All Forum Posts by: Anthony Stokes

Thank you Mike.

You are absolutely correct Brian. As you mentioned, it depends on where you buy and the area. A lived in area with homeowners who maintain their properties is more likely to not allow suspicious activity to happen at a vacant property on their street or neighborhood. Those are the areas that I target. The homes that get the copper ripped out are in the areas where vacant homes are excessive and visible. Some properties, as the one I purchased in Dec "07" are replacing the old PVC copper with Red and Blue "rubber tubing" to deter the theives from stealing the copper from these vacant houses.

At what discounts of the ARV are you able to get the homes in Detroit?

20 cents on the dollar?

Also, what financing are you using to acquire these homes? Are you financing them yourself?

I'm not entirely sure, but isnt any amount under $50K impossible to get a loan for, either with private lenders or banks?

John T,

I will have to get back to you on the ARV discounts to make sure that I provide you with correct information (I will PM you with this). I pay all cash for my properties with no financing. Financing may be an option in the future with a large bulk package/deal. All of the properties that I acquire have at least 50k in equity, and produces positive cash flow.

It depends on who you are buying from. Some properties in Detroit will require an inspection on them before you purchase unless it is waived in the contract and sold "as-is". The buyers will pay for these inspections and you as the buyer will be responsible for the repairs that are neccesary. The ACR (Affidavit of Compliance Responsibility) is a form that you sign at the City County Building acknowledging that you received a valid inspection report prior to the sale or transfer and that you accept full responsibility for the repairs to the property. You can not occupy the property or rent it out without first obtaining a Certificate of Approval or Temporary Occupancy Permit from the Buildings and Safety Engineering Department. However, you can flip or wholesale the property anytime you choose. I hope this answers your question.

It depends on who you are buying from. Some properties in Detroit will require an inspection on them before you purchase unless it is waived in the contract and sold "as-is". The buyers will pay for these inspections and you as the buyer will be responsible for the repairs that are neccesary. The ACR (Affidavit of Compliance Responsibility) is a form that you sign at the City County Building acknowledging that you received a valid inspection report prior to the sale or transfer and that you accept full responsibility for the repairs to the property. You can not occupy the property or rent it out without first obtaining a Certificate of Approval or Temporary Occupancy Permit from the Buildings and Safety Engineering Department. However, you can flip or wholesale the property anytime you choose. I hope this answers your question.

I have just started investing in Detroit (Dec "07"), and the prices for the bank owned and foreclosures are staggering. I see the Detroit market as a gold mine. I will continue to purchase properties for 20k or less to own free and clear with 50k plus in equity every month! Buy and hold, Detroit is a renting city. You can't lose with no mortgage and the tenants paying your property taxes! The economy will turn around and all the investors will be looking to get a piece when it does... and I will be there to wholesale half the city. :superman:

Or do what I am planning to do next month, and join a few REI clubs to network and market yourself. I have seen on numerous threads that it's a good way to start generating a buyers list. :idea: Good luck to you.

That's a good question because I am interested as well in learning how to evaluate apartment buildings to determine the bottom lines. Example: 60 units, asking price: 4,100.000.00, Cap Rate: (Potential) 8.77%, Price paying (Per Sq. Ft.): $48.45, Price per unit: $68,333.33, Gross Rent Multiplier: 5.96, Expenses per unit: $5,475. Expense to Income ratio: 47.73%, Income per unit (Monthly): $955.93, Average Sq. Ft. (Per Unit): 1410, Debt Service Coverage: 1.52, Cash Flow (BT): $122,793.41: ROI YR.1 (BT): 14.97%. Can someone explain what these numbers mean and if this would be considered a solid income property. Thanks in advance for your input.

I checked with some bankers at Chase and they informed me that I can pull equity out right away. They informed me of the criteria as well. Thanks for the feedback.

Yes Ryan, Michigan to me is a gold mine for REI for those who take the time to study the market and pursue the best avenues. Thank you for offering the contacts that you have. I will keep that info in mind. I am always looking to network and learn as much as I can.