Snapshot Summary of My First Detroit Deal

Discussion in 'Investor Stories & Showcase' started by C-mac, 19th Nov, 2019.

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  1. Jordan Sinclair

    Jordan Sinclair Well-Known Member

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    How do you make your ROI work for you? Reinvest in more deals etc
     
    Jordan Sinclair, 27th Nov, 2019
    #41
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  2. MTR

    MTR Well-Known Member

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    Do you mean the cash flow numbers?
     
    MTR, 27th Nov, 2019
    #42
  3. Jordan Sinclair

    Jordan Sinclair Well-Known Member

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    The rent you receive. Do you reinvest in more deals or something else? Some investors like to fund flips rather than have the cash sitting in the bank earning near zero.
     
    Jordan Sinclair, 27th Nov, 2019
    #43
  4. MTR

    MTR Well-Known Member

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    Been doing both, money left in US to reinvest and also
    Bring money home as My partner and I live off the rents
     
    MTR, 27th Nov, 2019
    #44
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  5. C-mac

    C-mac Well-Known Member

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    Lol Dean I'm not sure if your comment was jovial or sarcastic! Of course, I'd love to report back in 12 months saying that it all went swimmingly! But that won't be the case, I'm sure. It's all a learning curve. But hey, I'm having a go with this and doing my darndest to at least ensure I minimise any/all perceived risks that are at least within my control to minimise. So much is beyond my control (but that is true of any property held in any market on planet Earth); but at least I'm very aware of all of the variables at play and the levers I do have control over, I'm pulling.

    “Luck Is What Happens When Preparation Meets Opportunity"
     
    C-mac, 28th Nov, 2019
    #45
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  6. Dean Collins

    Dean Collins Well-Known Member

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    Was totally meant with the best of intentions.

    Cheers,
    Dean
     
    Dean Collins, 6th Dec, 2019
    #46
  7. MTR

    MTR Well-Known Member

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    Right
    What market?

    I have my own maintenance crew for my houses in Atlanta and Detroit and I have 4 property managers, two in each State for various reasons

    I am not currently flipping just holding for cash flow and growth

    Economy still roaring, and interest rates very low. So hopefully good times will continue to roll on
     
    MTR, 6th Dec, 2019
    #47
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  8. Sackie

    Sackie Well-Known Member

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    From what I'm hearing and seeing I agree, massive opportunities for relatively small cash outlay. I'm looking in Detroit may move to other places. Most important for the flips ( being I'm so far away) is to team with a reliable GC or project manager who will be the man on the ground. Once (if) I secure a deal I'll post more about it.
     
    Sackie, 6th Dec, 2019
    #48
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  9. MTR

    MTR Well-Known Member

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    Rehabbing in winter in this harsh climate makes it much harder proposition, and may take longer

    make sure you sell in Spring/summer very important

    Also imho Detroit is still not yet a booming market, its rising.... different time in the cycle to Atlanta

    So it may take more time to sell and therefore flipping is higher risk.

    When you are flipping I assume you are selling to home owners so bank valuation must come in

    Selling properties on retail market is totally different beast than Oz

    6% commission

    Full property inspection, and then there will be a wish list from buyer...

    I think banks have some time frame on this in terms of flipping, you may want to research this further

    Buyers will ask for seller to contribute to closing/settlement

    Most important thing here will be to understand whether the areas you are considering are good for flipping and you have the numbers right. Its taken me 12 months just to work this out

    All the best, look forward to seeing your rehabs
     
    MTR, 6th Dec, 2019
    #49
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  10. Sackie

    Sackie Well-Known Member

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    Thanks for your feedback! I know it's in the Higher risk category of ventures simply because I'm so far and everything starts off alien to me. The key to any success I may have will be in the PM I team up with. If I get a venture I'll post it.
     
    Sackie, 6th Dec, 2019
    #50
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  11. Reddy

    Reddy Well-Known Member

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    This is just very high fees!
     
    Reddy, 6th Dec, 2019
    #51
  12. euro73

    euro73 Well-Known Member Business Member

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    stock standard in the US, it seems. Typically 3% to the buyers agent. 3% to the sellers agent
     
    euro73, 6th Dec, 2019
    #52
  13. MTR

    MTR Well-Known Member

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    Yes as mentioned a selling agent and buyers agent, commissions split between the 2
    You can negotiate this
     
    MTR, 6th Dec, 2019
    #53
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  14. MTR

    MTR Well-Known Member

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    From experience very hard to get good PM that are trustworthy in this market
     
    Last edited: 7th Dec, 2019
    MTR, 7th Dec, 2019
    #54
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  15. MTR

    MTR Well-Known Member

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    MTR, 7th Dec, 2019
    #55
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  16. Sackie

    Sackie Well-Known Member

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    Except you, of course :p
     
    Sackie, 7th Dec, 2019
    #56
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  17. Sackie

    Sackie Well-Known Member

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    I think he's got a very good chance to win again
     
    Sackie, 7th Dec, 2019
    #57
  18. MTR

    MTR Well-Known Member

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    Agree
     
    MTR, 7th Dec, 2019
    #58
  19. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    Awesome effort!
     
    Kelvin Cunnington, 7th Dec, 2019
    #59
  20. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    Have you considered trading up to larger properties such as blocks of units?
    Apparently in the U.S you can do that and not pay CGT?
    Would the returns be worthwhile?
     
    Kelvin Cunnington, 7th Dec, 2019
    #60
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