All Forum Posts by: Jamie Parker

1. 150k, hit the market @235k in  9/2023 sold 2/24 . 3/1 New carpet, Tile bathroom. Clean finishes. No pictures of the kitchen. 

2. 170k 3/1  no pictures on zillow/redfine, no listing sold in 2021 for 180k sold again 2/24 for 170k

3. 180k 3/1 list 199k in 8/24 sold 2/24. no appliances, fair rehab, exterior paint, New hvac, new water heater. LVP Flooring throughout 

4. 190k 3/1 listed @ 210k in december, sold for 190k this month. mordern kitchen, new water heater, new hvac & roof (5yrs) 

So I found 2 more

5. 199K 3/1 was a flip sold 4/23 110k listed 209k in 6/23 sold 8/23 199k full finish, clean, hardwood floors, paint interior/exterior, new windows, new fixtures. refinished bathroom.

6. 280k 3/1 closer to mid town Listed at 269k 3/24 sold in 4/24 280k.  Renovated kitchen with recessed lighting, stainless steel appliances, fences, 2018 Trane HVAC, 2015 tankless water heater, 2015 roof, 2015 electrical panel, fence installed in 2018.

Offering 110k for a flip would consider the 50k in rehape not considering the cosmetic stuff yet. The 3 of the first 4 are within a .1 of a mile the other 3 are across a major street in a neighborhood closer to an area college. 

It appears comp 6 would be the example to follow

Working with a coach, I have been agreed with a accountability program with a life coach business coach I know from real estate years ago. Not know where to start, this program has been very helpful to getting back in the game. So what been happening: 

I have made it to the point of conversation with a couple of sellers at this moment. 1 seller offered seller financing, I think that one is in the bag. 1 other is the reason why I am making this post. 

seller asking 190k. Comps(4) for the same 3/1, in the area(1 mile radius) have sold between 150k and 190k. If you average out the "sold" comps, the number is 172,500. Using the 70% before subtracting repairs 160,425.  After talking with the seller, Furnace needs to be replaced, part of the roof is 3 yrs old/ most of the roof 18yrs old, plus back taxes of around 5,000. 

ARV 172500

70% 160,425

repairs total 45000  (roof 15,000 new a/c 15,000 windows 15,000 taxes 5000)

MAO 110,425

I guess what my thing is. I don't mind making offers like this at all. From a wholesale standpoint, it is most beneficial to be able to get these number correct. Getting those reps in with the most accuracy in analysis. I guess what I am wanting to ensure; that 17,500 between the highest 3/1 comp and the average of all the comps, is  a good starting point for making my calculations.  

In the part of town I am looking in, I have hear other investors all but refuse to buy anything near those zip codes. Funny turn of events, the "pros" are invested there. Well my goal is to bring "highest and best" use to the neighborhood. 1 year ago you could buy property for 35,000 and collect rent. 1 year late new construction under contract for 250k, rehabs listed at 239k. So yea getting a couple of those properties off there hands would be ideal. It may be for rehab price ultimately because I think the lot price for new construction is in the un 20K range for now. If the new build price gets over 300k. then we have lift off. 

Thank you for that advice I have found that one of the Owners (maybe a partner GP/LP) is involved with a property management company in the area. Would stopping by the business be too aggressive? or, as you said, reach out to them on linkedin be sufficient place to start?  Would these types of companies prefer a cash purchase, or would seller financing be entertained? 

Going old school and driving for dollars, I have found some addresses. Of course, using the property assessors there is a great feature to research the deed. The only reason I am using this is, to add the sales instrument to my spreadsheet. In my process I come across a DSTs, GPs and Holding Companies that are holding on to 20 or more and one holding nearly 100 properties. 

For my purposes, I am not trying to purchase all the properties. On another post, I am working on a property and a couple doors down, one of these types of companies is holding. I want to buy it. 

How do I go about doing that? 

I have their information. SHould I Just send a letter? like normal?  Can 1 property be liquidated out of one of these holding funds? 

Its been a while since I have had something to say about the Latham St property. Well there has been some developments. With this being my first purchase ever, I am learning way more about what it means to "own" something.  

