Are you looking to start investing in real estate but have a busy 9-5 schedule? In this episode, our guest shares his journey of remote real estate investing and how it's become a lucrative side hustle. Learn about the virtual tools he uses and how he balances his remote work with his real estate investments. Tune in now to discover how you can get started in remote real estate investing too!
#RemoteRealEstate #VirtualInvesting #SideHustle #RemoteWorkIn
Episode #30, we follow Dean Parker as he delves into the world of remote real estate investment in Metro Detroit while juggling his 9-5 job. Armed with determination and a keen eye for opportunity, Dean navigates the nuances of the market, utilizing digital tools and expert insights to make informed decisions. Despite the challenges of balancing his professional responsibilities, Dean's strategic approach and dedication pay off as he expands his investment portfolio and lays the groundwork for future success. Join us as we witness Dean's journey unfold, showcasing the power of innovation and perseverance in the realm of real estate entrepreneurship.
Dean Parker
Dean Parker's journey from his birthplace in Detroit to becoming a multifaceted entrepreneur is a tale of ambition and success. Raised in Southfield, Michigan, Dean's academic path led him to the University of Michigan. It was here that he laid the groundwork for his entrepreneurial career by launching a party rental business, renting out bounce houses, dunk tanks, and cotton candy machines. After earning his degree, Dean relocated to California, where he embraced the tech industry. Over more than ten years, he excelled as an Account Executive, securing a substantial income that propelled him into further business ventures.
With the financial leverage from his tech career, Dean co-founded Ride FRSH, a car air freshener brand that garnered attention on the entrepreneurial TV show Shark Tank. Alongside this venture, he turned his sights back to Detroit, investing in long-term rental properties. As of now, Dean has successfully acquired and self-manages 8 doors, with an ambitious goal to expand his portfolio to 20 by the end of 2025. Dean Parker's story is one of leveraging opportunities and strategic growth, from his early days in Michigan to his current success as an entrepreneur and investor.
TITLE: Remote Real Estate, Investing in Metro Detroit While Working 9-5 - RET Ep#30
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© Randy Stedwell.
Hey everyone out there in YouTube landan and Metro Detroit
off-market Real Estate Group hope you're having a great today's Wednesday uh we had a techn we had I had
issues uh with on Monday last minute something came up and I'm very grateful
to this guest who gave who was able to come back on because he was already to
go uh and so I'm very happy to introduce Dean Parker Jr he is a great guy one
thing that you know hey I want to learn this too is you know how he
remotely uh invested in real estate here in the Metro Detroit area and in Detroit
like how did he do that and where can I do it you know how can I do it so I know
you're all thinking the same thing just by the title so without further Ado I'm gonna bring on Dean Dean how you doing
today all right hey Randy thanks for having me on man really excited awesome
I'm happy to have you and I know our guests are going to be happy to have you um so a little bit tell me a little bit
about how you got started in uh real estate and you know what what's your
background you know I know we put a bio of you in the description so if you want to look through that by all means but
let's give you a quick summary of what your background is how you even heard about real estate obviously we've all
lived in homes so we know about real estate but how did you be a I want to be an investor you know how did you hear
about that yeah so uh just to give you a little background so you know originally from Detroit Michigan uh went to
University of Michigan um you know growing up I always say you know I want to own my own
company I Want To Be My Own Boss um and as I got older you know I realized like
bills are real and I didn't have things figured out yet so I ended up going to you know getting the job working in you
know sales for the last decade or so and you know every job I had it was you know
I just felt like I was in this Rat Race I wanted to get out of it and I just kept hearing about you know these millionaires all of their money from
Real Estate and how you can be passive and you know how people are leaving their jobs and doing this full-time
making money in their sleep and I was lucky enough to have my younger brother uh Dylan to kind of introduce me to real
estate he had a friend that was you know handyman contractor they started doing some business together buying a couple
of fixer uppers going to DET tradeit auction and I was kind of like watching him from the sidelines and just seeing
what he was doing and saw that he was you know getting some tenants in place making some passive income doing a couple of flips and you know I'm
sitting here working you know some days I'm happy some days I'm not you the case of the Mondays and how can I get
involved in this so you know down with him multiple times and just started learning like learning you know
different things as far as you know Section 8 and doing fix and flips how to find contractors handyman Etc so you
know got all my information from him and kind of just took it from there so did you so your whole
experience like how you even thought about doing real estate was coming from you said your your your uncle my younger
brother so my younger brother your younger brother sorry about that H your younger brother so now you're supposed
to be the big brother you're supposed to know everything right you know so now you're learning from him now what was he
doing that made you think of that was he doing rentals was he doing fix and flips what was he doing he was doing a little
bit of everything man he was doing rentals he was doing flips uh wholesaling he's actually down in bise
right now uh selling plots of land so if anybody's interested in owning some land in bise hit up my man Dylan um but yeah
he God yeah he's a jack of all trades man so you know kind of learn from him so I started dabbling hey I have some extra money from a nin to-5 I want to
start investing it so he's like hey buy this house we can go in go 5050 on it
we'll put a tenant in place and we'll just split profits 50/50 any repairs that come up we'll split it 50-50 but
