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In this episode I talk to Mike Schoen and Marianne Marzolla of Donate Real Estate For Good.

Mike grew up in the Detroit area and has “The D” in his heart. He is an accomplished biker, hiker and outdoor enthusiast with a love of health and fitness.

Educated as an engineer, Mike has always dabbled in real estate investing and he owns multiple income producing properties. He is a father to two grown sons.

Marianne is a Detroit transplant and is originally from New Hampshire. At an early age, she was awed by the lovely old neighborhoods in her community and gained a huge appreciation for architecture and the preservation of old homes.

She is a licensed professional counselor and gains a sense of satisfaction from being a helper. She is the mother to two grown daughters. She has a passion for working with her hands, creating something from nothing and running.

A Word About Finding Motivated Sellers

Just a short year ago the question that I got most often from real estate investors here was how to fund deals. Lately though, with the market tightening up and a ton of new investors entering the space, the question I get most often is how to find motivated seller leads.

I started in REI here in 2004. And the source that I started with was Probate leads.

And ten years later in 2014 – I’m still using them. In fact, I never stopped. The reason is that they are a tremendous source of leads. There’s not a lot of competition, and there are plenty to choose from. Plus – they’re easy to find, cheap to buy, and simple to process.

If you’re someone who’s having trouble finding motivated sellers, then I highly encourage you to start chasing probates.

And I also encourage you to use my educational program as your roadmap.

It’s $97 and it includes my six letter sequence and my excel tracking and follow up spreadsheet. In short – it includes everything you need to start chasing probates today.

Check it out at Probate Real Estate 101.

The Donate Real Estate for Good Business

Mike and Marianne have a very interesting business model with Donate Real Estate for Good.

Basically they play the role of facilitator or conduit between people that have the desire to donate their real estate and a non-profit who accepts the donation. They take the additional step of also facilitating the sale of the property for the non-profit to the end buyer.

So not only are they helping to drive funding to a local non-profit so they can put it to use in the community, but they also get paid to do it. And not only that, but then then in turn donate a portion of their fee to other worthwhile local non-profits.

It’s a huge win for everyone involved. But the big winner is the community.

The business has existed now for 12 years. They rebranded it at the beginning of the year, and they’re looking to expand their reach even further, as they’ve already handled donations from California and Connecticut.

Have / Want

Mike and Marianne have several items:

1. They’re looking for properties that folks want to donate to a local non-profit
2. They’re looking for additional non-profits here locally that would accept real estate as a donation
3. They want to get the word out about their business so they can grow it and drive more funding to worthwhile local non-profits
4. They’re looking for private money to fund their fix and flip business

Links and Resources and Information

You can contact Marianne and Mike via these links:

1. Their website at http://donaterealestate.com
2. Their Facebook at https://www.facebook.com/DonateRealEstateforGood
3. Their phone number: (248) 757-1713

 

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetroit.com/contact and let me know about it.

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In this episode I talk to Kelly Brittingham.

Kelly started her real estate investing business with her Husband Todd in 2009 with their first investment in a single family rental property. Since then she has completed over 40 real estate transactions.

Her investments have included single family rentals, lease options, wholesales, fix & flips, turnkey rental properties and most recently they have focused their business on building new homes.

In the midst of all of this Kelly is a mom to two great kids – Alivia who is 8 years old and Jaxson who will soon turn 3.

Before Kelly was a real estate investor she was a working mom, but she found that her job took significant time away from her kids. Now as a real estate mom, Kelly is able to stay home with her kids focusing on their needs while helping run their well-established real estate business.

Crowdfunding News

As I mentioned in a prior REI News segment, for the last couple of months I’ve been working on a project involving Crowdfunding.

If you’re not familiar with it, Crowdfunding is where you openly solicit investors you don’t know to invest in your business. If you’d looked into this before you know that this used to be highly illegal, and there are several people that you would probably know by name in jail right now for running afoul of the SEC rules regarding general solicitation.

But that has changed. A couple of years ago Congress passed a law allowing general solicitation, or Crowdfunding. But as the federal government is prone to do, the implementation of the law has made it about as difficult and expensive as it was before.

