Join us as we sit down with Jay Peltier, an expert in Section 8 rentals, to hear his inspiring journey from being in the Army to becoming a successful real estate investor. Learn about the benefits of renting to Section 8 tenants and the importance of mentorship in the world of real estate investing. Tune in for valuable insights and tips from this seasoned pro! #realestate #section8 #partmentoring #army #rentals #investing
In Episode #29 of Real Estate Talk Podcast, join host Randy Stedwell as he engages in a riveting conversation with Jay Peltier, we will be talking about how he got started in real estate and how he became an expert in Section 8 Rentals. All the mistakes he made and how he learned from them. How he went from being in the Army to Real estate investing and then to helping others become investors as well. Please Join us and Ask your questions Live to get all your questions answered.
Jay Peltier
Jay Peltier, a Detroit native, spent time in Arizona and Louisiana before joining the Army and serving with the 82nd Airborne in Saudi Arabia during Desert Shield/Storm. He later returned to Michigan, married his high school sweetheart, and raised children, including his nephew and grandson. With a degree in Information Technology, he worked in IT before transitioning to real estate, where he became a licensed builder and owned a brokerage with his wife. Despite setbacks during the housing crash, he persevered, rehabbing properties and mentoring others in real estate investing, particularly in Section 8 rentals. Jay's passion for helping others extends beyond business, as seen in his involvement with Habitat for Humanity and his willingness to assist anyone seeking advice, earning him the reputation as a trusted mentor in the real estate community.
TITLE: Expert in Section 8 Rentals: The Inspiring Journey of Jay Peltier - RET Ep#29
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© Randy Stedwell.
Hey everyone out there in YouTube land and our Metro Detroit
off-market Facebook group I hope you're having a wonderful day it is Monday hope
you don't have a case of the Mondays so um but the this great gentleman that we
have here uh I've known him for quite a while uh just with the meetups in this
Metro Detroit area I've looked to him for some advice on some things and and
tried to sell him some deals as well but sometimes it works sometimes it doesn't you know but Jay uh peler is a great guy to
know in this n in this area because not only is he investor um but he is an open
book and that is one thing the reason why I'm bringing him on here he is he he
I use the title expert in section eight because in my opinion every time I have a question about section eight I go to
him he's my guy that I go to if I have a qu any questions about Section 8 so but
he's basically just gonna go about his experience on Section 8 and we're going to tell his origin story how he got
started and so on and so forth so if you do have questions about anything that that is
pertaining to what we're talking about please do put them in the chat we will answer them as we go so without further
Ado uh Jay how you doing today hello everybody doing great Randy awesome
thanks Jay for joining us I I know it's pretty late on a Monday so I always appreciate it when anybody does come
join us um so with that being said what uh you know I know you don't like
the word expert and everything but we're just going to go by your experience you
know as far as Section 8 goes in my my opinion you're an expert in Section 8 so
even the littlest stuff that that's you know you you you're you're like an
encyclopedia for it so but even General even General in uh you know just
in rentals and things like that like you're you're you're awesome so I tell
me a little bit about you know let's let's back up here a little bit and say
how did you get started in real estate in general you
know I I would have to say uh my mother was the biggest influence in that I
suppose she was a real estate agent for many years and when I first got out of the army she had was bugging me she
worked for a guy that had Untold hundreds of properties in Detroit
in the metro area and she kept saying that you know hey this is something you need to get into you know I always
wanted something a little better than just you know working a nine-to-five job I always had little side jobs and all
but right know I was a little afraid at first to get into it and uh she kind of
uh prodded me a little bit got me uh spoke to a few people that uh you know
that were in the business dispos to one big guy in particular his name is Rick canlet he's been in the business forever
uh okay but uh so I she says hey I've got this one you know little house it's
an ecourse which is a long drive for me I was in Warren at the time and uh yeah
she's like you know hey you gotta buy this house it's this little dinky two-bedroom frame on a a crawl no garage
no base you know just this little thing but it was fairly cheap 177,000 at the
time okay and uh so I I actually sold an old Mustang I had I still regret
that um I what year was the Mustang first off Mustang fan a 69 so yes I
was uh I brought that back from North Carolina I found that when I was in the Army and uh I sold that as as part of
the money to to buy this property it it I barely had enough money to buy the
property so I I like was really like uh you know not paying my own gas and
electric bill you know they were like threatening to shut off while I was working on this property right did 90%
of the work myself and uh I got it re uh re you know finished it rented it
probably 650 or 700 if I remember right this is back in the 90s and uh was it
early 90s mid 90s mid 90s mid 90s okay and uh I refi it about about six months
from when I bought the property I got like 45,000 out of it and so you know apparently it was a good deal at 177,000
if I got 45 cash in my hand yeah and I uh I took that money and I bought two
properties in Detroit fixed both of them up rented both of them sold one kept one
okay more properties in Detroit fixed both of them up rinse and repeat so I
did that for quite a while uh and then kind of moved I've done a little of
everything so that's the beginnings I suppose to answer your question yeah so you did you sold you you fixed two of
them up you sold one to get some cash now and kept one to keep some cash flow
coming in exactly so that that's a smart idea right there it's the bur method
except I didn't necessarily refi I sold one to pay you know I did two at a time
so so with that you know what we're interest rates at that time I mean
because in the mid 90s they were they weren't no 5% you know it'll never be that again um
you know I want to say that first one that I refi was probably in the eight or
nine% okay and uh jumping forward in the story I was a mortgage broker for five
years or so in the 2000s and I love to hear people you know oh my God I can't
stand you know 7% interest rate for you know you know I was a subprime lender and
yeah uh you know rates can be anywhere from 12 to 18% for an investment
property in the the mid 2000s so you know gez 7% is terrible no it's not
historically we're still pretty good this is about where we should be actually I think went down most definitely so so uh J Jason from the
Facebook group says I love 7% interest that's awesome and and Terry
penny is saying I hear hi Terry you you hear me saying this all the time so you know but uh
yeah 100% and the thing is is that so tell me a little bit about you started
doing this was that it were you hooked did you just do nothing but real estate
ever since then like what was what was your progression I I was an IT guy
at the time oh okay um and uh I had a I was kind of like doing three things at
once I I was you know had a day job you know it I used to uh fly to Chicago
actually you know four days a week and work over there in one of the hospitals as an IT guy uh I'd come back for the
weekends and I'd work on computers and then in my spare time I would fix up a house you know it's I've always had kind
of too many things in the hopper but that was was the starting of it and then slowly but surely um I started getting a
few more properties and in the early 2000s the company that I worked for I
was a I worked for Dana Corporation was a big company uh you know Dana rear ends an auto supplier and i' been there about
five years I think at the time and they told every they went into bankruptcy
told everybody hey this division is going to be sold off right there's nothing you do
everybody's gonna be laid off and just get used to it you got about three months and sure enough about three
months came and B sheram turning off everybody's password and well then my
time came and um a a buddy of mine that I had at the time I I called him up
actually right after I got laid off even before I called my wife I was still kind of even though I knew it was happening it's still kind of you know it's still
shock you know and uh called him up and say you got laid off and he's like come on to lunch with me me we we'll talk so
he's a mortgage guy and he owned a little real estate little mortgage company and he said uh you know during
the lunch he's like you know you need to come to work with me like ah you know Neil you've been trying to get me to come to you forever I'm I'm not a
mortgage guy I'm I'm an IT guy and he's like no you don't understand um my wife
has already moved down to Florida with my kids we already got a house down there I want to retire and I want to go to Florida give me six months the