you know I had moved to California after college so he was still in for a minute before he moved so he was kind of like
my you know my feet on the ground and kind of was just like taking care of everything and had some uh contractors
or handyman in place had a property manager in place so I was more so just like you know giving him my money and
just you know kind of just crossing my fingers hoping things went as playing which they did and I was like you know
this is something I think I want to kind of take a little bit more serious so I started working more started earning a
little bit more income having some money saved up I you know started getting serious about it and you know started
scaling so you got some good luck in the beginning where your brother had an experience with people he's the boots on
the ground he's the one here you know so you you know you're able to say okay
here's my money go make work for me you know pretty much yeah I you know did you
know about how to analyze deals at that time did you know what's a good deal what's a bad deal
um things like that not necessarily like I would do kind of some quick like napkin math like okay this house is
going to cost this much this how much we can probably get for rent based off of like comps in the area okay I didn't
take into account you know like um you know uh like vacancy uh repairs so I
take all that into account like property taxes okay who's G to pay for that
utilities Etc so some real basic math like luckily it panned out for me because again you know my brother had
done it for a while um yeah but you know definitely I say as I started scaling I
definitely took a I'll say learned some lessons especially the last year and a half just know growing our portfolio and
you know my brother left so it's kind of like me finding out my my own team so finding a property manager um I thought
that hey I find a property manager I have this building I just bought as empty I'mma give it to them they're going to fill it in the next 30 60 days
max I'mma have some money roll in that is not how it went at all okay all right
so here comes the good part right this is what we all want to hear right now
okay no offense to any trials and tribulations that you went through and I'm sorry that you did but we want to
hear all about that because we don't want to make the same mistakes ain't that right so we only have like an hour
or so I can spend days I know I know I know so um what we can do is is you know
now that so let me get anybody who just joined us real quick up to spe now basically you
had your brother up you you had him here he's boots on the ground now
you're he's basically left y okay right so he's left the company now you're
doing it on your own you're like oh yeah it was just simple for him to just go grab a a you know property manager and
here you go and so on and so forth so what went wrong
first obviously first off was that mind thinking that that way of thinking that was that was all wrong yep but what
happened to say what was the first thing that happened when you said oh man I screwed up yeah so um I bought a Triplex
over in in the Russell Woods area okay first off the block wasn't the best block um but you know I was kind of just
like risk taker it's a Triplex you know we can get you know three rents under
one building the numbers panned out from the math that I was doing again not take into account property taxes repairs Etc
um and then I knew that you know I started hearing more about Section 8 tenants and I was you know guaranteed income especially happened the cash
paying tenants they weren't paying anymore they lost their job Etc so I want so when this when
you let me know when the time frame was this happened so what year was this so
where we 2024 this was 2021 or 2022 2022 2022 yeah so
2022 um bought a Triplex it was vacant
it looked you know like it was like rent ready ready to move in y and we got a
property manager say hey here's the building fill it up with tenant and that was the first mistake so we didn't
really do a good job of the due diligence finding the property manager um and it was
you know months will go by no interest no tenants so six eight months later
we're like Hey we're paying a mortgage and we're not getting the income like luckily I had a job that could pay the
mortgage but this isn't what we want to do So eventually I sat down with my wife
so my my brother left my wife end up being you know my my new business partner so we sat down like you know
what let's take this over ourselves and see if we can find our own tenants like the property managers aren't doing for
us no one cares about your property or you know your finances more than you do right so exactly came to that that
realization and we're able to find a tenant placement person that specialize and sectionate you know placement so
that was you know the bonus for us first tenant they put in we didn't do the background check we didn't do credit
check on the tenant right we kind of just took the tenant placements you know word for it first day the moves in it's
like a blizzard happening in Detroit I'm in California so yeah he moves in around
I don't know 11 o'clock at night Michigan time we're excited we want to make sure she moves in it's okay it's a
blizzard the the boiler goes out so it's freezing in the house oh man then she
goes to use the bathroom the toilet is clogged first the first few hours of her moving in right so this is our our first
journey into get into the section A you know scaling Etc so you know I'm sitting I'm on door Dash I'm ordering a plunger
to the house I'm door Dash on door Dash so yes
you can order plungers on door Dash and have them delivered I found that out Oh I thought you said plumber sorry you can
order a Plummer on Dort right so we called a plumber it's you know it's a blizzard they're not coming out that
night they're like we come out that tomorrow same with the boilers so I'm like we need to order her a portable heater and we also need to get her a
plunger so okay you know we did that and come to find out you know the tenant had
a a long like a wrap sheet you know criminal background this the poor poor
tenant so we were dealing with that um again luckily Section 8 paid for the rent but you know we're dealing with her
you know as we started getting more tenants in place in the upstairs units and Triplex you know she was causing
issues with the upstairs tenants you know getting into arguments and you know alleg allegedly stealing their mail so
