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Lance Petway
  • Investor
  • Farmington Hills, MI
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Back in the game

Lance Petway
  • Investor
  • Farmington Hills, MI
Posted Apr 4 2024, 16:20

I lost everything in 2008 during the recession.  13 homes all in the suburbs including my personal home in Royal Oak.  It was devastating for me at that time.  I did everything right and just did it at the wrong time.  WELL I AM READY TO GET BACK INTO THE GAME AND START ALL OVER!! I want to make my business recession proof now.

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Arsen Atanasovski
Pro Member
  • Investor
  • Rochester, MI
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Arsen Atanasovski
Pro Member
  • Investor
  • Rochester, MI
Replied Apr 4 2024, 16:38

Section 8 and buying properties that positively cash flow. You will never lose them. Let's say you buy a house for X amount your mortgage PITI is $700 your section 8 tenant is paying $1000. Your house drops in value by half, rent doesn't drop my friend so you will be in it for the long run but you won't necessarily lose it. In the early 2000's ppl bought homes that was not affordable and no down in the game easy for someone to walk away. Just do your numbers do them again and again until you know that the deal you're looking at cash flows properly and that my friend makes it recession proof. Hope that helps

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Michael Smythe
Property Manager
#2 Classifieds Contributor
  • Property Manager
  • Metro Detroit
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Michael Smythe
Property Manager
#2 Classifieds Contributor
  • Property Manager
  • Metro Detroit
Replied Apr 5 2024, 06:09

@Lance Petway we watched a lot of our clients go through that:(

Most overleveraged and/or didn't have the reserves to get through those rough times.

What's your new and improved plan?

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96
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Lance Petway
  • Investor
  • Farmington Hills, MI
20
Votes |
96
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Lance Petway
  • Investor
  • Farmington Hills, MI
Replied Apr 12 2024, 06:42

Thanks Arsen for that info as that is exactly what I play on doing for one part of my business.  I always stayed away from Section 8 at that time and did Zero down purchase doing 80/20 loans and/or interest free loans as well.  Just as you said Arsen, that meant a higher mortgage payment, and when rent rates dropped I was not payment $3,500 out of pocket every month to cover the difference between mortgage payment and rental payments.  

Michael, outside of putting money down and doing Section 8, I will also be doing Rent to Own program as well.  I am meeting with a RE lawyer next week to get the paperwork going. I also want to get into multi unit properties and do Section 8 with those units as well.