Note Date 20170715
I'm sure you always hear about the easy sailing of notes. Heck, I'm one to brag about it too. So let me add some salt and vinegar to that sweet story we always hear. Some of you know that I like Flint. The water has been fixed (story located on the back page of the newspapers), there are more jobs moving in and the population isn't fleeing anymore. We purchased 19 notes up there in 2017. I'd buy more, but I have a bottleneck up there. For those notes that do not perform, we work on getting the property and then rehab them to turn them into rentals. Then we keep the rentals or sell them as turnkey properties. The plan works just fine and dandy as long as all the stages work like you plan. Mine aren't though. I'm getting the properties on schedule for the most part using Cash for Keys, or using the legal system, but getting the property isn't working for me like I would hope. So far half of these properties have turned into REOs. Now we have to do the rehabs. The only problem is that it's more rehabs than my property manager can handle. So they sit vacant. We even paid a lady a few hundred bucks to vacate during the 90 day redemption period thinking the sooner I get it empty, the sooner I can get it rehabbed and the sooner I can start getting rents. However, the property is empty and the redemption period has expired, but it's not rehabbed yet. I could have saved a couple hundred bucks on that one.
We all know that notes is a long play game. Or you should know. You make some quick cash now and then, but for the most part, you need 18 months or so to get these deals to work. We've only been in Flint for 9 months now, so we still have time to make this work as planned, but it's not smooth sailing, especially with winter coming. And I certainly do not want to buy any more at this point until these REOs are performing. My property manager has hired two more crews and another supervisor, so things should start moving faster up there. It is what it is.
That's pretty much all I want to write about today. Just because you acquire property doesn't mean you can get it working for you right away. If you want to hear some real horror stories, ask me about recording deeds in Genesee, Hamilton or Montgomery counties.