All Forum Posts by: Paul S.

Wholesaling is a weak shortcut to someone actually putting in hard work and effort to break into real estate.  Any seller or buyer that would work with these parasites are rubes.  No lender or title company should legitimize their scam by allowing them into any transaction.

 All I can speak on is my experience in my D class areas. They do it. I have rentals in A class areas and I STILL go get the rent by hand if it isn't direct deposit or app based pmt.  THIS IS YOUR MONEY!!!  Why would you add risk to it getting to your hands?

 My 2 cents:  Most landlords in urban areas now use an app (cashapp, chime ect) to collect rent or pick it up in person.  It takes time to learn every hood scam when investing in the hood.  One of them is "I sent the rent in the mail - if you didn't get it i don't know what to tell you!".  I never allow rent to go through the mail. Never allow them to leave it under the mat or somewhere else for me to get.  A big point you need to realize is you need to take control of your property.  These tenants talk, don't think they don't. "I told Steve he had to come get this and do this and thats that!"  When they see you are weak and don't have control they will all set the terms for you.  Go in, tell them all this is the way it's going to be done going forward - if they don't like it it's time to go.  You might lose a tenant but you will save yourselves tons of headaches in the future.  When I do an eviction at one of my buildings - Bailiff is out their putting their crap in a dumpster... I go around and knock on doors to make sure as many tenants as possible see it - when they are gathered later and talking sh!t they say Paul don't play....  that's how you want them to speak about you.

 Great post! I'm mulling the same thing right now.  My son is a junior in High School and would like to follow in dear old dad's footsteps of real estate investing.  I think a MBA or Finance degree would definitely be helpful just as a life skill not just in real estate.  You are young, invest in your education now - you have the rest of your life to invest in real estate.  I would also say pick what you have a passion for!  You may find down the road real estate is not your thing.... have a good backup plan.

 I'm sorry for your situation - every prospective buyer for Detroit should read your post 100 times before considering to buy.  EVERYONE that invests in Detroit will go through the same scenario more often then they'd like.

What is happening to you is illegal - you have to decide to eat it or take action.  I stopped buying single families years ago because a forced eviction is harder than a multi fam with secured basements.  The courts are not going to help you.  When there is no covid landlords need to stop filing 7 days with a money judgement!  Tenants know if they say ANYTHING is wrong with the property the judge will order an inspection and tie up the process for weeks/months.  Just file your 30day (preferably backdated to save time) to recover possession of the property and the judge has no leeway but to give the tenant 10 days to vacate - no talk of rent, repairs, certificates...anything. You are not going to get the back money so why muddy up the eviction?

With covid getting the rats out:  I usually handle my evictions case by case.  I've had people come to me hat in hand and say I lost my job, I want to talk to you up front... I'm doing everything I can to recover, I will communicate with you often... these people I give as much time as they need.  I have many units so I can let a tenant slide if they REALLY are on hard times.  I had a lady lose her job and text me once a week for 8 months!  She was a good tenant so I let her slide.  8 mo later she got a great job and her fat tax check and she was caught up in 3 months.

The other side of the coin is the mouthy tenant you hate that can't pay cause they spent their rent money going to vegas for his/her birthday even though they don't have a pot to piss in.  Upon asking for the rent a short argument ensues and they utter what they think is the conversation ender "TAKE ME TO COURT" (anyone owning in Detroit has had this pulled on them)  Hood evictions are a bit easier in multis like I said due to the fact I secure the basements.  After the magic words are spoken the power and gas are shut off. 90% of the time this gets them to pay or go.  If sitting in the dark and cold doesn't work in the rare circumstance I have to go to step 2 and the front door of the unit is removed.  Even the locals are scared to lay their head in a spot that's open to everyone - plus the neighbors always seem helpful to chip in with the cleanout lol. For single families you have to switch it up - if the gas meter is on the outside remove it. Have an electrician disable the meter box from the outside or in extreme cases have a pole cut done.  DTE is not going to do this for you - you have to have a hood guy do it.  Cut the water from outside (but they'll probably know how to turn it back on)  If that fails remove the door as above.

There is a reason Detroit is a baron wasteland. There is a reason Detroit is always in the top 1 or 2 in crime statistics. There is a reason properties are cheap. For these reasons you have to adjust your investment style.  You cannot treat your 2 family on Joy and Dexter the same as your 2 family in Royal Oak.  If you are not willing or able to do the things needed in this environment to protect your investment and make money you should stay in your safe space.

For those that will respond: "What you're doing is illegal!" I tell you the same thing I tell the deadbeat tenants - an illegal eviction is a civil matter TAKE ME TO COURT!

Depends on the price!  One of the reasons the property is probably up for sale is the landlord (like so many on these boards are about to be) is tired of dealing with the hood, has no skills in the hood or underestimated the hood.  Buy the property and get them out.  If all these landlords are just taking it on the chin with this covid mess they deserve it.  If you don't have ways of removing people from your properties without the courts you have no business owning rentals and you deserve to lose your investment.

If this is a hood property hood **** happens.  If you are getting the property CHEAP keep moving forward.  Remember, for someone to reclaim a property lost by deed fraud they would have to litigate - no money in the hood for that!

With Covid evictions are taking forever. 

 Courtney, you will NOT receive a warm welcome in Detroit - this market is not for the faint of heart.  Contrary to all the "Come back city" puff pieces that run in clueless publications this market is not the utopia they portray.  Over 90% of investors fail here... OOS numbers are much higher.  You will NOT find a good PM here - you will go through several while being fleeced and frauded the whole way causing you to hemorrhage cash.  Renovation contractors will not be any kinder.  If you do not have boots on the ground (YOUR boots) the tenant base here will eat you alive.  The court system is set up for you to fail and the locals know how to use it to their advantage. There is a reason this city has been a desolate wasteland for almost 60 years. There is tons of money to be made in Detroit if you are as tough as the city itself... most are not and just pile on the bodies of past investors.

 *rolls eyes*