Has anyone been watching the news lately? Me neither. I don't watch the news because they don't give me information for what I need to be successful. I don't need doom and gloom in my life. While not watching the news or reading the newspaper, I still manage to get all the relevant information and make great business decisions. Yes, I do know about the financial market meltdown and what's going on and that's what I want to discuss here. This is something that will affect all of us and brings up a great question, "Where is your money invested?". But before we get to that…
Here's a great article on the AIG Bailout might work well for taxpayers explaining that the government lending $85 Billion to AIG might not increase taxes because they're charging a high interest rate. My question is, who is deciding whether this is a good investment for the government to make? It may work out to be a wash or a good investment for the government but at what risk? What if AIG can't pay the funds back? They say that there may have been as much as $190 Billion in losses in the market if AIG failed. That's a lot but honestly couldn't that be a lot better scenario then lending money to a company that has proven that they can't run their business effectively for a stake in their company and a high interest rate? I run a real estate investment company and am not an economic analyst so I guess I can only ask questions. Here's some more good information on the AIG Financial Crisis.
Now, AIG isn't the only financial company that is having issues. There have been multiple companies that have failed or have needed buyouts to stay in business. This leaves a lot of uncertainty in the market and when there is uncertainty in the market, investors get scared. People sell stocks, don't invest as much money, and the stock market falls. Where is your money invested? Please don't think I'm reverting and trying to spread doom and gloom because that's the last thing I'm going to do. This is what's going on and it's going to take awhile for the financial markets to get figured out. That's a fact. The big question now is, "Where are you going to invest your money?"
Before this financial mess, you could have called me biased for saying that real estate is a much better investment if you didn't really look into the facts. Now the comparison is almost too easy. Before I could tell you that you're going to get a much higher rate of return, get tax advantaged income, and have real assets. Now, I'm going to tell you the same except the disparity is much greater. It's not that you're going to make a little more on your investment, it's that you're going to make a great Return on Investment and NOT LOSE MONEY! If you just pay cash for a Detroit Cash Flow Property to get it purchased, rehabbed, and rented out, you're going to make a 15%-20% Cash on Cash return. If you refinance your cash and get a little out, your return becomes infinite after the first year. Talk about security as well. You invest in excellent built properties in stable areas of Detroit for an all-in investment of $35,000 that comes back with a conservative appraisal of $80,000 to $110,000. We're talking about retail sales on the same street!
Let me ask you again, where is your money invested? If you have an IRA or another retirement interest, ask me how you can get that money invested into real estate ASAP! Using Self-Directed IRA Companies allow you to invest your money in whatever you would like (as long as it fits the Self-Directed IRA Guidelines). Yes, this also includes investing in real estate! If you currently have funds invested in the stock market or other financial instruments, do yourself a favor and look into self-directed IRAs so you can get invested in something that is tax advantaged, has great annual returns, and has great upside potential. Contact us if you have any questions on how to get started.
Successfully Yours,
Jared Pomranky
Detroit Market Expert
Visit me on the best Real Estate Networking Site and sign-up at Active Rain - Detroit Real Estate
Detroit Investment Properties - Our website for wholesale deals and information
Detroit Real Estate - Our Blog on Detroit Real Estate
Cash Flow and Property Analysis Spreadsheet
8 Secrets to Hard Money Lending in Detroit
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"Success by Association"
How many times do you talk to a "real estate investor" whether you are an investor or you're a real estate agent showing investment properties that just does not understand a cash flow calculation? Do you ever talk to people that forget to add in such important calculations as insurance, property management, vacancy, and maintenance reserve? I've talked to my fair share and when I first started out for awhile I didn't get all of this.
I've seen expensive software, spreadsheets, and calculators that don't even do a good job of keeping track of all of your property details separately. Well, we've taken our Cash Flow Analysis Spreadsheet and our Property Analysis Calculator and put them together for our investors. We know that by properly educating our investors on cash flow properties, we can create long term customers that succeed instead of short term customers that fail and never buy from us again.
If you're a new investor looking for all of the proper calculations and information, an advanced investor just looking for an easy way to keep track of everything or a Realtor or Real Estate Professional looking for something to visit clients, visit www.DetroitCashFlowAnalysis.com and download your Free Cash Flow and Property Analysis Spreadsheet.
Actual Screenshot
Successfully Yours,
Jared Pomranky
Detroit Market Expert
Visit me on the best Real Estate Networking Site and sign-up at Active Rain - Detroit Real Estate
Detroit Investment Properties - Our website for wholesale deals and information
Detroit Real Estate - Our Blog on Detroit Real Estate
Cash Flow and Property Analysis Spreadsheet.