now we're like okay we have the the building occupied but we might have high turn turnover because of this you know
Troublesome tenant so that was the first lesson know definitely do uh you know
deep background check phone interviews go check the tenants you know where they're currently living at see if they
keep it clean Etc so that was the big how would you do that if you're out in
California so you gotta have the proper team in place so that's another thing we found out so it's you know finding the
right property manager that you know you can you know trust um again me I'm from
Michigan so I I'll come back to see my family at least a few times a year so I was able to go to Detroit invest group
um say hey I'm looking for a property manager I'm out of out of state I come back frequently um you know these are
the things that I require this is what I'm looking for who can help me out and I was more so looking for recommendations from people that had
already worked with someone so I went through about two or three property managers that could you know kind of
help me out there until I finally found one that I'm currently you know still working with now um but it definitely
trial and error so again the first year and a half of us scaling was you know we took took some L's but now we're
definitely in a better place right so that's awesome and you're able to come
back so it was a little bit it was remote but you still had to get your
systems and everything um in place so I so Colleen I wants to ask what's
the property manager in Detroit uh you're currently using yeah so her name
was Tyra can send you you know her information after this uh Tyra Carwell
but uh she's great so she was doing so well that another property management company bought her out to the point okay
she wasn't able to uh manage my properties for two years with the claw she had in that contract so with that we
had to go to this new property management company that bought her out and they were terrible like absolutely terrible um got it you know they weren't
doing repairs they weren't showing up the Section 8 inspection just absolutely Terri and that was kind of like around the
time where we like hey let's just do it ourselves um so so are you doing are you
working with her right now because it's after her Clause we work with her for um
this building that I'm talking to you about this Triplex just been like a head to deal with but with our other doors we
manage it ourselves you had J kind of I kind of I would call him my mentor I
called Jay all the time the good thing about Jay is he answers your call call
every time you you call him like he has and if anybody doesn't know who Jay peler is and who he's talking about we
had him on the podcast the last episode go to the YouTube channel look at the
last episode you'll see him and all his wisdom on Section 8 I'm telling you that
right now definitely so that's that's kind of where I started like he has like hourong videos just explaining the
Section 8 process what to look out for so I spent a lot of time also just like
listen to podcast reading books um and I was like you know let's just do this we'll figure it out along the way we
make any mistakes we have some money on the side to like you know fix that and kind of just keep it going but you have
a whole so you have a whole team of boots on the ground here in Detroit to
be able to run it remotely so you have to you had to build that team obviously through some trials and
tribulations uh of some things but you you eventually built that team up
and I now you have you know uh contractors handymen uh somebody who
needs and do you have systems set up as well uh to be able to take rent and and
be able to run these background checks and and and find these tenants and do all of that yeah so um also let up again
with my wife she's like very organized and okay you know she's I say she's the
she's a what if to my why not so when come time to you know do the background
check she like really looks into it and when it came to like keeping track of like what was coming in and what was
going out she did some homework and was able to find um platform called stessa stessa so we use that um and it's like
tremendous it gives you like all the breakdown of all of your income your expenses um trailing cash on cash for
the last 12 months everything that you would need for your to to run your business and know where you are with your business like you know
so we use that okay awesome yeah so anything that
we didn't put in the show notes by all means if you want to put it in just put in the Facebook group and and share it
with the Facebook group but uh we'll have um you know so as we go now we're
up to say right now okay um you know
you're we're at your current messaging and so what are you doing now where are
you buying how many doors do you have uh you know kind of where what's the the
situation right now all right so right now we have eight doors um all Section 8
occupied okay um we purchase all of those just through you know us you know
W2 income um um I bought one of the properties uh with a self-directed IRA
so heard a podcast hey you can use your 401k to buy a house ask some money about 401K didn't want to keep it like put in
the stock market wanted to put in real estate so I did that um and now we're at the point where like okay we want to our
goal right now our first goal is 20 Doors how do we get to 202 doors got it can't just be keep putting you know 20
25% down on the property at some point run R out of money so let look into you know doing some fixer uppers doing some
flips to kind of like just give us some more lumps some of cash coming into the bank and then also do a couple of Burr
uh Burr homes so I talked to you kind of before this call we're suppos to on Monday between Monday and Wednesday we
actually went on a contract on um this house that we're looking to bur um you
know house is like 39,000 as of right now it looks to only need about 15,000 okay in rehab um and the arv is
around $110 120,000 so you know not bad not bad um
again we we want to do a you know an official inspection we kind of had someone go out and those are the numbers but get a full inspection to make sure
but that's the plan just to you know we'll you know get our money back plus some and kind of just keep repeating
that over and over again um but if we do find a couple of flips that will allow us to use that money and go you know
reinvest into buying so one thing I'm always skeptical
