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

March 12, 2011 - 5:58 pm

That is true about not being able to borrow in Michigan – the banks are extremely tight right now.

What are investors netting in Australia with borrowed money, based on the purchase price, and rents in Australia?

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

March 11, 2011 - 10:38 pm

Thanks Anthony!

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

March 11, 2011 - 8:33 pm

Wow. What are the details on this?

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

March 11, 2011 - 7:29 pm

It is extremely difficult for American citizens to obtain financing for homes, let alone additional financing for income properties. Has anyone had any luck with this?

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

March 11, 2011 - 7:28 pm

Speaking from my experience, Detroit is the wild card, IF you trust and know who you are working with.

Unfortunately there are a lot of people out there who are taking advantage of investors and selling them worthless Detroit homes.

In my experience, having a few rentals in the area, Detroit is a one of a kind market. For a few reasons:

+Low entry cost (20-30k all in rent ready properties)
+Great tenant market
+Great cash flow

On my rentals, on average I will become whole in 3.5 years. That is really tough to beat!

I know not everyone has had a positive experience in Detroit, but I have, and I am happy to help anyone who wants to learn more.

Take care,

Dan

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

March 11, 2011 - 7:20 pm

How has the site been coming? Are you getting a lot of visitors?

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

March 11, 2011 - 7:14 pm

@highincomeproperty

There is nothing wrong with defending Detroit! That is the market I invest in

It is a great market that has a lower entry price point with great cash flow. I am trying to buy up as much as I can right now because I know things will not be like this forever.

-Dan

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

March 11, 2011 - 7:09 pm

MakingTheJump,

I have been reading through this thread wondering when someone was going to post what you said:

“You do not need a company to buy property in the US!”

It has been eye opening for me, to learn of all these companies that charge Australians thousands of dollars in fees, when all the investor needs to do is get in touch with a wholesale real estate company in the area they are looking to invest in. Most wholesalers are more than willing to work with overseas investors – without charging any fees.

-Dan

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

March 11, 2011 - 7:02 pm

Right now for the deals available on Single Family Homes – I believe it is a much smarter play to invest in Houses rather than Condos.

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

March 11, 2011 - 7:00 pm

Judi,

My rent rates have been stable for the past 2 years. It may fluctuate a little bit, maybe by $25, but even that is a lot. What area is your rental in, and what was the rate you were quoted at?

-Dan

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

March 11, 2011 - 6:41 pm

I always resort back to the old saying, “If it is too good to be true, it probably is.”

Always ask for previous clients testomonials and do your own background checks.

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

March 11, 2011 - 6:35 pm

Congrats on the deal! What other areas besides KC did you prospect?

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

March 11, 2011 - 6:30 pm

MrLV,

What are the returns you are looking to get from WA? Or in general for that matter?

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

March 11, 2011 - 6:26 pm

Rob,

Here is a link to a Finder’s Fee contract that you can adjust to protect your interest in your commission. It gives you a baseline contract that you can edit as you see fit.

Good luck!

-Dan

http://www.foreclosureforum.com/forms/14FindersFeeAgreement.pdf

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

March 11, 2011 - 6:21 pm

SoS,

What type of returns are you looking for with your buy and hold?

Have you ever considered investing a small portion of that allocated money in a property in the USA?

Speaking from my own experience, for $30,000 in a Michigan Suburb you can net around $500/mo after taxes and insurance (rent somewhere between $800-900), with potential for capital gains in the future.

Just a thought.

Take care,

Dan

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

March 11, 2011 - 6:09 pm

Huzey,

What would it rent for if you did not turn it into a split level?

Have you thought about renting it out as is for around $750/mo for a while? That would allow you to become more comfortable as a landlord and cash flow in the process.

-Dan

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

March 11, 2011 - 6:03 pm

Sofia,

Managing other peoples properties can be a lot of work if you are not prepared. If you really want to get into it I recommend using software to assist. TenantPro7 is a great program to use, and I believe you can manage up to 5 properties for free in it.

Here are a few pros and cons to managing others properties:

Pros
+Small boost to your cash flow (usually 10% of rent is management fee)
+Gain additional experience working with properties and tenants
+If you have great tenants already in place – you have very limited work to do

Cons
-You are getting calls for any small issues within the property (maintenance)
-If the tenant doesn’t pay you have to deal with them as well as an upset family member

One piece of advice: if you are finding a new tenant, set the tone of your relationship early, do not let them bend or be late on any deadlines you set. It is like the first day of being a teacher, if you show a crack in the armor, the tenant will take advantage!

Good luck!

-Dan

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

March 11, 2011 - 5:23 pm

It is great to read all this excitement in one place about investing in the USA!

If anyone has any questions about investing in Detroit and the surrounding suburbs lets me know, I will do my best to help. I have a lot of experience investing in the area.

Take care