When a squatter decides to park his RV across the alley from the d**e house, never expected it to be Walter White. About 2 months ago I saw a camper parked in the back of my lot. The house is still vacant and have not made any progress at this time. I have to own that first. I had my suspicions about the neighbors across the alley and this situation definitely locked it in. When I first saw the R/V, I approached the R/V to understand whats going on. i will refer to the squatter as Walter. Walter says "Someone stole my battery and I cant move" I ask, "Why did you park right here?" Then I tell him, first of the month Im gonna get it towed. First comes around I did not get it towed. I seller financed the property. Seller is from out of town but for some reason she was in town and drove past the property. Walter White hanging out in the back yard. She calls me, ask was is going on with the RV in the backyard. I let her know the situation. She calls the cops.  I let the cops know the situation and meet them at the property. After the a few minutes I am told that if Walter is there the next day Call the cops to remove him from the property for trespassing. 

Long story short, after another visit from the cops the next day, I will have to get the R/V towed at my own cost. (1975 Roll-a-long Camper Special) not registered. While it is so sketch, because the vehicle is not reported stolen or involved in a crime the police department will not be helping out in the tow of this one. So after talking to a local heavy duty tow truck company the price tag is 620$ per hour to come get the R/V off the property. Wow, I literally do not have that at the moment. So there will be an update as there are developments.

I am so grateful for purchasing something like this as my first property. I literally would lose my mind if this a "operating" property with tenants and other variables. My next door neighbor, is championing the efforts but she has been there 6 months, and the R/V been there 3. Maybe she is looking to change something but I need to buy that entire corner. Before putting footers in the ground on 1522 and 1516 Latham.
 

 Depending on how urgently you want to pursue, and how much of the negotiating you care to partake in, a realtor is gonna be a safe play. Don’t forget there FSBOs as well. 

I will admit I am not familiar with the area. With that said, I know a wholesale organization that has offerings in the Detroit market. The numbers are a foreign lanugage to me, but you may be able to make sense of it, if interested. 

Quote from @Jonathan Weinberger:

Hey guys, 

Wanted to drop this deal I just closed. I've been chatting in DM's with so many who want to get started with investing in Detroit. Doing things a bit different now. I've learned my lesson about relying on turnkey acquisition & management. Got to separate them. 

Detroit is a tough market and you need boots on the ground who know what they're doing. I've been working with a few partners on the ground, and we're currently under contract on 9 properties and I'd like to share one of the deals with you here.  You may need to click the images to enlarge them.

Summary of the Year 1 cash flow: 

The details: 

$82k purchase price, 25% down payment, 25% reserve for maintenance, vacancy, and management. And of course factoring in insurance and taxes. This property is a DEAL!!

Here's why I love Real Estate. 

This deal is a year one, cash on cash return of 23.71% 

Let's now factor in 5% rental increases, guaranteed by section 8 as well as 3% appreciation year over year. (That's conservative. I have a few properties that have increased 30% in the last year), and of course the tax savings + the debt paydown from the federal government or tenant.

Overall returns are insane: I'm a buy & hold investor. I'll never sell this, but let's look at the year by year breakdown over the 10 years:  

For $24,000 -- year 1 is a 33% overall return. I can't think of any other asset class where you'll find gains like this. By year 5, I will have a 100% overall return on my initial investment of only $24k!

What's even more exciting, is I'm closing on 9 more just like this! The past year, I've learned market tenants in sub 100k regions are a pain in the ***. I have a few good ones, but with Section 8, rent is guaranteed on the first of the month. I can continue scaling my portfolio with confidence.

Any questions about this deal? Ask away!

If you're thinking about the detroit market, how to get started, and you're looking to buy your first Section 8 deal, send me a dm. Happy to get you started! 

 Though its not the same, but there are pockets in every market that work. Section 8 definitely helps close the gap. Question: in the Detroit Market, what are green lights, yellow lights and no go zones? 

 What is the goal you are looking to achieve in that market? Buy and hold, Fix and flip? >250 <150?