of is when people say oh yeah it only needs about 15,000 more 10 to 15,000 for the work yeah I'm sorry but unless it's
literally a um a cosmetic where it doesn't need a
kitchen okay where you just clean it's just a clean up carpet paint and that's about
it it's going to need a little bit more so if it's truly just a carpet paint
then you're probably looking at 10 to 15 that's fine uh but a lot of things
always come up and I tell people I like you got to leave more room there because
there's contingencies there's especially in Detroit your furnace might be gone you gotta you you gotta uh get a new
furnace that's five grand right there you know so depending on what deals like
I mean I'm sure you can get a hookup from somebody for a couple Grand but you know you never know so um agree agree
Colleen asked any experience with land con land contracts or seller financing
deals yeah definitely um so when I was working with my brother that was
actually one of the first experience I had with land contract so uh we had purchased the house outright for dirt
cheap and his friend kind of you know rehabed to the point where it was rent ready and we wanted to sell it the
person that moved in was Say Hey I want to buy this house but can we do no land contract so um you know she was paying
on it monthly paying towards you know what the terms were and she eventually was like hey I need to move out of here
I can't afford to buy the house so I didn't know what that meant so I called my brother hey what does this mean he's like well it's actually not a bad thing
for us because we get to keep the money that already came in plus we get the house so we can sell the house or we can
find somebody else and do a land contract again so I was like this is pretty cool we should look into this so
um you know now where I am now trying to scale I'm myself looking to go buy homes
that are I can buy contract put a little bit down payment and just pay on it monthly they're a little bit harder to
come by um and then just trying to figure out terms that are favorable yet reasonable for the seller as well um
that's a great way to scale as well with you know coming out a pocket the least amount as possible oh most definitely so
that was kind of my next did did you with every property did you get a loan on it or or mortgage um or did you have
to buy some cash fix it up a little bit and then say burrow it out you know so
uh with one of my homes we I used my 401k and bought that cash but all of our
other doors it was straight conventional loan 20% down okay so you weren't doing
too many wholesale getting too many wholesale deals it was mainly all on market then right yeah the the
wholesalers scared me man I know I think you're a wholeseller as well right like I I am I am that's why I asked that so
yeah you guys are a little optimistic with like you know the rehab cost and the arv so it's I'm getting into it now
but I have some like people that are a little bit more knowledgeable than I am to kind of say hey it's actually what it needs so I'm dabbling into buying some
properties off markets also like less competition you can kind of like ha a little bit on the pricing so I'm I'm getting there it
just I've been scared for the last few years with working with wholesalers this person so I would don't be scared but
also don't take what the whole don't take the arv or specific things arv what
a wholesaler says arv always do your own homework yeah okay don't count on what
they say all right um especially in Detroit um the next thing thing is uh
the renovation costs all right always do your own homework on that as well you
got to make you got to do enough due diligence to make sure that you are confident about those numbers yeah um
and then another thing is is that most wholesalers keep in mind when you're on
a wholesale deal more more than likely you're paying all the both sides of the closing cost M yep okay people don't
realize that and then they get upset at the closing table and it's like no it states in the contract it's or they'll
get upset just before they sign the contract when they see it there um and it's like 90% of wholesale deals are
that way yep yeah okay yep so um that's
one thing but when you do a wholesale deal it's got to be cash or hard money
yeah or private money yeah so Lu for me I've been I work with a mortgage broker who has different loan products that
include conventional hard money Etc so like we have everything teed up so we have the team ready contract loan
products everything's ready it's just pressing that button saying hey this is a deal we're gonna go forward with it
let's let's go forward so definitely so Tarin from Facebook says quality
wholesalers are worth the weight in gold they really are um and where how you can
know a quality wholesaler I'm going to be honest is when you come back and you fight back say hey this is what I see
the arv is this is what I see them when they fight with you and
say well no no no no no no it's not and it's like take my feedback of what I'm
getting what I'm giving you and understand that you know this is great
information for you going forward and he can if he's a good wholesaler he can use
that to possibly get a price reduction if needed yep ni okay y so um so at least moving
forward you can work with wholesalers don't don't be freaked out so yeah I've
been like I said I've been in like overdrive trying to find deals so y probably see me oh we all are dude it's
slim picks right now your buyers list add me to your buyer list and I'll kind of fig it's slim pickings at the moment
man I'm telling you yeah so but uh one thing that I want to say is you know the
good thing is is that first off now we're connected okay so no matter what
if you ever have any questions about anything or any deals just run it by me
it's free of charge I'll tell you that I appreciate it and Ian that's another big thing too right networking so that's one
thing that I was never really good at i' I I'm an introvert at hard don't really like going out socializing too much but
I realized like it's powering that so I went to know I was living in La for for a while went to a real estate networking
event uh met gu is actually from Detroit uh Eric Friday who happens to be part of the Monopoly Brothers you know years
later ended up doing a mentorship program with them and learning a lot the four-week program learned about you know
wholesaling walking the property how to kind of estimate rehab cost yeah kind of
gave me that confidence and that you know that extra motivation to hey like let's kind of do real estate as a
