All Forum Posts by: Mike Carino

Joe, This is a terrific technique. .Have you experience refinance concerns in this strategy when properties are under LLC partnerships?

 Josh, I believe this is going to be a very small window. to save that property, wayne county will want the owner of the house to come forward and get on a payment plan or pay off the debt . Unless you are talking directly right now with the owner of the house, and are inline to get the title transferred to you I see chances are very slim this late. If you are, get that owner talking to the the treasurer asap. 

 The tax auction ball has moved from the stages of "Saving",  It is  now to the state of Michigan to pull what they want, and than back to Wayne county to pull whatever properties they want, mostly for their Detroit land bank listings. You will see the listings of homes once it comes back from the state of michigan.

@Jo Joe I can only speak for Detroit and Detroit Metro areas based on my day to day experience here and the investments I hold personally and through my partnership. This city has very high rent rates for the price you pay on a home, most of that has been set based on the high amounts given from section 8. It is not uncommon for investors in inner Detroit to get $850/month section 8, for homes that they are all in 25-30k even lower. This pretty much sets the baseline as far as monthly rent goes.

I have seen these same tenants take their same section 8 vouchers, move out the suburbs for better schools, better neighborhoods, in which pushes the rent rate higher for the better good of the neighborhood.  Seems to be a trend as you go more north and west (it has it exceptional pockets) out of the city the higher the rent rates go.. If your here with boots on the ground you will be able to pick those houses at a deep discount that will be best bang for your buck.

 It is very common to get in homes in decent suburbs under 50k and rent for $850-950 without any problems finding good tenants. 100k homes will reach you into the $1200-1400/month that will get you even better tenants. Let's not forget, at the same time you can and will get these houses at a very deep discount, rehab, rent, and refi. IF you are here and work with the right people.

I myself, don't know many places around that give you those returns in great neighborhoods, and has ample supply of homes for all investors to enjoy. This to me would fit your lifestyle of developing enough cash flow  that you can enjoy cali on those winter months . A personal goal of mine is to build a portfolio and a strong team here, so that I can live back out on the west coast in Seattle/Tacoma  close to family, and raise my kids.

@Joe Kling May I ask why you would bash Detroit so quickly?  Here come the Boo Birds..

Ask yourself first leaving Cali, what type weather in the winter are you willing to want to deal with lol. That may help you narrow down your market.. Seriously

If your leaving Cali, for buy, rehab,rent, refinance, repeat, there are a ton of investors here in the Midwest doing this and do not have a shortage of properties. Not saying particularly Detroit, Cleveland, Cincy, Columbus, Indy, is better than one or the other etc.. Any of these markets you will do very well if you put yourself in contact with the right people, build the right team, and be boots on the ground. 

@Engelo Rumora

What a great idea and an interesting topic!! I have had the simple ideas of thinking of something along the same lines, but not to the level to take it very serious..  Maybe you can possibly make this work by UT or even by high volume apartment areas.. There really is not much competition out there in Toledo

What great info from @Scott Meyers.. Thanks for sharing the basics of the business. I will for sure look more into information on your website. I do understand it is directly population driven, but is there any exceptions to certain areas such as a universities,  or high amounts of rental apartments? Or how about high traffic areas, hot seasonal vacation spots? Do self storage investors in this category jump on storage unit investing in growing "under development"  areas, or do they wait until the population is set and stone?

Don Welcome to the site.  I am out in Michigan, but I have lots of family in Sumner/Puyallup/Tacoma area and in and out of the area all the time. My first wake up call to the power of real estate was a house my brother fixed and lived in a year and sold in Bonney Lake ( behind the high school) for 100k profit right when the market really started to pick up out there in 2005. Than proceeded with the same process on a property in Lake Tapps.

 I wish the best of luck to you and your investments. 

Greetings Marco, Welcome to BP. I lived in Columbus, but i recently moved to Michigan (yes I already know). I love it there, and would not hesitate to move back if I ever had to. There is alot of opportunity there, and very concentrated on hot spots that will grow very quickly. One reason I never got started there, is because I didnt surround myself with people with the right knowledge and advise. Hundreds of investors have been in your situation such as myself hold the typical 9-5 job that does not help you achieve your investment goals. My advise to you, is figure out who you want to market it to, and locations you want to focus on. Once you figure that out, seek out your team that will help you get the deals to your target market. One place to start locally is finding the REI clubs around the city, you may find the right people and realize there are alot of investors just like you.

Best of luck

@Joshua Woolls

Sorry I am a little late on this discussion. I also have experience with the tax auction and I am surrounded by people on my team that are highly involved in wholesaling and holding these homes.  Like @Stephen Lovett, I have found success with the auction, but we all must know its not just that easy of a story to it in every case. Especially to those out of state, don't have the slightest clue to the neighborhoods, and that do not have teams that are with boots on the ground. We can get into details about bidding/winning/titling,  but be ready to deal with tenants currently that live in the house. Imagine if you lived in a house for years, ignored the "system" on getting on a payment plan, and all of a sudden house is taken over by someone that you dont know.

 Trust me It can go many ways if you don't reach out.  This step could be a decision maker from buying a gutted, burned home to an actual person that wants help and will cooperate once you take over the deed..  If you don't have the guts to knock on the door  I would advise to get as much information from neighbors, or find someone that will help you. This will give you the confidence to bid to an extent.

 I think you are starting in the right approach, and narrowing down your exact locations and exact houses.  This is your 1 up on other investors that are very involved. Be aware there will be investors that will pull the trigger and overpay on anything and everything in desired locations.

@Account Closed

 I do admire your efforts in hundreds of hours of research on the loveland site and "googling" what you can get from afar. Don't want to step on your toes, but your research is nominal to local wholesalers and investors that research these particular homes on a daily basis here and know exactly what to expect. And thankfully you have learned this approach can be deadly start to your investment portfolio. Don't be shocked by how much desired land location may and mostly likely will go for. There are lots of deep pockets that need to park their money. Not only that have the teams in place here that will cut and clean the vacant land and have a very good reason to speculate.One thing you and your friend should consider is leasing some land out from the city. Its almost free on your aspect.

http://www.mlive.com/news/detroit/index.ssf/2015/0...

 Byron conventional lending is pretty straight forward  investing your own properties in your own name. Also depends on the type of properties your looking for. Quadplex and under are the way on conventional lending.  If you are in a partnership and titling homes in an llc, portfolio lending may be your route. I currently have homes I use under conventional loans I hold on my own and working on a portfolio loan with the properties I have through my llc partnership. My strategy is to cash out refI through a portfolio loan the ones I hold free and clear. Take the cash for the next project. Talk with local banks and community banks they would be a great first step