All Forum Posts by: Nader Shariff

Quote from @Nathan Gesner:

Quote from @Antonio Bodley:

House estimated value is $152k. House has HOA lien. Owner wants CASH offer for $375k. The owner paid $73,500 for the house in 2015. What should I do with this?

What???

The house is worth $152k but the seller wants $375? And you are considering it?

What am I missing?

 Maybe there is gold behind the walls? All jokes aside, pass on this deal, Antonio. Unless we are missing something here. 

All of these auction sales across in different cities have stopped being a place I pay attention to. This reminds me of the last time I went to a real estate auction in NYC to bid on a few foreclosed properties. The one I was particularly interested in and bidding on ended up going for 200K more than the property was even worth.... renovated. I am seeing the same trend with DLBA. I have seen a few houses go for way more than I would anticipate anyone to pay. 

There's got to be a bit of the psychology of winning the bidding war going on here. I mean some people might just be getting invested in the bidding itself and driving up the prices. Though that's all pure speculation on my end. Though I think @Travis Biziorek's theory makes sense if the winning bidder was a city employee. 

Quote from @Gabriel Mesa:

Looking to invest in Detroit for fox and flip, what are your thoughts on this?

 My thoughts are if you are going to do this please ensure you are running solid comps. Detroit is very block by block and the margins aren’t always high enough to afford mistakes. You want to be very careful. 

Quote from @Francys Ramirez:

I have a client who is considering investing in an empty lot in Detroit. People are under the impression they will make a fortune holding on to these empty lots, but I am not so sure. There is of course taking into account the area and if it is getting some life pumped back into it, sure you might have a builder or buyer wanting to put a house on it.

I would love to hear from anyone with experience on holding on to an empty lot and just taking the hit on the taxes until you can sell for a large price. 

TIA!

 Where is the lot specifically located? That would obviously play a big role in answering your question. If this was a piece of land in midtown or downtown that would be totally different than a piece of land on a rough block in the east or west side of Detroit. 

Quote from @Kingsley Michel:

What is a good area to invest in or around Detroit that would yield  good cash on cash returns( long term, midterm, short term rentals). Im looking to buy within the next 3-6 months and its making  more sense to buy a single family home due to high cap x with multi-family properties. Kinda wet behind the ears so any info will help.  

The issue is Detroit is a very block by block city so you’re going to want to narrow down your searches down literally to specific blocks within specific subdivisions and not just looking at zip code by zip code. so, while you can get answers of specific subdivisions that people may recommend, it’s best to make sure the specific block you are about to purchase the property on isn’t a rough one. 

that being said, happy to chat about Detroit real estate anytime ! 

It is a little more complicated than recommending zip codes to invest in since Detroit is a very block by block marketplace. Sometimes it comes down to not just identifying strong subdivisions within certain zip codes but even specific blocks within those subdivisions. Best advice I can give is to connect with an honest team on the ground that will go over all the pros and risks of the marketplace so you can get a clear picture of Detroit. 

My team and I have had a lot of success in the Detroit Michigan marketplace and I am always happy to chat about Detroit real estate ! feel free to reach out anytime. 

Hi, yes I know them and have had some clients come over to us after using them for acquisition and management for a bit. I am not one to ever say negatives about "competition" in the marketplace. What I will do instead is give you some advice, make sure to do interviews with as many as turnkey providers as you can before deciding to work with one. If a TK provider or even a broker/property manager is only pitching you on the good about a marketplace and not explaining the risks associated with the marketplace, that would be a major red flag. 

Detroit is a very tricky marketplace and you want to ensure you understand the whole picture before purchasing. 

My team and I have had a good amount of success in the city and I am always happy to talk about Detroit real estate so feel free to reach out !

Hi Danny, I am not sure if you are still looking for an attorney in Detroit, Michigan but I have quite a few good attorneys I would recommend in the market. Feel free to reach out anytime. 

My team and I have had a good amount of success in the Detroit Michigan marketplace and I am always happy to help or chat about Detroit ! 

Detroit is a city with many eyes on it. The key is to make sure whoever is entering the marketplace is getting transparent information. As you mentioned the city is extremely block by block and quite complex. It's important that you are talking to trustworthy contacts that have done this time in and time out. It is important to understand the cons and risks of the Detroit marketplace as well.  

Thanks for sharing Ali. 

My team and I have had a good amount of success in the city of Detroit and are very bullish on Detroit and it is good to see likeminded individuals on here as well. In my eyes, the more people that enter the market, the better the city becomes! 

Agree with Walter. Check your market's local laws. In Michigan the SD is capped at 1.5X the rent as well.