Newbie from Down Under, investing in IN & MI

New Member Introductions
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Newbie from Down Under, investing in IN & MI

Hugh Scarlett
Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes

Hi everyone, just joined BP having come across the site whilst scouring Detroit properties on the weekend. Yep the usual web thing...   'that looks interesting.... Click...' and the rest is history. Then an hour later... 'Hey I need to get on board....' so here I am with my wife.

We've been involved with Australian property for 20 years and sold out last investment property a couple of years ago, now we are working Deeds in Indiana and own a couple of places. Next step Detroit.... yep we like to live dangerously!

Our background is in Building and renovations and my wife works Body Corporate so we have a long history of involvement in property from all different angles and it makes for some very interesting discussions across the desk when we are on the hunt!

Anyway I look forward to touching base with members in the coming days, months or when ever.

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    11y

    @Hugh Scarlett  welcome to the site!

    Jay H. on the site put out an e-book specifically for Australian investors about investing in the USA.  He focuses on making sure they do not get ripped off.  It's very important to invest in the right area.  A property for $500 may seem like it could be a good investment ... what could go wrong with $500 one might say ... well, it can be a lot.  It could be that you'd be better off flushing that $500 down the toilet.

    So, you definitely want to be careful with your investing.  Read up on the site, it's all free, and there are a lot of ways to invest ... it can be fun if you put your mind to it!

    Podcast Guest on Show #29
    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    11y

    Welcome to Biggerpockets!

    This is an amazing place and you will learn tons. So a great place is to look around the blogs, forums and listen to the podcasts for different niches. If you see a post you enjoy check out the persons signature. As Dawn point out many people on this site have written amazing resources. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog or website in your signature, if you have one. Its a great additional networking source.

    Look forward to seeing you around! Let me know if I can help!

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y

    @Dawn Anastasi Thanks for the welcome, I will look up Jay's book. We are starting to build a team in Detroit, Building Inspector, Attorney, Property Managers etc, still have to find re-hab contractors, but they will come. Yep the $500 specials can be a pit fall if one does not approach then with a well educated eye, we are also looking at properties that are already rented, but will still get the full inspections plus check City occupancy certification etc.

    When I first found BP, I quickly realised how valuable this site will be, hopefully I will be able to give back, though I am not a forum junkie as my evenings are walking the dog, cooking dinner for the family, usually quoting work then if there is any time left, property searching.

    @Elizabeth C Thanks for the welcome, sounds like you kind of share my life, will certainly check out your blog. Going to revamp our website and do pretty much the same thing. Already have some interesting stories from Indiana

    0Reply
  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    11y

    @Hugh Scarlett Hey Hugh glad to see you are interested in Detroit. This is definitely a great time to invest here. Are you adding a realtor to your team?

    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    11y

    You're way braver than me Hugh.  Hope it goes better than the Bledisloe Cup did this year :-)

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Dean Letfus:

    You're way braver than me Hugh.  Hope it goes better than the Bledisloe Cup did this year :-)

     Ouch... that's below the belt on the first meeting!

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Alvin Neal:

    @Hugh Scarlett Hey Hugh glad to see you are interested in Detroit. This is definitely a great time to invest here. Are you adding a realtor to your team?

     Hi Al, haven't decided on that yet. Checked your site, nice info on places like The Villages, though having to use a bottom slide bar to read was a minor irritation. 

    Couldn't find any listings??

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    11y

    @Hugh Scarlett  Welcome to BP. I am in southern Ohio with family in Indiana...where is your focus in IN...assuming if you are brave enough to invest in Detroit your focus is probably in the same areas in the North?

    937-979-7000
    Realize Multifamily Group11 Review
    View Page
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  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    11y

    @Hugh Scarlett 

    Welcome.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. You can meet members by phone to gather info and potential team members.

    To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what sides of the city they like/dislike and why. Ask what they see them selling for and what expenses are by category. Ask for market occupancy and rents. Ask if they know anything coming up for sale.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Brandon Sturgill:

    @Hugh Scarlett  Welcome to BP. I am in southern Ohio with family in Indiana...where is your focus in IN...assuming if you are brave enough to invest in Detroit your focus is probably in the same areas in the North?

     Ya got it in one! Lake County, now own a place in E Chicago which we plan to flip and another in Hammond which is tenanted and will hold for a while. Tenant has been there for 20+ yrs and I don't just turf people out for the sale of a $

    0Reply
  • Account Closed
    Castlewood, VA · Member since 2012 · 177 posts · 57 votes
    11y

    Welcome Hugh. Property management seems to be the most important variable in the Detroit market for non-local investors. I got lucky and found a good one, so if you want her info, shoot me a private message.

    0Reply
  • Andy Luick
    Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
    11y

    So much has been written here about the dangers of Detroit that it's simply not worth reiterating.  There are some brilliant, well experienced & wealthy writers posting here on BP who had years of experience in Detroit and LOST THEIR BUTTS.  Proceed at your own peril but you'd have more fun and a better return standing in front of an enormous fan and throwing handfuls of bills into the air in front it.  As an Aussie, you've probably been to propertyinvesting.com and you can read all the horror stories there.  I cheer for Detroit but there are way better places to invest.  A $500 house is just an expensive paper weight.

    IN appears to be a different story...again, as long as you have good boots on the ground.  Happy Investing!

    0Reply
  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    11y

    @Hugh Scarlett I put my other website up for searching properties. I am currently working on this one. 

    0Reply
  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    11y

    Hey @Hugh Scarlett welcome to the site! Definitely jump in the forums and meet the cool people here. 

