All Forum Posts by: Max Nussenbaum

Andrew,

Max here, Castle's CEO. I'm very sorry for the trouble. I'm surprised to hear you say that we have gone MIA, as you and I have been in direct email communication for the past several days.

We're absolutely not trying to go MIA or take anyone's money. I will follow up regarding the specifics of your message directly over email.

Best,

Max

Hi Saul,

This is Max, Castle's CEO. While I regret that our relationship has deteriorated to this point, I strongly dispute your characterization of our experience working together. You came to us with properties that had been badly mismanaged by someone who, by your own admission, scammed you—properties were in such bad shape that any other legitimate company would have refused to touch them. During your time as a customer, we worked tirelessly to meet your expectations. I gave you my personal cell phone number, and devoted an entire day to touring your properties with you when you visited Detroit.

The property you're referring to had been so badly mismanaged by your previous manager that when we took it over, it did not even meet the minimum legal standard for habitability. It went into abatement after you declined to authorize the work suggested by our contractor, instead insisting on a cheaper fix against our recommendation. Ultimately, we chose to end our working relationship because your expectations about the work and money necessary to bring the property back to a functional point were not realistic.

I am very sorry that your experience investing in Detroit turned out so poorly, and it pains me that our time together ended on such a negative note. Despite it all, I enjoyed getting to know you during your time as a customer of ours, and I wish you all the best going forward.

Best,

Max

Hey guys, Max from Castle here. Saul, thanks for sharing your experience and for being a customer. @Jake Douglass, while we would never share specific details of a former customer's properties, we don't believe this in accurate description of what happened in this case. I'd be happy to discuss Castle's approach to Section 8 and maintenance work if you'd like to DM me.

Thanks again to all,

Max

@Alex Hicks I'll DM you

Our company is considering working with these guys, but we know many investors have been burned by these kinds of turnkey sellers—especially overseas—so we like to do our due diligence before entering into any kind of partnership. Has anyone had experiences with Global, or know anyone who has?

Thanks BP community!

Thanks for the recommendations, @Jon W. and @Emilio Basa! Much appreciated.

Josh, I'll send you a colleague request now!

@Richard Dunlop is spot-on. While it's certainly possible to go very wrong in Detroit, great opportunities abound if you know where to look. And the fact that many people still hold on to old biases about Detroit just means there's less competition for those of us who are paying attention to what's going on in the city!

The most important thing to understand about Detroit is that the city varies widely on a block-by-block basis. You can't generalize about "good" or "bad" ZIP codes, and in some cases you can't even generalize about good or bad neighborhoods. For example, the block I live in (Virginia Park St between Woodward and the Lodge) is full of beautiful mansions, with almost no vacancy. Go one block north to Euclid, and there are several abandoned, crumbling houses, and many others have already been razed.

Motor City Mapping is a phenomenal resource to analyze block quality in Detroit. We wrote a blog post about how to make the most of it here.

Good luck!

Thanks for the recommendation, Parker! It's much appreciated.

Berdine, welcome to the metro Detroit investment world! My contact info is below if you'd like to chat.

There's a lot of opportunity in Detroit, but it's high risk, high reward. I would strongly recommend visiting the city personally before making an investment here. It never ceases to amaze me how many people will spend $40,000 on a property but won't spend the extra $1,000 on a plane ticket to come see it with their own eyes before they make the purchase.

It's important to remember that Detroit is not like most other markets. Accurate comps are hard to find, and scams and bad behavior abound. I've seen many people rush in with a "get rich quick" attitude and lose their shirts. I've also seen many people make careful, solid investments that benefit not just themselves but the whole community.

One last tip: Detroit is so large and varied that it's hard to generalize about as a single place. Some areas are thriving with near-full occupancy and skyrocketing prices. Other areas are basically ghost towns. Sometimes, those two types of areas are just a few blocks away.

There's incredible opportunity in Detroit for the right kind of person with the right attitude. But you absolutely have to do your due diligence first!

Always happy to chat more—feel free to message me privately.

The general consensus here is spot on: there can be great opportunities in Detroit, but it's a pretty crazy market. The most important thing out-of-state investors often fail to understand is how different the city can be on a block-by-block basis. You can literally have a solid, fully occupied neighborhood just two blocks away from a street that's more or less a ghost town.

You should absolutely come visit the city first. Please feel free to get in touch when you do!