full-time thing you can make money doing it but it was definitely networking they were able
to you know get they have a yellow pages of all the different contractors and handyman they worked with in the past so
you can kind of get that for free you can pay what you want for that you know you can get for free a couple dollars for it and like you said people like you
or Jay you can just call people up and just you have any questions just you know ask and get the answer for it so
one thing that since you're out in California one thing that you have an advantage to is people out in California
usually have money okay so if you're going to these real estate meetups over
there talk to anybody out there who's interested maybe doing private money
lending yep you know things like that so that that's
it I will say I joined some of like the California investor groups out here
they're not as busy and active as the one in Detroit man the one in Detroit is really good the ones out here they're
not you know why because the cost to entry points are way too high is way too
high yeah agree but you take a you take a California investor and be like I got
a house for 30 grand we'll put 20 grand into it we'll make
50 and they're like what yeah what yeah
so um and we do that multiple you know so now obviously you gota you know clean
it up you got smoo it's just networking you know but so tell me how is it living
in in California and then doing uh doing your
Investments here in Detroit so how does that work out what's your daily schedule
because you still work your ninet to5 right so as of January I actually you know went through a way of layoff so I'm
real estate investor fulltime now um but still like as a you know my own managing
my own properties your own call 247 um so my day starts when my phone
goes off so I learned like the do not disturb feature on my iPhone so I kind of set that to give myself a little bit more peace of mind y um but you know my
day can start I me I'll give you an example this past Thanksgiving I was with my family and it's you know 7
o'clock in the morning and I get a call from my grandmother saying hey you need
to called officer so and so something's going on on one of your properties this is 7 o'clock in the morning so my brain
is still still like waking up like why is my grandmother calling me from Michigan whose officer so and so is the
house burning down and somebody die what happened so it's every day is different um and then you know so then also you
know with the same this this building is is a doozy um so so what what was your
day job prior and what was your so tell me your
schedule um prior to you quitting yeah so I've been I've been in sales since I
graduated from college my last job was working for a tech company out here in San Francisco um I've been blessed
enough that all of my jobs for the most part have been remote so I get to work from home um so my day starts you know
usually California time probably around like8 o'clock like you know hopping on the calls making phone calls but I could
wake up at 6:30 and I already have three or four Miss calls from a tenant you know Miss call from you know the
neighbors saying that your neighbor you know your tenants are fighting so I've heard it all I've had you know neighbor
call me say you have raccoons on your roof uh the building that the triplex that we had we started off with one of
the units we had as Airbnb that was a lot trying to trying
to manage an Airbnb remotely is a lot especially when you never had experience
so you know we have to come back door saw the furniture and then we had a tenant in one building they locked out
you know the person in the front door um trying to come stay for the first night and then you know when issues
arise you have to have somebody that's on call in Michigan to go unlock the door go Supply with you know the TP go
turn the heater on whatever the case may be you have to have somebody reliable that's you know on call that you can
rely on yeah because otherwise you're in California the best thing you can do is hey I can you know get you a hotel room
and sorry for the yeah sorry for the is sorry for the inconvenience you know exactly exactly got it so
uh Lily um you know she said I worked for Eric Friday uh when he was a newbie
and he was killing it would highly recommend definitely good guy really good guy um actually awesome so the good
thing about the mentorship program that I was in it's not like oh you're done with the mentorship program good luck it was hey like we need you to succeed we
need some students to actually like you know succeed in this so now that I'm doing you know trying to do some fixer
ers I need someone to go walk the property you know confirm that my rehab cost is what it is and also if you can
comp it for me great so he's been able to go walk the properties for me and say hey this is a good deal hey this is a
bad deal um so I really appreciate him for that um so again it's all about networking and just kind of building
that team now have you thought about doing any properties in
California no no I like California it's like the appreciation game definitely
not for cash flow um I I dabbled in wholesale a little bit no I'm talking
about flipping I'm just talking specifically just flipping because there's no cash flow there so yeah not
really man I think maybe once I get to my goal of hitting 20 Doors first maybe I'll consider it but you know yeah
what's your average what's your average cash flow on in each door about $400
each door yeah some that are higher but the average pans out to about $400 that's that is not a bad deal right
there and I'm going to tell you a reason that is the reason why most people do uh
actually do rentals in Detroit versus outside of Detroit because sometimes outside of Detroit you're only getting
a100 to $200 a door you know so now are most of your properties
duplexes um triplexes things like that or do you have any single family so we
have uh three single families and two multifamilies so a Triplex a duplex and then three single families
moving forward I'll probably only focus on single families just a little easier to run out to section just you know they
have you know three plus bedroom voucher they don't want to have someone upstairs or downstairs they want their own you know backyard kids can go outside Etc um
so we have much easier you know um you know renting out the property when it's single
