20 Year Old Metro Detroit Real Estate Investor

20 Year Old Metro Detroit Real Estate Investor

York, PA · Member since 2015 · 64 posts · 11 votes

Hi guys! I am quite new to the forums. I have been listening to the podcast for a couple of weeks now and finally decided to make a post after getting tons of emails from this specific topic. After listening to maybe just a couple podcasts, I am certain real estate is the way I want to go.

Maybe I should start with my goals. I am new and don't have my exact goals outlined yet but after thinking about it, I think I'd like to do a little of everything but spaced out between my entire real estate career, not just at once. Start wholesaling and learn to find deals without the MLS because I live in a really inexpensive market so wholesaling would perfect my deal analysis. Then, to work on fix and flipping to learn how to renovate and structure a rehap and perfect it as best I can while slowly working in buying rental properties so I can have enough positive cash flow to take care of all of my expenses. Like I said, I plan to do all of this over the course of years. Not to be like the typical beginner I hear about on the podcast who goes after everything thinking it will make me more money.

I have always known I want to build an empire of great wealth since I don't come from a wealthy background. I am a very hard worker and will do whatever I have to do to make that happen. A little about myself, I started going to a local community college after receiving my high school diploma at 14. Got my Associates degree in HVAC when I was 16. I planned to get my Bachelor's degree when I was 18 but life happened and I plan to finish it this year. My major is Criminal Justice. I am focusing on building/ restoring my credit this year and putting my money away. My ultimate goal is to someday be on the podcast itself.

Anyway, I am excited to just learn and meet people who are already in the field. I have been to two real estate investor group meetings so far and plan to go to two more this month as well as one online. Please connect with me amd share your knowledge with a newer investor! 

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Real Estate Agent · San Jose, CA · Member since 2015 · 172 posts · 66 votes
10y

HI Corwin,

My best advice to you would be to save a 3.5% down payment and buy a house.  Owning a house helps you get your foot in the door.  Once it appreciates you can then get a home equity loan and use that as a down payment for your next home.  

You can even buy a 4 plex, live in one unit and rent out the other 3, all with a low downpayment FHA loan.

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  • Real Estate Agent · San Jose, CA · Member since 2015 · 172 posts · 66 votes
    10y

    HI Corwin,

    My best advice to you would be to save a 3.5% down payment and buy a house.  Owning a house helps you get your foot in the door.  Once it appreciates you can then get a home equity loan and use that as a down payment for your next home.  

    You can even buy a 4 plex, live in one unit and rent out the other 3, all with a low downpayment FHA loan.

  • Flipper/Rehabber · Clinton Township, MI · Member since 2014 · 71 posts · 12 votes
    10y

    Hi Corwin, 

    Sounds like you have a good plan going forward. And I got started in wholesaling as well, definitely teaches you how to find deals for the future investing strategies you mentioned. I'm wholesaling in the Metro Detroit area too.  Sounds like you're starting off right, with the networking you're doing. And Gloria's advice is good. I started off purchasing my first home during the down market. It is a good starting strategy. House hacking is a good strategy too.  If you ever want to chat, definitely don't hesitate to PM me. 

    Joe

  • Real Estate Agent · Port Huron, MI · Member since 2012 · 295 posts · 82 votes
    10y

    @Corwin Hernandez Welcome to BP!

  • Rental Property Investor · Oak Park, MI · Member since 2013 · 222 posts · 35 votes
    10y

    this absolutely great news , welcome to bp

  • San Marcos, CA · Member since 2015 · 18 posts · 1 vote
    10y

    Welcome to BP! you'll have to update us on your investing strategies/successes/failures/stats, especially as i'm back and forth from San Diego > Detroit for the moment before moving out to the Detroit Metro area this summer. best of luck!

  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
     @Joe Mazur:

    I will definitely message you ssometimeto talk real estate. I have been to a couple REI meetings and plan to go to two more this month. I'd love to talk to a local investor who knows my market

  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
     @Joy Mondala:
    I definitely will keep you and all of BP updated on my real estate career. I am focused on learning right now to get as much information as I can before doing anything to do the best I can 
  • Investor · Grosse Pointe, MI · Member since 2016 · 35 posts · 3 votes
    10y

    I can definitely help you with Detroit RE!

  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
    Originally posted by @Adam Bird:

    I can definitely help you with Detroit RE!

     What kind of investing do you do?

  • Investor · Grosse Pointe, MI · Member since 2016 · 35 posts · 3 votes
    10y

    Detroit and Florida turnkeys, @Corwin Hernandez

  • Investor · Detroit, MI · Member since 2015 · 58 posts · 7 votes
    10y

    @Corwin Hernandez Hello and welcome to BP. You are definitely on the right track. I am a local investor myself and attend the REI meetings at the HFCC from time to time. I dont mind giving you a few pointers if you like. Feel free to contact me anytime.


  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
    Originally posted by @Account Closed:

    @Corwin Hernandez Hello and welcome to BP. You are definitely on the right track. I am a local investor myself and attend the REI meetings at the HFCC from time to time. I dont mind giving you a few pointers if you like. Feel free to contact me anytime.