This questions gets asked of me more than I care to count. Unfortunately whenever I mention the great investment opportunities for foreclosure real estate that we are doing in Detroit, I get the wince. For those of you that may not have seen it, I liken it to someone that just realized they have a very intense pain deep in their gut. Now, do I tell you this to impress you? No, I'm sure I should be telling you that literally everyone else is investing in Detroit Real Estate except for you in order to get you coming to our fair city. Well, that's just not true. The media and just plain fear advocates have done such a good job at selling Detroit as the worst city and communities ever to hit earth, that people who know not a single thing about Detroit are dead set against it. That's why I get the wince. This does work out well for those of us that like to form our own opinion instead of being told what we should think as there are less people out there buying. It also works against us because there are less people out there buying. For those of you that are new to our newsletter or blog, make sure you check out what makes Detroit great on our Detroit Real Estate Blog. We have had great blogs on real estate development in Detroit, different ways to invest in Detroit, buying low and selling high, and it's all about the neighborhood. Last night I had the opportunity to sit down to listen and speak personally with Billionaire Detroit Deal Maker Herb Strather and hear his take on Detroit. Herb is more bullish on Detroit than ever and had some great points on what makes Detroit such a unique place to invest an so profitable!
Also, quickly before we move on, we have had quite a few requests for a Cash Flow Analysis Spreadsheet and an Investment Property Analysis Spreadsheet for how we look at investments here in Detroit. We have created this at www.detroitcashflowanalysis.com and are making it available for Free to everyone. Make sure you check it out.
Herb talked last night about what he said is the floatability of the Detroit market. I didn't quite know what he meant until he explained that we're in one of the few markets that actually has sales in 3 different levels of price points even within the same neighborhood. We have the foreclosures and junk sales at the bottom of the market, the quick flip and distressed homeowner sales in the middle, and then the retail sales at the top. As an investor, this is good because you have houses that you can purchase and fix-up for $35,000 to $40,000 that are right next door to a house that recently sold for $90,000. For these lower priced houses that we're purchasing, we can immediately show comparable sales that are far and above higher than what we paid. Because there are a fair number of retail sales occurring each month, these comparable sales are consistent. There aren't quite enough retail sales for me to sell on the open market without selling to a specific niche but I can still use the comps. This value may not be fully realized right now with a quick retail sale at 100% but it can put some refinance money into your pocket pretty quickly and as the market stabilizes, that equity will become more and more attainable. Herb has many ways to realize this equity in his book "Getting Rich is Easy: The Master's Guide to Real Estate Acquisition" and he remains an active investor in Detroit. With more and more investment in Detroit and the incoming jobs from different industries (see above), the market will stabilize. Will you be taking advantage of the current market or will you be the one wincing when I mention Detroit and not even take the time to hear about the opportunity?
Successfully Yours,
Jared Pomranky
Detroit Market Expert
Visit me on the best Real Estate Networking Site and sign-up at Active Rain-Detroit Real Estate
Detroit Investment Properties - Our website for wholesale deals and information
Detroit Real Estate - Our Blog on Detroit Real Estate
Cash Flow and Property Analysis Spreadsheet.
"A bend in the road is not the end of the road... unless you fail to make the turn." ~Author Unknown
Change. We hear about this word so often in one form or another it almost just blends into the background. We all hear about change and how we need to change ourselves or we'll become outdated but it doesn't always seem to sink in with everyone. How many people do you know that refuse to change for one reason or another? How many people have you heard say that they've been doing it this way for the past 10 years and they're not about to start doing it differently now? While this attitude seems to be the default for human nature, it's not helping anyone.
In long periods of economic booms and wealth building, you find that people and companies become content in doing just "good enough". They stop innovating, stop changing, and just do what they've been doing because it works and while they may not be the best, they're getting by just fine enough. What happens, however, is that economies and markets change and I don't think I need to talk anyone into believing that we have seen a lot of change in the Detroit market over the past 5 years and that we will see even more change over the next 5 years.
If you're one of the people that refuses to change, you will not prosper during these times. It's not about doing what has worked before, it's about trying new strategies and creating new ways to build wealth and prosper. During times of change there is more opportunity than at any other time but there are few people that can identify the opportunity let alone change to capitalize on it. Who are you going to be, the one that talks to their kids about how they could have invested in real estate back in 2008 at unprecedented price points or are you going to be the one that is relaxing on the French Riviera with your family while your real estate holdings in Detroit are booming? Find out how to change and adapt to today’s market or you’ll be looking at the former rather than the later.
