Thursday, December 24, 2015

How to comp an investment home correctly: Real Estate Investing

How to comp an investment home correctly: Real Estate Investing




To get the best use of this article combine it with our Youtube video where I go over live how to comp 2 different properties. Click here after reading to watch http://youtu.be/vDLpGvYbFoc

Out of all the topics, we will cover this may be the most important topic. So make sure you take good notes and pay attention. Successful real estate investing starts with being able to determine a home’s true market value and predict what it will sell for. When fixing and flipping property or wholesaling if you get the market value wrong all the rest of your numbers will be off, you will end up wondering where it went wrong and why you lost money or broke even. This key step is the number one issue why most people fail in real estate investing. Become an expert at valuing property and to be an expert you need expert tools.

The MLS:
If you want to be an expert at comping properties you need what the experts use and that is the MLS (The Multiple Listing Service) every area in the united states has one and it’s the same database real estate agents use to determine market value and list and buy property. If you were an expert auto mechanic would you use a cheap air hammer from your local Walmart? of would you use something professional grade like an air hammer from MAC Tools? This situation is just like that.  What about if you were a surgeon, would you use and razor from home depot or a professional scalpel? You get the point.
To get access to the MLS some MLS’s may allow outside users to gain access with a small fee, most, however, require you be a member of your local association of Realtors. If you are not a Realtor no need to worry, almost everyone on the planet knows several real estate agents that can get access for you. However you do it, you cannot start comping property without the MLS. Sites like Zillow, Realtor.com, Trulia though they are improving do not provide accurate resale data or the ability to compare property with specific details. Getting close enough in real estate investing does not cut it. You need exact figures. If you are using online sites like Zillow, Trulia, Realtor.com to evaluate and make investment decisions you are ultimately going to lose most of the time. Sorry guys there is no exception to this rule, use the MLS.

ARV:
The next key topic is understanding what an ARV is. When fixing and flipping property, we look at something called the ARV (After Repair Value). This simply means you are looking to see what your home will sell for after it has been renovated. To do so as you are looking for comps for homes that are move-in ready or have recently been renovated. We do not care about bank owned, REOs, dated properties etc. What will your home sell for after renovation and updates?

Once into the MLS:
Once you gain access to the MLS you will want to find similar homes that are comparable to yours in terms of features and benefits. You can do this by a search for homes that have sold recently in the area.

·         Always start your radius search as close to the home and move out from there. Often times you will find similar homes .5 miles out whenever possible always stick with under a mile out from your home.

·         You want homes that have the same features such as bedrooms, does the home have a basement, slab, crawl? Garage? No Garage? Similar square footage is key. Same style. A ranch sells for a different price than a colonial or a bungalow and so on. Remember SIMILAR FEATURES AND BENEFITS!

·         Why is square footage so important? If you are just a few hundred square feet off it’s a big deal. Let’s look at this example. Let’s say your subject house is 1,200 square feet. And you find two comps one that was very similar in features and benefits that sold for $180,000 and had 1,400 square feet and one that sold for $178,000 that has 1,350 sq. ft. You are thinking to yourself they are both very close in square footage maybe I will get $178-180k for mine right? Wrong! Let’s break them down to cost per square footage. Home #1 sold for $180,000 with 1,400 sq. ft. so $128.57 a sq. ft. Home #2 sold for $178,000 and has 1,350 sq. ft. so $131.85 a sq. ft. So homes are selling roughly between $128-131 a sq. ft. Now if we apply the math to your home at 1,200 sq. ft. this means your home would sell between $153-157,000. A $25,000 difference in price for just 150 sq. ft. difference!!!! Do you see where people can run into trouble? Square footage matters!

·         Always look for what has sold, not what’s listed or pending. Ultimately when your home sells it will have to appraise. Appraisers do not care what’s listed, the only price that matters is what has sold. Only look at sold comps. You can peek at active listings to see your competitors but do not make your buying decision on listed properties.

·         Never look at comps older than 6 months. The market changes often. Homes that have sold over 6 months ago are now out of date. You cannot use them.

To recap some search criteria:
  • ·         Keep Radius .5-1 mile out
  • ·         Similar features and benefits style and square footage are key
  • ·         Do not use comps older than 6 months old.
  • ·         Compare apples to apples.