    BiggerPockets
    0Reply
  • Account Closed
    Investor · Sanford, FL · Member since 2014 · 47 posts · 3 votes
    11y

    Hi Hugh,

    Makes me homesick to think of Australia.  I've been there several time, longest stay was 3 months.  The Goldcoast is beautiful!

    I am wondering if I could be a help to you. I recently joined a small group that is direct with nationwide banks. These banks have REO's (bank owned properties taken back in foreclosures) that they are always eager to get rid of, but especially so at the end of the year, for tax purposes. They sell them cheap, just to clear their inventory.

    There are no maximum or minimum restricctions on orders. You just have to fill in a non-binding LOI (letter of interest) and submit it along with soft proof that you have sufficcient funds to ccover the order. Then we search the inventory of all these banks and get bacck to you with what we feel best fits your order. You than have about 14 days to do your due diligence and decide whether or not you want to buy. If you do, the closing is very quick.

    If you would be interested please send me an email (see below) and I will get an LOI form off to you right away.

    Jeraldine

    0Reply
  • Lee Smith
    Residential Real Estate Broker · Indianapolis, IN · Member since 2009 · 477 posts · 304 votes
    11y

    Doesn't sound like you are working deals in Indianapolis, but if you are and you need a second set of eyes let me know. We work with several investors both in the US and out of country(even one Aussie). We handle purchasing, rehab, property management, and selling.

    Let me know if we can be of assistance.  

    Lee Smith
    317-537-7249
    IndianapolisRealEstateInvesting.com
    SpousesBuyingHouses.com
    LeeSmithRealty.com

    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    11y

    Hey @Hugh Scarlett just my kiwi way of saying hello :-). It is obvious you know what you are doing so didn't feel any need to give you advice.

    0Reply
  • Jynell BerkshirePro Member
    Real Estate Attorney, Broker, Investor · Indianapolis, IN · Member since 2013 · 207 posts · 58 votes
    11y

    Hugh,

    Welcome to the Bigger Pockets community! If you are interested in the Indianapolis market, please feel free to contact me. I already work with a number of international clients, including some from Australia.

    If you have any questions as to Indiana law, give me a ring as well. Happy to answer any questions.

    Happy Investing!

    0Reply
  • Tim Dingman
    Professional · Detroit, MI · Member since 2014 · 25 posts · 13 votes
    11y

    Welcome, Hugh! As a part-time rehabber and full-time property manager in Detroit, I can echo some of the sentiments about the $500 houses. That said, I've seen that there are definitely deals to be had here, and I'm glad to hear you have a team on the ground who knows the area.

    I'll be interested to see how your efforts progress, so keep us posted!

    0Reply
  • Johanna R.
    Investor · Long Island City, NY · Member since 2014 · 108 posts · 18 votes
    11y

    Hugh,

    Welcome! Im in the midst of getting my ground team together in Indy.

    Let me know if my findings will interest you.

    Johanna

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Welcome to BP community @Hugh Scarlett  It is a great place to meet new friends and learn about various aspects of real estate and more. 

    Wishing you the best! 

    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    11y

    Hey @Hugh Scarlett welcome to the site! It's great to have you!

    Podcast Guest on Show #92
    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Account Closed:

    Hi Hugh,

    Makes me homesick to think of Australia.  I've been there several time, longest stay was 3 months.  The Goldcoast is beautiful!

    I am wondering if I could be a help to you. I recently joined a small group that is direct with nationwide banks. These banks have REO's (bank owned properties taken back in foreclosures) that they are always eager to get rid of, but especially so at the end of the year, for tax purposes. They sell them cheap, just to clear their inventory.

    There are no maximum or minimum restricctions on orders. You just have to fill in a non-binding LOI (letter of interest) and submit it along with soft proof that you have sufficcient funds to ccover the order. Then we search the inventory of all these banks and get bacck to you with what we feel best fits your order. You than have about 14 days to do your due diligence and decide whether or not you want to buy. If you do, the closing is very quick.

    If you would be interested please send me an email (see below) and I will get an LOI form off to you right away.

    Jeraldine

    Thanks for the offer. We found a bunch of Bank links on the Resources page and have browsed many. 

    Buying from the banks is an interesting business with a variety of details which differ from normal contracts, we gather. Ones deposit goes 'hard' very quickly and legals can be more expensive due to their complex contracts. Sure they want to get them off the books fast, primarily due to the hard cash they have to put up to cover the debt, which kind of hampers their cash flow, particularly when it's 5 x the debt!

    In Australia I have great fun striking out contract clauses that don't suit me, not sure how the US banks would respond to this??!! It's... 'These are my terms... now let's see if we can find a middle ground..'

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Paul Timmins:

    @Hugh Scarlett 

    Welcome.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. You can meet members by phone to gather info and potential team members.

    To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what sides of the city they like/dislike and why. Ask what they see them selling for and what expenses are by category. Ask for market occupancy and rents. Ask if they know anything coming up for sale.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

     Thanks Paul, appreciate the tip. Have grabbed the book as well

    0Reply
  • Hugh Scarlett
    OP
    Real Estate Investor · Helensvale, Queensland · Member since 2014 · 17 posts · 5 votes
    11y
    Originally posted by @Johanna R.:

    Hugh,

    Welcome! Im in the midst of getting my ground team together in Indy.

    Let me know if my findings will interest you.

    Johanna

     Hi Johanna R., where in Indy are you targeting?

    0Reply
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