All Forum Posts by: Steve Smithy

John, suggestions on places in Midwest for $10k?

Hi Kevin, No I already own a few properties. I was just looking at some units from $5k-$10k and figured it might be worth the gamble. $10k isn't a big risk to me. But of course I'd rather spend $25k on a sure thing if the ROI is good. Any advice you have on Detroit would be appreciated!

Max, I am not from Detroit, so I would have to find a property manager to take care of it.

I was just thinking of buying a couple as a gamble more than anything else.

My general rule is, have patience. My patience and a desperate seller has gained me thousands!

I see a bunch of incredibly cheap properties (under $10k for SFH) in Detroit. They are currently rented for about $600/mo and appear fairly close to downtown. I know that people were fleeing the city before, but with such tantalizing deals I am tempted to grab a few on a whim and see how they do!

What are your thoughts? Should I avoid Detroit? Anyone own property there?

I was told it would be about 11%, which in my case doesn't make sense for a mortgage. That plus the 12% fee makes this really not worth it in my case. But it might be a good fit for someone else that really needs the money.

I was told they charge a 12% fee, plus an APR of 0-16%, depending on credit. I haven't spoken with their accounting dept yet to see yet.

I spoke with Maureen, they offer personal or business loans, and they charge a rather high percentage as a fee for finding it for you plus a rate. Which isn't bad I suppose, if you can't get one otherwise. Since it is a personal/business loan and not a mortgage it isn't secured by anything specific.

I was going to use it as a vacation home, but I could rent it out while I am not there, it is in a tourist area.

I am trying to buy a 2nd home, but the banks won't lend to me. I can clearly afford the building, have a great score, have enough to put down, etc. The problem is that I switched from being an employee to being self-employed last year, and banks don't want to lend to me because of that (since they can't sell the mortgage). I found the perfect property, and I'm afraid that in 2 years when I have enough history the deal will be gone. I tried 2 separate banks that told me they would hold the paper, but neither wanted to lend and said it was the self-employment history that was the issue.

Any ideas on how I could find financing for this?