Determine 3 Scenarios:
As an investor when I am comping a home I look at three scenarios. I write down

  • ·         A worst case sales price. I have to off this asset in the next week
  • ·         A likely sales price. Price slightly below your ARV comparable
  • ·         A best sales price. The market bids your property up.


I make my offers and investment based on the likely price. When I am running my numbers I also look at the worst case price to make sure worst case scenario I am not losing money. An example may look like this.

·         You find comps in your area that support an ARV of $120k my 3 scenarios may reflect this
o   Worst Case Price: $112k
o   Likely Price $118k (Slightly below market value for a quick sale)
o   Best Price $124k

Market Forces:
Lastly, we are going to look at Market Forces. Real estate is a cyclical business, meaning it goes up and goes down. If you follow the trends this happens on average every 10-12 years. You can make money investing in every cycle and any stage, however, you have to know where the market is. For example, in Michigan, our market usually slows down or values stop increasing or even decrease slightly as we get into the winter months, December, January, February. I have to pay attention as an investor when buying property in September, October November because when the renovation is complete I'm going to be selling in a slow market and the prices may drop. You don’t want this to happen to you. So to counter this, I am conscious of my buying activity in the few months before and make more aggressive offers. If homes are comping at $120k in Oct. I know I will be selling in a down market I will make my offers based on a reduction in ARV. I will seek to buy at $115k to make sure I am safe. Don’t take your eye off the market and cycles and you can dramatically increase your chances of winning every time.

Live comping Examples: Make sure you jump over to my YouTube video here on the topic, where I will actually walk you through comping 2 local properties. http://youtu.be/vDLpGvYbFoc
Happy and profitable investing everyone!



Tuesday, December 8, 2015

How to build a MASSIVE cash buyers list that actually works!

Hey everyone, very excited as yesterday we launched our first ever eBook "How to build a MASSIVE cash buyers list that actually works. A step by step guide for real estate investors." and the feedback and support have been overwhelming, people are loving the material and have picked up ideas they never thought of.



I was hesitant at first to offer such a product as my mind was saying, 1) who would want to listen to me and 2) You are terrible at writing! However I decided to ignore the drunk monkey in my head and listen to the advice of my friends and family and start to share and put down into words what I have learned over a decade of real estate investing and over 2,000 properties bought and sold and counting. And the information has  really been receiving great reviews.

In my first eBook I cover step by step how I built a MASSIVE cash buyers list of 1,086 cash buyers in less than 90 days. I go in depth and in detail. If you have been involved in real estate investing you will know the larger your cash buyers list the faster you can either wholesale a property or find an investor to invest in your deal!

I can want for you guys to grab a copy and most importantly make sure you share with me your wins and success. I am doing this because I really want to help others and make sure you take the most efficient and sustainable path to success and avoid the road blocks and obstacles I had to face. You can grab your copoy at the link below and then keep me posted as you put the steps into action !

https://borland.leadpages.co/build-a-cash-buyers-list/

I wish everyone happy and Profitable! investing.


Tuesday, November 17, 2015

Borland Realty Announced for 2016

The Borland Group has been a leader and well respected name when it comes to real estate investing in the state of Michigan since 2006. Broker Dylan Borland States "It was only natural that as we continue to grow and expand we do so with our own brokerage to provide even better service and quality. We are pleased to announce the addition of Borland Realty to our group."  Borland Realty will only be taking on select clients looking to sell, beginning the first Quarter of 2016 and select real estate agents. "We will only take on the best, agents driven for excellence and self improvement, those who run their business like a business and know how to sell real estate." Says Borland,  If you know of a top agent looking to join a power brand contact Dylan@theborlandgroupllc.com


Saturday, November 14, 2015

Off Market Michigan Investment Property

Looking for Michigan Investment Property? The Borland Group has many, Join our Buyers list and be the first to know when a good investment property comes out before the public knows!  Each property has been thoroughly evaluated by The Borland Group and certified, detailed property information is sent to you direct including market value, pictures, detailed repair/renovation list, return on investment and much more. Join now by Texting "InvestNow" to 44222 or signing up on the web at www.BorlandInvestmentProperties.com 



Saturday, October 31, 2015

Investing in rental property

What makes a good rental? Evaluating a rental return.

