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