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Updated over 8 years ago, 07/24/2016
DETROIT and MICHIGAN (#1 Defender answers questions)
@Account Closed
I Live in Detroit. I proudly live in Detroit. But for the past couple of threads about my fine city I’ve stayed silent to see which direction it would go; but I’m back to answer any questions you may have about Detroit or Michigan. I’ll also answer some of the questions that weren’t completely answered or defended in other threads. I tagged the people that have asked me questions.
What do you think of Michigan
What do you think of Detroit?
Originally posted by @Javier Gaillard:
@Richard Dunlop Hi Richard, please let me know if you can help me to start investing in Detroit. Thank you!
Possibly give me a call, I have worked with a few.
Originally posted by @Chad Rider:
Richard,
Thanks for your posts and 1st hand experience with investing in Detroit. I've read through this thread and appreciate you sharing your wisdom.
Thank you for your kind words, most have only mocked the possibilities in Detroit but I'm glad I'm in this market.
I lost everything but the shirt off of my back. I'm just now recouping the money I lost in Detroit two years ago. Run!!!!!
Originally posted by @Account Closed:
I lost everything but the shirt off of my back. I'm just now recouping the money I lost in Detroit two years ago. Run!!!!!
RUN!!!!!
Away from the way you did it. Make sure NO one ever does it again the way you did it! I just wanted to say it louder than you said it.
I see in your profile that you bought two Turn Key rentals in Detroit. I have been warning people away from Turn Key rentals in Detroit for seven years now. Sorry I didn't say it loud enough or early enough on BP.
When I made my first trips to Detroit after I had already bought properties up here, I ran into former land lords all over that had lost all of their houses to foreclosure and told me I couldn't make any money in Detroit.
I would look at them and ask if I buy for $1000 the same house you paid $80,000 for, do you think the outcome might be different.
This house sold to an investor in The United Kingdom for $83,000
I just bought it from the foreclosure for just over $2000.
Do you think my outcome might be just a little bit different from his?
Nice work @Richard Dunlop one thing that a lot of people overlook is the positive impact investors have when they buy these homes and make them a productive part of the community again. No government subsidy required. Keep up the good work.
Originally posted by @Bob E.:
Nice work @Richard Dunlop one thing that a lot of people overlook is the positive impact investors have when they buy these homes and make them a productive part of the community again. No government subsidy required. Keep up the good work.
Thanks Bob, there is still room for you when are you getting involved?
the Detroit market saved my financial future. In 08 when the market was crashing and my once successful mortgage brokerage could no longer close a door, I was able to start buying Detroit super cheap. Over the years I have learned a lot. I now own quite a few cash flowing properties and am looking for more every day. Ever consider a partner?
Originally posted by @Mary Davies:
... I now own quite a few cash flowing properties and am looking for more every day.
Ever consider a partner?
Yes I work with a few
I wanted to copy a couple of posts from another thread that perfectly illustrate some of the points I have made earlier in this thread.
I posted : "Bigger Pockets is full of Detroit haters! Yes including lots of Michigan people that live in the suburbs that were expecting their property values to go up rapidly and are bitter when they see Detroit values going up 5-10 times as fast as the suburbs.
I am invested in seven of the Detroit area cities and the ones in Detroit are generally better performers."
Posted not as a direct answer to me but in the same thread:
"My Wife and I kick ourselves daily that in 2009 there were townhomes on Woodward next to Comerica selling for 55K as high at 70K and we felt it was crazy, we bought our house in Madison Heights. NOW those same places are selling for mid-300K and command 1900-2500/mo in rent. Meanwhile our house in MH went from 50K to 88K and gets 950/mo. We missed the boat majorly on that one."
I flagged you because you continue to warn people to run from Detroit when a more accurate warning would be:
"just not to do it the way you did it."
In other words the same warning I have been making for years now. I don't know @Christian Hutchinson but I thought his example was excellent and wanted you to see it.
This is an example of possibilities in the area. Did you ever get involved?
Love reading this.. I am just starting off.. Own my first home outright in Birmingham and I am looking forward to investing in Detroit.. the more I look around the more I see it has a bit of everything from super cheap buy and rent's to super expensive depending on what part of metro Detroit you are looking in. I am leaning more toward doing some development or getting a 6 unit plus multi family vs just having 15 single family turn key.
Where would you put your money at this time?
Hi Richard - your crusade to defend Detroit is admirable - but even you always say that it takes more than a property manager in Detroit.
I don't warn people to "run" from Detroit, I warn them that Detroit is not for long distance investors, and I stand by that opinion. (Fact is that I have even met many local Metro Detroit investors who wont touch inner city Detroit either - and they are over there on the ground.)
The particular thread you are referring to where I said "Run" - the out of state OP was asking for an opinion on an MF deal they had been offered in Detroit. The deal was so implausible only an idiot would have looked further.
Hi Richard, I am still on the sidelines..but still interested in the area. Just don't know how to start!