I often get asked, what makes a good rental property? Well, that is a question only you can answer. Every investor has different criteria they look for in a good rental home. However, I would happy to share with you some things to consider and our criteria.



When looking for a good rental there are a few key points to consider.

  • 1.       Will you be paying cash? Or will you be using financing? This will affect your numbers dramatically.  Watch our YouTube coverage of this topic here (Investing in Rentals )  to see how each scenario affects your decision.
  • 2.       Set your minimum standard will you buy a house or a condo? Often people shoot for condos because they can be picked up “Cheaper” what they don’t realize is you have an association fee that eats into your profits and will never go away and an association to deal with!
  • 3.       What type of tenants do you want to deal with? Low income, Middle class, Luxury? Each has its advantages and disadvantages.
  • 4.       What do you want your minimum rent to be? $1,000 a month? $2,000 a month?
  • 5.       What type of return do you want on your capital? 6%, 10%, 15%, 20%? This is what is known as a cap rate. (Investing in rentals)  
  • 6.       What will your screening process be? Do you have a property application? Will you be checking credit? References? The last thing you want to do is get a tenant in your home who doesn’t pay, you have to evict and may destroy the house! Here is a good pointer, when screening tenants drive by or visit where they are currently living. This will give you a clear picture of how they are going to treat your house.
  • 7.       Are you going to allow pets or not? Smoking?
  • 8.       Will you hire a management company? This will affect your net profits as well, on average management companies will charge 10% of the monthly/annual rent to manage the home for you. We find this is best when one has 10+ rental properties it then becomes too time-consuming to manage your own.
  • 9.       Make sure your tenants have content insurance! Explain to your tenants that your insurance will not cover their belongings as most do not understand. God forbid something happens to the home, or the house gets robbed your tenants will come to you looking for coverage! Make sure they are insured for their belongings. Make sure you are insured for a good amount of liability!
  • 10.   Here’s a taboo topic, remember to check your state and federal laws when screening tenants and renting. There are clear lines between what you can and cannot do as a landlord and you cannot discriminate based on the fair housing laws (Race, religion, national origin, gender, etc.) Many landlords find themselves in some serious heat over this issue. Don’t be one of them! Treat people fairly and with respect.

How we look at rentals:
Our firm solely looks at the numbers and the return we are going to get on our investment. We also look for homes that are going to provide good resale value in the future. We are fortunate to be in a Metro area where home values are very low compared to the rest of the nation. The lower the home value and purchase price the higher the return on your capital for most rentals If paying all cash. Every market is different.

We look for something called a cap rate, all a cap rate is, is the return on your cash investment. Let’s look at the following example assuming a cash purchase. (Keep in mind every investor has different items they look at we are sharing with you what we look at)

123 Money Lane, (Cash Purchase)
·         Purchase price of home: $65,000
·         Renovation to home if needed: $10,000
·         Total into home: $75,000
·         Potential Rent: $1,100 monthly ($13,200 annual)
·         Annual “Non-Homestead” taxes: $2,000
·         Annual insurance: $650
·         Annual Property maintenance budget: $1,320 (10% of annual rent)
·         Property management cost: We manage our own, however on average 10% of annual rent so $1,320

Cap Rate Cash: Total into home $75k. Total Annual Income $13,200. Total annual expenses $5,290. To get the cap rate divide total annual net by total purchase and repair cost. So $7,910 / $75,000 = 10.54%. Meaning this home is returning at 10.54% return on my cash investment. How many would be happy with that type of return on cash that is just sitting around? What is your IRA or 401k returning?

Now lets look at an example where one may finance this same rental.

 123 Money Lane, (Financed Purchase)
·         Purchase price of home: $65,000
·         Renovation to home if needed: $10,000
·         Total into home: $75,000
·         Potential Rent: $1,100 monthly ($13,200 annual)
·         Annual “Non-Homestead” taxes: $2,000
·         Annual insurance: $650
·         Annual Property maintenance budget: $1,320 (10% of annual rent)
·         Property management cost: we manage our own, however on average 10% of annual rent so $1,320
·         Annual mortgage payment. Assuming a conventional 30 year loan with 20% down and 5% interest. $3,600 annual. You put $13,000 down + your $10,000 into home to renovate. .