family it it sounds good when you like you know you have one building you have one roof if something goes wrong it's
you know under that one roof you have two or three in coming in but U I said another thing I learned is if you are
doing multi families make sure that the metors are separated um the triflex that we have the the gas isn't separated
thecal is somewhat separated water isn't separated so you know we're also it's a
pain in the ass yeah it is we're think about converting it to you know make
everybody have their own meter but that you know that's a lot of money up up front so with our section eight that's
moving in we're like hey what cover the cost of a utilities and hopefully get more rent
for yeah the only downfall is is you know with section A you might be able to
allow that but um it's just hard so uh
junior Sanchez from the Facebook group says how long until you can pull Equity
out on a duplex so I I believe he's probably referring to like the bur method so yeah so I know with my lender
they're season called The Seasoning period was uh six months so luckily we've had property for over a year so
was six months um another another you know rookie mistake is we kind of bought the property um for more than it was
worth at the time okay so we don't really have too much equity in that so we W take money out of that but we got
lucky enough with our last two properties that we have a decent amount of equity in it so if we want to pull out like a helck or do a you know cash
we can you know do that and use that you know towards our our our scaling and and that's the thing like even if you leave
some money in the deal you're still getting money back you're still getting most of it back anyways you know exactly
so Colleen asked what's the average rent uh you're getting in Detroit on a single
family say 31 but you said most of them are duplex so so we do have we do have a
three bed um on the west side we're getting 1450 a month for that which is great um we bought it uh we bought it um
this as a tired landlord he had I think like properties he was selling at the time
and we were going to grab three of them but my wife was kind of like slow your old um I was like well we got at least
grab two of them and we kind of talked them down on price was it on Market it was on market and they were sitting
there for a while and then the uh the uh the realtor that we went with she was
like hey they're motivated I think we can get it at this price so like let's see if we can so they like they were
like accepted we did the inspection there were still some issues with they were like hey we actually need to go down low on the price so we got a we got
a a house and then we ended up getting for like $50,000 Section 8 tenant was only paying
$850 a month at the time but we knew that with a fair market rent we can get around 14450 a month so as soon as we
took it over we immediately asked for an increase in rent got it approved so I mean that property I think we're like
profiting like seven $800 a month off of that property and you didn't have to do anything to it just just ask Section 8
to to improve it you know all right no we didn't we didn't we did no Rehab on
that property that's awesome we just led up it was just you know good time and again networking and just being
consistent with you know putting out offers and looking for deals so listen next time you come across that situation
and you don't want to take the other two properties give you a man a call right here I got you got I can get him sold
right now I gotta so all right so from here um you
know we actually just just got another question here from Fogie TV uh but I who
is your realtor that you use man y' y all it took me years of trial eror all
my money I'm giving up all all the songs why you think they're here man um no but again I'll put on in the
Facebook group but her name is uh Danielle I can't pronounce her last strai um she's great I would say also if
you're looking again in real estate and Haven it you want to look for an investor friendly realtor not just you
know a realtor that you know may just be for a good first time home buyer that
you know there's definitely a difference between the two I'll say that now how did you how did you um know the
difference between a investor friendly realtor and a regular realtor Char andir
again man so with the first two properties I bought um you know we working with the realtor that was a
family friend um I she like knew everything like textbook like the process and the flow of how like to go
from beginning to close but it's like the savviness of like for the investor
of being able to haggle on the deal or include things ask for things off um then also know mentioning that they're
once you buy a property the property taxes are UNT uncapped I know that at the time so I'm dealing with that now
two years later after buying the property um but it was no just certain
questions that we had and the we were getting we were like um I don't know if this is going to work as we try to scale
to 20 so again reach out to my man Jay let him know like hey know this is what we're dealing with we're looking for
someone that might you know be able to help with scale and have some deals they're working with other investors Etc
you know insert Danielle so I reached out to Danielle saying hey we're looking to we're looking to buy up toi
properties ASAP what do you have and she was like I have this tire landlord he has 15 properties here they go and
that's how we got those those last two wow that's awesome so she was just
good she was just good at you know she was good at being able to you know let us know what we should offer it on like
if they came back and counter like what to say back how to act you know you know contingencies in there to make sure that
we got our EMD back if things didn't pan out she was she made us feel comfortable
and we felt that everything that went out was in the benefit of us at the end of the day and that's what a true real
should be doing definitely okay so um Junior Sanchez from Facebook group I
thank you for joining by the way I how much can I get on Section 8 for a two
room two-bedroom unit so for our two units we're getting uh 1,200 $1,212 per month um tenant pays
everything except water um and that's but we have two we have two two bedrooms
and there both at 122 a month got it all right that I mean honestly I think
that's on the higher end side too so I was thinking only about 1100 honestly so
our tenant placement person is really good um that one I'm keeping I'm keeping that card to my chest that took me