     What is a HFCC? I'd love some pointers. I will definitely contact you! Thanks

  • Investor · Detroit, MI · Member since 2015 · 58 posts · 7 votes
    10y

    @Corwin Hernandez

    Its the college I attend for the meetings Henry Ford Community College.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y
    Originally posted by @Gloria Mirza:

    HI Corwin,

    My best advice to you would be to save a 3.5% down payment and buy a house.  Owning a house helps you get your foot in the door.  Once it appreciates you can then get a home equity loan and use that as a down payment for your next home.  

    ?? appreciation in meto Detroit ?? imo, would take 3 life times.

    However, Detroit represents a big time crap shoot, like snake-eyes on a come out roll - - guttize bet but if it pays off, it does so big time!  Just like the retailers were the winners in the Calif 1849 gold rush and not the minors doing the work, I believe retailers will be the winners in the redevelopment of Detroit.  A chain of well placed 7-11 convenience stores should do well.

  • Investor · Grosse Pointe, MI · Member since 2016 · 35 posts · 3 votes
    10y

    @Jeff B. - it all depends on the turnkey company you decide upon once all due diligence is conducted! Detroit is hot right now for sure! Ask our loyal following!

  • Real Estate Agent · San Jose, CA · Member since 2015 · 172 posts · 66 votes
    10y
    Originally posted by @Jeff B.:
    Originally posted by @Gloria Mirza:

    HI Corwin,

    My best advice to you would be to save a 3.5% down payment and buy a house.  Owning a house helps you get your foot in the door.  Once it appreciates you can then get a home equity loan and use that as a down payment for your next home.  

    ?? appreciation in meto Detroit ?? imo, would take 3 life times.

    However, Detroit represents a big time crap shoot, like snake-eyes on a come out roll - - guttize bet but if it pays off, it does so big time!  Just like the retailers were the winners in the Calif 1849 gold rush and not the minors doing the work, I believe retailers will be the winners in the redevelopment of Detroit.  A chain of well placed 7-11 convenience stores should do well.

    "Be Fearful When Others Are Greed and Greedy When Others are Fearful" 

    - Wareren Buffett

    Point is, just because nobody is buying now doesn't mean they wont in the future.  I don't know much about the Detroit market though, so you might be right :-)

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    I think we're agreed, but I challenge that property appreciation is the doorway to Detroit investments.

  • Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
    10y
    Originally posted by @Jeff B.:
    Originally posted by @Gloria Mirza:

    ....

    ?? appreciation in meto Detroit ?? imo, would take 3 life times....

    Depends how you're buying them. Appreciation is better in Detroit than ANYWHERE.

    43.1% gain for Wayne County

    One Year June 2014 to May 2015 gains in Median Sales Price

    Wayne County (Includes all of Detroit) 43.1% from $80,000 to $114,500

    Macomb County 9.6% from $123,000 to $134,825

    Livingston County8.6% from $197,950 to $215,000

    Oakland County5.9% from $193,600 to $$205,000

    In the article linked above it shows the rise in Median price for 4 counties in the area of SE Michigan.  The counties North of Detroit have pretty good rise and the people on BP like to point out these areas have nice small towns and higher values etc.

    But Wayne County is incredible appreciation and I do way better than their number!

  • Investor · Ann Arbor, MI · Member since 2013 · 178 posts · 225 votes
    10y

    Corwin I bought my first property when I was a 19, a 5 unit apartment house across the street from the Eastern Michigan University business school.  I lived in 1 unit while renovating it, and rented out the other 4.  I would 2nd some others advice here and buy a house and move in, rent out the other rooms, until you save up to buy a 2nd one and move out.  I know own 50 properties within a mile of my first property.

  • Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
    10y

    Make sure to connect with a local real estate investor club/rental property club or association!

  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
    Originally posted by @Stewart Beal:

    Corwin I bought my first property when I was a 19, a 5 unit apartment house across the street from the Eastern Michigan University business school.  I lived in 1 unit while renovating it, and rented out the other 4.  I would 2nd some others advice here and buy a house and move in, rent out the other rooms, until you save up to buy a 2nd one and move out.  I know own 50 properties within a mile of my first property.

     How did you finance a deal so young? I have never been taught to handle money very well but have started implementing new things to knock down some of my debt so my credit isn't the best but again, am working to better it. I'm assuming you couldn't have had a great score so young. Would you mind sharing that with me?

  • York, PA · Member since 2015 · 64 posts · 11 votes
    10y
    Originally posted by @Account Closed:

    Make sure to connect with a local real estate investor club/rental property club or association!

     I have been to the Metro Detroit Real Estate and Renegade Detroit Investors groups once each and olan on going to the second one's meeting later this afternoon. I really enjoy them

  • Real Estate Agent · Grand Rapids, MI · Member since 2014 · 493 posts · 200 votes
    10y

    You might check out the Wayne County REIA too.

  • Real Estate Agent/Investor · Clarkston, MI · Member since 2013 · 156 posts · 34 votes
    10y

    Excellent @Stewart Beal! Do you own the whole block there? That is awesome. How long did it take you to acquire all those properties? How did you finance them all?

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