Michigan, however, recently passed its own law on Crowdfunding within the state. It’s much simpler to do. It’s less regulated. And it’s FAR less expensive to implement than the federal law.

So I’ve teamed up with a local securities attorney to put together an educational program on how to implement Crowdfunding in your business.

It will be held on Saturday, September 27 at 9am in Southfield.

If you’ve been looking for a way to take your business to the next level with additional funding, then I highly recommend you attend the seminar. By the time you leave you’ll have all the knowledge you need to get started with your own Crowdfunding campaign.

You can find the details at CrowdfundingEducation.com.

How She Got Started in Real Estate

Her husband Todd had read the book Rich Dad, Poor Dad, and wanted Kelly to read it as well. She refused and didn’t want to have anything to do with real estate. Todd then convinced her to attend a RDPD seminar that was held locally.

After being extremely skeptical at the beginning of the seminar, she realized that the seminar information made sense, and by the end she could see the potential that real estate investing had to help her be a stay-at-home Mom and provide for her family’s financial security.

Biggest Mistake and Biggest Success

Kelly’s biggest mistake was getting involved with partners who were not what they appeared to be.

It was emotionally and financially draining, but thankfully they were able to pull the plug before their reputation was damaged.

Kelly’s biggest successes have been building their real estate business to the point where she can be a stay-at-home Mom and being able to work together with her husband Todd to build their business.

Money Talks

Two words – PRIVATE MONEY.

You need to listen to the episode to hear how Kelly and Todd met the people they have been using as their primary funding sources. There’s no magic to it!

Have / Want

Kelly is looking for three things for her business:

1. More private money – both medium term funds for their new build business and long term funds for additional rental properties.
2. Rental properties in Pontiac. If you have anything in Pontiac, Kelly asks that you send her an email with the name of the street and she’ll then tell you if she’s interested.
3. Tear down or vacant lots in good areas in and around the metro area that they can use in their new build business.

Links and Resources and Information

1. You can contact Kelly via email at kelly@MichiganTurnKey.com

 

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetroit.com/contact and let me know about it.

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In this episode I talk to my good friend Dave Sullivan.

Dave is a classic buy-and-hold investor. He characterizes it as “regular guy” investing.

My business is pretty similar to his – and so I agree with his characterization. It’s not sexy – there are no frills. But the cash flow keeps rolling in month after month after month after month.

Dave graduated from Western Michigan University in 1989 with a bachelor’s degree in Finance. He started in the mortgage industry as a loan officer in 1991. Less than one year later started selling credit reports to Mortgage Companies, Banks and Credit Unions.

On September 19, 1997 he started AIR Credit Midwest out of his car.

Over the next two years Air Credit Midwest grew to a multi-million dollar company. In 2000 he was approached by one of the largest Credit Reporting Bureau’s in the nation to purchase AIR Credit Midwest. He sold it and worked for that company as Sales Manager of the Michigan and Ohio market for the next ten years.

During his career in the credit industry he has personally reviewed thousands of credit reports and credit scores.

He started investing in real estate in 2008.

Crowdfunding News

As I mentioned in a prior REI News segment, for the last couple of months I’ve been working on a project involving Crowdfunding.

If you’re not familiar with it, Crowdfunding is where you openly solicit investors you don’t know to invest in your business. If you’d looked into this before you know that this used to be highly illegal, and there are several people that you would probably know by name in jail right now for running afoul of the SEC rules regarding general solicitation.

But that has changed. A couple of years ago Congress passed a law allowing general solicitation, or Crowdfunding. But as the federal government is prone to do, the implementation of the law has made it about as difficult and expensive as it was before.

Michigan, however, recently passed its own law on Crowdfunding within the state. It’s much simpler to do. It’s less regulated. And it’s FAR less expensive to implement than the federal law.

So I’ve teamed up with a local securities attorney to put together an educational program on how to implement Crowdfunding in your business.

It will be held on Saturday, September 27 at 9am in Southfield.

If you’ve been looking for a way to take your business to the next level with additional funding, then I highly recommend you attend the seminar. By the time you leave you’ll have all the knowledge you need to get started with your own Crowdfunding campaign.

