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How is Detroit Investment property coming?

posted Mar 9, 2015, 9:18 PM by Aaron B Lewis

I often get asked "Hows the Detroit Income Property Market?"
Well my short answer is "It is the best in the world" and I am often met with laughter and shock so I share a little insight.
Where else can someone buy 17 properties for $13k?
Enough said.
With our experience and advisory our client has already seen a Simple Annual Return of 360% ON Just ONE of those properties.
Interested in learning more? Contact us.

info@aaronblewis.com
and on Google hangouts

Mortgage Debt (foregiveness)? Relief! (FWEEE- Big sigh)

posted Mar 4, 2015, 3:00 AM by Aaron B Lewis   [ updated Mar 4, 2015, 3:03 AM ]

For at least 2015 homeowners who sell or settle their underwater home mortgage for less then the existing mortgage balance will not have to take the difference as taxable income (FWEEEEE-BIG SIGH) with this extension.

But good things always come to an end and so will this ACT. So don't miss your opportunity. Again. ACT NOW.

Detroit Rental Property 101: Wayne County Auction

posted Oct 21, 2014, 6:01 PM by Aaron B Lewis

Who would want six thousand mostly abandoned properties in Detroit? You might be surprised. I think it's Buffett

Detroit Investment Properties 101:Wayne County Auction- followup from video call

posted Oct 8, 2014, 10:45 AM by Aaron B Lewis

Sorry but technology difficulties with the video call today. I will have another hopefully this week. In the meantime I have written responses to  items that i wanted to cover

Here is the skinny on the auction.

-Don't go at it alone. Get a trusted advisor.
-How to tell if your trusted advisor is a professional
Ask them these questions
1. How many rental properties do you currently own?
2. How long have you been participating in the Wayne County auction?
3. Do you invest full-time, part-time or as a hobby every once in a while
4. What was the ROI on you last deal, and please explain

-This is the ABSOLUTE greatest opportunity to buy Tax Lien properties and- Why all investors should  love (Like I do!) tax lien properties vs the common fear of Quit Claim Deeds from tax auctions.
-I don't advise bidding on homes you have not seen the inside of (thats not how a professional does it, that more of a gambler) It's pretty obvious why. Learn how to see the inside before the you bid.
-Why help homeowners stay rather then trying to buy their home. The goal is to stabilize and strengthen neighborhoods. Neighbors make up neighborhoods. Keep longterm residents in the neighborhoods and sure up the vacated homes around, there are plenty.

Detroit Investment Properties:101

posted Oct 3, 2014, 5:53 PM by Aaron B Lewis

How to find deals. First step learn from those with the deals.

Detroit investment property. The best places to find them?

posted Sep 23, 2014, 9:11 AM by Aaron B Lewis

More to come. But this is not one of them

http://www.loopnet.com/Michigan/Detroit_Investment-Properties-For-Sale/

Absolute 1st step in successful real estate investing. Set S.M.A.R.T goals

posted May 9, 2014, 12:09 PM by Aaron B Lewis   [ updated Nov 15, 2014, 5:52 PM ]

Specific

Goals must call for specific actions, behaviors or events to be successfully met. Individuals must define their desired results within each goal statement using a proactive voice. For example, "I will increase my savings deposits by $50 per week in order to fund my summer trip to Europe.” Goals should contain not more than two sentences and should establish what, where and why.

Measurable

Goals must be measurable to assure success. When setting goals, it is important to describe how each result will be measured. In our example we set clear steps and timelines. Our action step involves increasing deposits by an established amount. We set measurable tracking points by establishing a weekly timeline. If goals are not measurable, individuals cannot track their progress. Goals set successfully always answer the question “How can I measure my success?”


Achievable

Goals must be achievable. A person cannot become a doctor if he has not been graduated from medical school, nor can a business increase its sales if it does not have an advertising budget. In a savings-related goal like our example, a person must ask himself whether the goal is achievable with his current resources. When creating a goal, ask yourself whether you have the skills, tools and resources needed to achieve the goal.

