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Welcome to REI Talk Detroit – the show for and about real estate investing in metro detroit.
In this kickoff episode I introduce the show, tell you how it’s going to the structured, and very briefly give you my background. And in the money talks segment I tell you how I’m funding my deals.
REI Talk Detroit is a show by and for real estate investors here in the Metro Detroit area.
Each week I’m going to interview someone in the real estate investing space here in metro detroit.
Most of the people I’ll be interviewing will be investors. A few though will be service providers such as private money lenders, property inspectors, and contractors.
Each quarter we’re going to talk to one or two real estate agents about the state of the market, and I’m also planning on having shark tank type sessions and open Q&A sessions with private lenders
Everyone that I talk to though will have one thing in common – they will be actively involved in real estate investing in some way in metro Detroit.
You’d think that we’d be way beyond this by now.
But I just read an article in a Virginia newspaper that proves that we’re not.
What I’m talking about is discrimination in tenant selection for rental properties.
It seems that a landlord in Virginia didn’t return phone calls to a prospective tenant that wanted to see his rental property. Then when they finally talked, he told her the property had already been rented.
The prospect then had a friend call. The landlord said it was available and they made an appointment to see it.
But the prospective renter complained. The Virginia Fair Housing Commission then got involved, and had two “testers” call and inquire about the property.
The landlord encouraged one to see it. He discouraged the other.
He was taken to court, and the judge determined that he had violated two counts of the Federal Fair Housing Act.
His fine? $36,000.
Pretty much the landlord death penalty.
I just don’t get this.
Not only is it bad business, but it’s immoral as well.
And if that’s not enough, it’s against federal law. As you can see, the government doesn’t hesitate to get involved when an accusation is made.
Hopefully the landlords that still discriminate will learn a lesson from this.
Here’s a link to the article: Landlord Death Penalty
I had an interesting experience last weekend. It was my daughter’s birthday, and she wanted to barbecue for her birthday dinner.
So after the long frigid, and never ending winter, I made my way over to the propane exchange store nearest my house.
I’ve lived here going on 12 years. And I’ve been going to this same propane exchange guy for at least five. I honestly can’t recall how long it has been.
So it shocked me when he asked – “what are you going to use the propane for?”
Um, is this a trick question? “Barbecue” I told him, puzzled.
“Ok” he said. “The cops have been by and they said that there’s been meth lab activity in the area and they want us to keep an eye out for people that look like they’re operating meth labs.”
Wonderful. I guess nowhere is immune.
When I saw this piece today on how to identify meth labs in rental properties I thought it was relevant. Remember that it only takes ONE bad tenant to completely wreck your house. The link to the complete article is at the bottom.
Jobs are awesome.
Having a job is one of the greatest benefits you can have while you’re starting a business. Especially a real estate business that takes some time to ramp up.
The reason is, as I discussed in the last post, is because a job serves as a safety net.
You have a source of income coming in. You can put food on the table, pay your mortgage or rent, and put gas in your car.
All while you’re building a business of your own on the side.
How cool is that?
I know I know. There’s a whole other school of thought out there that says you should cut bait on the whole job thing and jump into business full time.
Kind of like the Spanish Conquistador Hernando Cortez did when he burned his ships after he had landed in the new world so his men would be “well motivated”.
Are you a sick and tired of this as I am?
It seems like every time I check my email, some idiot goo-roo is pitching his “solution” to having a job.
And of course they have all kinds of cutsey acronyms for JOB. Tell me if you’ve heard these:
– Just Over Broke
– Just Obey Boss
– Jackass Of Boss
And on and on and on.
Well you know what? Those f’ing goo-roos can go take a f’ing flying leap.
Because there’s nothing wrong with having a job.
A job lets you put food on the table.
A job lets you put gas in your car.
A job let you buy that 60 inch plasma tv in your living room.
And a job let’s you buy your son a GI Joe with a Kung Foo grip for Christmas
Here’s a news flash – being a landlord isn’t rocket science.
Seriously. It just ain’t all that hard to own rental properties and make money at it. With very little work on your part.
Actually – to be precise, it ain’t all that hard IF you do two simple and pretty obvious things.
And that’s to heed the Two Critical Success Factors for owning rental properties.
That’s all it takes. Seriously.
If you simply heed the two Critical Success Factors, you’ll eliminate about 90% of the headaches that can come with owning rental houses. And by headaches I primarily mean VACANCIES.
I know what you’re thinking – how do I know this?
Because when I started I was really thick headed and it took me a couple of years to figure it out. And after being beaten bloody by my initial experience I – magically – became willing to learn. (That’s sarcasm just in case you didn’t get it)
And my results bear this out.