company will be yours just give me a little profit that was a small real estate you know small mortgage company
you know five employes or so give or take but still it's not every day somebody says hey you're my buddy and
I'm gonna you know give you their company right um that that I did very
well with it for a while I was a a loan officer or started a processing loan
officer and then I ran the company for five seven years or so until the crash happened and I did great but I was a
wholesaler at the time I I switched from doing rentals to flipping almost
exclusively I got rid of most of my rentals and started buying in waren uh and another know East Point Etc uh
Roseville clar Shores whatever m home county you know that was my bread and
but I was born in Detroit and you know that's whole East Side there that's my was my bread and butter so uh I started
doing that and of course you know I was making money hand over fist um
wholesaling I couldn't I couldn't sleep at night but I did it for a little while making a lot of money with that um why
couldn't you sleep at night doing wholesale as a wholesaler I want to know you know I think we've had this
discussion before but you know as as yeah any good wholesaler as in somebody that is truly gonna make a lot of money
has to be a good liar okay honestly you have to either lie to the buyer lie to the seller or
lie to both um now I'm not saying that there aren't good wholesalers I think you're one of the good ones there Randy
but thank you I appreciate that um you know there are people that will try to
wholesale a property o they got it for 10,000 under contract and try and sell it for 50 or a 100 that to me is not a
good wholesaler but you know there's making money and then there's making money and and unfortunately I was the
latter I I made some really good money off of some people back then and I just I could barely sleep at night with some
of the stuff that um this guy taught I guess you'd say you know he was my best
friend but wasn't the most scrupulous guy in the world and I learned a lot of you know what I didn't want to be I
suppose at that time and uh most definitely and that's kind of what I see that's what I see a lot is is from the
older like now that you see that there are a lot of people out there like okay
yeah you're dishonest you're this you were taught that way it's like people
can see through that now and um you're just going to double down on those lies
and it's just not going to work out so I I be as honest as possible I may say
things a little bit differently and not exactly use the right terminology where they would do it but I I tell them
exactly what I'm doing just in a different way that's all you know so I
don't it's I don't lie to them I just say hey I'm working with my partners on
this I may pass it along to them and I let them know up front that hey if I do
do this you'll still be working with me throughout the whole time and you'll get exactly what's in your
contract and I say I ask them do you have a problem with that if that were if
we do go that route and they're like as long as I get what I'm promised I don't care this just
turned into the Randy Stedman interview ladies and gentlemen I know
right so all right so we'll get back to you sorry about that
but so so with that being said you you went through you were doing these
mortgages I and you know then you were wholesaling you know essent were you
wholesaling in them while you were doing the mortgages yes uh had a couple people
that would come to us and you know say I've got this really cheap property and you know can you buy it for and it was a piece of junk and we were you know
finding people that wanted to get into the investing game and really weren't that smart essentially again I wasn't
proud of the things I did but we would find you know in in Detroit I love how
wholesalers love to call you know the the arv value well you know I had a
property I was buying for $20,000 and I could get an appraisal the next day for 80,000 or 70,000 it's the same thing
today there there's so yep such a disparity between what a property truly is worth and what
some people think it's worth I guess but uh so I was selling these properties
making these good you know chump chains in between I did mortgages still I still had my own flips that I was doing as
well and I just and and the important part here is is I was spending like a
mad man going on trips and oh I built a
I built a 40 by 80 pole barn that cost me 70 80,000 I bought a few cars you
know I was fixing up my house I moved up north and was fixing up my place and doing all these things and spending all
this money and this is in the 2007 and 2008 time frame and I didn't have hardly
any rentals left okay so I got to the point I actually uh right around that
time the prices started kind of doing this okay and unfortunately I bought
three properties right here and then of course like within a month or
two yeah so I had three properties that you know I thought I got a great
deal on and spent you know tons of money fixing the places up and tried to sell
it and it took me a solid year to sell these properties I mean I've said this story a hundred times to people that are
listening I'm sure they've heard it but um the short of the story is that I was
still spending money like like nothing oh it'll turn around it'll turn around nobody ever saw that crash coming you
know and uh fixed the properties up tried to sell them and it took me a solid year to sell
the properties and I made about five grand profit on each one I don't think I've ever lost money on any house I've
ever bought but when you're holding on to three properties for a solid year and
made a whopping $5,000 profit holding yeah holding cause is crazy so I
lost my butt I wish I would have stayed in the the rental game I could have you know I have this argument with people or
had this argument with one part person in particular he's like oh well you know the rentals went down in the the crash
no they didn't right they essentially wobbled 1% that whole from 2008 until
2014 so yeah if I would have had rentals and bought more rentals at the time instead of the the flipping I'd have
been sitting pretty you know so did you learn from your mistake
i09 hit did you pick up more properties uh yes I again I got out of the crash uh broke
I had I think one property at the time and I went to work for somebody else I
was uh project manag I pretty much have ran his construction did three or 400
properties for the guy over about a fiveyear period give or take him and another guy as well uh one of them is in
these groups but uh did a lot of properties for other people and just slowly but surely
accumulated enough money and you know survived essentially that was my day job
and to where I had enough to buy a a decent Siz flip I bought I had a really close relationship and still du with uh
mome County Habitat for Humanity and I bought a property from them that was not
an old property at all it actually I think it was built in the the 2000s and put a ton of money into fixing
it up sold it I flipped again and made enough money to where I really in the
2015 Wayne Cony auction I bought nine properties that year um so it just you
know it took me a while to to make enough money to get back in the game and
then I just kind of never look back I'm you know I'll sell a property here and there but generally I'm a Buy and Hold
guy and I'm 99% Section 8 I you know I don't advertise anything but Section 8
for my rentals so okay and so where are your properties now you said it's in
like um mome County do you still have your do you still do Detroit properties
as well most of my properties are in Detroit Detroit has been Monumental for
me uh it is that's my catchphrase if you look at any of my other videos is that Detroit is by far the best return on
your investment but it can also be the biggest uh you know problem you know the
the biggest uh risk tier investment is the word I use but most of my properties are in Detroit I've got a couple dozen
at the time right now okay um I pretty much stopped at 20 for a long for like
several years I just said Ah that's the number and I don't want anymore and then I got bored so my retirement is
boring um so I bought there so real quick uh Steve SG had a question hey Jay
did you ever think about investing in Chicago while you were working there uh
if no why not uh that was actually really early on in my investing and okay
I never hardly went anywhere in fact I was three blocks from Wrigley Field the the hospital I working in and never went
to a Cubs game so I never really had time to to work on stuff I did go to a shy Sox game but not a Cubs game but it
was okay too early on and um properties back then were is still you know Chicago
is just expensive so yeah so um all right so you're were talking about
Detroit and um the the cash flow there and his Monumental huh candy said hi I
didn't see that oh okay yeah yeah candy said hi Candy said hi so
I and I so uh also who is that ve Morgan off of the
Facebook group said do you use a property manager um or manage the
properties yourself I do not use a property manager I think that they are
unnecessary in most CA in many cases there there is a reason for them of course but uh in my experience or at
least late experience the main reason for a property manager in my opinion is
banging on doors or that's always been historically the reason you need a property manager is the tenant's not
paying the rent so the guy goes bangs on the door gave me my rent whatever well number one in today's world Digital
