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EP.18 The Importance of Having a Strong “WHY”, with Mike Makredes

The Importance of Having a Strong “WHY”, with Mike Makredes

 

In this episode, our guest is Mike Makredes. He is the CEO of MTM Property Solutions LLC, a real estate company based in Fresno, California that helps individuals and families buy and sell their homes. Mike worked his W2 sales job in the agricultural industry while growing his real estate business. After 2 years, he was finally able to leave his job and go full time in real estate. Today, Mike shares how his company helps clients buy and sell their properties. Tune in to learn more! 

 

Mike’s Entrepreneurial Background 

[01:41]

Mike had a sales position with one of the largest growers in California. He was in the produce industry selling commodities for over ten years. Deep down in his heart, he was always an entrepreneur. But he could not find the niche he wanted to get into. Though he was curious about real estate and how generational wealth is made. So over the years, he read books about real estate investing and the number side of things to understand how it all works. 

 

He then came across a creative real estate program and built a small portfolio enough to where he could jump in and do this full time.

 

Getting Over the Edge 

[04:21]

Finding out that his wife was pregnant made Mike figure out something. He knew that the time of his job would be taken away from his family, which wouldn’t be sustainable. Once his son was born, he made calls on his way home from work, saw homes late at night, and just hustled. He made sure that he was there in the early years of his son’s life. 

 

Creative Financing 

[05:49]

Mike’s company buys and sells homes on the term. They will acquire a property on the terms of the contract. They don’t charge fees or commissions to the seller who would lock in their equity.They also sell the same way on the buyer side, where they would mark up the price to make their profit, lock in their price, and then sell it to them. It is the company’s way for both sides to benefit from the property where the buyer gets into a home and the seller sells the home at a market price with no commissions or fees.

 

Helping Clients with Financial Issues 

[12:00]

The company had a client who they were a family of five and was renting at the time. Their credit was hurt from the past and they just couldn’t qualify for a loan. They were good candidates with room for growth, but their past holds them back from pushing forward and getting past everything they've done years before. By taking the company’s program, the family could get their financing in place. They even gained even more equity on top of that when they were getting their financing done. 

 

Entering the Program 

[15:43]

Most renters or buyers feel overwhelmed with the position that they are in, and they don't really have a clear path of what to do to get to the finish line. Mike and his company help those renters see the plan and work with a third-party company that does a full credit and background check for them while giving a mortgage-ready date. They calculate an estimate for the buyer on the timeline of building credit.  

 

Working with Lenders 

[19:18]

Rocket Mortgage was the recent deal that MTM Properties had. Mike says he was fortunate to get the same associates to make that deal. They keep a record of all the down payments that they are taking. Buyers ensure that it comes from a personal account and has a money source. Buyers will then give that information to Mike and his company, showing that they received that data.

 

Financing Deals 

[24:33]

Financing has many different ways where you could structure an owner financing deal with the seller. When it's owner financing, this means that the property is free and clear. There are zero loans on the property and monthly payments can be structured. 

 

Dealing with Challenges 

[30:53]

There was a particular client of MTM Properties where the challenge involved their down payment. They didn't have the full down for that size of a home. They wanted to get out of the city and move into a rural area. This house was big enough for them and their family. They wanted the space and acreage to live on in a remote area. Their main thing was they had the income, but they didn't have the full down payment for that property. These buyers had good credit, they had a good income, and they just needed more time for the down. They were able to put down around that same range around that six 6% range to move in. 

 

Mike’s Take on the Current Market 

[36:42]

Mike says there's no doubt that the supply is much lower than it's been in the past. But in any market, there's always going to be either an expired listing or someone having difficulties selling their home. But he says that whatever your motivation may be, there's always one out there that needs extra help. 100% of the homes aren't going to sell every month. There are reasons why they didn't sell. MTM’s job is to dig deep, find out why they didn't sell, and see if they can help any of those individuals and families. They want to help the seller complete the sale of their home and keep as much money as possible. 

 

Think Outside the Box 

[38:41]

Mike says that everyone should think outside the box for once. He says that we think there is only one way to invest in real estate: to have the cash to put down to get a loan to buy it. But there are other ways to do that. We should think outside the box.

 

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