Successfully Yours,
Jared Pomranky
Detroit Market Expert
Detroit Investment Properties - Website for Detroit wholesale property
Detroit Real Estate Blog - Blog on Detroit Real Estate
Detroit Real Estate Secrets - Detroit Investment Secrets free report
Detroit is a great place to invest as I'm sure you know. That being said, there are many things you need to keep in mind when investing in our area. The profit potential and cash flow is amazing here and you can take advantage of all of it if you follow some simple rules. First off, always make sure you use professionals and get recommendations from other investors that have used these professionals such as contractors, project managers, and property managers from other investors that have used them before. I have heard countless stories of investors (out of state and in state) getting ripped off or getting shoddy work from someone that they never got a recommendation on. Believe me. I have gone through the contractors that have taken my money and contractors where they might as well have because I had to get someone else in to fix their "completed" work. We're here to make you successful in Detroit so if you need some recommendations for trusted professionals on our team that we use and other investors we respect use, just ask.
We have compiled the "8 Secrets to Successful Investing in Detroit" for download at Detroit InvestmentSecrets. Below is a summary of secret number 4 to find out what you need to be reading!
Secret #4
PEX, Security Doors, and Glass Block Windows
These are Detroit market specific improvements that buyers and renters want to see in their new home. You will have significant challenges selling or renting a home in Detroit without these improvements.
PEX (summary of what's at Detroit InvestmentSecrets
PEX is basically plastic plumbing like your garden hose in your back yard. You need to replace your copper plumbing with PEX for the following reasons: Copper is a high theft item and is expensive to replace. Most plumbing is old and may be metal soldered with lead (not good) and the supply line functionality will be severely reduced. For the cost of PEX you will get long lasting quality, a break on your insurance, and better performance.
Security Doors
Security doors are an extra steel door that is installed on the outside of every exterior door. Renters want to see security doors for extra security and you will find that break-ins are severely reduced with a steel security door.
Glass Block Windows
Glass block windows are just what they sound like. They are actual sealed blocks of glass that are used for security in basement windows. They function the same, if not better, than steel bars across basement windows but they are much more aesthetically pleasing and are energy efficient. Renters want to see these for security, looks, and energy efficiency.
By visiting Detroit Investment Secrets - Secrets for Successful Investing you can download our free report to get all of the 8 Secrets of Successful Detroit Investing and view pictures of everything and get important links and contact information. Enjoy the free report and let us know how we can help you!
FYI, many of our houses sell before they even make it to our website so contact us and let us know what you're looking for.
Successfully Yours,
Jared Pomranky
Detroit Market Expert
Visit me on the best Real Estate Networking Site and sign-up at ActiveRain
Detroit Investment Properties - Our website for wholesale deals and information
Detroit Real Estate - Our Blog on Detroit Real Estate
Detroit Investment Secrets - Secrets for Successful Investing
I am a Detroit Real Estate Investor focused on Detroit Investment Properties, wholesales, foreclosures, cash flow, and making others successful. Visit us for great deals at www.WholesaleMi.com.
Urban Detroit Wholesalers, LLC is the premier Detroit Foreclosure Investment Property experts. We provide end to end solutions for rehabbing and renting for high cash flow and a hands off approach through property management. We know you're busy so you leverage the contacts that we have made over the past 5 years to be successful. Check out our main website at Detroit Investment Properties and our blog at Detroit real estate market Blog. If you're interested in Detroit Real Estate investing, make sure you visit Detroit Real Estate Secrets to get some great tips!
Check out this video on our company and Detroit: Urban Detroit iMercial
I also run a real estate and entrepreneur group that meets the first Tuesday of each month. Go to www.RenegadeDetroit.com to get more information. It's a great place to network!
Our area of expertise is in Detroit Wholesales, Detroit foreclosures, investment properties, and the Detroit real estate market in general. We create great deals for out of state and in state investors to purchase and rehab rental properties for extraordinary profit. Many of our investors find they can buy a Detroit property in a great area and rehab it for a total of around $38,000. These are the same houses that are renting for between $850 and $950. Even better, we have the team and expert in place that you can leverage to be successful.
Listen to what Fred B. has to say about us: Detroit Real Estate Testimonial #1
Here's a great testimonial from Jodi Musik about her experience with us: Detroit Real Estate Testimonial #2
Detroit Real Estate Testimonial #3 from Jason Imbruglio
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