All Forum Posts by: Paul S.

Unfortunately you have to roll the dice on some guys. I drive through the neighborhoods looking for crews, word of mouth, Facebook ect. I'm always hardcore on early jobs - no money up front, make it clear cost overrides will not be acceptable, check in on them multiple times a day. This city is FILLED with guys that say they can do the work - 95% of them will rob you in one way or another.

0 Votes

They do not do tax capture in Detroit - yearly auction

0 Votes

70k is plenty - don't go hard money they want too much in return - NEVER work with a wholesaler they are parasites. Pick your area - comb the homes you'd consider (I pray you are looking at 2 families - SFR are losers) Most will be land bank houses but that's fine. Call the LB and tell them which property you are interested in.... they will most likely fast track that house to the auction and pray you get it for a good price. LB Fast track could be 3-6months (they are terrible). Be patient, don't rush into something and buy a pig.

0 Votes

Detroit, Michigan

You guys noticed Duggan put a little spin on those landlord funds right? If you don't have all your certs you aren't getting it. That knocks out 98% of landlords in the city

0 Votes

ugh... don't throw your money away

0 Votes

Detroit, Michigan

Originally posted by @Clarissa Cummings:

@Paul S.

Yes, I’ve read your past comments with appreciation and it’s made me become more critical about the pros and cons. Also Detroit’s version of turnkey is little different and unique. Not everybody is in the position to oversee a rehab. Also, I’m not trying to gain some big profit quickly. I’m looking for indefinite hold and making long term stakes in the city. Passive return is fine by me.

I understand your goals and think they are great! Please don't take my comments as discouragement in any way - I plainly outline the risks to Detroit investors (especially OOS investors). This is a tenant friendly city. If YOU are not boots on the ground to show up at the door weekly to shake down rent it's not going to happen. A PM is not going to be able to secure your property when it goes vacant, stop the neighborhood from pillaging anything of value within the property the night it goes vacant. Passive income becomes very large debt in Detroit VERY quickly. Invest where you like - I just like to advise OOS investors to go to a more landlord friendly place like many places in Ohio. Property in Detroit is dirt cheap for a reason... and the reason isn't because people don't know about it LOL... it's been dirt cheap for 60 years.

2 Votes

Originally posted by @Clarissa Cummings:

I’m pretty committed to investing in a buy and hold rental in Detroit and not yet sure the best approach. First let me say I live in another city but am in absolute love with Detroit (I’ve been many times) and its communities and want to plant roots. I’ve been thinking of investing in a turnkey with tenant for under 60k. I’ve read all the warnings on the post, however I think I’m in a bit of a different position in that I’m not against holding on to this home for 5+ years with 2%+ rent to price ratio with the the chance of it becoming my own home and investing in a 2nd property (maybe even a land lot).
Any updates on a reputable turnkey company in Detroit? I’ll be back in Detroit in a couple of weeks and would like to meet with turnkey companies, mortgage brokers and any likeminded people who truly believe in building back up Detroit.

There are many "Turnkey" people out there willing to sell you their crap.. uh, er.. I mean gold - then buy it back from you for pennies on the dollar in 12-24 months when you are broke.

1 Vote

Originally posted by @David Rosenhaus:

I'll try to be brief, lol.

I'm trying to get prepped a bit before seriously looking for my first deal (wholesale or flip).

Background:

I cannot get any first time home buyer breaks and can't house hack. I have no high value assets. My credit is garbage (had to do bankruptcy last year) and I only have access to $10K (assuming I can roll my 401k into an SDIRA. If not, I only have $3K). No family or friends who have (or are WILLING, lol) to lend.

Even assuming the 10k, it's nowhere near the 20-30% down payment needed for hard lenders.

Add to that, I'm in Central NJ so nothing is cheap.

I've read about assigning contracts and all that ron legrand-type stuff, but it all seems scammy if not illegal, and I refuse to run a dishonest business.

There has to be a way to get going, but right now I'm at a loss. Any advice or guidance is appreciated.

Thanks.

Take 18-24months to get yourself together... I know you want to get started but you are pushing a huge rock up a hill with your credit, recent BK and lack of capital. When you are ready to get going forget wholesaling... it is a scam/easy way out racket that will get you nowhere fast. Save every penny - keep your day job - invest every penny of profit back into your biz.

1 Vote

I think the last numbers that came out from the city were less than 3% of landlords had any compliance.

0 Votes

Originally posted by @Kyle Johnson:

I have a triplex in the Mount Clemens area out side of Detroit that I am closing on in the next few weeks. I was wondering if anyone had any recommendations for great insurance providers in the area. I planned on looking online and checking out some reviews of some companies, but if anyone has any referrals/recommendations, I'd be happy to look at them.

Ugh, that better be a great deal in Mt.Clemens.... what realtor talked you into that?

0 Votes

All Forum Posts by: Paul S.

Paul S. has started 6 posts and replied 223 times.

Post: Detroit contractor needed

Post: detroit, MI investing

Post: Lost in the D! Guidance appreciated!

Post: Detroit Metro Area landlord caught in Eviction Moratorium Net

Post: Newbie looking for some guidance

Post: Best way to invest in Detroit rental property?

Post: Best way to invest in Detroit rental property?

Post: Trouble before even starting, newbie needs advice.

Post: Detroit Certificate of Compliance

Post: Insurance providers for Multifamily near Detroit