You can find the details at CrowdfundingEducation.com.

Biggest Mistake and Biggest Success

His biggest mistake and biggest success are tied together – and both involve the same house.

One of the strategies he pursued before Dodd-Frank was to sell his homes on land contract.

He sold one on a a two year note. And just one month prior to the two year mark, and after making all their payments, the tenants decided that they wanted out of the deal. So they got the paperwork done and parted company.

When Dave’s wife went over to the house a couple of days later however, she found that one of the tenants had broken in, plugged the floor drain on the lower level, and flooded the house.

The repairs cost them about seven grand.

The biggest success came when they sold the house again, and got some good up front cash.

So they turned a really nasty situation into a win.

Money Talks

Dave is using family money to fund his business right now. He’d still like to get into an apartment building some time soon, and at that point he’ll likely be open to using private money.

Have / Want

Dave is selling the last of his rentals that he’ll be selling.

It’s fully updated and so it will be a retail sale. It’s listed for $114,000.

The address is 2365 Fairfield in Garden City. You can find the virtual tour here:  http://youtu.be/i2QAwiWjKbQ

Links and Resources and Information

1. You can contact Dave via email at sullivan@appraisalinfile.com

2. Or you can reach him via his website at TheCreditGuyTV

3. Here’s the site where Dave has his six credit repair videos: 6 steps to improve your score

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Todd Brittingham and John Rospierski.

Together they formed a new build construction company about a year ago. John’s background is in homebuilding, and Todd and his wife Kelly are real estate investors here in the metro are. I’m having Kelly on the show in a couple of weeks to talk about their other real estate investing activities.

Oh and Todd also has a day job. Talk about being productive. These guys are just flat out getting it done.

Crowdfunding News

As I mentioned in a prior REI News segment, for the last couple of months I’ve been working on a project involving Crowdfunding.

If you’re not familiar with it, Crowdfunding is where you openly solicit investors you don’t know to invest in your business. If you’d looked into this before you know that this used to be highly illegal, and there are several people that you would probably know by name in jail right now for running afoul of the SEC rules regarding general solicitation.

But that has changed. A couple of years ago Congress passed a law allowing general solicitation, or Crowdfunding. But as the federal government is prone to do, the implementation of the law has made it about as difficult and expensive as it was before.

Michigan, however, recently passed its own law on Crowdfunding within the state. It’s much simpler to do. It’s less regulated. And it’s FAR less expensive to implement than the federal law.

So I’ve teamed up with a local securities attorney to put together an educational program on how to implement Crowdfunding in your business.

It will be held on Saturday, September 27 at 9am in Southfield.

If you’ve been looking for a way to take your business to the next level with additional funding, then I highly recommend you attend the seminar. By the time you leave you’ll have all the knowledge you need to get started with your own Crowdfunding campaign.

You can find the details at CrowdfundingEducation.com.

Current Business

Todd and John are primarily doing new construction, although they have taken on a major fire restoration project as well.

If you haven’t seen pictures of the project they just finished, you should take a look at the website below. It looks spectacular.

How They Got Started in REI

John’s family has been in the home building business for years, and it was natural to follow in the family footsteps to do the same. He rose to be the youngest construction superintendent ever at the company he was with, but that was cut short by the economic downturn in 2006 and 2007. Todd has been a real estate investor for five years, first buying rentals for his own portfolio and then starting a highly profitable Turn Key rental business. When that business started to wane he started looking for something else. He then partnered up with John and they formed Edwin Anthony Homes.

Money Talks

Todd and John are using various sources of money for their business. They’re looking for additional private money to grow their business so they can take on more and larger projects.

Have / Want

Todd and John are looking for additional private money. They’re also reaching out to real estate agents who have vacant lots to see if there might be an opportunity to add value by building something. They’re also seeking retail buyers and additional investors with lots or tear-downs who are looking for a high quality builder to work with.

