Hello to everyone
I have many questions, however I am sure that most can be answered by previous posts and threads. My main question is in regards to this travesty called Michigan. Is there anybody on here currently investing in Michigan, and if so how are you doing it? I moved here in 1993 and I have to say that this has got to be one the most prohibitive states to try to establish any kind of business in. :banghead
That being said our wonderful governor :rolleyes will be out of office in two years and I am pretty confident we will start getting jobs back afterwards (and if not I hear Ireland is nice this time of year) but I digress…
The point being I know that there is money to be made in Michigan in real estate right now, both short term and long term, but I can’t seem to find investors or mentors to meet with.
I am a firm believer in “zigging” when most everybody else is “zagging” and I know there are others with the same thought process. My issue is I couldn’t finance a pack of bubble gum and personal money is non-existent. I am a termite treater so any extra money I make during swarm season gets sucked dry in winter.
I guess what I really want to ask is how reasonable is it to expect to find some one to front the money for a deal if I were to:
a. put the deal together
b. do any of the repairs (at this stage my strong point-the guy family/friends call to
fix/replace/install, well, almost anything)
c. and complete the exit.
Basically, I just need someone to cut a check. And wait 6-12 mos to collect. (my plan is interest + 25% of profit in a “flip” deal.)
I know this sounds a little simplistic, but I am just trying to get the general point across on what I would LIKE to do.
Any input would be appreciated except for telling me to forget about it
Thanks
Don’t tell anyone but I’m in MI to. Its crappy,crappy,crappy. I hope the jobs will pick up after Governor Mole is gone. Finding some money is very difficult here. You should look into doing something that doesn’t cost you. I suggest to just keep reading and learning while you have the time. Herbster
I have been investing for 29+ years. I made a number of investments in the greater Detroit area in 2004. The problem we recognized then was that the vacancy factors, potential buyers and renters were disappearing!
I bought a number of properties in 2004 there, I was fortunate enough to get my investment stategy completed and got out during 2005.
Since that time Michigan has still got the same problems, except now in a bad financial climate and high foreclosure rates, it is magnified.
I personally can relate to the new guy being motivated and seeking to get into real estate investing. I would surely wish you the best of luck and hope you acquire financial security and family security.
The problem is not personal mind you, it is Michigan as a whole and maybe not every property in Michigan but certainly over 50% of them have problems, there in decay and need to be rehabbed.
But at this time most professional real estate investors will not touch properties in Michigan, will not loan money on them and don’t want to take on what is a more than reasonable risk.
However if you want someone to talk to about real estate and give you a little direction and advice, send me an email with your phone number, I have a little time to talk and might be able to give you some direction.
xxxxxxxJay, I sent you a personal message. Herbster
Getting started in Michigan or anywhere else for that matter is going to be difficult but with determination it can be done. you are going about it the wrong way. Investors with many years of experience cannot get private money without building relationships with potential lenders.If I were starting today I would find a landlord that was intent on getting out of the business and offer to take over his properties with a cash flow for me. I would then search for lenders to refi the deal after 12 to 18 months. In the process I would learn to manage tenants and a business. Then you are ready to flip properties , not before.
I hope this helps
redhawk
Thanks Redhawk. I didn’t think about taking that approach.
Redhawk, Do you take them over by using a master lease? Herbster
herbster
you can take them over in a number of ways. Some want out so bad that they will give them away. Most you will buy on a land contract with 0 down if you offer to pay the recording fees, title insurance and other closing costs. Just make sure that there is Cash Flow or no deal. Another way is to lease option and refi later. If you have a Realtor liscence then you could offer to manage properties for very little cost to learn if you like the business,just to get your feet wet. If you like it you will get to know the bargains from the properties that lead to bankruptcy.
redhawk