Realistic

Taking a realistic approach is perhaps one of the most important characteristics of successful goal setting. Goals challenge us to achieve or attain what is important to us. For us to maintain motivation levels and avoid frustration, goals must also be realistic. In the example goal, if we could not afford to save the $50 dollars a week, then we would face hardship and would not reach our goal by summer. Realistic goals are honest goals. Goals established thoughtfully can challenge us, but are not set beyond our natural abilities. Setting realistic goals involves asking "Is this possible?”

Timely

Successful goal setting must set forth measurable points for starting, ending, review and assessment. A successful goal has deadlines and endings. In our example, we set a weekly period goal and an end goal of summer. Open-ended goals often fail because individuals have not have set dates to review, measure and revise.

So examples of  not SMART real estate investment goals

-I just want to buy cheap homes, for a few thousand each

- to buy homes that are occupied with renters and under $ xx amount 

-to buy homes that rent for no less then $600/met

-as long as they make me a profit.

(These are all actual goals that investors have shared with me and non are SMART)

Here is an example of  a SMART goal.

By Dec 31st 2016 invest in 5 SFR brick 1.5 story homes in the 48219 area code with an acquisition cost range of $1-30k, to hold as income property longterm (over 5 yrs) that will generate a NOI-Net Operating Income of $6,000/yr each.

Try to write a SMART goal and share it with others, especially experts, with a teaching attitude, who are doing exactly what it is you want to do. 


Detroit is #1 in my opinion (and it is a positive ranking to be certain)

posted Apr 24, 2014, 3:33 AM by Aaron B Lewis   [ updated Apr 24, 2014, 3:35 AM ]

This article about best citys for rental investing is partly accurate. I argue only a few points 1. The prices they reference are extremely high, I get into properties for $5,000-11,000 EVERYDAY! 2. Detroit should be #1. (There is not better place in the world to invest in rental property)

So what is a SDIRA?-I have never heard of it.

posted Aug 12, 2013, 5:12 PM by Aaron B Lewis   [ updated May 2, 2014, 5:37 AM ]

Weekly I encounter individuals who are looking to buy investment property in Detroit, from locals to internationals, novice to experts. I share with them how I raise money and create WIN/WIN/WIN deals for my partners, investors and end buyers/tenants through Self-Directed IRA's.

Most of the time they have never heard of a SDIRA. This post is to give a quick overview.

If you have worked the chances are your employer at some time offered you a 401k plan. when you leave that employer you can roll it over to a qualified plan (most common is an IRA-Individual Retirement Account, NOTE: Regardless if your employer offered one you can always at anytime take cash and simply open an IRA) with a financial institution like Fidelity, Merril Lynch, Scwhab, local banks even now offer them. You can choose your investment from the list of stocks, bonds, mutual fund, ETF's offered by the institution.

The difference between that and a Self Directed IRA  is that with a Self-Directed
 
    1) YOU direct the investment

     and 

    2) The list of things you can invest in is limitless (less a few per the IRS code, like art and race horses)

That leaves alot of things YOU CAN invest in, (alot more options and opportunity then the list you have from the above mentioned institutions) like promissory notes, tax liens, tax deeds, companys (LLC's), real estate, etc.

View a real life example how I assisted my client investing their SDIRA in real estate and the returns their IRA receives

Here are some links to some SDIRA Custodians so you can gain more insight...

Wayne County Auction 2013-"EPIC I TELL YA' EPIC"

posted Aug 4, 2013, 8:03 PM by Aaron B Lewis

Bundling of properties, 
http://www.crainsdetroit.com/article/20130804/NEWS/308049950/wayne-county-sees-bigger-as-better-in-foreclosure-auction
and a new auction vendor contract signed... (who just filed for Bankruptcy...oh this is going to get good real quick)

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