Links and Resources and Information

1. You can contact Todd via his cell phone at (248) 917-4416. His email address is todd@edwinanthony.com.

2. You can contact John via his cell phone at (248) 929-2474. His email address is john@edwinanthony.com

3. You can visit them on their website at Edwin Anthony Homes

4. You can see their recently-completed new build project at 507Gardenia.com

 

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Brian Borawski.

Brian is a CPA who happens to have several real estate investors as clients in this area – including me. I’ve used Brian for several years now, and it’s been great to have a knowledgable person like him available when issues come up like the sale of one of my apartment buildings back in January of 2013.

The great thing about Brian is that he’s versatile. I found him during my search for a CPA who knew real estate investing in depth, but he’s also been very helpful in creating and managing a corporation that I set up for an Information Technology consulting business I started two years ago.

A Word About Motivated Seller Leads

Just a short year ago the question that I got most often from real estate investors here was how to fund deals. Lately though, with the market tightening up and a ton of new investors entering the space, the question I get most often is how to find motivated seller leads.

I started in REI here in 2004. And the source that I started with was Probate leads.

And ten years later in 2014 – I’m still using them. In fact, I never stopped. The reason is that they are a tremendous source of leads. There’s not a lot of competition, and there are plenty to choose from. Plus – they’re easy to find, cheap to buy, and simple to process.

If you’re someone who’s having trouble finding motivated sellers, then I highly encourage you to start chasing probates.

And I also encourage you to use my educational program as your roadmap.

It’s $97 and it includes my six letter sequence and my excel tracking and follow up spreadsheet. In short – it includes everything you need to start chasing probates today.

Check it out at Probate Real Estate 101.

How He Got Started Working with Real Estate Investors

Brian has an interesting story.

He started with a day job at the Taubman Company, which develops and owns upscale shopping malls around the country. There he was exposed to complex real estate accounting transactions. While working for Taubman he started a blog website for the Detroit Tigers because he’s a huge baseball fan.

He started accepting advertising on his site – and he realized that it could be a very lucrative side business. So he started additional blogs, and at his peak had over three dozen active baseball-related blogs with 30 college students writing for him. When it got to the point where the advertising revenue provided enough income, he quit his job and went full-time into blogging.

That lasted two years until Google changed their search algorithms and 70% of his revenue disappeared.

He flirted with getting another day job, but decided to open his own CPA practice instead.

Having had an interest in real estate investing, and also realizing that it might be good for business development, he started attending REIA meetings and he also attended several real estate seminars. He picked up numerous real estate investor clients along the way, which was good for his bottom line, but it pushed his desire to get into real estate investing to the back burner.

Taxes and REI

You don’t need a crystal ball to know that taxes are only going one way – and that’s up.

I asked Brian if there’s anything that we as real estate investors can do to prepare for it. His main piece of advice is to keep excellent records and documentation, because he thinks that the IRS will be going after “low hanging fruit” – and that means real estate investors.

He also offered to sit down with you to take a look at your business and prior year taxes. That would be a great way to understand what your options are in an environment where taxes are expected to rise sharply.

Answer to Listener Submitted Question

The listener question I asked Brian was “Why shouldn’t I do my taxes myself and save a couple of hundred bucks a year?”

He had a couple of reasons why that’s not the greatest idea.

The first is time. It may take him a couple of hours to complete a tax return for a real estate investor. But it could take the investor 10 to 20 hours to complete it. Even if the investor could do the work as well as a CPA, wouldn’t the investor be better off putting those hours into his REI business rather than doing taxes?

The second is expertise. Using a retail tax prep software package will not give an investor the same comprehensive view that a human CPA, who know REI can. It’s just not possible. So it’s likely that by saving a couple of hundred dollars by doing taxes yourself you’re costing yourself thousands of dollars in missed deductions.

Haves and Wants
Brian has one item to offer.

A complementary one hour consultation.

That’s how I met him, and I encourage you to take advantage of his offer, even if you still want to do your taxes yourself. I learned a ton from him when I first sat down with him, and I know that you will to.

Give him a call – it will be worth your time.

Links and Resources and Information

1. You can contact Brian via his cell phone at (248) 346-4732

2. You can reach him via email at brian@briancpa.com

3. Or you can reach him via facebook at Brian CPA

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Todd Waller.

