All Forum Posts by: Stephen Lovett

Is this available in PDF form anywhere?

This house looks great.  What did you use for the wood flooring?  Is it vinyl that looks like wood?  Engineered hard wood?  Well done and congratulations!!

@Jerry Poon so my definition of a private lender is different from @Antonio Gonzales.  What he's talking about is what I would refer to as a hard money lender.  Private  lenders, are non-professional lenders ( your uncle, colleague, uncle money bags down the street)   They're just ordinary  people who want in on the real estate action but don't have the time to find and manage deals.

@Jerry Poon I would go with the private lender as well for all of the reasons mentioned above.  Just make sure that you have all the correct paperwork in order (Agreement, Promissory Note, Mortgage & Memo of Mortgage).  In my case, I provide my documents to the lender (private lenders are non-professional lenders so they will not have this set up). You may need to invest in some attorney time to make this happen.  If your lender already has these forms and a process in place, keep in mind that you might be talking with more of a hard-money lender than a private lender.

@Richard C.. Of course, make sure that you have a very good handle on the condition of the property and what it will need.  This can be a strong rental community, but keep in mind that many of the homes have deferred maintenance.

Welcome @Chris H.. When starting out, just make sure you have good coverage either way.  A good umbrella policy has worked for me but there are different ways to look at it. 

Greetings @Tora I'm also a Detroit and Detroit area investor.  Feel free to message me with your initial thoughts or any questions.

I think it's about time someone answered the forum question.  Yes, I am investing in Detroit.  In fact, I just closed on a property in Detroit on Friday. I've managed a duplex in a nice Detroit neighborhood for the last 10 years while purchasing several buy and hold rentals in the metro-area. Lately I have been focusing on Detroit proper more than before. I purchased my first in the city (a nice brick ranch) in November and found a great tenant quickly and the numbers on the deal have been very strong. While I have accumulated a portfolio of several properties in the Detroit suburbs (where I live), I have been focusing  more within the city as of late. My newest property has me very excited and I hope to have it filled within the next week or two. Attached are pictures of my two Detroit properties (the brick one was from November, and the green one is from Friday). The brick home is delivering a 36% cap rate and the green one I expect to be slightly higher.  You have to know what you're doing in the city.  I don't recommend anyone invest in any city unless you're local.  For those that live here, consider yourselves lucky to be investors.

I agree with @Scott K. on the areas.  Keep in mind that taxes are high in Ferndale.  Also Southfield.  There are so many good Detroit suburbs to invest in.  A lot of folks like Hazel Park and Oak Park, but there are many more that are also great for cash flow.  I live in Royal Oak and have one rental here too. However it is a Avery hot market right now and I won't buy any more rentals here because there are better towns for cash flow.  R.O. is an appreciation or flip town right now.

Greetings.  There is a lot of Detroit bashing that happens on BP and it really doesn't bother me either.  I have homes around the area, mostly in the suburbs.  But in the last 6 months, I purchased three properties, two of which are in Detroit.  I have also managed a duplex in Detroit for the past 10 years.  You do have to know what you're doing to invest here.  But isn't that true anywhere?  Would anyone buy a house in any city without understanding the neighborhood/ block/ street first?  Richard, I agree that I wouldn't want to be an investor in any other Metro area.  The general public's negative attitudes toward this region are actually part of the reason we have this opportunity.