World you don't have to do that as much and they definitely don't WR dang on the doors they'll send emails and letters and all that stuff but um so it's not
really that necessary anymore they charge way too much for monthly fees they charge too much to do repairs oh my
God you know oh yeah you're going to spend 20% of your hard-earned money for
a property manager that doesn't do a heck of a lot in fact a good property
manager or at least ones that are successful you know sometimes they they
truly don't do things right on purpose so that the tenant moves out so that they can get the repair cost and then
the flip over turnover cost and the the eviction cost and they're doing nothing but making money off of you I've seen it
too many times right there are good ones out there don't get me wrong yes yes there are you know there there's too
many that are not and so I personally don't I believe
that if you are a Section 8 landlord you do not need a property manager uh even
if you're even if you're out of town you know as long as you have somebody some boots on the ground maybe to show a
house or or hire a you know just a placement agent there's a few of them out there that do nothing but you know put them in and then you know that they
they say goodbye and then all you need is somebody to repair something if something goes wrong everything else is
digital you don't need to be there and how much money are you saving every month every year right so that's why so
one one thing that I do recommend people do though even though you don't have a
pro say if you do go J's route and don't have a property manager you still put in
the numbers like you would be paying for a property manager because now you can either one pay yourself that okay or two
when you get big enough and you want to use a property manager you're not losing money now because you didn't put that
numbers in the begin with absolutely okay one of my early videos I I talked
about that 20 house number and I said you know when you get to 20 and and the
reason why I picked that number is even if I decided that I did want to move to
Florida and didn't want to ever talk to a a tenant ever again didn't want it and
I decided to use a property manager manager I would make $500 per house
taxfree after everything which I make a lot than that but that was my rock
bottom number and at 20 houses times $500 a month that's $10,000 a month I
can live comfortably on $10,000 a month you know living on a c sh or something you know whatever yeah absolutely you
should always think about those things um taxes Insurance everything absolutely
most definitely and one thing that I've been I I've actually had new investors come to me and ask me well I've been
thinking about getting to Detroit I've been thinking about this and the thing is is that if you're not going to do a
lot of the leg work to know the Detroit rules and know how it works you really I
always tell people I do recommend using a property manager that knows what they're doing in
Detroit who know how to work with Detroit properties because you can be
one day late on say a property turnover and next thing you know you got a furnace you got a hot water tank gone
you know definitely that's good advice you've gotta find knows the business it same
thing with the real ested agent yes all that stuff I probably 10 to 20 per of
the people that that I speak to are newbies in the game that are coming from California Texas Israel a few friends
over over there and they tell me oh their agent gave them this house and they want to of course do Section 8 to
maximize their profits so that's how they get my name and I always ask them
about your first de you know what are you you know are you working on something now and then almost always
it's yes I'm about to buy this property at a friend of a good friend of mine that uh you called he says yeah I'm
about to I'm three or four days away from buying this property I'm technically out of contract but you know I'm going to sign an extension in the
next day or two and I'm going to buy it in two days and I really want that section 8 extra money and I said okay
well tell me about oh well I'm gonna buy this property in really nice area you know
$150,000 for a three-bedroom in brick in Detroit and uh
you know there's a tenant in it that's paying you know $1,100 a month so you know my numbers I'm I'm going to walk
away with you know like $200 every month like
uh really well yeah you that's a deal yeah that that's that's your deal he's
like yeah and so I I started to break down the numbers and I'm like okay well how much are you paying for you
know you he's got a hard money lender then he's gonna RI it I'm like okay I see that taking a lot of your money okay
no problem well how much do you have for taxes or for insurance he's like oh like 150 a month well you can save some there
that's generally 50 75 a month for insurance no problem you can save a little there well I've got you know $80
a month for taxes who told you that oh my real
estate agent said that said well so I I showed them there there's the website I'm sure that uh most of the people in
here hopefully have seen it but uh yeah you know the Michigan State prop property tax estimator and put on by the
state of Michigan and if you look in there when I pulled up the taxes he was going to pay about oh six grand a month
a year in taxes way more than $880 a month $80 went to
200 just like that and he's like oh well when I do those numbers now I'm gonna I'm gonna lose about 50 or $75 a month
should I still buy it well I'm not GNA tell you what you should or should do anything I'll just
explain it but the point of that is is the knowing that you're dealing with
somebody that knows what they're doing that person's agent told them that the taxes were
going to be low so I said okay well either your agent's an idiot or he's
unscrupulous so you need to know which it is so call that agent right now you
know you're not on contract under contract so you can cancel it if you want which you should but I didn't say that you know um yeah ask them okay you
know I'm doing my final numbers I'm paying hund however much per you know for this house how much are my taxes
going to be next year MH it's a test and of course the person from uh I won't say
the name but you know s uh sounds like IR team if you know what I mean
um said oh yeah we've looked at that and you're gonna be almost the same maybe $10 more a month or
something and you know well then you know what kind of agent this is they're un you know they they don't they just
want to sell you a property turns out they actually was somebody in their office selling the house and the guy did
back out of it and I'm very happy for that but uh if you have the wrong people that you're working with you're going to
get screwed most definitely and that's the thing like you need to surround yourself
with good people you need to surround yourself with a good team building that team and going from there so I
definitely recommend um I definitely
recommend uh that you you build that team ahead of time build that trust
going forward so that you can I you know see how everything is will work out and
the thing is is that people need people that they trust okay if you especially
if you're long distance okay so with
that being said you need to uh you know build a team around you that trusts you
so do do smaller projects do smaller deals don't go into a you know a a 16
unit apartment building and you're fully hands off absolutely it's not gonna work
find find somebody that is willing to to help um and doesn't necessarily have any
skin in the game for that matter know I again I I we talked about this I don't
particularly like the word expert when you say about Section 8 I like the fact that
if anything I want to be known for is the fact that I I give my information freely I don't yeah I'm not trying to
sell anything to anybody I don't charge for any of the people that I come to you know have lunches with or whatever I'll
take a free lunch as you can tell I've got a few of those um y but uh there are
other people that if you post in any one of these groups saying hey I have a question about this or you know I want
to know about section you know there there are other you know quote unquote you know knowledgeable people inside of
the groups you know Monique Burns is in our group she's she's great um and she actually has a course coming out here
pretty soon about how to invest without a property manager from out of state in Section 8 she's very good in that as
well so and by the way Monique Mo'Nique Burns is her name check her out on
YouTube she does have a big following on YouTube and she has free content out there on YouTube so by all means yes I
agree with Jay like she is a wealth of knowledge on this stuff too she's a good person too yes which is just as
important 100% so 100% so she's a great person so it's funny it's funny because
I went to the meet up the Oakland Ria Meetup and I'm not a member so but like
the pre group that they had like oh let's have a meeting and and talk about they
were talking about Section 8 at the time and um literally even though I'm not a
member it's supposed to be like a members only type thing she just grabbed me and said oh you're coming over here
like yeah all right I guess I'm coming over there absolutely so you know great
people to be around I'm supposed to be starting in my first day on the board of the Oakland Ria tomorrow actually so
that's awesome good it's definitely a great place to network and especially if