Todd is a real estate agent, and in my opinion, he’s the premiere agent in Metro Detroit. He has a tremendously successful business model with phenomenal processes, and he combines that with a laser focus on the needs of his clients. His market focus is the I-275 corridor from Commerce Township to Canton, and then west to Ann Arbor.

His reputation is borne out by his success: until recently his best year as an agent was 2008 – the very bottom of the market – when something like 30% of the agents in the state quit the business.

REI News

NO REI news this week in the podcast. My conversation with Todd went long so we skipped the news and went right into the interview.

A Word About Motivated Seller Leads

Just a short year ago the question that I got most often from real estate investors here was how to fund deals. Lately though, with the market tightening up and a ton of new investors entering the space, the question I get most often is how to find motivated seller leads.

I started in REI here in 2004. And the source that I started with was Probate leads.

And ten years later in 2014 – I’m still using them. In fact, I never stopped. The reason is that they are a tremendous source of leads. There’s not a lot of competition, and there are plenty to choose from. Plus – they’re easy to find, cheap to buy, and simple to process.

If you’re someone who’s having trouble finding motivated sellers, then I highly encourage you to start chasing probates.

And I also encourage you to use my educational program as your roadmap.

It’s $97 and it includes my six letter sequence and my excel tracking and follow up spreadsheet. In short – it includes everything you need to start chasing probates today.

Check it out at Probate Real Estate 101.

How He Got Started in REI

Todd took a really interesting path to real estate. He majored in Political Science at the University of Michigan, and parlayed that into an internship with a state senator. He then jumped to a job with the state republican party working on campaigns. After the 2000 election cycle he realized that the job wasn’t conducive to his new marriage or having a family, so he quit and went to work in a cube farm doing automotive research. That wasn’t the best fit for his personality ( because he has one) so when a friend suggested that he look into selling real estate, he jumped at the chance. And the rest is history as they say, as he closed 13 deals in his first year.

Market Overview

I asked Todd for his thoughts on the real estate market as it pertains to real estate investors.

For the market he’s in, his outlook is positive. He sees listing volume staying steady for the next several months, and it sounds like there are still lots of folks planning to list their homes over the next few months.

On the demand side, he senses that there may be a slight softening, but he hasn’t seen anything to prove or disprove that feeling yet. And he thinks that it may just be the cyclical nature of the late summer market.

Overall though his outlook is positive for flippers and wholesalers, in that prices should stay stable for the next few months, which bodes well for flips and wholesale deals being closed now.

Keep in mind that this is just his opinion based on what he sees in his area of focus. Treat it as another data point to put into your analysis as you decide how to proceed. It’s by no means a prediction!

Answer to Listener Submitted Question
The question I asked Todd was “How to you establish credibility when you’re an investor trying to get the attention of a busy real estate agent?”

His answer was – have a business plan before you ask an agent for anything. It’s the old adage that you can’t steer a parked car. If you know what you’d like to accomplish in REI, have it researched and written down so you can talk intelligently about it. You don’t necessarily need to know the area that you want to focus on – because an agent can help with that – but you must know what you want to do.

I asked him if he’d respond to an invitation to lunch with an investor that wanted some of his time. He thought that was a great idea. I did that a lot when I got started, and it paid HUGE dividends. Just make sure that you show your appreciation for the value and the time that they give you by picking up the check!

Haves and Wants
Todd has one of each.

On the “want” side, he’s looking for listings – primarily in the Northville and Plymouth areas as it’s his back yard, but he’s always on the lookout for listings up and down the I-275 corridor from Commerce to Canton and over to Ann Arbor.

On the “have” side, he has a 2+ acre parcel in Hamburg Township that he’s selling. It sounds like a beautiful piece of property that backs up to a spring-fed pond. If you’re looking to build out that way, give him a call.

Links and Resources and Information

1. You can contact Todd via his cell phone at (734) 564-7465

2. You can reach him via email at todd@toddwaller.com

2. Or you can reach him via his website at ToddWaller.com

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Steve Londeau. Steve is currently a full time wholesaler here in metro Detroit. He had a pretty rocky start to his real estate investing career, but he got focused and got busy, and ultimately co-founded and helped grow a profitable short sale and non-performing note business.

