In 2011 Tim VandenToorn took a leap of faith and invested $30,000 from his savings and ROTH IRA into a four-unit foreclosure. That was his first step into real estate investing and he's been going strong ever since, building a portfolio worth over $1 Million dollars. In this episode, you'll find out how he did it.
Tim and I also discuss his previous career in law enforcement, and why he traded that in to work with his family in property management at United Properties of West Michigan. Tim started as a maintenance tech and has since worked his way up to Managing Partner, where he oversees over 500 properties in the West Michigan area. Tim also started United Realty, which assists investors with the acquisition of investment properties.
Tim shares a lot of the experience he's gained during this time, such as buying multiple properties from tax sales, understanding the true expenses of investment property, the power of using 'other people's money', budgeting for capital improvements, and the functional issues tenants look at when deciding whether they should rent your unit.
Tim also spends a lot of time working with first-time investors, and shares his tips on managing your expectations in this hot real estate market, defining your goals, and where he sees the opportunities going forward.
There's a lot of great information packed into this conversation. If you'd like to contact Tim or United Properties, you can do so by email or website:
Tim can also be found on Bigger Pockets.
Many investors are struggling to find deals in this tight real estate market, and ending up increasingly frustrated by the lack of inventory and high asking prices they're encountering in the Primary market in which these properties are traded.
But there is a Secondary market in which these properties can be acquired for a fraction of their value by purchasing the note, or underlying mortgage.
Gene Chandler, the Asset Manager for Chandler & Chandler Financial, LLC, is in the studio with me today to share his experiences over the past decade in buying one-off and small pools of distressed assets directly from banks, hedge funds, and private equity groups.
Gene will explain the differences between the primary and secondary markets, performing v.s. non-performing loans, and traditional rehabs and flips v.s. 'fixing' a note.
You'll also learn the lingo Gene uses when talking to the bank's special asset manager, the types of properties he prefers, and many examples of the notes he's purchased and the profits he's made.
There's a lot of great information packed into this episode. If you've ever wondered what it takes to purchase the note directly from the lender, you owe it to yourself to check out this episode.
Gene can be contacted through his website or email:
Abandoned and Dilapidated for the past ten years, it was a two-unit property that no investor wanted anything to do with. I would drive by and wonder when the city would get around to tearing it down.
And then, Mike VanderWoude came along.
Mike is a broker at 616 Places, and he saw something that no one else did. He saw money.
Today, Mike takes us step-by-step through the acquisition and rehab of this two-unit property. How he negotiated the purchase price, acquired a construction loan, and checked with the city to make sure that it was indeed, a 2-unit property.
Mike also talks about the dynamics of Grand Rapids' West Side neighborhoods, how he researched what residents want in a home, whether they prefer a tub or shower, and the value of having great photos for marketing.
I know you'll enjoy learning from Mike's experience bringing a 2-unit back to life. You can find out more about Mike on the web:
Enjoy the show!
Bert Heyboer, President of S&G Property Management Company, has been investing in & managing rental properties since 2003. Today he shares his stories from the trenches, including the Most Evil Woman on Earth, the Cat Woman, and difficult conversations with tenants who can't pay their rent.
Bert also shares his expert advice on how to get started in owning rental property, managing your cashflow expectations, and making sacrifices now so that you can reap the rewards later.
Bert's also passionate about the legislation affecting rental property owners, and chairs the RPOA's government affairs committee where he works closely with local & state lawmakers to prevent bad bills from happening.
I know you'll enjoy today's conversation with Bert. You can contact Bert and S&G Property Management by web or phone:
If you're a buyer or seller of apartment communities in the Michigan and Ohio area, chances are you've talked to Al Beachum, an associate broker with Income Property Organization.
Al was recently named a 2016 Costar Power Broker with 47 commercial apartment transactions in 2016. Since 2007 Al has brokered over 230 multifamily properties worth over a half-billion dollars.
Today Al and I discuss his legal background and how it gives him an edge in working through the complex legal challenges that often happen during acquisitions. We also talk about the differences in scale and efficiencies between single family and apartment investing, and how to strategically deploy funds to improve apartment values.
Al works with a lot of first-time apartment investors and shares how he vets potential buyers to determine where their capital is coming from, whether they're properly funded, and what qualifications and track record they bring to the table.
We also discuss the Michigan market and Al's outlook on the changes he sees happening in the next several years.
If you're interested in investing in apartment communities, then this is a 'must-listen' episode!
You can contact Al through Income Property Organization's website: