Doing the footwork in Detroit so that you don’t have to

[Kristine Dekreon]

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $65,000
Cash invested: $70,000

I bought it with cash, touched it up and rented it as a Section 8. The second property had some light cosmetic work and a new kitchen. I used my personal cash for both , but I’m looking to purchase more with lending.

What made you interested in investing in this type of deal?

I’m looking for guaranteed income using Section 8. The properties will be for sale to International buyers. However, they float themselves as income properties.

How did you find this deal and how did you negotiate it?

I purchased them retail, but my strategy in the future would be to purchase wholesale, make more aggressive cosmetic rehabbing.

How did you finance this deal?

I used my own cash.

How did you add value to the deal?

I used my own construction and real estate experience to get them through the governmental red tape and turn them into profitable rentals.
I’m a third generation builder with an accounting degree with bullet proof spirit.

What was the outcome?

The outcome is excellent. The first house just rented and the second house is ready to go and will be rented very shortly.

Lessons learned? Challenges?

Having the right team in place is key.
All management companies are not created equal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Have several agents, contractors and a top-notch management company.