All Forum Posts by: Troy DeLong

@Cameron Porter As long as you have an Exclusive Buyer Agency Agreement with this buyer, then you technically can't be "cut out of the deal". As an agent myself, I suggest to my buyers that they be on the lookout for ANY kind of deal, even Wholesale deals, with the understanding that if the Seller / Listing Broker isn't offering any Buyer compensation then they (Buyer) would need to pay for that out of their pocket. 

As far as Title work goes, most Wholesale transactions still go through a Title Company. Your Buyer is simply purchasing the Wholesaler's contract (Purchase Agreement with the Seller) for a markup fee (Wholesale fee). So the original PA is what maters most. 

Get good at ALL things real estate (Wholesaling being one of them) and sell yourself as an expert agent who can advise your buyers on those transactions. For your Buyer Agent Fee of course. 

I see you're in Detroit. Our team is in Lansing and we deal with these all the time. Happy to hop on a call if you'd like! 

@Lauren Adair  Did you use a local Real Estate Agent to purchase those properties with? A good agent will always have connections. As an agent, I pride myself in being well networked in my area and being able to refer good contractors / handymen to my OOS clients. 

If not, then I would recommend joining local REI groups on FB in your market and asking there.

@Brady Pretzlaff  Solid work Brady. My suggestion would be to find a 2-4 unit around the area that has some value add opportunity, live in one of the units while you fix it up, move to another unit, rent out the one you just fixed up and then repeat until you've got a fully fixed up and rented 2-4 unit. 

You'll get much better financing and you'll have an easier time managing the property as you'll be on-site. 

Just my thoughts! 

@Keegan Mraz 

Welcome! With little cash to invest, I highly suggest you purchase a multi-family property and House-Hack. You'll get much better terms on a loan and can get in for 3.5%-5% down. Plus, you'll be on-site to learn the ins and outs of property management and can even work on improvements while you live there. 

Then, when you're ready for another one, you'll have more cash to purchase with a traditional investment loan, OR, you do the house-hack thing all over again. 

@Alec Perron 

That's awesome that you have a PML partner like this! There are tons of ways to structure this, but to keep it simple, here are my thoughts. 

* 10% return is a good return for a money lender. If they are ok with that, don't complicate it with also adding a profit share. If they want a profit share, then maybe discuss lowering your 'Preferred Return' and then including a separate profit share. 

*If you're going to offer a true 'Preferred Return' and possible profit split, you should really have an attorney whip up your lending docs. If your investor is fine with a simple Promissory Note at a simple interest (Monthly I/O payments or Accumulating) then you can find some fairly standard Promissory Note templates online.

* I would stick with LOCAL investments if you're the active investor. Just my opinion. I consider local within a 30 minute drive. 

If you haven't before, you should really stop into one of our Lansing REI meetups that we hold twice a month. Tons of knowledge in the room. You can find the group on FB at 'Achieve Real Estate Investors' (Picture is the monopoly houses).

@Dino Dziljaj If you're saying that you've got $70k to throw into a real estate purchase and not just in your savings, then I'd say you can get something decent in Lansing. Sounds like you've got good W2 income and if you've got a good credit score to go with it, I'd stick with a conventional loan (generally 20-25% down) to jump into your first property. DSCR won't have as good of terms and it's really only for when people can't support a conventional loan with their credit or DTI.

Lansing has a local credit union (Consumers Credit Union) that was offering a 10% down investment loan (at higher interest) last year to non-owner occupants. You could reach out to them and see if that's still an option. 

Also, I'm an agent / investor out of Lansing, MI and would be more than happy to chat with you about our local market if you'd like. Let me know! 

Hey Alex. Happy Friday to you. 

I'm an agent / investor out of the Lansing area. I've got two great Property Manager contacts. One is FULL service and the other offers more of an a-la-carte service, for Owners wanting to do more of an automated property management online but still have guidance and boots on the ground. 

More than happy to share both if you want to shoot me a text! 

@Robert Smith 

Hey Robert! I'm not in the Denver area, but I am an agent / investor in the Lansing, MI market. More than happy to hop on a call / Zoom with you to discuss our market. 

@Mohammed Youssef  I'm an agent / investor out of the Lansing, MI area and would love to chat with you about our market. Reach out anytime. 

- Troy 

Our next event is Thursday (2/27) and you can simply show up. RSVP on the FB event if you can.