All Forum Posts by: Annette Hibbler

I know there are many BP investors who hold Detroit rentals.  I was wondering how you would rate your Property Manager(s).  I thought this discussion could in fact benefit several others who are currently unhappy with their PMs.  Here's the format:

1. PM Name and Location

2. How long have they worked for you

3. Rate from 1 to 5, 1 being terrible and 5 being fantastic, always on time, etc.

4. Then followup with your comments.

@Joel Moore Jeez!  Thanks for the heads up, I appreciate that.  :)

@Jay Hinrichs Hi Jay, yes. Seller reached out to me and asked if I would help him sell. The properties are listed on MLS at $305, however, I was able to negotiate a much more attractive price point for the entire LLC purchase at $220K. If you're seriously interested, please contact me at [email protected] and I'll send you seller's spreadsheet with addresses and additional information.

Thanks.

@Alvin Neal Al, interesting history.  I enjoyed your post.  As such, I'm curious as to what you have to say about Rick Snyder effort's here.

@Cierra Seay We have invited loads of investors to Detroit to see it first hand.  Half a dozen came last summer.  They could not believe their eyes.  Seeing the city literally in the throws of a transformation is quite a sight.  They all left feeling very optimistic about the city and it's direction.  

The fact that many millionaires are pouring money into this one city, should get your attention.  The best way to achieve success is to imitate those who are successful.

Package consists of 6 SF and 1 Duplex, 100% occupied. Priced for quick sale at $220K. LLC established in 2008, same owner and same property manager from it's inception. Decent neighborhoods in Detroit Metro area. Solid investment generating NET INCOME $38,900 per year.

More details and information available.  Serious inquiries only please, contact me directly at [email protected]

Detroit is a HUGE city comparable in size to Las Vegas.  Although it has suffer a population decline, it's population size is currently on par with Boston.  Like any major city, NY and LA included, there are many areas of Detroit that are perfectly safe investments. It's hit or miss there and you have to have a team on the ground who going to give it to you straight, protect you by steering clear from questionable neighborhoods into solid, safe and desirable places that responsible renters want to live in. Detroit is in the middle of a massive conversion, new hospitals, new schools, blocks and blocks new townhouses and developments, new builds both commercial and residential are going up everywhere. The city is transforming itself right before our very eyes, an incredible sight.  The city has also started to expand an air rail system which is fantastic! University of Michigan is among several universities other to plant satellite campus right in the heart of Detroit as well as the new University Hospital branch. Dan Gilbert, one of the wealthiest men in the country, now owns more real-estate in Detroit than anyone else.  He believes in this city and is putting his money where his mouth is. Lots of new IT jobs and Fortune 500 companies have been setting up shop since 2011. I recently posted some articles on this here on BP. Take a look.

@Aaron Mazzrillo   I know what you're saying. Had I not heard it directly from my own real estate attorney, I would not have believed it either!

We are selling one of our properties in New Jersey and decided to try the FSBO route. We've done this before but with much lower value homes. This particular one is much more up market and we listed at $500K list.

Within a few short weeks we were contacted by an investor from Beijing offering to purchase the property for $485K.  A $15K reduction.  

Being very wary of this guy we played along with it.  We looked up the address he gave us and it was the address of a very nice restaurant in Beijing.  He also provided a bank statement from an institution in Hong Kong showing $4 million.  We were not convinced but proceeded with caution.

We advised him to obtain a US attorney for the transaction, which he did.  Contracts were drawn up and he sent a check for $399K towards the purchase.  However, his attorney wasn't convinced the check was valid because it was a third party check.  The buyer  explained that the check was from his investment company.  It also came with a cover letter from his investment broker in Canada.  

His attorney called the Canadian broker and was immediately suspicious because he did not provide any sufficient answers and was very vague.  The attorney then contacted the third party company, the investment firm, and asked about the check.  The firm informed the attorney that they had checks stolen and as such they don't even use that bank account any longer.  The check is fraudulent.

So what's the scam?  It's on the attorneys.  See, had the attorney sent the check in to the bank, it likely would have taken some time to process.  During this time, the investor would have likely pulled out of the deal and asked that his money be returned.  Attorneys often don't wait for checks to clear and would have likely reimbursed this guy from their account.  When the checks fails to clear, the attorney would have been out $399K.

My own attorney admitted that reimbursing monies prior to checks clearing, is a normal practice.  After this incident, however, he said he will never do that again.  Thank God, no one lost any money to this scammer...this time.

Hi James,

I have several contacts with foreign investors who are pulling together their resources to get Scruggs, some from England, Canada and Australia.  I can put you in touch with them if you'd like.  I believe that my contact in England has already made contact with the Attorney General / Prosecutor's office.  So he's on their radar.  This man is among several others who have made building good relationships with investors interested in Detroit, very difficult.  You may know the saying, "one bad apple ruins the whole bushel". My husband is from London and we are investors here in Michigan.  

If you'd like to continue this discussion please feel free to contact me.