CLE yeah that's okay that took me a while to find him we get one and a half
security deposit um I will tell you this like with some if you you're looking for veterans they have a in program right
now where they'll give you two times the rental amount as incentive for taking in a veteran so one of our one of our doors
we have a veteran in there so we got one and a half time security deposit 12 12 a month plus an extra $2,400 just for
taking them um another incentive program um I'm not sure if every agency does it
but if you take on a tenant that has like some mental issues they'll give you uh they'll give you um an incentive for
that as well nice okay so maybe we'll talk offline about who who who that
tenant placement is you know but uh that that fugy TV I don't
know your real name but he said I'm out of state too so thank you for sharing so
and that that's the whole reason why we do this so we can all share and and be prosperous so I now with I what we're
what you're doing now you're look you're at you said eight doors correct
okay so you're looking to get to 20 okay so all the deals send you away you know
I'll try to find as many as we can because now you're fulltime you left your nin to-5 all right I and how hard
was it getting those eight with and doing your work uh you know with your ninetto five
actually wasn't hard at all man so like I would just carve out a couple hours of my day putting on my calendar for during
my lunch hour hours or like after work so that the three- hour time difference definitely helped so you know waking up
early or staying up late allow me to just you know look into the deals and a lot of it's just you know with
technology is a text message or an email and just you know following up so you know I didn't have to be on the phone
too much and me just you know being in sales um on the phone all day anyway so just you know reaching out to realtors
agents Etc just to F deals so it wasn't that hard at all so listen all you lazy
people out there who's procrastinating and say I don't got time you got an hour
a day you got something all right put it to work put on Do Not Disturb and do
whatever you need to do all right but you need to have good good goals and and and go towards them you need to take one
step at a time because it may you know what it may take you longer than if you did it fulltime but at least you're
going forward as long as you're going forward right exactly I was talking to my brother the other day he was um you
know rubbing shoulders with this billionaire billionaire guy out in bise he owns like 10,000 doors and he was
like dude how did you do it he said one door at a time you start with one door and keep moving like you said start one
and knocking them down but definitely it starts with the mentality
if this is something that you actually want to do if you w to you know get out of your nine to five or just have some
comfort and you know taking over and having control of your life I would say
starts with just the mentality and then from there like you said just not being lazy you know if you're if you do have to drive to work if you're sitting in
traffic listen to a podcast you know listen to an audio book about real estate call Network call some Realtors
and join different groups that's that's all do join our Facebook group Metro
Detroit off Market Real Estate Group we got 60 we got over 6,700 people in there
okay it's not all about me I'm telling you like I love this podcast don't get me wrong I get to meet people like Dean
over here yeah you know but you ask your question in there somebody's gonna answer it you're looking for a deal
somebody somebody's gonna be posting a deal in there but that's also not only my group but it's also gonna be other
groups too exactly you know so you know just keep moving and and keep moving
forward so uh you know Robin Barnes from
face Facebook says facts and then Junior says he's he's 28 years old he has four
doors at the moment that's what's up man congrats on that keep going dude keep going congrats so now what we're gonna
do now is tell me what your uh oh he said he's also a roofing
contractor okay hell yeah so um now what
are you planning on you're trying to get to 20 Doors yeah do you have a set goal
towards that like how are you going to get to that and now that you you said since January you went full-time right
yeah fulltime and it's just every day so every week I want to be under contract
for like four to five homes that's well at least I'll say this I want to put put
an offering on four to five homes every week I want to get that up to probably like 10 to 20 because i' the last two
weeks I probably put in offers for like 15 or 20 only two know came back with
any interest there were definitely some lowball offers but like again like I'm a little definitely a little fear in that
because I want to make sure I have enough cushion to make some mistakes while I'm going into this yeah um but
that's that's that's the goal so every day I probably spent about three to four hours just going on the MLS looking at
the wholesalers list and just seeing what's what's what's out there if this is an opportunity and at first I was
kind of like getting was it uh analysis paralysis but now I'm like let me put in an offer if it gets accepted I'll give
myself a seven or 10 10day due diligence and I'll send my team out to go analyze it if it's a deal we'll go forward if
not we'll just back out of it but at least I have it under contract or at least I'm making some progress on it is
that the best move I'm not sure but it's you know we'll see so one thing that I I I learned is
this if you can do if you want to start off with with all right my goal is to do I need to
make uh you know say I need to make five five offers in a week yeah okay now you
split that up okay I want to be able to make one offer a day yeah one offer a day then once you
get comfortable doing that one offer a day make it two offers a day then three
and then you'll slowly you know soon enough you're going to be you're going to be making five to 10
offers a day not everyone's going to be accepted but you're going to be making offers that favor you favor what you
know for you to make money and it's just a numbers game at that point exactly
exactly yeah so and essentially that's what we do as wholesalers too like when
I quot call like I just gotta call enough people I'll get a deal somehow some way
I just gotta call enough people you know now how much is that enough I don't know
