All Forum Posts by: Courtney M.

Great job! It sounds like the changes were mainly cosmetic? Hoping to do some out of state rehab myself as well, great to read stories like this!

Congratulations! Sounds like a homerun deal for your first!

Welcome Steven! I also live in SoCal and invest in the midwest. Lots of great resources here!

One of the biggest problems with Detroit investment is the funding of schools through property taxes.  The schools are horrible. The people I personally know that work in Detroit commute from the suburbs (Livonia, Canton, etc). Because the tax base has continually shrunk, taxes have gotten higher. Taxes and insurance should be a primary consideration for anyone looking to pick up real estate in Detroit. Those can quickly make a sweetheart deal look not so great.

I'm sure there are people making money investing in Detroit, and certain areas are seeing a big comeback. Personally I feel the suburbs are less risk with a more stable tenant base, so that's where I'm more comfortable putting my money.

What areas are you driving in? If you're looking around Little Caesar's arena, Campus Martius, yes, those areas are nicer and are attracting more investment. But I think they are quite expensive now and not ripe for cashflow investing. Ann Arbor is not at all close to Detroit, a very nice market but I'm not familiar. It's certainly been climbing and has always been an expensive market due to UofM. 

I generally stick to the suburbs and even in those areas you have to go block by block because otherwise you won't know the "bad" areas. A good broker with local knowledge is extremely important.

Thanks for your response @Michael Quarles! I'm somewhat familiar with the market I'm considering targeting so I was wondering if you found not being present a hindrance - but it sounds like you have some excellent systems in place.

I'd love to hear from investors who market out of state with yellow letters, etc.

I've listened to several podcasts where people talk about this type of marketing, but it seems they are local - they are able to meet with the owners, go look at house, etc., which are all extremely valuable in helping to gain trust and close the deal.

I assume many people also market to an area in which they don't live - I'd love to hear how effective it is and what your process is in dealing with leads.

Originally posted by @Matthew Olszak:

Originally posted by @Doug Orchard:

@Lien Vuong agents are very recalcitrant if you don't have "pre approved " or you don't have POF or you have the temerity to make an offer that's considered lowball. If you contact an agent through Zillow you get to talk to their "liaison " who's job it is to tell you that it can't be done unless you have the above prerequisite. I'm sick of talking to realtors!

 If you can't provide proof of how you are going to pay for a property you are offering to purchase, why do you expect a professional to work with you, potentially for months on end? Those who are preapproved or have cash in the bank have no issue providing proof. Even when the amounts are in the 7 digits.

This is just common professional decency. It lets everyone know that their time isn't being wasted.

If you intend to travel to your market, I'd take Traverse City off the list. You need 2 flights to get there. It's a beautiful area but probably a bit overpriced right now.

Lansing, Grand Rapids and Kalamazoo are all on the west side of the state. No experience there, but run some searches on BP and you'll probably find local investors.

I think the Michigan market is heating up. I had my eye on a HUD in Livonia listed for $55,000. Excellent neighborhood. When I went to look at the house a group was already there, and the house went under contract at about $70k. So, buyer beware. Just because it's cheaper than where you live (and I'm in California, so I know this) doesn't meant it's a good deal. You definitely want a great investment broker and PM to assist you.

I'm sure their advice is sound. But I also think many real estate investors on this site are similar to me. They are looking for a way to create financial freedom, or boost their retirement, or get enough cashflow to quit their jobs. I daresay it is easier to do these things in real estate than it is in other asset classes, and you have a significantly greater amount of control. But I'm sure just as soon as I'm an accredited investor, I'll throw a few mill towards business investing. Just for fun! ;)