He then had to leave that business rather abruptly due to some family issues, and in the process had to reinvent himself and recreate a six figure income in order to support his growing family.

In the process he created a workflow and set of processes that lets him run his business as a one man operation.

I’m copying some of the processes he mentioned, and you should consider it too.

REI News

NO REI news this week in the podcast. My conversation with Steve went long so we skipped the news and went right into the interview.

But I did want to mention a few things I’m working on that might be of interest:

1. I received a request a couple of weeks ago for bulk rentable properties in the city of Detroit. So that makes two groups looking in the suburbs and one in the city. If you’d like to get together on one of these drop me a line at REITalkDetroit.com/contact.
2. I’ve kicked off my six week REI Quick Start coaching program. If you’re new to real estate investing or you’re frustrated by your lack of progress, then this might be for you. Part of the program involves walking you through – and giving you access to – my source of leads. The source I’ve used for over ten years now with GREAT success. Get more information at REITalkDetroit.com/coach.

And if you have a news item to contribute or an event coming up, drop me a line and I’ll get it on the show.

Current Business

Steve is currently a full time wholesaler here in metro Detroit. He’s also coaching new investors on how to get started in wholesaling.

How He Got Started in REI

Steve had a rocky start – he was working at a title company when a short sale investor came in and asked him for a rush title search. Steve helped the guy out and got a free lunch out of it. A short time later the guy came back and asked him to help again. He did, but this time he asked the investor what he was doing.

So the investor told him – and then invited him out to do some door knocking. Steve got a lead that day that lead to his first check – for $6000. And he was hooked. After a couple of starts and stops, and some mistakes, Steve made the decision to focus and do this. He did. And he succeeded.

Biggest Mistake

His biggest mistake was his first property – a rental house he bought in Pontiac at almost the top of the market. He lost his job and had other challenges that lead to him unfortunately losing the property to foreclosure.

Biggest Success

Steve has two great successes – the first was the short sale business that he helped found and grow to a really profitable business. The second was when he left that business behind abruptly and turned on a dime and reinvented himself and replaced his six figure income without skipping a beat.

Money Talks

Like all of my prior guests, Steve exclusively uses private money to fund his deals.

Answer to Listener Question

Steve and I talked a lot about how he’s using direct mail in his business, because I also use it heavily. So I asked him to outline his direct mail workflow and talk about the tools that he uses.

* He uses various sources for leads
* He uses Click2Mail for his mailings
* He directs the incoming calls to Pat Live
* He then contacts the leads that are real

He uses this simple process to send around 3000 pieces of mail per month and he’s looking to ramp that up to over 4000 pieces shortly.

Links and Resources

1. The best way to contact Steve is via email at slondeau@gmail.com

2. You can get signed up to be a cash buyer of his wholesale deals at http://313cashdeals.com

3. If you’re interested in his coaching program or CRM solution, you can find them at http://propertymob.com

4. Don’t forget that Steve is looking for interns or new people to learn the business and help him automate his business at the same time. If you think you qualify contact him via email.

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Eric Persha. Eric is a native Detroiter who went away for college then decided to come back to the area and get into real estate. He’s in REI to make money, but he also likes participating in the renaissance of the city.

REI News

NO REI news this week. My conversation with Eric went way long, so we skipped the news and went right into the interview.

Current Business

Eric’s company is called Rehab Detroit. It’s he and his mom working together, and together they’re rehabbing and selling everything from single family homes to four-plexes.

They’re focusing in specific areas in the metro area, and they also do quite a bit in the city of Detroit.

How He Got Started in REI

Score another one for Carleton Sheets! Eric’s parents had been investing down south, so when he moved back here after he graduated from college, he asked his parents why he couldn’t invest here.

His dad went over to the bookshelf and gave him his copy of the Carleton Sheets program.

He went into business with his dad, and four months later he found his first deal. And he hasn’t stopped since.

Biggest Mistake

Eric’s biggest mistake was his first deal. Like most investors, he made a lot of mistakes on his first deal. He hired a friend of a friend to do the work, and it was a disaster. So much so that it cost him almost $15,000 to sell the house.