Cap Rate Financed: Total cash into home $23,000. Total Annual Income $13,200. Total annual expenses $8,890. To get the cap rate divide total annual net by total cash into the home so $4,310 / $23,000 = 18.73%. Meaning this home is returning an 18.73% return on my cash investment. Now keep in mind it will take 30 years to pay this home off financed and you are paying nearly $100k after 30 years of interest. You have to decide what is important to you and how you want to invest, how long do you want to keep the home?


I hope this information helps spark 1 or 2 ideas in you, we wish everyone happy and profitable investing! Please share with us in the comments below any questions or additional topics you may want to be covered and you can always visit us on the web at www.TheBorlandGroupllc.com

Saturday, October 24, 2015

Borland Book Club

Reading books is one of the most profound actions you can do to change your life, Books on personal development, on your industry, Imagine if you read just 10 pages of a good book each day? Thats 3,500 pages a year! The change in your life and mindset would be astronomical!

 Thats why we introduced The Borland Employee Book club. For each book a employee reads and completes a quick synopsis of the 3 key points he/she will earn an extra monthly bonus! You dont have to be an employee of The Borland Group to take action, challenge yourself, develop a new habit , start small consider reading just 10 pages a day of a great personal development book for the next 30 days and share your feedback and experiences here with us. We cant wait to see the transformation in each of you. Go out and take action! 


Saturday, October 17, 2015

Detroits, Corktown Development Group

The Borland Group  is please to announce the launch of a new site dedicated to the redevelopment of Detroits oldest neighborhood, Corktown. www.DetroitsCorktown.com

Detroit is such a great city and we are so happy to be able to participate!


Saturday, September 19, 2015

Instant Cash offer for your home, Get one now!

Have a listing? have a home you need to or would like to sell? I am making instant cash offers on homes today We can bring you a check with in 72 hours. Email , message or post here the homes address and your estimated cost of repairs to bring the home up to market value and I will send you an instant offer and instant market value of the home. no private inspections , no financing , no BS. Dylan@theborlandgroupllc.com

Know someone who needs to sell?, refer them, you will get a $1,000 check if we buy their home.


Saturday, August 29, 2015

How To Sell a Investment Home - Dylan Borland

Sale and Closing, investment property: Part 4

Find, Buy, Sell Series Part 4
In my Find, Buy, Sell Series I will be taking you through the four categories of real estate investing. Part 1: How to find properties. Part2: How to evaluate the properties Part 3: The renovation process and Part 4: Sale and closing.



Sale and Closing: Part 4
     In part 4 of our series Find, Buy, Sell we will examine the last step in the fix and flip process, the sale and closing of the home. Now that your home has been renovated it’s time to get it sold and some money back in your pocket! The sale is a crucial aspect as you want to start with your best foot forward.
When getting ready to sell the house you should first revisit the comparables. In real estate, prices sometimes change weekly, the price you had in mind when you bought the home might have gone up or down. When we are looking to sell a home we look to list the property slightly below market value. This will cause a fast sell. In this business the first time you place a listing on the market is your best chance at getting it sold (The first 2 weeks), the longer the home sits on the market the more people think maybe the seller is overpriced? Is there something wrong with the home? Also the longer you have carrying cost for financing, electric, gas, insurance and what if the market takes a dip on pricing! Don’t hold out for the best and highest price. Price it right from the very start and come out with a bang! Our firm usually shoots to price 3-5% below market value, we can do that because we plan that when buying the home and our offer is in direct relation to that.

Some Tips on how to get a home sold quickly.

