All Forum Posts by: Shaun Steckler

I agree.

Make sure your due diligence is thorough.

Is the property zoned for multi-family?

If not, what's involved?

How much will it cost to install individual utility meters for electric, gas and plumbing?

You can do well on this project if you can handle these conversion expenses.

If you're not ready, this thing might not cash flow. Good luck.

You need to verify rental income.

Ask for deposit slips for the seller's company checking account.

You should be able to go back at least a year on this.

This is the biggest bit of information for you to get right.

If you get this wrong, you could be in for some long nights.

Being from the South, I cannot predict what will happen in Detroit. But I can make the following statements,

1. As a result of the auto-industry declining, jobs have left the area. And when jobs leave, real estate values take a big hit. Jobs and real estate go hand in hand. They both have to be happy in order for the marriage to work.

2. I don't know if the economic shift there is permanent. But I do know that if new jobs are not created, the investment risk for real estate in Detroit will probably be too high.

1) You would want to specify property type: houses, apts, etc

2) Price range?

3) Target market areas: ex: no high crime neighborhoods

4) What's the situation with the seller? Foreclosure, out of town owner, etc.

The more specific you are about what you want, the less time you will waste.

You can't go wrong with rental property.

Houses and small apartment buildings are a great way to start.

As a result of the downturn, we now have a stronger pool of tenants.

I guess when something bad happens, something always good happens too.

When the market starts to rebound, one idea would be to take the profits from your flips and pay off your rentals.

The endgame of course is to control a portfolio of free and clear properties.

This is a goal for us all, no matter how your real estate business is currently weighted.

Hope this helps.

I don't live in a state with a redemption period so I can't give you that kind of advice.

But what I will say is that you're better off going out and door knocking before the Sheriff sale takes place.

It would be better for you if your partner bid out the job as a project.

Don't let him walk around the job site without a good project agreement in place.

You see, if you pay him $25/hr, there is no incentive to finish. The longer it takes the more he makes.

And the more you have to pay.

Learn this lesson now. Make a good agreement before the project starts.

Just my opinion here. If you're a new real estate investor, I hope you have some construction experience.

You need to know what you're doing with burn outs and more importantly, the people you hire to do the work better know what they are doing.

My advice is to start with a small project. Look for cosmetic flips, even if the margins are smaller, your level of risk is also very attractive.

When you say buy at the sale and win, I'm assuming you've outbid everyone by making the lowest possible offer.

If so, then you must know what your exit on the property will be before you buy.

For example you can,

1. Buy & wholesale to another investor
2. Buy, renovate and sell (flip) to a retail buyer
3. Buy, renovate and rent for monthly passive income
4. Buy, tear down & build a high rise condo :)

IMO, you can't go wrong by going out and meeting with people who have to sell their houses.

By taking the time to go out into these neighborhoods, you leave the competition behind.

Many are fearful of knocking on a stranger's door and the last thing they want to do is start talking about the foreclosure.

Most of the other investors in your market, are mailing out letters, hiding behind the phone and waiting until the Sheriff sale to buy.

Get out in front and beat 'em to the punch with door knocking!