All Forum Posts by: Patrick Karbon

Hi Warren,

We have many properties in the Detroit and Metro-Detroit (suburban) areas well under $35k and some that are occupied and available as turn-key rentals for under $35. PM me and I'll send you my contact info

Patrick

Great topic Jaham,

Todd, as a Detroit(er) you are correct in having to really know the city to be a successful investor and the manufacturer mentality does need to be curbed. Scott, it's hard to read your response and not reply with some irritation towards your perpetuation of the stereotypes so elequently stated in your post.

There is very little reason for people like Scott to invest in areas like Detroit. The lack of StipmallsHowever, to those of us born and raised in Declined/ Declining Cities, I feel that we are actually given a rare and great opportunity to be a part of bringing something back.

There is a very real Movement towards getting this city back to better than before. Examples include the Students from Wayne State University and College for Creative Studies that have turned Mid-Town Detroit into something not unlike 1980's Brooklynn. Artists from all diciplines (Music, Film, Theatre and um, Art) are filling many of those vacant homes and tearing down many of the rest- turning them into micro Vegetable farms and such. It takes the people in the depressed areas to decide if they want to save their city or not.

Bryan has an excellent point of investing in Sun Belt areas with available 'Modern' work as opposed to more Industrial/Manufacturing work like in the Rust Belt. As an investor, the Sun Belt simply makes more sense from a financial perspective.

I hope this helps- Too those with the 10,000 ft perspective, Please come back soon, (we missed you the first time!) and check out the progress.

Jaham, if you want to invest in depressed/declining cities you must be able identify which areas, if any, are growing or stabilizing apart from the vacant 'ghost' parts.

Please feel free to PM me if you have any questions- It's a beautiful day with some heavy fog, grey skies and potholes. I love this town!

Patrick

-Patrick

Welcome Again Dale!

In response to your request for tips and advice I'd have to say this:

-Explore 1-2 different approaches you want to focus on. There's so many different facets of Real Estate Investing (REI) that anyone new to it could quickly become overwhelmed. Perhaps ask Bryan (or the general community here!) what would fit with what you're trying to accomplish. Building wealth for you+ your family is a great starting point and totally possible but you need to narrow your focus to be successful in a given Model.

Models/Strategies include (certainly not limited too:
-Bird-Dogging (Finding Sellers/Buyers for a fee. This is the easiest and most common way for new investors to get their feet wet)
-Buy and Hold for long-term appreciation&Cash Flow generation
-Wholesaling or Flipping
-New Construction
-Commercial; Multi-Family Homes, Apartments
-Private Money Lending (Be VERY Carefull!!)
-Land Contract Note Investing

This truly is a great site with lots of FREE education and resources. I've made some very valuable contacts and created some strong networking relationships.

There's a lot on here so don't hesitate to ask questions (It may have been asked already!) and congrats on your decision to get into it!

Keep us posted on your progress and remember that the only stupid questions are those not asked!

Patrick K

Great points!

We already do send the payoff letter and will definately be sending Holiday/ Thank you Cards with a $50 Visa/Giftcard but the kind pre-payment reminder is a great touch!
As far as any necessary loan modification we are prepaired (again, for the right payor!) to modify the loan if need be.

Your attention to this post is greatly appreciated, Loc!

Patrick K

Thank you Loc for checking this out and spending the time to reply!

I have one quick questions:\
-Is "ITV" short for Investment (Price Paid) to Value?

If so, we do remain below that 65%.

Any other thoughts out there?

Hello All!

I don't know if this is a Market-Place question but I had a fellow investor express his concerns about selling his homes on Land Contract so I'd like to pose the question here, using our terms: Does our model have enough Reward vs Risk against Walkaways?

Most of our homes on LC can be paid off about 10yrs or less. I can provide an example LC if requested but our basic requirements are:

-10% Minimum Downpayment
-9.9% Interest Rate
-Avg $650/Month Payment:
Principle+Interest Payments Only (Buyer's are responsible for Prop. Taxes+Insurance (We audit regularly to make sure home is insured)
-Proof of Income+Ability to cover entire PITI and still survive!
-Poor Credit is fine (so far) as downpayment has helped minimize risk of forfeiture.
-Homes are Priced at comparative Retail Sold Prices (within last 12 months)
-No Balloon's/ No Pre-Payment Penalties/ Fixed Interest Rate

I hope I can get some feedback or if other Noteholders here have run into buyers abandoning a home even though they put down a sizeable downpayment please feel free to share.

Thank you,
Patrick K

Agreed with all of the other replies-

Evicting can be VERY stressful and it's compounded by trying to make concessions with tennants that are simply "Bad Tennants"

The anxiety you're feeling is compounded every time you agreed to let them slide on rent and now you have a monster you feel is out of control. If offering them cash to move out will work DO IT!! If you have to evict, try to be as polite and concise as possible. Don't get further involved with any more of the drama and just get the property vacated. You may even tell them you need to evict and have the home vacant to do the repairs required by the city- shift the blame on the city as the badguy and that may help get them out.

In the future, make sure you get 1st+Last Month Rent AND a security deposit (3x Monthly rent amount) If a tennant can't come up that, they're probably not going to be able to pay regularly.

Good Luck!

Patrick K.

Hi Nicole-

Don't know if it's too late to post some other questions but I'd want to know:

-Are there any back taxes owed/unpaid?
-What is owed on the Water Bill (You'll need that final water reading anyway correct?)
-Are there any other liens against the home?

Hope This Helps,
Good Luck!

Patrick K

Thanks Joshua-

I've been using the google calendar that's synced with the rest of the members in our office. What did GTD stand for that was great for organizing tasks? Getting Things Done? I really appreciate the insight of your methods!

Thanks again,
Patrick

Please Share Your Thoughts!

Addmittadly I'm disorganized and always on the lookout for systems/methods of organizing my day-to-day, mid-term and long-term goals. I know I need to step back, focus on ALL of my goals and create a plan but I'd appreciate any advice from those of you who are successful in your time-management.

Also I'm inviting anyone who share's my obstical (I know I'm not alone!) to join/watch this forum for ideas they can use as well.

Thank you in advance-
Patrick K.