All Forum Posts by: Richard Dunlop

`It has already made the turn

And yes I have seen the 25% per year Appreciation

Detroit is not JUST recovering from a housing down turn like the whole country is, but is rebuilding from a long term decay of which the housing crash was just the final straw.

Lots of new construction happening

After Dan Gilbert bought all of the downtown buildings (86 last number I saw) People were saying he wouldn't be able to fill them after he renovated them.

Now he is building new construction downtown

Detroit wins in Cash Flow AND the best appreciation for at least the next 5 years! 

 (In my opinion the next 10-15 years but we'll have to re-evaluate in 5 years or so.)

Distressed sales occur for all different kinds of reasons.

Why in my market do banks sell $40,000 houses for $3000 and less quite often?

I can show you multiple times where a bank sold a house to me for less than they paid the realtor to sell it and other examples where they sold it for 1/20th of the listing price after the listing expired.

And Make sure your partner does not earn his profit up front OUT of YOUR POCKET.

A Real Estate agent getting a commission on selling you the property IS NOT YOUR PARTNER he is a salesperson working for a commission.

A Turn Key sales company selling you a $50,000 house that they bought for $2000 and making an upfront profit on the sale of $25,000-$30,000 is not your partner!

@Vanessa Thomson Detroit can be a very profitable market probably better than anywhere else in both cash flow AND appreciation. But there are many landmines and as @Saul L. now knows you can't buy for $30,000 to $40,000 the same houses that the knowledgeable locals are buying for $2000 and expect good results.

I am closing on a house today for $1150. In talking to the neighbors the guy across the street bought his house for $65,000 8 months ago. 

When the Realtor is showing you comps in the neighborhood of the house they are selling you, are they showing you the $65,000 or the $1150.

The Highlighted property is his purchase that Zillow estimates at $54,000.

The one across the street that Zillow est is $41,000 is my purchase

Just maybe my outcome might be a little different from his if he was 

buying it for an investment. (He wasn't He lives there as owner occupant.)

If you found the property yourself, why not use the listing agent?

I make a fortune in Detroit

Many people lose more than the shirt off their back!

Slip a handwritten 3x5 card through the door saying

"The owner of this house is assuming it is vacant and has requested we change the locks and board it up"

"Please call if our information is not correct."

Somewhere between $10 and $125 per square foot.

It is a hard market to do from another state.

Even harder to do from another country.

But the returns can be phenomenal.