All Forum Posts by: Mikael Winkler

Definitely agree with @Remington Lyman here. Investors getting their license is great in theory, but then you are bound to many of the regulatory standards they are held, like he mentioned. Simply working with a good investor agent covers a lot of those bases. 

Regarding virtual meetups, Central Ohio Investor Network, or COIN, is meeting on Zoom the third Tuesday of each month currently. They also post the replays on YouTube, same name. Columbus Real Estate and Money, CREAM, is also a great group. Not sure if they have any in person meetups, might just be a Facebook group. I think everybody and their brother in Central Ohio real estate is in that group haha. But, those are just a couple good ones. I'm sure there are many more.

Welcome @Hemant C.! Exciting that you're beginning your REI journey! My first property was a house hack duplex. Certainly a great way to get started. Any questions, don't hesitate to ask!

Hey @Zack Rosenbaum! This sounds like an awesome project, and certainly a big one haha. Having 4 and 3 beds per side will be great, once all rehab is completed! Are you working with a contractor already? If you have the chance to walk the property during the due diligence period, I'd suggest having them walk with you to assist in putting together a scope of work. 

@Benj Ecker

I agree with @Brett Tvenge regarding the HML route. That $35k will go a lot further in that scenario. You just have to make sure it's a solid deal. Which, they even help you with in a way. Most only lend on at least 70% of ARV and send out an appraiser to do a subject-to appraisal. If they don't think it'll be a good deal, they won't lend on it haha. Now, HML isn't cheap money, but you can even bake origination fees and holding costs into your analysis to mitigate that.

I just worked with LimaOne on my last project. Total project cost was around $126,000, and I had to bring about $20k to the table, with origination fees etc.

I agree with the above regarding CREAM and COIN. Both are really solid.

Definitely agree with @Will Fraser. I'd start with the lender you worked with on your primary. Do you have funds available if you would need to go 20-25% down? One thing you can do, whatever lender you approach, is bring a sample deal. Run the numbers on a property you'd be interested in pursuing and ask "hey, if I found a deal like this, would you help me fund it?". 

Coming prepared with an actual deal, with numbers etc, also looks good on you as potential borrower. You took the time provide an example of what you're looking to do.

@Robert Ellis

Absolutely. I’m just wondering if there will be a point, at which, investors do more of their own marketing because a wholesaler won’t be able to provide much value outside of getting a house in contract. Obviously valuable, because they’ve done the negotiating and have it locked up.

But, I also think a large part of their value lies in driving all over town, walking the properties, and getting those initial pictures. The thing I think many don’t want to do. If it gets more strict, as it has been already, and wholesalers are limited to providing less and less information, maybe the benefit is diminished.

All hypotheticals, but things to think about moving forward.

I have definitely seen some wholesalers modifying how they market to attempt to stay as compliant as they can, at least in Columbus. A few years ago, I'd get sent marketing that had the address, pictures, etc. Pretty much all the info that a standard listing would have. Now, some are stating "xxx block of xxx street" or giving just the nearest intersection, as giving address seems to be a big no-no by the letter of the law. I have to do a bit of digging on the auditor site to get the address, which isn't terrible. Now, most still do post pictures, which I know is also technically not allowed. 

More of a general question that I'm pondering. Hypothetically, if wholesalers were to also stop providing pictures, essentially just giving bed/bath count, their opinion of reno, etc, would their value begin to diminish? It seems providing some pictures is that one thing really keeps them valuable. 

Either way, I honestly have nothing against good wholesalers. Though I do think it's getting harder and harder to do it completely legally.

@Clifford Miller

Not a problem. Here is his website, which does include contact info, if you'd like to take a look.

https://www.gefvertlaw.com/

Welcome, @Brennen Finchum, and congrats on getting started on your journey! Outside of learning and studying more about the concepts of REI, do you have an ability to begin saving any substantial amount for investing? Most hard money lenders will still require you to bring at least 10% of total project cost to the table on a deal. Private money by way of a friend or relative may be more feasible if you don't have a way to save significant money. But, even then, you'll want to have reserves set aside during a project. You'd also want to make sure it's a really good deal, if you're using someone else's money, especially if it's someone you care about!

Another route, if you're family is up to it (especially with the new little one), is to house hack a BRRRR. Basically, live in the property that you're completing the BRRRR on for a period of time. This would allow you to get into the property for much cheaper, often with the ability to use a 3.5% down FHA loan. My wife and I did this on our first - a duplex that we rehabbed.