you are oh there we go see Mo'Nique right there she just said
hi check her YouTube channel out it's right here on the screen Mo'Nique Burns if you don't know how to spell it it's
right there I you know she's a great person to be around and love her to
death so but it's a that meet up if you
especially if you're going to be a landlord whether it be section8 or not I
don't that's out of the what whatever it is if you're going to be a landlord either in Oakland County M anywhere in
the Detroit area okay it's definitely a a a group to go because there's a lot of
experienced people where even if it's nothing to do with a board no offense just the people who come there
are very experienced landlords and you can ask them anything and they're always open book people
so yeah it's uh any group is a good group I like I'm from Oakland or that's
where I live now so I suppose that's why but I go to the I'll be at the monzo
group Meetup tomorrow I don't know if you guys go there or not so if you want yeah I do I do go there every once in a
while just sometimes it falls on a time
it falls on a time where there's like three meetings in a week and it's like okay I can only really go to two of them
so because I got everyday stuff going so usually that one falls on the Wayside
because of that yeah this week is a busy one actually there's not only this tonight tomorrow the monzo and Thursday
is the Metro Detroit Real Estate Investors Group meet up as well and also
Wednesday is Dean Dean's U meet up as well in
Novi for me yeah I like going there but
it's yeah um Ted Ted tackleberry he's uh he said hi Jay ran
you know awesome content I barely ever see him on here that's awesome so um and
the CEO which his name I believe is Jay as well so uh the they have a thing
she's dropping out of state landlord Section 8 without property management and I think he was talking about Monique
Monique yeah yes that's exactly what she's doing so Y and Monique you know we
talked about Mo'Nique being a really good in Section 8 as well but she's also as a property manager so the fact that
she's putting out a a a uh a course that is about not doing property manager
Property Management um is awesome so actually we've kind of worked together a little bit on that kind of collaborated
here hers it's not mine but uh we we've had more than one discussion about it so
she's awesome that's awesome oh and the CEO his name is Pat not not Jay oh well
hi Pat but uh yeah it's the thing is is that with Section 8 it's
actually very simple where you there's only a few times that you really would need somebody um to do uh to do things I
think you need more of a more of a property manager when you're not doing Section 8 you know you know
some people say that the the litmus test for whether you need a Section 8 is is if you have zero time to do
anything I don't know if I totally agree with that because if you maybe with uh filling the
properties but uh I guess if once you get past 20 or 30 or something and
you're spending just as much time filling properties as you are buying new ones maybe if you want to try and scale
I guess I can kind of understand that I personally would just hire somebody you know my own personal whatever but uh I I
can at least understand the you know the argument I suppose and who's
so uh this is this one comes from Freddy Freddy
palano great guy yes uh he said he could testify that Jay's always there for
anyone for any advice so Jay's a great guy and Pat the CEO says I hi Jay thanks
for coming on so um but yeah 100 the thing is is that I'm all about systems
myself so I'm the type of person that I want to see my business and I want to
put a a system involved where of eventually I see myself like
either putting somebody else in that to take care of it and or it taking care of
itself if that makes sense yes so um that's kind of where I like to do things
I you know people ask me well what you're saying about a system that's the one thing I I've I've done classes I've
I'll sit and talk with anybody I'll go to see people's houses for the heck of it you know I just enjoy talking real estate helping anybody can and but the
system itself I can give you A&B and then g l
z d f you know y but I Don't Give A to Z
I think you need to find that yourself or you need to find a program that does yeah so yeah those systems are are great
except it's very hard to find anything that is Catered towards Detroit if if
we're talking Detroit proper now you know detroiter area you understand that there's a difference it's a world of
difference between Detroit proper and the Detroit metro area yes and um if you look at Bigger Pockets you
know some of those podcasts and such there there's some great advice in there but none of it is Catered towards
Detroit and and much of it does not apply you know I love uh I know when
somebody was a Bigger Pockets person when they post in one of the groups and says what are the best ZIP codes in
Detroit to do that's just like a rookie question there's there is no good or bad ZIP codes in Detroit they're all good
and they're all bad so right um but anyway it's it's great to do some of
those things I'm not a big lover of uh you know paying for too many courses especially bigger pockets and things uh
if they don't know Detroit if you're trying to do Detroit proper yeah and that's the thing like Detroit proper
people have to understand it's a huge difference they want to say oh yeah it's the same thing I can run it from
California and I'm like if you don't know if you go and treat it like a
Detroit proper property like any other property say in the suburbs or anywhere
else you're going to lose your yeah period I've seen I've seen
millionaires walk away crying in Detroit thinking that it's easy you know oh I
read this seminar and you know I bought 50 properties and never got one of them finished you know or whatever if you
don't have the right people the right system you know the right mindset I don't care how much money you have you
will lose your ass right so never give money upfront to contractors in Detroit
oh hell no if you give I'm gonna right now if you give money and this is
nothing against anyone but if you give money to your contractor before the job's
done okay your job's probably not gonna get done okay he's already went and spend
that money on whatever his vice is boobies and beer
yeah everyone has a different Vice I'm not hey boobies and beer drug whatever I
mean whatever their Vice is it it it it whatever that is so I have many what I
call friends some call them mentees whatever that I've helped with a lot of things and you know I'll stay in touch
with them for a certain amount of time and they always seem to always go away and do their own thing for a little while but I try to check in or they'll
check in with me after a year or two year or whatever and I'm telling you almost every single
one when I say you know have you run in any problems oh yeah I just got ripped off by this guy I gave him money you
know like $2,000 to clean out a house some you gave it to him UPF front yeah
what is the first thing that I told you about investing Detroit not to give money up front why is it everybody makes
that same mistake I don't understand it's like hey if you if you if they need a deposit like yeah materials you know
okay I'll go buy the materials and I'll meet you there or something you know but to take a deposit I'm sorry I don't want
to say the person's name but to take a a give a $2,000 deposit to clean out a
house that was a big job to clean out to clean out a house what they need to do buy garbage
bags right exactly ah anyway you know like okay you need you need the dumpster
okay I'll go buy the dumpster yeah okay uh you need to pay your guys is it going
to take longer than a week no I'll pay you halfway in the you know when you're when you're halfway done I'll pay you
halfway never go time yes 100% that's that's that's the
key thing is is just knowing what to do like doing these draws is crazy so
always have somebody that yeah always have somebody that you can bounce a question off of even if they don't
aren't even in this business you know I'm about to pay this person some money for this what do you think even if they
don't know anything about it and hopefully somebody will smack you upside the head and say do you realize how stupid that sounds oh yeah Ted has a
question real quick uh how do you Source decent contractors slash
handymen uh uh in in the Detroit in Detroit uh with a small
portfolio you know I I like to start with small jobs I will go on Facebook
Marketplace or uh you know used to be Craigslist whatever and post an ad
saying hey I'm looking for contractors or I'm looking for handymen whatever and
if if I did find somebody that I thought met the criteria and I wanted to give
them a try I never try new people out on big jobs in any way shap right it's
always you know if you're a handyman okay fine I got this toilet that needs to be replaced over there and how did
the whole thing go did did they you know take an extra two days to do it did they want money up front to you know to buy
the wax ring you know I mean things like that and then you know how it was
afterwards uh you just have to feel out the situation then go from there go slightly bigger and bigger until that
you can trust the person but I don't care if you know unless you really are truly you know they're in your back
pocket that you know them you know you're bringing them to your you know barbecues that house you know yeah you
need to um you know you can say okay fine I'm going to give you this big
