What area do you do deals in & why did you pick that area?

4 Replies

What area are you doing your deals in?  Why did you pick that area? 

How has that area performed for you?

Originally posted by @Bryan C. :

What area are you doing your deals in?  Why did you pick that area? 

How has that area performed for you?

1 - Western Detroit suburbs
2 - The cash flow from the markets of choice within that area, are low cost, high rents, and thus very high cash flow.
3 - Whatever words you would you use to describe something, that is better than fantastic!!

@Joe Villeneuve  

Good info, how did you educate yourself on the Detroit area well enough to prevent losing a lot of $$$.  I hear it can be risky because of how much Detroit is changing and how bad some areas are

Originally posted by @Bryan C. :

@Joe Villeneuve 

Good info, how did you educate yourself on the Detroit area well enough to prevent losing a lot of $$$.  I hear it can be risky because of how much Detroit is changing and how bad some areas are

 Like any other market you would invest in.  In my case, Plymouth (where I live) is 10 minutes west of Detroit.  I don't invest in Detroit, but many are successful that do. 

I invest in the suburbs of Detroit.  Not even close to being the same thing.  It is truly a comparison where the "night and day" statement can be applied.

Two common misconceptions:

1 - Detroit City, and Detroit Suburbs, are the same thing...and exactly alike
2 - Michigan, is in Detroit. 

It depends on the deal...

Wholesale/Realtor: I like any area in Allen County, Indiana because I have buyers for any hot deals I can find regardless of location, condition or price.

Retail Flip: If I am going to risk my capital for an investment I always have 3 exit strategies in place before I pull the trigger. 

1.  I am willing to live in the 46725, 46825 and 46835 because they are close to my friends, family and amenities that I like so if I am wrong about the flip I can move the family in as a primary residence,  

2.  The three mentioned zips have a lot of homeowners compared to renters which indicates owner occupants are buying in these areas.

3.  Depending on the exact area there is a lot of development so a second exit strategy can be a long term hold with high rent and potential commercial resale (they want the land not the home and if it is a commercial developer that can add profits of $100,000 - $200,000 regardless of the condition of the home)

Long term-hold: Anything in the shadow of a government investment or commercial investment...  If the numbers work AND I can generate positive cash flow every month with an exit strategy of renting forever, selling to the government or flipping to an investor I will buy anywhere.

Contracts: if the numbers work to create positive cash flow, if it is within 10 driving minutes of my home or in an area where I have a good property manager I will buy on contract.

Plan your investments on your financial goals not on location

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