All Forum Posts by: Neil Jarman

Scott, Thanks for the advice, I appreciate it. I was hoping I could show up with a pre-approval and a down payment and go through the process in that manner, looks like this will still be a possibility based on what you're saying. Since I am just beginning to invest, my options are limited-- I don't want to pass up a good deal when I see it though! Best regards.

Hello BP members, First off, thank you all for this community! I am in a different after listening to these podcasts (much gratitude for Brandon and Josh), and I am amazed at how supportive everyone here is with each other. Here is my situation: Newbie investor here, living in Wisconsin and am trying to fund a deal in Detroit. This is not my first rodeo in the Motor City- I own a house there that I purchased in an auction for $500 in 2014 and did a live-in rehab with my fiancé (now wife) for 2 years before we moved here. It is rented and cashflowing pretty well. The one I'm looking at now is in a good spot, has the right price tag and has potential for equity increase after some cosmetic work. I intend to buy and hold, and I'm confident about keeping it filled. The seller wants cash, and so I'm thinking my option here is to start looking around for money from private investors. The asking price around 35k, and I have 15 of that secured so far. My questions are: In regard to private loans--- what should I know before approaching a person (who will likely be a friend) in a conversation about this deal? Other than the listing, my plan, comps and my reputation, is there anything else I should consider bringing to the meeting that will afford me the most legitimacy? In regard to the deal--- The listing says that the seller wants cash. So what are my advantages in terms of negotiation? What should I be wary of? No issues are shown on the listing description. What advantage would a seller have by asking for cash offers other than no required inspection? I plan to bring a contractor to the showing to check out major things like roof, foundation, etc., but should I be wary of anything else? To everyone who read, thank you for your time, and thank you all again for this community.

Congratulations to you as well, Haseeb. I may get something else out there in the next year or so, but I am also looking elsewhere. Good to connect with you!

In my experience, in order to develop a property in Detroit, being in the city seems important. Things are changing there, for sure, but outside a couple places (midtown, corktown), it is difficult to hold a property without it being "swallowed up" by the neighborhood. Scrappers still break into any house with any amount of copper, appliances or anything of value. Tenants, other than college students, seem to be hard to manage. Before buying a house, I rented there for years and saw many cases where rent was not paid for months and the tenants left with the furnace and hot water heater on eviction. Or left in the middle of the night. It is important to have an advocate in the city or to be there oneself, and crucial to form relationships with nearby property owners in order to keep something from being trashed. Many houses are in various states of disrepair, and squatters are occupying many of them. 

This is all speaking from my own experience, of course, and an investor may find opportunities that can be taken remotely (such as parcels of land or buying into development). Houses can be bought for cheap, but holding is the tricky part. 

If anyone really is interested in investing here, there are certain areas that may do better than others due to what the city is doing or what individuals have done in their neighborhoods. A light rail system being currently installed, which may increase property values along Woodward Ave, and there are various alcoves of the city where artists or entrepreneurs have begun buying.

If anyone would like advice on navigating the yearly tax auction or has any more questions about Detroit in general, feel free to ask!

Hello everyone,

I'd like to start by thanking everyone at Bigger Pockets for creating this resource. In the past month that I've listened to the podcast, I have transitioned from tentatively considering real estate investment to fully committing myself.

I began as an unwitting investor in Detroit when my girlfriend (now fiancé) and I moved there to buy a house in the property auction. After months of searching, we found a 4 bedroom two story on a corner lot for $500. We spent a couple years learning how to renovate a home, then left the city and left our home in the care of tenants. I fell in love with the whole process, and will be making this my career. I have held many jobs (currently working as a crew lead in commercial construction), and it turns out that I LOVE the hustle! After reaching out to family and friends, I found investment money and a possible partnership.  

We are currently in the Madison area, "house hacking" in a sense-- property managing a home for a friend while living there and maintaining tenants while a portion of our income from the Detroit house pays our rent. My plan is to meet with a few fellow investors in the area, get a sense for what is available, connect with contractors and find my first flip. I would like to remodel and sell a few to earn capital for wholesale deals, then start building my rental portfolio. I intend to utilize the resources on this site for everything they're worth (priceless!) build teams and provide homes to a niche market. After taking small, low cost steps to add value to our Detroit home (in-ceiling speakers, HDMI cable runs from wall jacks, ethernet hookups in every bedroom), I notice that our tenants really appreciate these amenities and I see the results in how smoothly everything else has gone with the relationship.

If anyone would like advice on investing in Detroit, I am happy to share our successes and struggles. It's a rough city that requires active involvement. I also look forward to connecting with all of you in my current market to share resources and information. 

Best regards,

Neil