Today in Detroit 12/21/2023

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

Christmas 

Christmas is my favorite holiday. I love the merry making and brightness of the holiday. I’m a Christian and for Christians who are practicing, this is an extra special time of year because it is a time that we are preparing our hearts and souls for the coming of our savior into the world. It’s a time for us to remember that there was a big sacrifice made by our creator to fix humanity. As a father, the whole plan for salvation makes a lot more sense to me. After all, only a parent can realize what it’s like to have a wayward child that you want to help. Humanity needs help all the time but we really needed help when Christ was born 2000 years ago.

There was a time when Christmas was a big party for me. Every Christmas Eve, growing up, we had family and friends in our house for an epic party. Us kids loved it because of all the food and the cousins getting together, plus of course – presents. When I became an adult, the Christmas Eve party became a booze fest. I would get lit up like a Christmas tree and wake up Christmas Day with a killer hangover. 

The last time that I was intoxicated for Christmas was 2018. I wasn’t drunk, as the date of my last drink was September 7 that year, but I was using at that time. I remember the feeling I had at Christmas back then was a dirty one. I felt grimy back then. Hard to feel merry and bright while believing you’re lower than pond scum. Amazingly, I’ve enjoyed 4 Christmases without any drugs or alcohol in my body and 5 Christmases without a hangover. 

Those of you who have read my blog before or know me personally are aware of my status as a person in recovery. For those of you who are still struggling with addiction, know that there is light on the other side, and that recovery is possible. You can enjoy Christmas again too, and you deserve it. Merry Christmas to all! 

Singularity

I was listening to a podcast with Tom Bilyeu and Peter Diamandis, it’s a 2 part episode on Tom’s Impact Theory Podcast. It was quite interesting and very informative. Peter is the founder of X-Prize Foundation, as well as a serial entrepreneur and author. I’ve heard him speak a few times, mostly about the future and about technology. He’s a fascinating person. 

Tom Bilyeu is one of the people I find myself listening to more often these days. I love that the material is ever changing, but pretty consistent with helping humans unlock the best versions of themselves. Other podcasts do that too, but Tom does it without “motivation” added in, and I appreciate that. This particular episode was mostly about AI, the rapid advancement of technology, especially AI; and the way Peter (among others) see the future unfolding. 

The concept of Singularity was discussed. Of course I’ve heard of a singularity before, there are singularities at the center of black holes. My understanding of a singularity was essentially something infinitesimally small, and equally dense. According to TechTarget.com; theTheory of General Relativity describes a singularity as “the center of a black hole, a point of infinite density and gravity within which no object inside can ever escape, not even light.”

The concept of Singularity is something different. It’s a point in time, after which, humanity is forever changed by the technological advancement of machines and human affairs as we know them will be unable to continue. This term was first used in this way by Jon von Neumann in 1958, according to an article in the MIT Press in 2015. Quite daunting and dark, it describes the emergence of superintelligent machines which, without upper limits built into their programming to prevent it, begin to build other superintelligent machines. You can guess what happens after that. 

I love the idea of “the future”, including stories about dystopian worlds, time travel, space colonization and all of that stuff. The concept of Singularity stuck out to me though, because Tom and Peter were also using the term in its more basic context, to describe a phenomenon that exists, beyond which we are unable to see. It is believed that the Big Bang began with a singularity. And a singularity exists in our business right now. 

We are in the process of hiring two sales people to work in acquisitions for our company. They start January 3rd. We have made two offers of employment, one of which wasn’t accepted (thank God) the other, verbally accepted, yet still unsigned. We have 2 candidates we like a lot, whom we will make offers to, and we have a few candidates left to interview. 

We have no idea what lies in store for us and our companies after this point. We can guess and predict, that’s for sure; but knowing the exact way things will progress from here is a mystery. One thing is for sure, beyond this point, our business as we know it today, will be unable to continue after this point. Everything is about to change. I’m optimistic. I believe that for Wise Property Buyers, its affiliated companies, and humanity, this is our big break! 

Houses 

We have a flip that’s just getting started on the west side of Detroit in the Bagley Neighborhood. Demo begins today. We are going to take the place down to the studs. Nice brick tutor. We are doing a full rehab, probably $60,000 budget. I say probably because the contractor only saw the property after the closing for the first time yesterday. 

I felt comfortable with proceeding on the house, as we were supposed to close on another property in Bagley last week. Based on the estimate for that house, I felt okay with not having an official estimate. However, it seems that other Bagley deal may have some funny business going on, relating to the power of attorney. The POA documents presented by the attorney in fact have been rejected by two different title companies. The latter of which was actually recommended by the attorney in fact!

Now that this POA has been denied by another company, they are essentially saying that a new power of attorney document needs to be drafted and signed by the seller. I said that if there is going to be another document signed by the seller, it might as well be our closing documents. Something funny has been going on with this deal from the beginning. The title company agreed. Meanwhile, we still have $80,000 with the old title company waiting to buy the property. Fortunately, we have not missed out on any other opportunities, (yet ) upon which we were unable to capitalize.

We got the appraisal back for our Novi flip. We listed the property for $289,000 and accepted an offer for $302,000. The appraisal is back at value and we are proceeding towards the closing. It’s supposed to close by 12/28, however my goal is to push the closing into 2024 for tax purposes. We had a meeting with the accountant last week and it would behoove us to not earn any more money this year.

We closed on the property in October. Halloween to be exact. Our lender is making $1700 per month on $168,000 lent. We funded the rehab ourselves. This will end up being our most profitable project in terms of net profit volume, and I’m very thankful for the deal, and proud of the project. 

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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