  • ·         Price! Make sure you are priced right from the start and slightly below market value. This means the homes that have sold, not what is listed. Most listings are overpriced never base your evaluations on what is listed only what is sold.
  • ·         Make sure the house shows well, landscaping is nice, home is clean and fresh, place Lavender air fresheners throughout to add to the senses.
  • ·         Consider “Pre-Selling” the home on Zillow. Our firm most often will list a home on Zillow 2 weeks before the MLS. A good time to do this is the last 2 weeks of renovation. The goal is speed, keep the capital moving. About 30% of our homes sell without having to be listed in this period and without a buyer’s agent! Putting the commission in our pocket.
  • ·         Do a reverse MLS search for all cash buyers 2-5 miles out from the property. Prepare a quality, color property flyer, and mail out to each person asking them to come see your property and write an offer. You will be amazed at how many cash buyers there are in your local area. Often times in our area there is 100-200 cash transactions surrounding a 2-5 mile radius of our homes, don’t you think at least 1-2 of those people would be interested?
  • ·         Remember your first offer is usually your best offer, give it serious consideration and try to make it work. I have seen too many investors say. “Well I just listed the home and I don’t want to take the first offer I get, let’s give it some time” Time is your enemy in the fix and flip world, if it’s a serious, well-qualified buyer take it and move it fast and onto the next home.
  • ·         Make sure any offer you get you strictly look into the buyer’s financials, make sure the lender has truly qualified them and that this buyer is committed to the home. The last thing you want is an unserious buyer who in the end may not get financing and now you have spent 40-50 days closing and the property has to come back on the market! This is very costly, take the steps to really put the buyer through “the ringer” on qualification. Set clear expectations upfront you don’t have time to play around.



This brings us to the conclusion of our 4 part series Find, Buy, Sell, make sure you leave comments below if you have an questions or want to see additional topics covered or expanded we are happy to join in discussion. Check us out on the web at www.TheBorlandGroupLLC.com and happy , profitable investing! 

Saturday, June 13, 2015

The Borland Group will make bid for Iconic Detroit Fisher Building

A Bid for History
Livonia, Michigan - June 12th 2015 – Michigan’s iconic Fisher building is for sale!



The Borland Group is proud to announce that it will be bidding on the majestic Fisher Building, which is set to hit the auction circuit on June 22nd 2015. Formerly owned by the Farbman Group, the Golden Tower, went into foreclosure this past May.

Created by the wonderful genius of Albert Kahn in the late 1920s, the Fisher Building is the seventh tallest skyscraper to grace the Motor City skyline and is considered to be one of the most beautiful commercial buildings ever constructed.

Often affectionately referred to as “Detroit’s largest piece of art”, it was commissioned by the Fisher Brothers, who had made a name for themselves in the automotive industry with their innovative auto-bodies. GM, who later brought the brothers out, sported a “Body by Fisher” emblem on their vehicles until the mid-1990s.

Primarily utilized for office space, the building also houses a theater, The Fisher Theater, which seats approximately 2,089 guests who in the past have enjoyed renditions of Fiddler on the Roof, Sweet Charity and Walking Happy, just to name a few. The building is located in the New Center on West Grand Boulevard, which is strategic for businesses operating in the metropolitan area as it grants easy access to Downtown Detroit, Ann Arbor, Troy, and other surrounding growing neighborhoods.
               
The Borland Group would love the opportunity to be part of Detroit’s changing landscape. Just as the Fisher Building withstood the test of time, so too has The Borland Group who has been in business since 2006. The Borland Group is a home grown real estate investment firm based in Livonia and is considered to be one of Michigan’s largest residential real estate buyers. 

Like the Fisher brothers who believed in giving back to the community in the form of creating jobs, so too does The Borland Group who plans on restoring this historic landmark, if acquired; thereby, bringing Michigan one step closer to its former self.

It goes without saying that this auction will be a battle, but it is one that The Borland Group is willing to meet head on just as the ornate exterior of the Fisher Building met and weathered the elements throughout the decades.

The Borland Group is ready to take the next step and expand its horizons into commercial real estate and is sure that the Fisher Building is the one to propel them into this new market. 


Contact
Dylan Borland
17197 N Laurel Park Dr. Ste. 115, Livonia MI 48152

734-744-6399

The Renovation Process Part 3

The Renovation Process Part 3

Find, Buy, Sell Series Part 2
In my Find, Buy, Sell Series I will be taking you through the four categories of real estate investing. Part 1: How to find properties. Part2: How to evaluate the properties Part 3:The renovation process and Part 4: Sale and closing.




The Renovation Process: Part 3
We found the property, we estimated the repairs, and we made an offer we got the offer accepted and closed and now it’s time to renovate the home.  Hopefully by this time you have done your due diligence and selected a top contractor to work on the renovation for you. If you have not let’s take a step back

Selecting Contractors
Not all contractors a created equal. Investors generally have two different models when it comes to renovating a home. One model is to hire a contractor for each trade in the renovation. So one contractor who will do the electrical, one for mechanical, one for plumbing, a handyman and so on. In this scenario, the investor becomes the “Projector Manager” and is coordinating the entire renovation and all trades. The second way to do it is to hire one general contractor who will manage the entire renovation and hire his own sub-contractors to perform the various parts of the renovation. Either way is fine and it really comes down to how much time you have, If you are working on a property here and there scenario one may be best for you, if you are working on 50-100+ renovations a year there will be no way you can manage the renovations yourself.