Biggest Success

His biggest success was a house that he bought just after New Year’s this year. He did a six week rehab, and then had it sold within SIX hours of listing it.

He would have sold it in TWO hours if he hadn’t demanded that the buyers actually go and physically visit the house.

Money Talks

Private money is the main source of funding. They had been strictly using family monte, but when they lost out on a couple of deals because they couldn’t sell their current inventory fast enough and free up cash they decided to start using private money.

Answer to Listener Question

The question that I asked Eric was “How do you keep contractors honest on a job?”

He had a great answer – he screens them heavily in terms of prior references and work completed. Then he has then fill out six documents on every job, which include:

1. Scope of work
2. W9
3. Release of Lien
4. Proof if insurance
5. Payment schedule
6. Materials list

Like most of us he had to experiment to find a great contractor. And unfortunately it seems that they all go bad at some point.

Links and Resources

Eric is looking for:

1. Wholesalers
2. JV Partners
3. Private Money

And if you’re an aspiring wholesaler who’s serious about learning the craft, Eric will spend the time to teach you how he does business and what he’s looking for.

To get a hold of him, you can call him on his office line which is (248) 817-2224 (x3) or send him a message through his facebook page which is here: https://www.facebook.com/RehabDetroit

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Aaron Yates. We talk about the challenges that lead to him getting started in real estate, we talk about his bankruptcy, we talk about the REI Meetup he founded, and he shares two resources that have made a huge difference in his investing business.

REI News

It’s been a slow week in the news department, so I’ll take this opportunity to ask you for a rating and a review in iTunes. If you like the interviews and the format of the show, you can leave a review via the show’s homepage at REITalkDetroit.com. Click on the box that says leave a review. It’s that easy and it takes two minutes. I would appreciate the feedback.

And if you have a news item to contribute or an event coming up, drop me a line and I’ll get it on the show.

Current Business

Rentals! Aaron is accumulating rentals one by one as he can pay cash for them. It’s great strategy that’s helped him towards his goal of not needing a day job.

He’s starting up a construction company as well to further diversify his income.

If you’d like to talk to him about either of these, drop by his facebook page at CKI Properties and drop him a line.

How He Got Started in REI

he got started the way a lot of people did – by buying a Carleton Sheets program.

He couldn’t afford it so he read it and sent it back, but when he bought his personal residence he got a check at closing, which got him hooked on real estate investing.

Biggest Mistake

Aaron says that his “two year, $5k, live in and fix and flip” project is his biggest mistake. He’s been living there now for several years, and he’s put $20k into the home and it’s still not done.

On the bright side though, he has learned a ton from the experience, he has a great house, and the value has come back such that he’s break even on the home even with the $20k he has put into it.

So he actually received a good education without it costing anything.

Biggest Success

Without a doubt his biggest success is accumulating six free and clear rental houses. Not a bad portfolio!

Money Talks

Right now Aaron is buying rentals with his own money and buys a new one when he saves up the cash. He’d like to start doing rehabs and flips, and will start looking for private money to fund that activity.

Answer to Listener Question

The question that I asked Aaron was “What’s the quickest way for a new investor to learn how to estimate rehab costs accurately?”

He had a great answer – and it’s the same thing that I did when I got started. He suggested that you create a spreadsheet with each item that needs to be replaced. Flooring, caplets, bathroom fixtures, outlet covers, etc.

Then go to home depot and price every item. If you capture all the items that need work, then your material cost will be spot on. You should then talk to a contractor in your area to determine what to add for labor costs if you decide to pay someone else to do the work.

Links and Resources

If you’d like to talk to Aaron about anything that we talked about in the interview, you can reach him via telephone at (586) 799-3254 or via Facebook at CKI Properties.

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.

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In this episode I talk to Allan Daniels. He’s a third generation real estate investor here in Metro Detroit. We talk about his family real estate business, his really cool perspective on making mistakes in your business, how he’s funding his deals, and his pretty black and white take on Dodd Frank.