job but I'm GNA give you the materials for it and then when you get to a certain point okay fine I'll pay you up
to that point but you never pay in advance never let never let them owe you
money you'll never you'll never catch back up I think you started mention that thing in there it just you'll you'll
always have a problem and to be honest with you there are good contractors that go bad um maybe for a
little while maybe maybe permanently maybe they get one of those habits that you know type things you know whatever
it is but I've had good contractors uh guy that I've actually referred to some
people that was a he probably did 20 houses for me over you know a fiveyear
period or so when I worked for the other guy whatever and did a really great job and then he disappeared and you know lost a little
bit of money because I trusted him and he came back and he made things right but it just very much of um made me
realize that you should always still cover your ass uh if I can say that online oh that's you're good yeah so one
thing that I noticed is is like when we were doing the whole when we had the whole covid boom with contractors just
not being available and they're just too busy and things like that I I would see this from some of my
clients that were they couldn't get a contractor because or they would give
the contractor the deposit and the contractor realized that
they either they probably underbid the project and so now they're GNA take
their time and doing the project and in the meantime they're going to go do this this one that they're going to make a
lot more money on over here you know so now you're going to be on the back
burner for nights and weekends or whatever if they w't even do that I think there's a South Park episode about
this yeah so uh Martin from the Facebook group Martin I'm not even gonna
pronounce that last name sorry about that but uh he says I'm a GC in Boston
and not to be confused with Boston Edison I'm assuming he's talking about Boston
Massachusetts Boston I never pay up front work it
upfront uh work is paid upon completed stages okay you have to hold the carrot
in front of the contractor absolutely that is 100% true I honestly it's I I
know some contractors and they've even told me that it's just how it is so Pat from the
CEO says this is that that was genius and you know said loves this stream so
but Jessie yeah Jess Jesse basama BMA I
think whatever all right he's a buddy of mine uh oh okay awesome support I
appreciate it so uh one thing that I want to say is that I'm really really
happy that everyone came out and is coming out and and talking about this
and actually asking these questions and hitting this you know so with that kind of where are
you going in the future because we kind of see where you're at right now you have some prop how many properties do
you own right now couple dozen couple dozen I I don't want to
really go anymore I I consider myself retired essentially I okay um they do
pop up I I've bought four in the last year actually four or five U all those
every single one of them by the way were Karma houses so karma house meaning I
would not have found the deal or bought the house had I not been assisting somebody helping somebody looking right
you know um so with the exception of that it's very rare for me to even want
to buy another house I'll look here and there but unless it's a good deal I I really don't try to buy something new so
I'm kind of stuck um I'm kind of stuck where I'm or staying where I want to be I take more
vacations you know than anything I just got back from China I think we talked about that a little bit yeah what uh
area in Detroit do you stay on East Side West Side I'm mostly the East Side uh I
do have some Westside properties um the only reason I have them is
karma you know I've got a two family in Dexter lywood area that I bought last
year the same thing um so pretty much of East Side although east side has its
issues I'm more familiar I was born on the east side as I said so uh I'm more
familiar with it I'm more comfortable with it all my guys live uh at or near the east side so you know if I say hey I
want you to go all the way to the West Side you know that's like 45 minutes Drive essentially you know extra it just
so I try to stay away from the west side if I can just for that reason you know I know yeah that's understandable but most
of my buyers are trying to buy only on the west side and stay away from the East side absolutely so um you know
the so Steve actually ask how do you prevent a contractor from putting a lean
on your property only because they are not on the same page with you for
instance after you're not happy with with them and fire
them uh that's a good question I can tell you that 90% or I'm not going to
over exaggerate I'm going to say 70% or more of the contractors in Detroit are not
licensed right and a non-licensed contractor cannot put a lean on your
property 100% now if you are a I want to add to that real quick if you are having
a licensed contractor and you guys do have a scrub and he's trying to put a lean on it the best thing you can do is
keep meticulous records of everything good point okay you should be in the
first place should have either the contract the text messages saying you
were not you were unhappy with such and such work with photos photos before photos after so on
and so forth um just for documentation purposes your contract should be pretty
Ironclad and exactly what it should be uh what you're expecting what they're expecting the money how long you know
who gets money at what time and you know the final product what the what you're
looking for ETC and if you have a problem there should be something in there about um I'm forgetting the words
now my Gulf War syndrome is kicking in but um you know you have another a third parted mediation or something like that
to where something like that can you know has to be done before they're allowed to that on there because if you have it in a contract you have a signed
contract say you're not allowed to put a lean on the property until we have this third party mediation and they do it
you're gonna win so uh but again in Detroit most of them aren't which you
know I I should say you should always use a licensed contractor but there's so few licensed contractors in the city of
Detroit that actually are you know are inexpensive enough to use unfortunately so many of them are uh you know want to
charge you way too much money for obviously easy things or something but I won't go into that that's a whole
another conversation so yeah I know a few people who be like hey you know
they're just trying to survive they're trying to you know but they don't want to go and work for somebody so they want
to have their own business but they don't really want to go through the licensing process or anything like that
they just want to work at honest day's work you know so it you get those people
and the thing is is that you still I don't care if if they're licensed or
they're not licensed you still have to have still get a contract
100% so um even if it's a written
contract on paper on a napkin and you both sign it you know uh there's I'm not
saying you have to have a lawyer draw everything up there's you know if you have something stating this is what I
want this is what we agree agree upon this is how you're going to get paid and
this is the acceptance so on and so forth as somebody said you know you can have them sign a lean waiver clause in
the contract sort of the same thing so that's Martin from the Facebook group said that you know in the contract you
can have them do that but I'm gonna if they are licensed more than likely they're
probably not going to sign that I'm gonna tell you that right now yeah so because that's their only way or only
recourse being able to get the money if you as the sell because there are bad
landlords out there it's not just bad contractors they're bad landlords and cheap people
who just don't want to pay you know so they gotta be protected
as well um you know for for this so what are you planning on
doing in the future you said you're kind of semi-retired and kind of do that are you planning on doing some more
mentoring or I don't think I'll ever stop that uh I calls every other day I
just went to lunch last week with four different people um Candy was one of them actually hi Candy again um I uh you
know I've been to lunch with Ted before actually I sold him a house now that I think about so yeah Ted says Where is
where is Jay's favorite lunch place in Detroit he goes to so many I don't actually like to eat I know
I don't want to make this sound like I'm being prejudicial against the city of Detroit but I try not to eat in Detroit
um I uh there there's a one of my favorite mentees my friends I should say
her name is Jing one the reason I went to uh to China she went to get married there and she invited me to come so
that's why I went but um that's awesome our place I suppose is this Chinese buffet she's Chinese and she goes to a
non-chinese Chinese buffet and 14 in vany that's kind of one of my you know
hey buffets are great for fat oh my God I love that place actually yeah I love that place I've been there I don't mind
where we go some people want to go to some wacky I don't like Thai food and I don't like sushi but other than that I
can pretty much have eat anything so I'm not that picky about stuff so just
wherever is convenient for people I suppose that's awesome so I with that
being said like what you know what is your plan perf here um yeah so's your
