All Forum Posts by: Billy Farley

I have a call with a couple of out of town investors who are interested in investing in section 8 in detroit. I am here and a former agent/wholesaler. I can analyze a deal, but don't have experience with section 8. Can you tell me your best resource that helped you understand the section 8 process from an investors viewpoint.

Quote from @Travis Biziorek:

Hey Billy, you said you'll be living in one of the units...

Are you local now? Is one of the units livable currently? Just trying to figure out if you'll be living in it while doing the rehab (and therefore local and able to manage folks) or doing it from afar.

Hey there!

We decided to buy a SFH fixer that we can have some kids in. I am currently renovating as we live in. I am looking to get my next project by the end of the year. An actual investment, not a home.

My wife and I currently own 3 doors and moved to a new larger city in hopes to come continue our real estate investing journey.

Over the past year we have dealt with death in the family, 3 totaled cars, medical bills, moving expense, job change. It has been turbulent, but things are finally settled.

We finally renovated our home and are stable. But we have amassed around 40k of cc debt that we need to pay back. We make combined around 150k a year and would like to consolidate. I looked into 0% cards to balance transfer but with my self employed income and my wife’s name change, it’s proving to be a nightmare. Is there any private or better option debt consolidation options?

Once we get that cc balances taken care of on a stable payment. We want to aggressively pay it off whilst saving for our next BRRRR.

Looking to buy a Duplex. After rehab, live in the bottom unit and rent the top.

ARV 185

PP 55

Rehab 80

Refinanced 1,100

Upstairs rent 950

Downstairs. 1,100

I would like to have someone help me through this.

Quote from @Andrew Postell:

@Billy Farley what do you mean when you say "structure"...are you asking about the structure of your holding entity?

 Yes, especially as the portfolio grows.

I see this topic is discussed a lot, and it always seems to have varying responses. I want to know from someone who is experienced who would tell someone who is just looking to start the BRRRR process.

THIS is how you should structure your portfolio of doors, and the reasons are “xyz…”

What is “XYZ….?”

Quote from @Travis Biziorek:

Quote from @Billy Farley:

Quote from @Travis Biziorek:

Finding decent contractors is probably going to be your toughest battle.

If you aren't used to renovating in Detroit there will also be a learning curve in keeping the house secure.

Permits aren't a big deal in my experience. That said, most work is done without permits (like most cities).

The questions is overall pretty broad, so those are broad stroke answers. But understanding the market in general can be a big learning curve for folks. It's block-by-block and I don't think most folks really understand what that means. 

The city is also 150 sq miles, so lots of ground to cover/understand.

 How would you recommend finding solid contractors to handle 3-5 renos a year.

Start networking!

 You're absolutely right. Once I get there in January, I plan on being a networking machine.

In your experience, did you subcontract out yourself or get a GC to handle the project? I feel like I could manage subcontractors myself, just dont have experience with cost difference in either or.

Quote from @Michael Smythe:

What are your plans for your housing search?

Great question. I have the VA loan, I was thinking we would get a duplex to cosmetically fix up or a cheaper sfh to keep our monthly payment as low as possible at 0%down. Maybe do a 15 year note just to crank out equity. Then we will have about 60k to play with. I am planning on using the BRRRR method, to add doors and maximize my initial investment. I have some experience doing rehabs, done 2, both successful.

I am not really sure, we are going to rent for 4 months while i search for our first investment and hopefully my second invesment in the same timeframe.

Quote from @James Shahinaj:

Hey Billy,

I am a local realtor and do quite a bit of transactions with my investors/contractors. I recommend my contractor to everyone I can. He does very high end quality work, he is not cheap but he will work around budgets as well. Check out his website https://trudegreellc.com/ and also on instagram under same name. please mention me if you do go that route. 

He can handle that many renovations a year, they do not play games. They have done some of the fine dining restaurants in downtown detroit. 

Hope this helps.

 This does help, I am a believer in "you get what you pay for" and I would like the best work on my investments.

Quote from @Wendy Patton:

@Billy Farley if i can help you in anyway please let me know - i have a TON of contacts in the area because of my MI investor group i run.  I have been investing in MI for 36 years - you know it, i have done it.   Glad to help out 

 In need of good contractors :)