In this episode I talk to Allan Daniels. He’s a third generation real estate investor here in Metro Detroit. We talk about his family real estate business, his really cool perspective on making mistakes in your business, how he’s funding his deals, and his pretty black and white take on Dodd Frank.
Metro Detroit REI News
Six news items to report today:
First – crowdfunding is coming to real estate investing in michigan. Stay tuned for more information on this. It could absolutely change the way you do business.
Second – my new friend Aaron Yates passed his builder’s license exam last week. So if you see him around, or run into him on social media tell him congrats! He’s going open a rehab business shortly as well. I did an interview with him that will air in the next week or so with all the details. But in the mean time you can find him on facebook at https://www.facebook.com/CkiProperties.
Third – it looks like Detroit is now on the map. I received yet another request this week for bulk rentable properties. This time in the city of Detroit. So that makes two groups looking in the suburbs and one in the city. If you’d like to get together on one of these drop me a line at REITalkDetroit.com/contact.
Fourth – Allan Daniels, my guest today, is scheduled to present two continuing education courses at the North Oakland County Board Of Realtors; one on June 25th at 10am and the other on July 30th, both at 10am.
Here are the details:
Hardcore Regulations: Uncovering Dodd-Frank
2-hour Michigan Real Estate Continuing Education (legal course M5750)
June 25, 2014, 10am – 12 Noon
July 30, 2014, 10am – 12 Noon
4400 W. Walton Blvd., Waterford, MI 48329
To register call 248-674-4080, or email: firstname.lastname@example.org
Fifth – I’ve kicked off my six week REI Quick Start coaching program. If you’re new to real estate investing or you’re frustrated by your lack of progress, then this might be for you. Part of the program involves walking you through – and giving you access to – my source of leads. The source I’ve used for over ten years now with GREAT success. Get more information at REITalkDetroit.com/coach.
Sixth – the June Metro Detroit Real Estate Investors Meetup is tonight at Champps on Big Beaver in Troy. This is the meet up that’s being coordinated by Aaron Yates and Tom Auterman. You can find more information on the event’s facebook page here: https://www.facebook.com/events/792157324130025/
And if you have a news item to contribute or an event coming up, drop me a line and I’ll get it on the show.
While Dodd Frank has impacted the land contract portion of Allan’s business, the rest of the business is still going strong.
They are doing conservative loans to professional landlords, they do occasional REOs, they are looking at commercial deals, and they are still making business loans.
How He Got Started in REI
Allan’s grandfather started the business several decades ago. His father then took the reins. Allan earned a degree from UM and had planned to get a day job, but when an offer he had been promised never actually materialized, he decided to go into business with his father.
It ended up working out well, and Allan and his father are still in business together.
I like Allan’s perspective on this – he characterizes mistakes or failures as “seminars”, which makes a lot of sense if you learn from them! He says that his biggest mistake, or seminar, was early on in his career when he got a little emotional about a deal and dug his heels in and wouldn’t budge on the terms he had negotiated. Lawyers got involved, and thousands of dollars were spent on both sides over what ended up being a difference of a couple of hundred dollars.
He learned a good lesson that day that he has carried with him since. And the lesson is to not get emotionally involved in a deal.
He says that he particularly proud of a deal where through financing a mortgage he helped a couple save their home from foreclosure. They were so happy and thankful that they brought a cake to the closing. And to top it off the note has performed extremely well over the years.
Allan’s real estate business exclusively uses family money. At present he’s not looking for additional sources of capital.
Answer to Listener Question
The question that I asked Allan was “They gurus are always saying that there are loopholes in Dodd-Frank that will let someone do land contract financing like they did before. Is there a loophole in the law that allows that?”
The simple answer is – NO. There is no loophole. And trying to circumvent the law is a felony punishable by hard time in the gray bar hotel.
Links and Resources
Allan is looking for or is offering several things:
1. He;s looking for good deals to finance with professional landlords – 50% LTV, 1st Lien, etc
2. He occasionally comes across REOs that he wholesales
3. He provides low LTV financing for rehabs and flips
4. He teaches continuing education classes for real estate agents and mortgage lenders
If you’d like to talk to Allan about any of these, or if you have questions for him, you can reach him via email at Allan@DrDanielsAndSon.com, or at the office at 248 335 6166.
If you have feedback on the show, a question you’d like answered, a news item, or perhaps a recommendation of someone you’d like me to interview, or if you’d like to be a guest on the show, go to http://www.REITalkDetoit.com/contact and let me know about it.