All Forum Posts by: Kyle Shankin

Hi @Jason Martin

I can't speak to all of the steps, but here's where I'm at currently:

1. Search methods - MLS saved searches setup via Realtor, a couple of hours a day on Zillow and Craigslist. These haven't been super effective for me because MLS is SUPER competitive in my area. Craigslist gave me a couple of good leads to look at, but it otherwise seems to be the same 20 posts cycling multiple times a day, battling for the top spot.

2. er...3. I started off by making my own spreadsheet for analysis. That was fine and fairly efficient for a basic analysis, but I analyze everything and ended up with a bunch of the spreadsheets. Ultimately I just upgraded to BP pro and use the calculators. I didn't like them at first because it seems weird to me to have a multi-step form as a "calculator". But the end results with the data and graphs, and the ability to download the report has been quite valuable. I use the BRRRR calculator everyday.

2. Because the MLS is so competitive, I like the idea of finding off-market deals. I have a marketing website which I'm currently experimenting with PPC on. I'm also working with BP user Jerry Puckett to create a direct-mail marketing machine. Jerry's got a lot of great reviews from other BP members and, in my brief time working with him, I can see why. The mailers haven't gone out yet though, so I can't comment on the effectiveness of that. If you want to go website/ppc and want a quick setup, check out Danny Johnson's LeadPropeller. I think it's a brilliant system, it just gets expensive as you scale.

3.(again) I basically now use the saved BP calc reports as the 'folder' that I work out of. I currently don't have the volume of needing a CRM, I just know what deals I'm currently working on. Oh also! The BP calculators let you snooze a report. I have a few houses snoozed that I'm going to check back in on in a few weeks when the sellers are likely to be more motivated.

4. I currently have some working capital that I'm using for my couple of deals and am not at a point of needing a loan. I have talked with another investor local to me who tried going to several hard money lenders to secure a deal, none would give him the time of day until he had the target property under contract. 

5. For closing, I have a go-to title company that I use whenever I can. 

6. Pretty much just as you said, rinse and repeat. Although, until you close on a deal, it's more like "daily grind". Gotta prime the pump, get the systems up and running and then keep the wheel turning once it starts.

 Cool cool. Then it sounds like your ideal situation is use private money and get the house rehabbed, rented out and refinanced before the 5 months is up. Best of luck to you, let me know how it goes!

 So basically you're just going to have to figure out how to pay for the large number of units. Unless you already have piles of cash, I think that you're going to end up taking a hit on your cashflow, at least for a while, in one way or another. 

If you weren't looking to refinance at all, you'd really be looking only for houses that have a super high cash-on-cash return; a goal that is shared by pretty much everyone.

 Isn't that great though?! It's like an opinion buffet! 

Your comment about long-distance investing is a good one and actually brings light to the fact that any type of investing is going to have its own set of obstacles, it's just a matter of which ones you want to tackle. 

My opinion of the revitalization is that it feels substantive and durable, the city just has to keep supporting more industries and bringing more jobs in. 

Alvin and Jamiel are probably your best bet to get an opinion on the neighborhoods as their profile tags suggest that they're actually working in Detroit. I invest right outside the city and visit Detroit regularly for events, but I don't actually invest there.

 Ok, I'll give you my opinion, but that's all it is. You're responsible for your own decisions.

It sounds like you have to refinance out of either of the loans that you've mentioned. With that, and assuming there are no more fees whatsoever, the cheapest loan is the private money. If I'm correct that the property needs to season for 6 months before it can be refinanced, then the path that I'd probably follow is: Buy and rehab with the private loan. After 5 months, pay off private loan with line of credit, then pay off line of credit with a refinance as soon as a lender will let you.

It's kind of splitting hairs because we're talking about a difference of 1% for maybe as little as 1 month. But that's technically the cheapest as far as I can tell.

I'd also urge you to revisit that calculator report you initially posted about and add those other monthly expenses in ;)

How long is the line of credit draw period and does it balloon at the end? You mentioned no points or money until the end for the private money lender, but are there any closing costs?

Hi @Rob Miles.

This question is somewhat subjective and depends on your goals. However, there really are a great number of benefits to refinance. For example, if you're looking to do many deals, one of the easiest forms of getting working capital is to leverage your existing properties via a refinance. Because you have more working capital, you can purchase more properties in less time. Also, your loans on the property (when handled correctly) are tax-deductible, paid off by your tenants and (with the seemingly natural rise of inflation), paid off with weaker dollars than you used to purchase/refinance the property with.

On the other side of the coin. If your rentals' cashflow pay for your entire lifestyle, and you have no interest in investing any further, then you could very well just go about your life.

Hey @Carlos Aquino. 

I don't remember what the difference between plus and pro is, I basically bumped from free to plus to pro in a matter of a few weeks. BUT, the two bigger pain-points that I remember upgrading for are forum usability and the calculators.

I love to analyze deals with the BP calculators, but you can only use them a handful of times before you hit your maximum, unless your Pro. Pro can also do things like view and export previously created reports. As for the forums, I remember certain things missing, like being able to filter by post date or location, specifically in the marketplace. I remember doing some searching the marketplace and getting results from 2008. It seems a little crappy that an upgraded membership is needed for something as basic as forum navigation and filtering. But I think it's worth the upgrade for that and the calcs. 

There are also "perks" which are basically just discounts off other paid services. I haven't gone into any of those yet.

There's a full list somewhere on the site...I can't seem to find it, but that might be because I've already upgraded.

Hi @Kelli P

Detroit's on the rise, in the most recent annual city address, the mayor claimed that 3,000(ish) vacant homes have been purchased and are being renovated as of this past year, last year was something closer to two-hundred. However, I don't think it's a great spot for a newbie. A lot of the area's need cleaning up still and you may end up with a house that needs more repairs than it's worth.

I totally get that. In fact, I have 0 interest in even selling my own properties because I value my time more. I'd be looking strictly for MLS access. I'm thinking getting a license might not be for me. It's just weird because there are a TON of members on BP in support of it.