Repair & Renovation
Turnkey Acquisition Pro’s & Cons
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[caption id="attachment_3383" align="aligncenter" width="300"] Business close during pandemic shutdown[/caption] These past coronavirus-filled months have been extraordinarily difficult for most landlords. Though way back in March, President Trump expressed positivity that we'd get over this pandemic "quickly," in reality, nobody...
The end goal for most rental investors is to generate enough rental income to be able to quit their job. What strategy should you use to grow your rental portfolio to this point? Let’s explore two different strategies: quickly paying...
Many property investors start out with single-family rentals because they’re easier to acquire and more familiar. As your unit count grows though, you may want to consider buying multi-family properties. A multi-family property may consist of units in a building...
Whether looking to obtain your first rental property, expand to the Detroit market or reposition your real estate portfolio, we have the expertise to objectively assist you in evaluating your options.
We view our relationships with rental property owners as long-term, so we’re willing to invest in your success. If we assist you in being successful, you’ll invest more funds and tell your friends, which will lead to more business for us.
Some of the services we offer:
Your First Rental Purchase: if you’ve never bought a rental property before, in addition to property management, we can assist you with the following:
- Determining your investment criteria
- Financing options
- Liability protection via LLC and/or insurance
- Finding properties to purchase
- Evaluating potential properties
- And much more…
Your First Detroit Market Rental Purchase: if you already have rentals in other parts of the U.S. and want to take advantage of the incredible opportunities in the Detroit market, we can save you headaches by:
- Making sure you understand the differences between the City of Detroit and suburban Detroit.
- Adapting your target property criteria from other markets to the Detroit area.
- Locating target properties
- Reviewing potential properties
- Managing your purchases
- And much more…
Adding to Your Existing Detroit Portfolio: we’re here to assist you in growing your portfolio wisely, by:
- Reviewing & perhaps fine-tuning your investment criteria.
- Using our network to source deals for you
- Screening deals you’re interested in
- Managing your acquisitions
- And much more…
Repositioning Your Portfolio:
- Trimming problem properties to reinvest in better ones
- Selling peaked-out properties to reinvest for higher returns
- Exchanging houses for multifamily properties
- Repositioning your portfolio for cashflow vs appreciation
- Liquidating your portfolio for retirement
Your first consultation is free, but we do require a $500 retainer after that. The retainer is credited towards any transaction you do with us within 90 days, so our consulting services are essentially free if you’re a serious investor.
What are your criteria for evaluating potential acquisitions? When’s the last time you vetted them? We can assist with developing what you need and fine-tuning what you have – so, you invest more successfully.
We can assist with CAP Rates, ROI, Cash-on-Cash, Internal ROI, etc. We want you to be successful, so you are motivated to keep investing. It’s really a win-win situation.
Want to check out the Metro Detroit market to better understand it before investing here? We provide one-on-one tours and show you the good and bad areas of the Detroit suburbs and the City of Detroit.
While many investors have bought Metro Detroit rentals without ever visiting Detroit, we encourage investors to come for a visit – especially if buying City of Detroit properties. The City of Detroit is a challenge to invest in, please read our blog posts for more information.
Our tours aren’t free, the price depends on how much of our time you want. Please contact us for more details if you’re are serious.
Looking for a rental property? While property management is our primary focus, we assist with finding Single-Family, 2-4 unit & apartment buildings. Just let us know your budget and target ROI or CAP rate. An upfront fee of $500 is required, credited to any purchase through us within 90-days.
In addition to setting up automated MLS searches for you, we also tap our local network to find properties for you, evaluate and review potential purchase and more.
With our network of contacts, we are constantly being exposed to properties for sale that aren’t listed online. There is often more risk associated with the condition of these properties, but there is a corresponding higher potential reward.
There’s usually a very good reason a seller chooses to “wholesale” their property instead of listing it with a real estate agent to maximize the sales price. If you’re not afraid of renovation projects, their distress can be your gain.
|$50,000||As-Is purchase price|
The challenges with off-market deals like these are having the patience to wait for one, being able to act ASAP when you find one before someone else buys it, and understanding the risks involved. Please contact us for more information, but understand we only assist existing clients with these.
Unsure of which Metro Detroit city or neighborhood to invest in? Leverage our expertise and hire us to consult with. Payment of $300 is required prior to service, a 50% credit given if we’re hired to manage a property within 90-days.
We can guide you with facts, not just opinions, and even provide a writeup of a specific area of Metro Detroit.
We recommend all purchase inspections be supplemented with some type of rental evaluation. So, we offer Desktop Evaluations ($100), DriveBy Evaluations ($200) & Full Access Evaluations ($300). Payment prior to service is required, a 50% credit given if we’re hired to manage the property.
We can share many terrible stories about investors that were sold terrible properties … and then contacted us to manage them. We’re sure you can image how upset they were when they saw our video inspection and writeups about their new acquisition. Many real estate agents and wholesalers are solely focused on selling you something, so they get a commission. Once they receive their commission, they never have to deal with you again. Property managers have a vested interest in you buying rental properties that won’t be a nightmare for them to manage. Take advantage of this motivation and hire us to preview a property before you sign a purchase contract.
Note that an inspection won’t take the place of our Rental Evaluation. A client of ours once bought a house and had it inspected, and the report didn’t identify any issues. They didn’t have us evaluate the property though and when we did, they were not happy to find out the property was extremely dated and needed thousands of dollars in updates to attract a good tenant.
When spending tens of thousands of dollars on an asset acquisition, we believe it’s prudent to have an independent, unbiased source perform a thorough inspection on a property. While we don’t do these, we do coordinate them.
Please don’t be penny-wise, but dollar foolish. Hire a professional inspector that will inspect crawlspaces, attics, roofs, garages, HVAC systems, electric & plumbing and more. The cost is nominal and could save you thousands in unexpected repairs – or be used to negotiate a better price to cover those repairs.
Repair & Renovation
Buying a property that needs repairs? We’re here to assist you and will provide a report identifying RentReady Repairs with supporting pics/video. Payment of $300 is required prior to service, a 50% credit given if we’re hired to manage the property.
Depending on your timing, for an additional $300 we’ll also provide an actual bid for any needed repairs. Especially for investors that aren’t local, the combination of an Evaluation & corresponding Bid will give you an additional edge during on your purchase negotiations.
Turnkey Acquisition Pro’s & Cons
Are turnkey rentals appealing to you? Make sure you understand the real risks involved and don’t get taken advantage of.
The concept of buying a rental property, that supposedly has already been renovated with a solid tenant and property management in place, is very appealing. All you need are the funds and you start getting monthly checks.
The reality can be very different. We’ve unfortunately been hired to manage turnkey rental acquisitions that turned out to need thousands of dollars of repairs and others where we had to evict supposedly solid tenants.
We highly recommend you have an inspection & evaluation done on a turn-key rental property before you buy one. Never hire an inspection company recommended by the seller of the turnkey property — that inspector may be under the influence of that seller and you won’t get an unbiased inspection. Also, be sure to investigate if any city inspections are needed and if the turnkey property has passed them.