All Forum Posts by: Matt Souza

Hi @Peter Yun,

If you read through all the information on BP, you will see A LOT of discussion and debate about how to structure your investing business. My takeaway:

If you plan on utilizing residential loans to grow your portfolio, I would wait on forming an LLC. Just make sure you have significant liability insurance on your properties.

If you plan on using private money or hard money and don't need residential loans, then form the LLC now. It will better protect you and make the financial aspect much cleaner.

Just my two-cents, I still recommend reading more about it on BP. Best of luck!

Hi @Dave Thomson,

Just quickly glancing at the property and some comps in the area, it does not seem like a good deal to me. It doesn't look like any properties on the south side of Crescent are going for more than $200k, how would you make your money back? I also think $50k is high for rehab, at least from the pictures. Although it's always good to err on the conservative side, in my opinion.

To address your last question, that really depends on your lifestyle and investment goals. With option one, you have the ability to live in a bigger, nicer, more expensive house. Option two allows you to bring in more cashflow, but it seems like you would sacrifice luxury a bit. This is really a personal choice, both strategies sound like they could work.

Best of luck!

Hi Ryan Tower , I would recommend Reputation First out of Livonia. They can close quickly and have always done a good job for me. I would not use First American Title. They specialize in financed properties and take a very long time to close. I had one property that took 4 weeks with them, had to change title companies. Best of luck!

Hi @Mario Ortner

First off, it is important to distinguish between the city of Detroit and Metro Detroit, two very different markets. The city is tough for remote investors, it requires strong knowledge of the area, can easily buy in a bad neighborhood, and tends to have a more challenging tenant base. That said, there are great returns to be made here if you are smart, $120,000 could probably buy you 6-10 SFHs or a decent size multifamily property.

Metro Detroit is a completely different market. There are a lot of strong rental neighborhoods that are safe, with great blue-collar tenants. Depending on where you buy, you can see good returns around the 15%+ mark. $120k there could probably get you 2-3 doors.

Feel free to reach out if you want to discuss more. I focus on Metro Detroit, so would not be very helpful if you are looking into the city. Best of luck!

Hi Cynthia Miller , First off, I empathize with your situation. Evicting a tenant is a tough process but one we all need to come to grips with as managers of our properties. As suggested, I would get a lawyer yourself. Michigan laws are very clear and easy to follow regarding evictions. If the law is followed to the letter, which it should be, evictions rarely take more than two months. It sounds to me like these tenants are smart, you need to be smarter. Secondly, I see you commenting on a lot of posts bashing Detroit. I realize you have a reason to be upset with the city and a few of its residents, but please do not put that on other people. There are a lot of investing opportunities in the city and metro area, I have seen success first hand. A true professional takes responsibility for their actions, they do not make sweeping, negative generalizations about a few hundred thousand people because of one problem they had. All the best.

Hi Cynthia Craft First, I would define your strategy. When you ask about buying properties, are you referring to buy and hold? Flipping? Wholesaling? That should be step one. The city of Detroit is definitely a tough market for a beginner investor. However, some Metro Detroit neighborhoods have safer investment options, I would probably start with that if I were you. All the best!

Hi Kyle, Great to hear from another investor trying to break into the Metro Detroit market, you have a solid plan. I like those areas around Woodward as well, although the further north you go the more expensive and less returns you will make. One word of caution on using the delayed financing technique in your acquisition plan. Delayed financing will only allow you to cash out refinance what you purchased the property for. So if you rehabbed the property or got a good deal on it, you will not be able to take advantage of the higher appraisal than you paid. Most banks in the area will let you refinance for 75% LTV after 6 months of "seasoning", and you can take out much more cash. This is the route I prefer. Let me know if you want to talk strategy, sounds like your plan is similar to mine. Best of luck!

Hey everyone, does anyone have a recommendation of a good realtor in Saginaw? My girlfriend is doing her clinicals there for med school, so I'd like to buy a house there for the next 18 months, then rent it out. Any help would be greatly appreciated.

Thanks!

Hi Christian, I've purchased two properties in Metro Detroit this year, one in Warren as well. I was able to secure private money for both, but explored other options beforehand. Have you asked local banks in the area for financing? There were a few that offered to finance investment properties in the areas you are talking about, on decent terms too. I would ask around a bit for bank loans, seeing as interest rates are still low (and only going to get higher). Feel free to PM me and I can share some contacts. Good luck! Matt

Hi BP!

I am looking for a handyman in Metro Detroit, specifically in the Pontiac area. I recently purchased a property and just have a few items I need to repair. Does anyone in the area have a recommendation? Any help would be greatly appreciated.

Thanks!

Matt