All Forum Posts by: Richard Dunlop

Have your wife buy the houses.

Then you buy the bank financed ones in your name.

@Scott K said

“Corktown is completely different type of neighborhood compared to Detroit.“

What a weird way to make my point for me

Corktown is Detroit; Indian Village is Detroit; Boston Edison is Detroit; Hubbard Farms is Detroit; Palmer Woods is Detroit. Downtown Detroit is Detroit. These are not separate cities as you seem to think. They are all parts of Detroit.

While you’re walking proud with your guns, I’m in Detroit; I live here; I don’t own a gun. I have never advocated anybody buying rentals in Detroit so I shot down your straw man argument without a gun.

I’ve climbed through broken windows to inspect a house the bank had listed more than once; you were cowering in fear in Madison Heights. (What Andy didn’t trust you with the bullet that day.)

I have forced squatters out of a house I didn’t own more than once; you were enjoying your Latte at Starbucks

I moved from Orange County California to Detroit because of the opportunities here. You were sleeping in that day; dreaming of the house on the beach you hope to retire to 50 years from now.

You can convince others it can’t be done on your 50 cent tours. But it’s really stupid of you to try and convince me. I’VE ALREADY DONE WHAT YOU THINK CAN’T BE DONE!

I will make more than $1,000,000.00 in the next year. I’m glad you hate Detroit.

@Scott K

When I first bought properties in Detroit and told people I was moving up here, I was told by at least 10 different people that Detroit was the murder capital of the US. Does anybody not know crime is high? Most wouldn’t do what I do. But why are you pretending that I’m in anyway lying about it.

Detroit crime is high but it’s not going to fall off the edge of the earth tomorrow because IT’S ALREADY FALLEN OFF. It’s on the way back up.

There was a story in the newspaper about 20-25 years ago about a lady that died at 89 with an estate of $88 million.

She had not inherited anything.  She had earned a maximum income (apart from her investments) of less than $10,000 per year.

But she worked for an attorney that got her investing in stocks and apparently gave her good advice.

(the age and time frame and estate amount are as I remember them I think the paper was San Diego Union? But I have tried to find this story several times and have not been able to do so.) I hope someone can find it.

I hope the mocking of your goals didn't scare you away from this site.  There are a lot of people on here that will talk about doing something for years but never take the leap...

BUT there are also a Lot of doers that are accomplishing things on a daily basis!

In this thread I answered a question from a person that found a "good deal" in a bad area.

http://www.biggerpockets.com/forums/88/topics/191151-first-rental---4-rule-quick-opinions-needed

@Zack Mitchell

I tried to convey a real idea in a humorous way. Sorry if you missed the implications.

I'm in Detroit, the fact that you wont ever have to go to the property yourself tells me that your hoping to pass off the physical risk of life or limb to your property manager. Detroit has Beverly Hills type homes less than 100 feet from total dumps (Indian Village) I've not seen that elsewhere.

The street and the neighbors make a big difference in the viability of your investment. Are your tenants doing the break-ins on your street?

Or are they the victims that will eventually give up?

When a unit is needing repairs will a reputable handyman go there?

Does he need an armed guard for his work truck while he is inside working?

I know more than most about the environment you describe. People try to paint all of Michigan like you portrayed your potential neighborhood. Metro Detroit has problems Yes but it also has SF houses that would sell for $10,000,000.00 in today's down market.

To summarize I would avoid areas in Detroit as you describe your area to be. But it could make a profit but the risk is not worth it. I have lots of Great areas to choose from but maybe you don't. Hope that helps.

@Scott K

Does that sound like someone that is advocating somebody should be buying properties in Detroit from halfway around the world?

Why do you keep pretending I do?

"That house is worthless as a rental house. You bought that house to live in. That's not an investment that is where you reside."

Currently rented for $4000 per month I moved to a bigger house.

They are going to flame you.

But it is very doable!

@Scott K.

Wow!

First off thanks for participating in my thread

I purposely tagged all the people I could that have criticized Detroit. Your post raises a lot of issues so I’m going to answer them all (about ten) one at a time.

I guess the obvious answer is I'm glad you hate Detroit. I'm glad lots of people hate Detroit. I would wish you could forward your post to every bank in the country. If I can keep the REO disposal agents at the bank hating Detroit then I will keep making lots of money.

I will make more than $1,000,000.00 in the next year because lots of people hate Detroit. I couldn’t do it in any other market in the country. I proudly live in Detroit. Detroit has been very good to me

In most circumstances a balloon payment would be a final payment paying off the note before the monthly payments would pay it off. 

The benefit to you as an investor would be a higher return than a fully amortized note.

Example if you were to purchase a note I created on selling a house.  You would most likely purchase it at a discount (Less than the outstanding balance) So you are earning the interest rate of the note plus earning the discount also as the borrower pays back the face value of the note plus interest.