plans for the future I'm not gonna stop uh helping anybody that ever wants it I don't I don't I don't be you know
sitting hold up in a bed or something you know on a heart monitor or something I'm gonna be talking to people I suppose
I just enjoy it um as far as I'm sure I will pick up more properties even though
I'm not like actively going nuts about it uh I've got another class that I want to do here actually on Section 8 soon um
I'd like to put together a little bit more of a um central place for all the classes
that I've done to try and help people and I don't charge for any of that stuff again like I said I do have uh a group
for anybody that is into Section 8 in the in the Metro Detroit area uh that is
I created it to because I was running out of tenants actually and I thought you know so I'll just search for Detroit
Section 8 in Facebook and I found two groups and one had eight users in it and
one had 12 or something and neither one been used in the last year so I created a a group the Metro Detroit Section 8
Group whatever and uh I've had it about two years now and there's 22,000 members in it so apparently there's a lot of
people that want to know about sectionate so oh yes I spent a lot of time monitor or me or monitoring admin
whatever you want to call it that and a couple other little ones but uh if you do want to get into a group that all
about Section 8 that's a good one to start most definitely I the I I think you need
to do your research you need to figure out so um you know actually Martin from
the Facebook group says I plan uh I've been researching Detroit heavily and
been planning a flight uh down there I uh before I purchase a property great
honestly best thing you can do so I would like to connect with you guys
and when I'm down there by all means reach out to us we're happy to um but that kind of brings me up another thing
is is if somebody is brand new say to section8 how are they looking what do
they need to look for how do they screen their tenants properly um you know what's the best and
and how do they get signed up to do Section 8 is there a sectionate process
to sign up for it it it is the exact opposite of what most people think and
and again I've done a whole class if you go to that group and you do join the group uh in the featured section is a
video that I did on what is Section 8 how you get into it how you know what to
do not to do every you know everything about Section 8 we are afraid to ask type situation uh the shortest answer to
that right now is uh you find a tenant that is on Section 8 and they give you
paperwork you fill it out and then um the property is inspected by Section 8 after you find the tenant it's not the
other way most people think oh I go to a Section 8 office and sign up as a Section 8 landlord no you don't do that
it's the opposite so um and what do you what's their inspection entail was it is
it on par with say the city inspection so if you get a city certification if you pass a city
inspection chances are with some very very Minor Details you'll pass a Section
8 and vice versa uh they have slightly different you know HUD or Section 8 is a HUD inspection
essentially and the city's inspections generally go off of Hud guidelines okay
so it's generally pretty close to the same sometimes they you know one will say you have to have screens Section 8
you have to have screens the the City generally is a little different on that where the smoke detectors are or carbon
monoxide is a slightly different other than that most of it is the same
uh I I would have to say Section 8 can be a little bit tougher but that's just
based on the fact that the the inspectors are kind of held to a higher standard this the standard is the same
as in if you know if they had truly a list of everything they have to check they both have essentially the same list
City inspectors are a little bit more laxed than a sectionate inspector because that's truly by HUD Housing and
Urban Development and they can be Zapped if they don't do a good job so there are some Section 8 inspectors
that are famous for being pains in the butt um you know there certain places
Plymouth Westland Etc have some of they have the hardest inspector of pretty much of all of them so but they still
fair if you're a slum Lord don't go to section8 in fact you know 20 years ago
if somebody would have asked me 20 some years ago should I be a you know Section 8 landlord in Detroit I would say no
because there's no good properties you know there wasn't very many good landlords they were all just junk
essentially at the time and no the city didn't care about inspections back then
so it didn't work out very well but if your property is in fairly decent shape chances are you'll pass an inspection
safety sanitary uh security is really the three things as long as your property is safe sanitary and secure
doesn't have lead paint chips all over the place Etc he'll pass you know so uh
Samir zachm and I probably mispronounced that last name on Facebook said Are
there specific agencies that you would recommend staying away from staying away from working with you know that depends
on the month sometimes um I would suppose that if you asked 90 99 uh
people that deal with Section 8 in the city of Detroit that Detroit housing is the one that some people try to shy away
from and there are times that I have said oh I don't want to take any Detroit section8 or Detroit Housing Commission
Section 8 right now because they you know at one time I actually had a three months to wait for an inspection oh wow
that's crazy uh they're not that far anymore and they're okay in other areas they're actually their inspectors are
some of the more lenient ones and even though it takes a little longer to get paid you'll always get paid I personally
the one that I uh the three that I dislike the most I suppose or sometimes
have issues with uh iner specifically they're run terribly or they were I
haven't dealt with them in almost a year now but um they
just they're terribly run I suppose they I I went for two years waiting for a uh
a rent increase and at the end they finally came to me and said okay we're going to take care of this now I'll give you backdated one month and that's it
I'm like no I I asked for this increase two years ago you need to give me two years I'm like nope we don't have in the
budget okay well I'm raising the rent next month nope we don't have in the budget nobody will tell you that but iner um wow Plymouth and Westland
they're they're good people that work there uh I don't have a problem with that but their their pricing is lower
than most and their inspectors are really tough in lonia um other than that
RPI is pretty good every one of them is good and every one of them is bad you'll never get through in the phone on virtually any of them uh sometimes it
takes forever to get an email back but they're still uh worth dealing with you'll always get paid eventually and
that's really all that matters most definitely so I Martin from
Facebook said I'm worried about permits being issued on a timely matter which is actually that that's a city issue that's
going to be anywhere that's going to be the city Commission in whatever City you're trying to get that in um every
City's a little bit different but uh with how are you screening your
attendants with Section 8 um and the next question is there's been a bad
stigma of well I just don't want that type of tenant that's section eight you know uh they're bad tenants you know so
what do you say to that okay I so I I I've got I've told the story
many times I suppose but I guess I'll try and make it short here I don't want to say forever but you know I've been in
the Metro Detroit Facebook groups for I don't know many many years now seven eight years and I I I think the very
first group Meetup that I went to was probably seven or eight years ago something like that and I met a a
gentleman that's actually well known in the group and uh I walked up to him started talking just chatting about real
estate and some young lady walked up to us and said hi my name is so and so and I want to buy properties in Detroit and
I want to rent them Section 8 what do you think and uh I turned to this fine young
friend said Jeff what do you think like oh uh you tell me I'm like I'm new in the group I didn't really want to say
anything but so I tried to ask him no no no you tell me what you think first I okay well depends on the property
depends on the area depends on the city depends on the tenant you know the housing agency but overall it's a good
Pro program if you the prop if all these things meet you know the CN D you know areas you know you're not going to get
it in Bloomfield or anything like that it's not worth it Etc but overall it can
be a good program and I turned to him and what do you think and you know I'm
telling you it seemed like his you know his face turned purple and a big old vein popped up over here and he's like
oh my God in 1978 I had this tenant that destroyed my house and I called and
complained to Section 8 and they laughed at me and said hahaa we got another stupid landlord and hung up on me I'll
never deal with them again now that's a total exaggeration of the story and it didn't happen that way but that's
essentially the uh the gist he was trying to get across is that is the worst thing ever and you
should never do yeah um it's not like that in fact uh so much so that I I try
I argue on Facebook groups quite a bit you know when somebody says that there terrible and I don't necessarily just
