Best Market to get started in?

[Jerry Stevenson]

How did you get your start in Real Estate? What market and strategy? What market historically does pretty well?

[Isaura Orellana]

Detroit Michigan is without a doubt the number one city in the country for positive cash flow, best rent to value ratio and biggest bang for your investor buck! Not to mention it's strong and steady appreciation that was just announced as the highest it's been in 20 years in February. Many investors are happy with or chase the 1% rule well in Detroit ourselves and our clients and investors with the right support or know how follow the 2% and above rule. Yes Detroit is one of the very rare cities that can comfortably deliver on the 2% rule if you have the right team walking with you hand in hand. I also highly recommend you don't wait to much longer to test the waters on the rule. Get in while the getting is good! Just prior to the Covid-19 Detroit was BOOM BOOMING! We had and extremely busy winter in the Detroit market while it produced some of the best numbers we've seen in over a decade. What the Covid has done is actually slow the Detroit market down just enough to keep the door open for investors who still want to get in while the getting is great and capitalize on favorable purchase prices getting that biggest bang for your buck, high double digit COC return, best rent to value ratio in the country as well as fruitful appreciation. Whatever you do, don't buy into what the Detroit trolls/haters on bigger pockets say. These are the same narrow minded spiteful so and so's that have been perpetuating this garb about Detroit for the last 8 years while the properties that were selling for $500 bucks appreciated to $30,000 plus or the properties that just a few years ago were $30,000 and are now selling with full renovation packages for $200,000 plus in our better areas. We do tours every month and will gladly show you around and get you up close and personal with the beautiful ginger bread brick properties and lovely frame houses that are offering solid cash flowing returns as well has help familiarize you with Detroit and its robust rental market. Now I'm not saying Detroit doesn't have its own separate set of pitfalls as do many cities and some can even be devastating to a novice or even an experienced investor but with a large and awesome boots on the ground team or army the city becomes your oyster. Don't let the skeptics deter you. As I said, just think about all the money investors have made in Detroit since the crash and look at where Detroit's economy and market are right now compared to the last two decades. The recovery truly has been amazing. To quote one of our clients who is purchasing his fifth property with us "Detroit is being reborn like a rising Phoenix from it's own Ashes." We definitely encourage our investors and all investors to do their own due diligence and as part of that due diligence meet in person with operation leaders and or those running these turnkey or investment companies . If you are investing in rehabs or buying rehabs, meet the contractors or at the minimum at least see their work. Do a deep dive into who will manage your properties. Get solid references, visit their office if you can, if your boots on the ground team has had an operation in Detroit for 5 or 6 years then they should darn well have a long list of happy clients that they should be able to refer you to. Heck, if your brave and feel comfortable or when you do put your mask on and take a quick trip to our big bold beautiful city as did many people and investors from around the world do everyday and will be doing again before you know it and see the operations on the ground first hand. If not do FaceTime or Zoom Chat to help yourself get acquainted with those you will be doing business with. It's not just the positive cash flow and rental properties that are plentiful in Detroit, we offer some of the best food and architecture in the world. Downtown Detroit is totally amazing. A great mix of modern and brick. Romantic, boutique hotels like the Shinola, The Foundation, The Detroit Club Hotel are plentiful that we will all once again feel comfortable in visiting. The modern casino's are also a good time and will too be up and running again before you know it. And let's not forget about the Great Lakes, water ways, and rivers that are all at your finger tips not to mention Detroit's abundance of stunning and glorious architecture. The other big factor that plays into Detroit's big positive cash flow wins are the enormous amounts of renters desperately looking to move into freshly renovated properties. Ask any Detroit investor, wholesaler, realtor, contractor, PM, Inspector, title and escrow company etc and they will all tell you the same thing. There is an overwhelming amount of Renters in desperate need (Both cash and Section 8) actively searching to rent a nice renovated property with a little curb appeal day in and day out. I'm also certain that as soon as the quarantine is lifted there will be a title waive of new Section 8 tenants looking for stable living environments. So as an investor one might want to re-evaluate their traditional investing strategies and focus on turnkey property operations that specialize in section 8 placement, oversight and tenancy. I mean really, after this virus, what investor isn't going to appreciate good old fashion government guaranteed rent. Some investors may have a negative connotation when it comes to Section 8 but I can tell you some of our best tenants are in fact section 8. When it comes to section 8 there is a whole host of positive reasons why in Detroit in particular they are a great choice with limited risk. Do your homework or feel free to reach out to further discuss. GO DETROIT !! INVEST DETROIT !!