All Forum Posts by: Kenneth Jenkins

Our leases state that residents are responsible for the first $100 of repairs regardless of cost.  If our standard lease wasn't in effect, we would default to the in place agreement.  To be honest this may be a judgement call since something the size of a toothpaste cap should not stop a sink from draining.  In the end though, we are agents for the owners and we are working on their behalf.  If the resident has issues with the quality of the housing such as a failing roof or HVAC issue we would advocate strongly on their behalf as well.

@Tracy Butcher how did it go?  Have you closed yet?

@Ayyoub Feza it's a good thing you're asking this here so you don't run afoul of the law in Michigan.  As the other poster states fees are non refundable and deposits are refundable.  In Michigan most judges will throw out cleaning deposits as they are considered standard wear and tear.  Then you could be liable for triple damages.  The correct method is to make all fees known to the lessee and clearly state what each is for.  This should be easily understood, signed by all parties, and not contradict any information in the lease.  If you want a good example go secret shop a nearby apartment community and ask them what their move in costs are.  They will typically give you a sheet with a breakdown.

@Travis Biziorek you are exactly correct here.  One competing property should never derail your plan.  It's more likely than not that something renting for $500 under market is a scam anyway.  We can't and shouldn't attempt to compete at that game.

We are in Michigan and have just now come out of the winter "dead months" in the past 3 weeks or so.  You should always end your leases Apr- Aug in Michigan.  The other considerations noted by other posters are valid, but when you weigh them against the high risk of extended vacancy, ending at the beginning of winter is to be avoided at all costs.  2 months of added vacancy is a 16.6% loss to annual income.  So avoiding that vs the opportunity to raise the rent with a future lease renewal is an easy choice.  Follow these three rules in order of importance:  

1.  Keep 100% occupancy

2. Collect 100% of what your owed

3. Minimize expenses

Maximize income is a distant 4th. This doesn't mean ignore rental increases, but at the end of the day it is a math problem.  Leaving $25-75 a month on the table to avoid a $1,500 loss of occupancy and a $2,000 unit turn bill is a smart choice.

Best of luck with your new tenant!

@Andrew Coletta there is a monthly meeting at Shield's in Southfield that always has a dozen wholesale deals or so on the block.  I recommend that one.  BP is great for research too, but connections on the FB groups are better for finding active deals.  I'd be happy to give you more information as I'm local to the area.  

If you'd like to connect offline send me a DM.

We service Monroe and it's looking pretty favorable IMO.  I have commercial office space that's going strong as well as multi's.  

My partner and I are actually considering selling a couple of smaller deals (8, 6 and 5 unit properties) off market.

Where is your property located?  A 70+ unit just came on the market a couple of weeks ago as well.

Cold calling and getting wholesale deals under contract is really the only thing to do to get started. Buyers come out of the woodwork once you get the deals under contract in Metro Detroit (assuming that's where you will be working). Selling your wholesale deal is the easiest part. Putting the hours in to get those deals under contract is a bit harder. Don't, I repeat DO NOT, start by trying to find the buyers and building a buyers list. Also, until you make the first 100 cold calls don't bother trying to outsource it to a VA in the Phillipines, there are too many moving parts at the beginning.

In order:

1.  Cold call (order Propstream and start there)

2. Letter write, manually without typos

3. Drive for Dollars - then implement 1 and 2 above.

4. Collaborate with other wholesalers at local meetups.  Meet the guys and gals doing it, copy them ruthlessly.  You can find them by signing up for wholesaler lists near you.  STAY LOCAL.

Are you looking for SFR cash out refinance? Is this for one property or a portfolio? And final question are the properties rented and performing (dscr eligible) and have they been seasoned? With that additional information I can probably point you in the right direction. I'm not a lender but I am familiar with the lending landscape in Metro Detroit.

That area has really experienced a resurgence.  I'm not a buyer in the city proper, but you shouldn't have difficulty selling it.