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All Forum Posts by: Steve Ehrman

Steve Ehrman has started 10 posts and replied 59 times.

Post: Is wholesaling as easy as they say?

Steve EhrmanPosted
  • Posts 60
  • Votes 19

@Chuk Obiazi yes, as long as you are willing to put 60 hours per week into it. It takes a lot of effort to nuild buyer lists and market your services to homeowners.

We have been looking at vacation property in the northern part of Michigan's lower peninsula. There are some beautiful lakes and woods near Hillman.

We are thinking about VRBO/Airbnb rentals. It is a 5 acre plot on a great swimming, boating, and fishing lake. It is a drive to get there - no interstates or highways close by.

Airbnb's in the area are renting right now, end of season, for $275 - $350 per night. What factors should I consider in putting together a plan to build from scratch? Thanks.

@Bill Burkhead. If you keep them in your name, you have no control. What if the tenant runs up a large bill that they can't pay and then leaves. Who is responsible?

@Dan N. Generally required by lenders, at least the ones we deal with. It is a lot easier to forclose in a LLC.

@Bobby Paquette. What are you looking for? Detroit has some great rental markets.

@Katherine Roberts write the offer with a 24 hour inspection period. Find an inspector that you trust and will make themselves available. We are in the Detroit area and we have a new at inspector.

I write the offers that I want. Our agent is always suggesting we change them, but no go. You decide, not the agent. The agent is obligated to present the offer to the seller.

Post: Questions about buying RE with all cash

Steve EhrmanPosted
  • Posts 60
  • Votes 19

@James Hamling. It is the process where all cash can win a great deal. Recently we purchased a duplex with two 3/1 units with a split basement, tenants pay all utilities. The owner had owned it for 4 years, had put work into it, but never managed it properly.

The city had done their 3 year inspection and found a moderate number of violations, including some safety violations which needed to be corrected in 10 days. The inspector came back in 10 days and couldn't even get in. The owner was ticketed.

He put it up for sale for $150K.

My analysis said it was worth $147K to me. I made 2 offers. A. Seller finance a $145K price for 5 years with 25% down. We would assume all repairs and take over management. B. $130K cash, 48 hours to do inspection.

My agent tried to get us to come up on the cash offer, I said no. The seller accepted a full price offer contingent on financing. When they asked the buyer to show them the 25%, he couldn't.

They came back to us. We bought it, had it re-inspected by the city, got a more reasonable inspection, and finished the work we wanted to do forn$22K.

Now rented for $1200 per unit, appraised for $205K, and refied for $150. Cash can work.

@Lilith Wolfersberger whenever a service or support animal is mentioned, our reply is "we follow all federal, state, and local laws and regulations at the advice of our attorney. In order to make sure we are providing proper accommodations, we will need to verify with your health care provider what services/support your animal provides. We will then consult with our attorney to make sure we are providing proper accommodations."

As you can imagine, the problem dissapears.

@Jimmy Alexander we had a tenant that was mentally sick. We ended up having to evict him