In either scenario make sure you spend time interviewing the different contractors and verifying their level of craftsmanship, skill and expertise. A bad contractor can destroy your renovation and cost you twice as much money to hire someone to fix the mess. You will have to make sure your contractors are licensed and insured and come with good references. 

It is easy to fall into the trap of wanting to hire the cheapest contractor on the block after all this puts more money in your pocket when you resell the home right? That is the wrong way to think, I can tell you without a doubt DO NOT HIRE THE CHEAPEST CONTRACTOR ON THE BLOCK!, these contractors will cost you more money than you can ever imagine, a good contractor may cost more but will ultimately put more in your pocket with providing you a quality product that sells fast and comes with no lingering issues.

Bad contractors can cost you time and a lot of money
·         *Over budget
·         *Over schedule
·        * Poor quality and craftsmanship
·         *May get into arguments with you and walk off the job, put liens on your property, etc.
·        * Steal or embezzle money from you
·         *You may have to re-renovate their renovation!
·         *Create liability for you down the road when you resell the home
·         *You may have to fire them during the job and hire someone new costing a lot more than you originally planned

A good contractor will save you time and money
·        * Comes in on or under budget
·         *Comes in on or under schedule
·         *Pulls all the proper permits
·        * Is licensed and insured
·        * Ensures a great quality end project the new owner can enjoy for many years to come without issues
·         *Will look for ways to save you money without affecting quality

When renovating a home keep in mind some key pointers
·         *Going over schedule can cost you a lot of money in carrying costs, utilities, insurance, if you have a loan on the property. Keep a close eye on this. Consider enforcing a late fee to your contractors for every day the project goes over schedule.
·         *Make sure you have your contractors sign independent contractor agreements also a DETAILED! Scope of work. Consult an attorney to make sure you have an iron-clad agreement to protect you and your business
·         *Require your contractors to be licensed and insured
·        * Consider having your contractors take out a bond for the project
·         *Consider using checklist to make sure you have a consistent end project during, before and after renovation
·         *Hire slow, fire fast!
·        * Call around when shopping trades don’t choose the cheapest don’t choose the highest look for middle grade. You will be surprised at the vast differences in pricing.
·         *On average, a renovation should take 1 week for every $10,000 spent. If you have a $30,000 renovation, it should take three weeks. Time is money and opportunity in this business.

As always feel free to reach out to us for questions or comments or if we can expand on any topic. Go out lock down some properties and happy investing! Visit us on the web at www.TheBorlandGroupllc.com


Saturday, May 23, 2015

Thank you to all who served. Borland Group Donates $1,000 to Wounded Warrior Project.

This Memorial Day weekend we must take time to honor all those who have served and lost their lives for our great country and everyone who lives here. This is the ultimate selfless sacrifice. We cant thank you enough veterans! In honor of those who have served The Borland Group will donate $1,000 to the Wounded Warrior Project. http://www.woundedwarriorproject.org/


Saturday, May 16, 2015

How to evaluate investment properties Part 2

Find, Buy, Sell Series Part 2
In my Find, Buy, Sell Series I will be taking you through the four categories of real estate investing. Part 1: How to find properties. Part2: How to evaluate the properties Part 3: The renovation process and Part 4: Sale and closing.



How to Evaluate Property: Part 2

Property evaluation is critical when investing in real estate you have to be spot on with your numbers and take everything into consideration from the very beginning. The more due diligence you do in this period before purchasing the greater your chance of winning in the end. Remember the old saying “I became successful because I can say no to 99 out of 100 opportunities presented to me” Don’t be so hungry for a deal that you are anxious just to take anything, wait it out and never invest outside of your standards, be patient and focus on a solid win, this is absolutely a business where you will say no to 99 out of 100, and that’s ok.

Below I will cover some key steps briefly when evaluating the property.