Metro Detroit REI News

Six news items to report today:

First – crowdfunding is coming to real estate investing in michigan. Stay tuned for more information on this. It could absolutely change the way you do business.

Second – my new friend Aaron Yates passed his builder’s license exam last week. So if you see him around, or run into him on social media tell him congrats! He’s going open a rehab business shortly as well. I did an interview with him that will air in the next week or so with all the details. But in the mean time you can find him on facebook at https://www.facebook.com/CkiProperties.

Third – it looks like Detroit is now on the map. I received yet another request this week for bulk rentable properties. This time in the city of Detroit. So that makes two groups looking in the suburbs and one in the city. If you’d like to get together on one of these drop me a line at REITalkDetroit.com/contact.

Fourth – Allan Daniels, my guest today, is scheduled to present two continuing education courses at the North Oakland County Board Of Realtors; one on June 25th at 10am and the other on July 30th, both at 10am.

Here are the details:
Hardcore Regulations: Uncovering Dodd-Frank
2-hour Michigan Real Estate Continuing Education (legal course M5750)

Two Dates:
June 25, 2014, 10am – 12 Noon
July 30, 2014, 10am – 12 Noon

Location:
4400 W. Walton Blvd., Waterford, MI 48329
To register call 248-674-4080, or email: info@nocbor.com

Fifth – I’ve kicked off my six week REI Quick Start coaching program. If you’re new to real estate investing or you’re frustrated by your lack of progress, then this might be for you. Part of the program involves walking you through – and giving you access to – my source of leads. The source I’ve used for over ten years now with GREAT success. Get more information at REITalkDetroit.com/coach.

Sixth – the June Metro Detroit Real Estate Investors Meetup is tonight at Champps on Big Beaver in Troy. This is the meet up that’s being coordinated by Aaron Yates and Tom Auterman. You can find more information on the event’s facebook page here: https://www.facebook.com/events/792157324130025/

And if you have a news item to contribute or an event coming up, drop me a line and I’ll get it on the show.

Current Business

While Dodd Frank has impacted the land contract portion of Allan’s business, the rest of the business is still going strong.

They are doing conservative loans to professional landlords, they do occasional REOs, they are looking at commercial deals, and they are still making business loans.

How He Got Started in REI

Allan’s grandfather started the business several decades ago. His father then took the reins. Allan earned a degree from UM and had planned to get a day job, but when an offer he had been promised never actually materialized, he decided to go into business with his father.

It ended up working out well, and Allan and his father are still in business together.

Biggest Mistake

I like Allan’s perspective on this – he characterizes mistakes or failures as “seminars”, which makes a lot of sense if you learn from them! He says that his biggest mistake, or seminar, was early on in his career when he got a little emotional about a deal and dug his heels in and wouldn’t budge on the terms he had negotiated. Lawyers got involved, and thousands of dollars were spent on both sides over what ended up being a difference of a couple of hundred dollars.

He learned a good lesson that day that he has carried with him since. And the lesson is to not get emotionally involved in a deal.

Biggest Success

He says that he particularly proud of a deal where through financing a mortgage he helped a couple save their home from foreclosure. They were so happy and thankful that they brought a cake to the closing. And to top it off the note has performed extremely well over the years.

Money Talks

Allan’s real estate business exclusively uses family money. At present he’s not looking for additional sources of capital.

Answer to Listener Question

The question that I asked Allan was “They gurus are always saying that there are loopholes in Dodd-Frank that will let someone do land contract financing like they did before. Is there a loophole in the law that allows that?”

The simple answer is – NO. There is no loophole. And trying to circumvent the law is a felony punishable by hard time in the gray bar hotel.

Links and Resources

Allan is looking for or is offering several things:

1. He;s looking for good deals to finance with professional landlords – 50% LTV, 1st Lien, etc

2. He occasionally comes across REOs that he wholesales

3. He provides low LTV financing for rehabs and flips

4. He teaches continuing education classes for real estate agents and mortgage lenders

If you’d like to talk to Allan about any of these, or if you have questions for him, you can reach him via email at Allan@DrDanielsAndSon.com, or at the office at 248 335 6166.

If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.