[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

November 8, 2011 - 1:41 pm

Thanks Matt, I appreciate the feedback.

That is what we are working on right now – still working with the owner to understand how important blog content is for the site!

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

November 8, 2011 - 1:40 pm

Jay,

You bring up some valid points but I am still a little confused on the cold weather point.

On all of my rentals, I do not pay the heating or water bills, the tenant is responsible for them. Do you do your rentals otherwise? This allows me to have a fixed cost for each rental, and makes the tenant aware of how much energy they are using.

Dan

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

October 8, 2011 - 5:44 pm

Thanks Jack, I can assure you it is a non malicious site. Just a small business in Michigan providing occupied rentals to investors. LOL

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October 7, 2011 - 2:57 pm

Jack,

I’m not sure what you mean – can you elaborate for me? The site was just redone a few weeks ago.

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

October 5, 2011 - 3:48 pm

DJ, thanks for the input, I appreciate it and will make those changes.

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

July 26, 2011 - 2:15 pm

Shoot me an email and I will send you an example. Cold weather is not a factor for vacancy – it is standard up here. Not sure how you factor that into it.

Also being stuck with a water bill means you probably made a bad purchase or placed a bad tenant, either of which is not a reflection of Detroit, but whoever was running your property.

It sounds like you are just trying to push your product over Detroit, which is fine – but just make sure you are informed when you make such statements, instead of blindly slamming the City of Detroit.

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

July 25, 2011 - 2:22 pm

Jay –

15-20% in SE Michigan is pretty close to average. No puffing here LOL.

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July 19, 2011 - 1:10 pm

Dennis,

No problem! Keep us updated on your progress in Detroit. Did you pass on the property?

[DetroitDan9Member@detroitdan9Join Date: 2011Post Count: 63]

July 18, 2011 - 1:17 pm

Dennis,

Let me try to help you the best that I can (since I live in the Detroit area and invest there).

~~~I’m thinking about investing in a property at Detroit, however i’m concern about the decrease of population.
A lot of what you read in the media does not directly apply to the rental market. The rental market in Detroit and SE Mich suburbs is great right now, there are a lot of people who cannot get mortgages so they become renters.

~~~For those who have already invested at Detriot, What made you decided to invest in that area?
I decided to invest in the area because everything is on sale, I know the areas, and the # made financial sense to me.

~~~What would be the positive and negative side of investing in that area?
Positives are that there is an extremely low entry cost for the high rents that the right properties will yield. There is no where else in the country that you can make equal returns. The downside is that most likely the properties will not appreciate as fast as other area or it will take a longer time.

Why do you think people would want to live there?

At the end of the day there are still a lot of people living in Detroit and SE Michigan. It will never turn into a ghost town. I do not put much stock into any articles or media blurbs – but here is a recent one on Detroit’s business future.

http://blogs.forbes.com/joannmuller/2011/06/29/detroits-fix-it-men-in-their-own-words/

Best of luck to you Dennis!

-Dan

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June 27, 2011 - 6:36 pm

Jay – interesting post!

Good luck with your business.

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June 27, 2011 - 1:51 pm

@portpirate

A 10% return in Detroit and the surrounding suburbs is a very average return – most people get somewhere between 15-20% if they are doing it right. On the flip side, I would be hard pressed to believe anyone can guarantee you Capital Growth. No one can guarantee that – if they do guarantee that I would take a close look at who you are dealing with!

Just my 2 cents – best of luck!

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June 24, 2011 - 1:36 pm

This was a sad situation – but the bottom line is that as an Investor you should have someone handling the repairs for you. If you are doing the repairs yourself, you essentially are just creating another job for yourself, not being a true hands off investor…

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June 14, 2011 - 4:16 pm

Morpheus,

You are doing what I would recommend all Australian Investors do – who want to Invest in the US…COME VISIT THE AREA!

There is nothing that can replace walking around in neighborhoods and getting a “feel” for the area they want to invest in. Recently a friend of mine from Australia came to Detroit to looks at some properties, and he said it was the best thing he has done in his investment process thus far.

Morph – you are also providing a lot of value to others who may not want to hop on a flight – very well done! Keep it up!

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June 9, 2011 - 11:53 am

Just a heads up for those Australians who are getting private based financing for their properties…most shops in the US who provide “financing” to Australians require a high down payment (which will usually cover the companies actual cost of the property) and then will mark the sale price to you up 50% through “financing.”

I have seen this time and time again – just make sure to ask for a list of comparables (comps) from a local agent on the ground, not affiliated with the firm you are associate with. This will give you an idea of how much the property you are buying is getting marked up.

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June 9, 2011 - 11:48 am

Nice follow up. I agree completely when you say “even after you read it is a good idea to read as much as you can.” You will learn more from doing you first deal then you ever will from reading about it, however, to continually educate yourself on future deals will only be a huge benefit for you later.

I agree with your stance NaughtyJ!

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June 9, 2011 - 11:46 am

Property Scout:
GREAT INFORMATION! It saddens me to see Australian investors pay upwards of $700 to file an LLC.

Thanks for outlining it for everyone else on the forum.

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June 6, 2011 - 3:14 am

Steve,

Looks like you have taken advantage of what America has to offer! Congrats!

What states do you buy in?

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June 3, 2011 - 1:46 pm

Tassie,

I do not mean to discourage at all! It is very possible to get an ITIN – it just takes a while, it was a learning process for me. I do not specialize in setting up corporate structures, That is why there are accountants and lawyers! My expertise is in getting people great property deals in the Detroit area!

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June 3, 2011 - 1:42 pm

NaughtyJ,

LOL I had to laugh at your post. People can spend way too much time reading articles and less time actually doing it themselves. The best way to learn is to jump in, instead of having paralysis by analysis!

I often see this with a lot of people who “want to invest in the US” they want to get involved, but have to read some more articles to feel fully confident! It either makes sense to you or not, reading 100 articles will not influence that

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June 2, 2011 - 6:40 pm

Tassie,

We just went through quite a hassle with an Australian friend of mine who came into Detroit to buy properties. It was like pulling teeth to get his corporate structure setup!