February 2024 in Detroit

Welcome back to A Day in Detroit! My name’s TJ. I’m a husband and father to 5, a Christian, Real Estate Broker, and Investor. I write about our adventures in real estate, and share personal growth and success stories in these posts as well. I write about house flipping, wholesaling and more. We’re always looking for new contractors! If you’re interested in working with us, please reach out on Instagram @wisepropertybuyers

Private Money

We recently put together a packet to send out to people considering lending to us. I received it today, completed by the designer. It outlines some of our projects and educates readers on the process and benefits of lending private money. It also educates readers about our company processes, which allow us to buy properties at 30-50% below market value. I already sent it out to two prospective lenders. 

A new lender just lent money to us for the first time this week. The closing should be next week on the first property we’re going to use their funding on. They’re going to lend $60,000 and receive $700/month profit. $700 per month may not be a lot to some, but that’s pure profit, no dealing with tenants, collecting rent or managing contractors. 

We hope to turn many of our friends and family members into lenders, or partners. We offer our lenders the opportunity to be a partner on at least one deal per year. The lowest we’ve paid out on those partnership deals is 20%. They lent $25,000 and we paid back $30,000 total. 20% profit. What do I mean by a “partnership deal”? Instead of merely lending us money for interest, they get to partner up on the deal with a predetermined buy-in for a percentage of the profit. 

Reading

I’m listening to “The Slight Edge”. The book was published in 2005 and I’ll tell you, even after consuming many volumes of personal development, I am getting a lot out of the book. It’s written really well for those who have little to no experience in the arena of personal development. A great stepping stone into becoming a better version of yourself. 

Did you know that 58% of American graduates never read a book after college. Isn’t that something? The Slight Edge was written in 2005, and I wonder if the data is still accurate today in 2024. I would guess that reading, or at least listening to books, is more popular now than it was in 2005.

Did you know that if you read 10 pages per day, you can consume over 3000 pages per year? Think And Grow Rich, one of my favorite (also my first) personal development book is like 256, depending upon the publisher/print. You could read that in less than a month, just doing 10 pages per day. You could consume 10-15 books per year this way. If you’re not reading, 10 pages a day would be a great way to start! 

Winter Houses

We said we wouldn’t be doing Detroit houses in the winter anymore. In the winter of 2023 we were working on a house where we secured all the doors and windows with DAWGS (the metal guards) to keep it safe. Didn’t even realize at all when we installed those in December what it would mean come January and February when we were trying to work on the house. Keeping the temperature around 50 degrees was a struggle, and it cost 400/mo

Paint, glue and other materials don’t work so well in the cold. We couldn’t get mud to set. Our initial contractor walked off the job. We were worried the house would be a flop, but we still made money!

Well here we are, buying a house in the dead of winter. This is one we’re going to keep. It’s a brick, technically 4 bedroom house. We’re going to totally redo it and rent it for $1400. 

It will have a new granite kitchen and a new bathroom. Plank flooring throughout the house. New windows and new roof. It will be worth $90k or so when it’s all done. We paid $21k to buy the property and the renovation will be under $30k. The profit will be about $40k and we will have a nice rental. 

We have another brick house on the west side that we were supposed to be closing on last week. It still hasn’t closed. The seller owes 9,000 in taxes and he’s hoping he can get some kind of “exemption” on them. He also has a $7,000 water bill.  

I’ve never heard of such a thing as getting an exemption, and truthfully, I don’t really like it when people don’t pay their property taxes. Our local governments need that money to operate the city, keep it secured with police and firefighters, and fix the roads. I wouldn’t really want him to get a free $9000 worth of property tax, while we landowners are left holding the bag. Still, I do want to buy the house. It’s a bit of a conundrum. Time will tell what will happen. If he doesn’t get the “exemption” will he just back out of the deal? He might!

Thanks for reading A Day in Detroit. If you’re interested in flipping houses, lending money, being a landlord or learning how to wholesale, you’ve come to the right place. Feel free to reach out to us on Instagram @wisepropertybuyers

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