All Forum Posts by: Jeff Rabinowitz

There is a lot of private money deployed in SE Mich. Some of the lenders attend the many REIA (real estate investor association) meetings in the area. Of course, the ones who do are experienced with real estate and will probably charge higher rates than those who make an occasional loan. The REIAs are easy to find. There is one that meets in Troy (MREI), Berkely (Detroit Renegades), Madison Hts? (REIA of Oakland), REIA of Macomb, of Novi, and a BP Meetup that meets at alternating sites. There are more. Do an internet search to find dates and times, attend, and meet some local investors.

I know a full time wholesaler who is always marketing several areas.  I have purchased a couple houses from him that were under market price to me after paying him his fee.  I am happy to let him keep doing his thing and even happier to buy when he finds a property I can use.

I get at least 4 mailings a month.  Often, there will be a separate card or letter for each of 2 or 3 properties with each mailing.  The gurus have been active in SE Michigan.  I call approximately half of them back if I do not already know the sender.  I am usually leaving messages as very few of the senders answer their phones.  I ask what types of properties they are targeting (nice, run down, occupied, vacant, unencumbered, etc.--often I can tell but I ask to make a connection) as I usually have one or two that I would sell (I currently have one I would sell on terms).  I also ask them to call back if they targeted a house in an area where I am searching for new acquisitions because I may be a buyer.  I would guess that I receive responses approximately 10% of the time.  It baffles me why anyone would go to the expense of marketing and not follow up the leads.

I'm not going to take on the task of scanning the contents of 4 file drawers but I appreciate the guidance.  Thank you.  I will jettison some of my old tenant records.

I finally broke down and attended to some filing. I have several file cabinets, however; since I have been a landlord for ~15 years I have a lot of paper and the cabinets are full to bulging. I have thinned these records before and know that it is wise to keep records of improvements to the properties, for tax purposes, indefinitely. Is it better to keep leases and applications indefinitely in case I am shopped by HUD for equal housing investigations? How about payment records, notices to quit or eviction records? How long do you keep your rental records?

3 RE investors at a rather exclusive resort started talking and discovered they had a lot in common.  The first investor told about the beautiful apartment building he owned.  After it caught fire the insurance company settled for a couple million dollars and he went to the resort for a well deserved vacation.  The second investor had a similar story.  He had a commercial building that had caught fire.  He received a multi-million dollar settlement.  The third investor also had an apartment building.  He received a large insurance settlement after his building flooded.  The first investor asks: Flooded? Really? How did you arrange a flood?

@Michael S. , we are fortunate to have many REIAs (real estate investor associations) in SE Mich. They are great places to meet other investors. Most meet once monthly and can be found easily with a search of BP or the web. Some are: Renegade Detroit Investors (meets in Berkley, 1st Tuesday of the month). MREI (meets in Troy, 3rd? Thursday). REIA of Oakland (meets in Madison Hts, 2nd Thursday), REIAs in Macomb, Novi, Detroit, etc., also a meetup group formed from BP members (look up Tom A.). Most meetings have low fees, some are free for the first visit--the BP group never has a fee. If you attend don't worry about the topic (if there is one). Make sure you actually talk to some of the others attending--that is the best benefit.

I accepted section 8 for 3 years.  Never again.  Many issues, some with the tenants but most with the bureaucracy.  I am convinced there are two types of landlords: those who do not accept section 8 and those who will soon not accept section 8.

A wholesaler who knows the values in the markets they farm, wraps properties up with good contracts, knows the features (good and bad) of their inventory and offers those properties at a price at which I can turn a profit is a valuable resource.  I have purchased two properties from a wholesaler and will be happy to purchase many more.  I made money on the first.  The second one is still under construction but I expect that will also be a profitable deal.

The corollary is that a wholesaler who expects me to do their due diligence and offers properties they do not know or do not have locked up at prices above the market are a waste of my time.  Their e-mails are quickly relegated to the junk folder.

@Jabari Long , there is an active group from SE Mich here.  Tom Auterman posted a link to a meetup Tuesday, October 21. This group formed on BP. 

https://www.facebook.com/events/533387043457942/