try to defend Section 8 but I give my experiences and say you know it's not really like that anymore it's not like
it was 30 years ago there are right whatever but so uh in the Oakland Ria we
had uh probably four months ago something like that five months ago they had a panel of section8 people and which
included two housing agency um people and I went to it and you know I I always want to learn new
stuff so I just went there as a you know as a Joe you know Regular Joe and uh they talked about everything Section 8
and in that someone had mentioned about well what happens if somebody causes
damage or what happens if somebody's kicked off the program and they had mentioned oh well you know they would be
kicked off if they did some damage but you they can always appeal and most of the
appeals get put back on but they didn't explain the situation
and that became the the gospel for there's one particular person that was in that Ria that's on the board was on
the board and uh I went to that specific person that
said that that and and got the straight
poop and then I went around to every single housing agency I could talk to that I could get a hold of it took me
several months to do it and I still have my numbers that I haven't really posted but the gist of it is is that if you
talk to any housing agency uh and ask them how many people
the way I did how many people are kicked off Section 8 for damage bad tenants Etc
not talking about uh not doing their paperwork which is what that person was talking about that
day so and the answer was almost the same throughout every single one of the
housing agencies which I think I have 10 or 12 of them that I that I asked three
to five% of Section 8 tenants are kicked off the program for
being damaged or you know not paying not paying the utilities whatever the rest
of those people are people that just didn't turn in their paperwork so um and then they can appeal
that and they put you know and at the review hearing they'll say well did you fill out your paperwork yeah I filled it
out afterwards even though I was kicked off and they said okay we'll put you back on but a person that causes damage
is not just that easy to get put back on especially any kind of judgment or anything if you get a judgment against a
Section 8 tenant they're done there there is no appeal if you have a money
judgment against them it's an automatic you're done you're not getting back on period unless you pay off that judgment
I suppose then you gotta and that and that's actually one reason I like section8 tenants is because they know
that so they are going to do everything that they can to make sure that they'll
work with you they'll see what they can do they don't want no judgments against them they don't want to get off the
program yeah if who wants to get off a program where they're getting free rent yeah if you you know you were rough you
know hard you know had a problem broke a leg or something lost your job got put in a homeless shelter tried to clean
yourself up and somebody came up to you and said hey buddy I'm gonna help you out you know I'm gonna give you a free
rent or lower income rent all you got to do is not destroy the house are you gonna destroy the house not a normal
sane person I suppose there are a few exceptions I've had one some sort of bad tenant myself but wasn't even that bad
so um hi Brian Bo technically so yeah bo uh you know Brian
and I guess said hey Jay how's it going my good man but uh the Martin from
Facebook said he always had six photos of every room four walls floors ceilings
and had them sign on the condition of the house absolutely that's what you have to do that's what you have to do
whatever makes you feel safe as a landlord to get get things moving forward do it okay what are they going
to do no I I'm not going to do that I well okay then you're not gonna we'll
tear up the lease right now I'll find another tenant yep you know so um you
know Joe Smith said don't forget about your houses and check on them regularly
yes that is that is true in your but one thing you got to make sure is in your
lease you have to have a clause for that if you
don't then they don't have to let you in that's another uh important part of
any landlording uh for anybody that's in here whether you're sectionate or not make sure that you have a good lease
that shows everything you can get leases from a multitude of people um and that
absolutely is I have a 24hour notice that I can call or text you and say in
24 hours I can come in look through the house and if they don't like it I can just use my key to get in just that
simple so it does help you know that's kind of the another good thing about
section I've known many landlords that you know oh that tenant that person's been you know renting for me for five
years so how many times you been in the house uh once in the last five years it's like okay they're paying the rent
that's great but right you know do you really know what your property well Section 8 they do an inspection uh one
or two years every year or every two years so you kind of have an idea of what's going on
you know you should know often uh I have it in my lease that you know the tenant should be replacing their smoke detector
batteries if they have any like most of them are to the 10 years now but um or the furnace filters and it doesn't hurt
to send your guy to every one of your houses once a year with some furnace filters and hey I'm just here to put in
the furnace filter and while they're there look around see how things are 100% so I you know Mo'Nique says I go
see how they live before I move move them into my house it's kind of an fun
unusually they they show me their their slum Lord issues yes so that that's kind
of a um vetting your tenant 101 uh you can do
background checks if you want you can check their credit I don't I don't even do that stuff half the time uh what I do
is is I talk to the people I one thing I'm kind of famous for is is I will
always be at the curb when they D drive up I'm I try never I'm late for a lot of
things but for when meeting a tenant for the first time or a prospective tenant I'm always there early so that I can be
at the curb when they drive up I open the door for them and I'm not doing it
to be nice I'm a nice guy and all but I do it because I want to see the inside of their car if the inside of their if
they have to um and Joe Smith just said that check their cars you know if you
have to uh you know if they kick out two weeks worth of McDonald's rappers to get out of the car well that's what they're
going to do to your house I'm not saying that somebody that is dirty is going to be a bad landlord but at least you know where you stand um I will go
to if I look at their car and they kind of sound right if how they're dressed how their kids I've had kids you know
five six seveny old kids come up to me you know how are you sir you know how are you you know and dress great and
just very polite and I've had six and seven year old kids call me a white boy
you know stupid white boy and stuff right there in front of their kids and you know no big deal um it's how they
you know that to me is an automatic okay have a nice day see you later yep but all those things go into you know how
you feel about the person you put it all on the computer upstairs there there's a lot more of course but um if you're
comfortable I take the applic or their their actual moveing packet I almost never sign it right then and there I
have them sign it but not me I always try to if if I'm have the least bit of
doubt I will go to their house I always make sure I get a copy they licensed or social the right address and I will
drive by their house if I see four couches and five cars in their front lawn well you know I know that that
they're going to do that to the house if it looks fairly okay and I still am not convinced I will call them up from a
block or two away and said hey I forgot to have you sign this one piece of paper um let's you know I'm gonna be over
there in a minute or two I'll be at your house and I pull up and I try to get out hey let's go to your kitchen table if
they won't let me in the house they don't want me to come to the house or they won't let me in no matter what that
tells you something if they let you in and I you have to tip to over dog piles then you know that that's what's going
to happen to your house and if all that stuff works works out and you're comfortable do what you got to do most
definitely so uh Martin from the Facebook group says quick quick money
saving tip instead of putting mats on the steps and prevent slipping Falls we would paint them and throw fine sand in
the paint for grip super cheap so hey that's a good thing um
so how you know first off this has been very helpful for everybody for new
people out there I really appreciate it um obviously you have your phone number
here you know is that the best way for people to contact you what you know how can people text send you a text okay
send me a text if you you know you have a question or call me and say you're busy I I pretty much have talk to people
all day uh you can on Facebook of course uh you know just send me an instant
message there I don't mind if you friend me or something um doesn't bother me I'm
not one of those guys uh again through one of the groups you can always ask questions in there or just send it to me
directly most definitely I how you know what's what's the best way that you are
finding tenants at the moment uh Facebook marketpl or well Facebook period I I will post it in my
own group and then okay uh when you go to post it will ask you do you want to
