club meet-up in my home city when I was visiting family and the head of the association told me I should start mailing letters immediately to start wholesaling.

I've done some research, watched a few videos on youtube, and read the book "The Art of Wholesaling Properties: How to Buy and Sell Real Estate Without Cash or Credit" by Aram Shah.

1. Is there a better way to mail quickly outside of writing by hand, while being on a low budget?

I've heard a few sources say that wholesaling is the quick and cheap/free way to get into real estate. However I've already spent at least 100 dollars so far. I had to go buy Stamps. I just bought 100 to start with, which was 55 dollars. I had to buy colored greetings cards. I bought 2 packs of 50, which were pretty cheap. About 7 dollars a pack. However now I'm probably going to need to buy a Laser printer for printing off Legal documents. That will be 150 dollars right there. Not to mention travel expenses for visiting any person that calls and wants to meet. Then there is the list. I spent 50 dollars on Listsource generating a list of 94 properties In my area which owe taxes.

Why are people saying wholesaling is free?

2. Now that I have my letters I've written and mailed about 25 so far. However I write each letter by hand and each letter takes about 10 minutes to write. It's just a small paragraph that I write. The time I take to attach the stamp to the letter, write my address, write the correct address of the person I am mailing on the envelope. Then write the message on the actual letter I put inside the envelope, while making sure everything is proof read correctly since I'm using an ink pen. IT takes a lot of time per letter. And people are talking about a 5 percent call back ratio, 10 percent if lucky.

I have a full time job. Is this wholesaling? Is there a faster and cheaper method I'm missing? If this is it I plan on doing it anyway because I want to buy my first rental property this year. So wholesaling seems like a good way to learn rehab costs, how things are generally priced in my area, and other useful information for my first home purchase. This process of writing letters to mail by hand simply doesn't seem like the method people teaching how to wholesale are talking about. They definitely didn't explain the details in the book I read. They are talking about a starting campaign of 1000 letters minimum. Are they seriously sitting down and spending 5 to 10 minutes writing out each letter by hand?

Thoughts?

I just moved to Lansing for work and I'm looking to buy my first home. I'm trying to get started here and meet with some realtors. 

My long term goals are rental properties. I looked into the student market of East Lansing which is the town of MSU, and I think I'm going to avoid that for now until I get more experience managing a rental. 

Ideally I'd want something near my place of work I can house hack. I plan to focus on rent-to-own properties or triplexes and quadruples with very strict tenant selection.

So a few questions. 

Where should I start with researching the areas I want to buy? What resources can I use? What should I be looking for to see the potential of rental properties in my area. I'd be looking for things like vacancy rates, average rent, crime rates, etc. 

Also I want to meet with a few realtors to talk about my plans to start getting into owning rental properties. What is the best and most reliable resource for finding great realtors that are going to help me not just buy my first home, but my 10th home? I'm looking for someone who is willing to develop a long term relationship with me, help educate me on exceeding at owning rental properties. Someone who is going to help me find deals and put me in contact with good people to work with in addition to the realtor. So a good loan officer, eviction attorney, contractor, etc. 

Thanks for the advice in advance!

Thanks. Ill be sure to read those. I've been watching a lot. I've watched the last 3 no webinars. I've read the beginner guide and a few other articles. This is exciting stuff!

I just got started learning about real estate and I'm excited to jump into the field. I've been working at a bank for 3 years now and in that time have put what little income I've made into a few investments. I'm pretty satisfied with my long term investment position and so I'm looking for a way to fund my retirement other than investments.

There is so much information it's a bit overwhelming. I work full time, soon to be part time, (for health reasons,) and so I'm looking to use that extra time to learn and grow my knowledge and hopefully jump into the field. I'm in Kalamazoo Michigan.

What I want out of real estate investing is to build up enough passive income to retire comfortably and provide for my family in the future while having plenty of time to spend with them. I think that's what a lot of people want.

I attended a Reia meeting recently and made a few contacts. I make very low income, under 30k a year. So I've been thinking about getting into wholesaling to build capital. What I really want to do is invest in rental properties. I got pre-approved for a 50k loan but I'm told that isn't very much. Especially since I would like my first property to be a 3 or 4 plex.

My first step into the field was when I went out the other day to walk a neighborhood and scout for properties that were in disrepair or boarded up to present to a known contractor in my area. (Who I met at the Reia meeting). So I actually did something even though it's not much.

I'm willing to work, make contacts, make friends, and make myself useful to gain knowledge and build relationships. The reason I want to be successful is because I plan on adopting within 10 to 15 years and opening a foster care home. I want to be able to not have to work full time and ideally not even have to work much at all so I can focus on caring for the kids. So I'm motivated to make this work. I've listened to a few BP podcasts and read about 4 books so far. My mind is open and empty, ready to absorb and learn. Thanks for your time!