Step 1: Initial walk though
To properly evaluate the home on the initial walk though you have to know your strategy going in. How do you like to renovate? Are you looking to get away with the bare minimum? Are there things the property must have in the end? Are you an investor that guts everything and starts over, or are you like us who use a hybrid approach where we try to save as much as possible and renovate the key items only. As you walk through the home make sure you are taking detailed notes as to the condition of each room. I like to look at each room separately and break down the cost per each room. In the end I can say Kitchen $5,000, Bath $2,000, Living room $500 and so on.

Some common missed costly mistakes
  • ·         Is the electrical updated?
  • ·         Is the plumbing updated? In Michigan if it has galvanized pipes plan on plumbing!
  • ·         How many years are left on the roof?
  • ·         How old are the furnace and hot water tank?
  • ·         Did you thoroughly check the foundation?
  • ·         Have you considered the cost of city permits and inspections?
  • ·         Do the windows need updating?
  • ·         Are there any major cracks in the driveway or concrete outside that may be an issues for a buyers financing?


When evaluating always look at the future and the end product, have the end goal in mind and then work backward from there. Keep in mind to always cushion your budget it is better to be safe than sorry. Always add an extra 10-15% for extras and unforeseen circumstances.

Step 2: Looking at the comps.
Looking at the comparables in the area to determine your ARV (After repair value). Here are some key points you need to remember when looking for an ARV:
  • ·         Always be conservative, have a worst case price, likely price, and best sales price. Base your evaluation off the worst case scenario!
  • ·         When doing a market comparison only use sold comps, what is listed or pending is irrelevant!
  • ·         Try to stick as close to the property as possible start .25 miles out and expand from there
  • ·         Never use comps older than 6 months
  • ·         Use comps with similar features, benefits, square footage and style. You cannot compare a bungalow to a ranch or a property that has 1,200 sq. ft. to one that has 1,800 sq. ft. If there are not at least 3 clear comparables, you may want to pass on this property.
  • ·         Whenever possible (And I recommend to only) use the MLS to find comps, sites like Zillow, Trulia, eApprisal etc can be extremely inaccurate. If you don’t have, access to your local MLS find a real estate agent who does.


Step 3: Plug in the numbers
Once you are armed with your renovation costs and your comparables plug in the numbers. Most investors use a formula called MAO (Maximum Allowable offer) to make offers on properties. A very common MAO is the ARV of the home times 70%, less repairs. For example. If the ARV of a home is $100k and you determined, the repairs were $20k your offer would be $100k x 70% ($70,000) minus $20,000 in repairs. The most you could offer the homeowner is $50,000! When fixing and flipping a property, the vast majority of investors stick as close to 70% MAO as possible or below. This allows for a good return when the home is sold and any unforeseen issues in value or closing. (Also leaves room for the cost of financing your deals)
Lastly, keep in mind most investors completely forget when plugging in the numbers there is a cost to closing on the resale of your property. You have to take into account the real estate commission, in most cases 6%, taxes, water, title work, etc. A lot of investors lose big money in the end because they did not look at the resale closings costs. Don’t be one of them!

Remember the key to a successful deal is your planning in the very beginning before you make the purchase, the more time spent evaluating, the better chances you have at winning. Don’t forget to post your comments below and I would be happy to expand on any of the information. We look forward to seeing everyone in 2 weeks for Part 3: The Renovation Process.


P.S. Don’t forget for a more one on one approach check out my personal coaching program,  I offer a full money back guarantee visit http://www.theborlandgroupllc.com/real-estate-investing-coach---dylan-borland-.html

Michigans Premier real estate investment firm The Borland Group www.TheBorlandGroupllc.com 

Friday, May 15, 2015

The Borland Group Becomes Michigan’s Largest Residential Property Investor in Just 3 Years


Contact: Dylan Borland Dylan@theborlandgroupllc.com
Company: The Borland Group




The Borland Group Becomes Michigan’s Largest Residential Property Investor in Just 3 Years
Within just three short years, The Borland Group has become Michigan’s largest investor in residential properties. Founded by Dylan Borland, who has been investing in real estate since 2006 and has sold over 1,000 properties within that time frame.

Dylan’s expertise and knowledge in real estate investment and strong dedication to inspire values of commitment, trust and respect within the Borland Group have established his name as one of the most respected real estate investors in Michigan.