add it to these other groups and I have nine or 10 other groups Detroit sell all Detroit rentals Detroit apartments
Detroit sell everything whatever for Detroit houses of course yep and I will put it in all those including
Marketplace and that seems to be has always been historically the best place
for me uh some people use affordable housing.com which is the uh official
section8 or hcv program is actually what it's called housing Choice Voucher Program uh it's there
official place but I get next to nothing from there some people pay money for it they do well I've never done well so um
you can do some people use Zillow I don't particularly in Detroit think people use Zillow as much as uh Facebook
Marketplace but that's always a good thing um I have never listed a house for
rent on the MLS especially not in Detroit I just don't understand okay so
you know no agent would very rarely would want to so yeah I mean
it's Detroit so they're probably not gonna step foot in it because you know Word of Mouth talk to
your tenants and tell them hey I've got properties coming up and you know uh these me these groups
Etc just post in there saying they got properties for rent sometimes that stuff helps out too awesome so well I really do
appreciate you coming on here Jay and you know if anybody has any questions
for them get a hold of them contact them I you know go from there I really do appreciate not
only that you know everyone here from our Facebook group has come out anybody
that I know uh but all your supporters that come out and and watch this so um I
really do appreciate it and you know I'm happy I'm always happy when I get to
talk to you because you know no matter what if I got a question for you you're going to be straight with me so that's
that that's the honest guy may not like my answer but at least it'll be honest exactly you know um I have what's funny
about that is you know just for a quick story is there was a you know I I talked with
a lot of wholesalers and they're like oh yeah you know I'd be happy to jv on this and then
a lot of times when they come to me it's like last minute oh I need to close on this this
week well first off when they say that to me I know I'm probably not going to be able to help them but I try to tell
them hey this is a teaching opportunity all right so I look at it I look at I'm like okay no problem they're asking it
said 83 conventional 77 cash it was a turnkey
rental in Detroit on the west side over by Southfield
Freeway okay and it was uh so I asked him I'm like okay
doesn't matter what I think arv is what do you think arv
is so he screenshotted one for 83 right
down the street that was less than six months ago I'm like okay he's like so I
I think arv is about 85 85k like okay respectable sure
now as an investor in Detroit not being brick it's
frame even though it's turn key what do you investors need to buy at
70 to 75% arv and you're saying it's already work so it means you're already at arv
so it needs to be 75% or 70 to 75% of that
85,000 oh that's just not going to work we got cash offers higher than that I then why didn't you take them
yeah take them and run because that's just what they say to
yeah yeah I go in Detroit people need a higher return for
their investment because of a lot of reasons one they not a lot of
appreciation so they need that higher cash flow in order to do
that so as as well as the risk I I'm still I still think that uh in Detroit
if you pay more than should be 50 to 70,000 right now is
a turnkey property it I'm not saying they happen every day but they do happen
and you can make money a um based on those numbers and if you go over that
especially with the fact that taxes are really starting to get wacky um not that've gone up but they're you know
making sure that you know when you buy a property of 50,000 you're pay paying taxes based on 50,000 when it wasn't
that way for a long time hi Bri Bri's awesome um but uh yeah
awesome so uh and and Ted said he wants to when can we meet for lunch you got my number
man awesome yeah so yeah it's uh it's TR
crazy it's stuff like that where I end up turning that into a teachable moment because he may walk away and he may
think like I'm just being ridiculous but you're somebody either from out of state trying to wholesale it
you know and you don't know the area I do you
know power 100% so it's it's 100% great I you know
so I nine out of the 10 deals that I look at are just not deals
you know because I JV a lot and I encourage anybody you I'll give you my open and honest opinion on any and any
property and if I don't know that much I'll tell you straight up I don't know that much you know things like
that that's my one of my favorite lines is I have no freaking clue about that and I don't want to say something you
know that I don't know anything about so most oh Jay yeah so Jay Jones says JP
has has helped me out on Section 8 questions shout out to you I by all
means and if anybody hasn't seen real estate Jay Jones his YouTube channel is
really great we had him on the podcast two podcast ago and he was an awesome guy so he's an awesome guy so huge great
investor as well do what you can to save money by the way I I I kind of got to give a shout out myself uh component of
uh mome County Habitat for Humanity or any of the habitat for humanities uh so if
you want to save money on doors windows all kinds of neat stuff go to the habitats there's the mome ones are uh
toefer or what is it eight seven eight and a half and uh Van Dyk and then 21 in
Van Dyk okay yeah otherwise any of the habitats I think is a great charity to
uh to work with so you could save a lot of money buying stuff from there of course so oh yeah I've seen I I I've
done that um yeah I've seen that and then I had um I actually have a few
family members that had the you know habitat of humanity they built houses for
people and uh they've actually they live in one of the Habitat Humanity houses
you know because they're low income and it's just with it helped them
be a homeowner when they couldn't normally be so
I big shout out to that that community that habit humanity is great and I've
been there I've been to the Detroit one as well which is I think it's like Greenfield or something like that they
don't it has been closed for about four or five years now oh man supposedly reopening up but yeah they uh they had
two of them the the last I saw but they closed that at least I think 2019 now
something like that yeah it's been a long time since I've been there but any of those they they have great things
where they're it's a deal you know so you need a new door frame or you
need a new door or whatever um you're probably going to put a little bit of elbow grease into it you know sand it
down paint it but you know you're going to get it cheaper there than you will at
Home Depot you know so Way by by drones
so um so Albert was asking do you have a YouTube channel or
website I do not uh I don't sell anything per se so I try not to Market
myself in that way I if you really want to get a hold of me again you've got my phone number on the screen um the the
group if you just type if you go to section or I'm sorry if you go to Facebook and type in the search and type
Detroit Section 8 the very first group that will pop up is is a uh says Section
8 housing with a red background black and white right that's my group uh like
I said I started that about two years now and uh it's you know you can always catch me there you have questions about
Section 8 that you can go in the discussion there and and ask questions in there there's
chats in there Etc and it's totally free of spam and crap like that so um me and
my definely a good job out and if you're just listening by the way his number is
is 248 764 9030
765 Randy ah see two me this 248
765 9030 2 48765
9030 so give him a call check them out see what we can do um he like I said
he's a he's a great guy to work with also if you're a new wholesaler and you
need any help with anything I'm an open book and I doing everything like I I'll
work with anybody I'll talk with anybody for if you just want a quick conversation 20 minutes perfectly fine
if you want a oneon-one an hour long session as long as we recorded it's free
for Content I just need a free lunch out of it I'm just kidding hey no I'm just kid
I I'm trying to I'm trying to lose some pounds so yeah I don't need to lose the weight you know I've been going to the
gym you know three to four days a week so invite me to your gym to talk about real estate for two hours and I will be
just fine I've never tried that that's a good one to try actually thanks for bringing that up
Randy that's awesome so um we're I I
we're way over on time but I'm happy we are because this was a wealth of knowledge I really do appreciate it um
you know I'll bring you down and just stay behind we'll talk a little bit after and then um go from there all
right have to do this again sometime we will most definitely I'll go play my fake piano behind me that I don't
[Laughter] actually all right thank you everyone for joining I really do appreciate you
coming on and I you know showing support showing you know listening to this and
you know please do check out our next episode if you want to see our previous episodes check them out but uh check out
our upcoming episode we do this every other week okay um I I'll bring a new
guest on we'll talk about something different I'm trying to get any we talk about anything real estate related so
with that all being said everyone let's all do deal
together