All Forum Posts by: James S.

i am about to take my real estate agent license test really soon 
i primarily got my license to assist me with buying flip deals
i plan on investing in the metro detroit area , Wayne Oakland and mocomb
does anyone have any recommendations as to which broker to resister  with ?

my father has been investing in detroit for 22 years over 100 different properties 

i am not sure which is the better choice but we always have the tenants fill out an affidavit

water bills in detroit can come in extremely high at times and if the tenant decides to skip out on paying rent and bills, it can cost you thousands if it is under your name and not theirs.

this is a very good question to ask , i have been thinking of this exact situation for the last month, housing prices in the area of detroit where i invest are sharply rising, asking prices for multi-families are often unrealistic, commercial asking prices for building in detroit are that as they were in 07 

houses even in terrible condition are being sold well over what an investor would buy for
and if any of you have been watching the stock market, it has been undergoing a correction since august, even as companies continue to announce record sales and earnings their stocks value continue to fall. the stock market usually acts long before the rest of the economy does.

many of the youtube investing channels are talking about the market cycle and how 2016 and 2017 will be a buyer's market or that they predict a sharp drop in property values based on the time scales, we have been in a bull market for the past 5 years, bull markets usually last 4 years, it is time for a correction.

i am no expert but from what i have learned in the last 2 years of studying markets, is that they operate not out of logic but out of emotion, when everyone is excited its time to sell, and when everyone is afraid it is time to buy. more and more people are becoming excited about real estate ownership and investing. it is my opinion that the end of this bull market is near and for those who chose to invest should do it more conservatively.  

from what i know it usually takes about 6 weeks for the entire process, if you file for eviction you can usually get the home back, 

these situations are hard, more often then not the homeowner doesnt know their homes were ever put into auction and lose their homes, but usually with talking to the previous homeowner and proving you are the rightful owner you can get the home back, or at least negotiate them to leave cash for keys , if that doesnt work then file for eviction or notice to quit. 

I buy houses in wayne county, all cities excluding river rouge and ecorse and only 48209 

Me and my father both rent and flip

If its got a solid roof and a solid price we are most likely interested

Pm me to let me know what you got 

that is amazing ! 
i was wondering about investing in hud homes in the detroit suburbs as well, hopefully i can pm you about my questions ?

yes it is completely possible. 

Find the right property in the right areas and your rents will skyrocket till they reach or surpass the 15% 

Or find properties in distress areas in not so great locations for dirt cheap and get far passed the 15% cash on cash immediately

The houses I buy generate 5-10% PER MONTH but with my strategy I buy heavy distressed property in not so great areas 

my only current investments I purchased with 40k down and after all expenses will give me 30k thats a 75% cash on cash return. But since I baught in detroit I will most likely never see appreciation in rent and very little if any appreciation in property unless I deeply force appreciate by rehabbing 

it all depends on your level of comfort and risk tolerance. 

I invest in detroit but only in one area where I am comfortable 

detroit has the highest return on cash of any city in the usa but there are major risks in investing in detroit , detroit has some of the highest crime rates in the usa , the majority of schools are horrible at best so turnover is high and the quality of tenants tends to be poor. 

If you decide to invest here remember to buy great  insurance because there will be damage there will be thefts, there will be houses burned to the ground. Invest long enough in this city you will see it all. This city isnt for the weak of heart so be careful if you chose to invest here

the buildings I own are at a 50% cap rate. Highly risky but at my age and experience is worth the risk to me. 

If you plan on buying a multi don't look at cap rate, look at vacancy,  if it's 100% chances are its too cheep and you could probably get away with raising the rent, if it's at 50% maybe the area is terrible or the units dont fit well with the people living in the area. its a bad investment to have one bedroom units if the area's average household is +4 people. 

Also like it was stated above, the higher the cap rate the higher the risk it is as an investment, perhaps it is an older building with repairs left and right, maybe its a high crime area or perhaps it is low income high turn over, or worse it is an area where its impossible to find good tenants. 

Investors come in all kinds of risk tolerances and investment desires. Some want a turn key super high end neighborhood and are willing to pay a premium for the security and will settle for less profits, others want to go all in and invest in distressed properties in not so great neighborhoods for huge returns and are willing to accept the risk. 

Id say the best course of action is to do it yourself, or follow along with someone who does the kind of investing you want to do and have him or her as your mentor. Once you have a foot on the ground and are being successful, people who previously would have never entered real estate investing will line up wanting to join forces with you 

found a house on Craigslist, the numbers look good its in a nice area, houses sell for about 80 -100k in this city 

but its got railroad lines close by 

would it still be a good investment?