Even after three years, The Borland Group continues its goal of building trust throughout the Michigan area and actively investing in real properties every year. In the next 12 months, the company will be breaking into the world of estate developments starting with the development of luxury condos in the Metro Detroit area with the expert guidance of seasoned associates and mentors. The Borland Group aims to make these properties the finest of its kind in Michigan, competing with some of the best in the world in terms of amenities and services. The condos will be priced in line with current market values.

The Borland Group is also looking at constructing one of the finest mixed-use towers in Downtown Detroit Michigan. This marks a new strong foundation for downtown Detroit’s development area and the city’s rebirth.

Since 2006, numerous real estate development projects worth $6 billion have been completed in greater downtown. Detroit is facing brighter days as in the past years, many projects have inched forward in its recovery efforts,  including three casinos, Comerica Park and Ford Field, just to name a few. That progress, however, seems snaillike compared to the potential and pace of today.
With a streetcar line, lots of housing, restored riverfront, entertainment district and planned international bridge, greater downtown Detroit appears to be finally moving forward in terms of developments. Big projects and a blatant optimism among the richest and most powerful people in the city could push Detroit into an upturn that will transform it greatly in 10 or 20 years.

The Borland Group aims to contribute to the city’s further growth. The company is currently in the beginning stages of development and is eager to discuss further developments with anyone interested in this new endeavor.
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For more information, feel free to visit www.TheBorlandGroupllc.com

Saturday, May 2, 2015

How to Find Investment Properties Part 1

Find, Buy, Sell Series Part 1

In my Find, Buy, Sell Series I will be taking you through the four categories of real estate investing. Part 1: How to find properties. Part2: How to evaluate the properties Part 3: The renovation process and Part 4: Sale and closing.



How to Find Investment Properties Part 1

I often get asked how do I and where do I find properties? Investors are often scared to talk about this topic for fear that leads will be taken from them and that there are not enough leads out there. Let me first start by squashing this myth. People are often perplexed at the amount of deals we do every month and every year, they cannot comprehend how we find so many properties. We find properties because we work and we work our butts off. There is enough business in any market place for everyone I can tell you first hand you can do as many deals as you want or don’t want depending on how much you are willing to work and focus. Remember the old saying “you get what you focus on”, its 100% True!

Investors feel there is always a shortage of leads because they simply are not putting in the effort to relentlessly go after leads and follow up with leads. I know investors that spend huge amounts of money marketing to motivated sellers, the calls start coming in and they simply do not follow up with the leads or if they do its days or even weeks later and they wonder why people do not want to do business with them! Would you do business with a company that returned your call a week later? How about 4 days later? Or in today’s world even a day later! We can expand on this topic more in a later blog however just know there is a lot of business in any market at any time. People always have to buy and sell. 

Real estate investing is not a new topic or industry, there is no new magic formulas, no secret society of untouched leads, no closely guarded secrets. There are a handful of categories that all investors go after and the only difference between doing deals in any of these categories is how much consistent effort are you willing to put in. The major areas where leads are generated in residential real estate investing are listed below. My recommendation is you pick 1 or 2 of these areas, become an expert at it rock out tons of deals in either of the categories, then and only then add 1 or 2 more to your expertise and do more. “A jack of all trades is a master of none” Do not try to target all categories at once, pick what you feel you can relate to and makes you passionate and become an expert at it.

Major lead sources for Real estate investing, Motivated Sellers 
(No specific order) 

1.       Inherited and probate homes
2.       Foreclosures
3.       REO and REO agents
4.       Real estate agents
5.       Absentee owners
6.       Homeowners with high equity
7.       MLS keyword searches such as “cash only” , “motivated seller”, “must sell”, “seller financing” and dozens more
8.       Sheriff sales
9.       Attorneys
a.       Bankruptcy
b.      Divorce
c.       Personal Injury
d.      Real Estate
e.      Probate
10.   Internet
11.   Bandit signs
12.   Car signs
13.   Wholesalers
14.   Vacant houses

Once you have picked 1 or 2 categories then it’s time to start generating leads by marketing to them. You can do this one of 3 ways and I recommend you do all 3! Direct mail, door knock, phone prospect. Dont stop until you get a response!

Happy investing everyone, dont forget if you have questions or want to see a topic covered email me direct at Dylan@theborlandgroupllc.com