yeah you know you gotta have thick skin for that too exactly whale so you get
CED couple times oh i' I've been I've been cussed out i' and called a racist
I've they don't even I'm just over the phone they don't even know who I am and they're calling me a racist like they're
calling me thieves they're calling me this that I'm like uh well thank thank
you have a great day click all right back on the list I've been thinking about getting into you
know wholeselling cold calling but like I'm burnt out from cold calling man I've been 10 years in sales of different
companies and cold calling and just hearing no over and over again it's a numbers game I'm I rather say the
wholesale that extra five 105,000 profit you guys are getting just kind of take
it from there so I'm gonna tell you this and if you want to learn more about it that's great but but I I would put I
would develop systems like you are for your properties develop systems where
you can hire somebody to do it now all you're doing is the follow-ups not necessarily the actual cold calling yeah
so um things like that but if you want to learn more by all means let me know
we we'll talk more okay so all right um but that's what I do you know it's you
have vas do you use any virtual assistant I I have used vas yeah um I don't at the moment but I have used him
okay and I I love him to death so like a VA is a I'm gonna be honest like a VA is
awesome okay and you train that VA as long as you train that VA and how to do
it they're gonna do as well as you train them yeah you know so I D'Angelo say
hiring for those positions as well and just manage the team in systems he said
it's a job most definitely y so I you know so how were you're gonna
try to put in as many offers you can to try to get to those 20 Doors by still
making money by still doing anything you can here comes the other question is is
how can I the our group our people that are
watching right now help you get to that point Point send me deals send me send
me what you have I knew that was coming yeah whatever if you looking to sell
send me what you got I'm looking at it I know my buying criteria brick three plus bedrooms I'll look at two plus bedrooms
West Side only I'm from the west side I don't I you know don't deal with the east side too much uh you have West Side
no you know I'm interested in looking at that so you don't like frame houses do you no at least not I mean I have one um
also have tried selling it a few times and you know no bites I even gone down in the price but I mean just like the
aesthetic of the brick and this you know how long they last and you know it's just more valuable and I rather have
that because at the end of the day you know when I get 4050 I don't look into my portfolio and you know have a really
impressive portfolio that looks nice and you know good neighborhoods Etc um so
yeah I'm right now I'm sticking with bricks brick only okay because the one thing about frame houses in Detroit you
can get them at a lot lower price and the cash flow like crazy yeah so they
can um because even with Section 8 tenants you can still get a really
decent amount of rent in a in a frame house yeah I agree I think I look at
again my my really Tunnel Vision on 20 Doors this is my buying criteria I think
once I get there I I'll start dabbling other things but yeah they're just not good for resale so you won't want to do
it on a flip or anything like that you know that's the only issue yeah so they
have to be cheaper and any wholesalers watching right now there is a difference in Detroit
between brick and frame yeah definitely and if you don't know what I'm talking about hit me up my number's right here
all right I'll explain it to you or go look at my past podcast it's probably
explained to you before so um now have you looked have you been to any
meetups over here in in the Metro Detroit area no I actually I know in the Detroit
I just missed the I think like every third Thursday I had just missed that I was coming in or coming out of town but
I have not it's definitely on my list to do for sure awesome so if you do come in town
let me know I'll let you know about any meetups that are happening in the area okay we can kind of go from there so um
but would love to you know see what we can do about you know I want to get you
that 20 doors as much as possible you know I appreciate it whoever you you
think send them my way please so most definitely so what be we got a
little bit of time left um what trials and tribulations did you face
um while you're working your job and doing this investing so we started off in the beginning we got you know what
you did in the beginning any any other horror stories or or things like that
that you can I know we can go on forever but you know this is the end of the episode what do you want to leave it
on I will say for me um at the beginning of this I mentioned like you know my
I've always wanted to own my own company I didn't want to go work for someone um
you know bills are real so I would say like every job that I have even if I was
like you know making decent money I was comfortable I knew that I was like selling myself short I knew that's not
what I wanted to do ultimately um I had this idea of who I should be at you know this age for age
40 at age 50 and he working for this company was not it it definitely helped
me I'm appreciative for it you know allowed me to you know invest and get to where I am now but I was every day I
would wake up and I just kind of feel like I was letting myself down letting my family down because this isn't what I ultimately want to do and you know my
time is dependent on you know the owner of the company if I had to fly out of town for a sales conference if I have to
hop on a impromptu meeting um I didn't have control over any of that and then
you know once happened up till now all these layoffs you know you going get a job tomorrow I had a friend that had
they got laid off a month later got a job two weeks after that got laid off again so it's like know taking control
of your destiny if you know sitting down and being real with yourself and what you really want to do you have to go for
it you know worst case you can always go find another job I mean if it's not the job you want you can go find a job
somewhere if you had to go work at your pootle McDonald's to you know support your family um so for me it was more of
the the the the mental piece the frust ation of all right at what point is Dean
gonna hop off the fence put his big boy pants on and do this 100% And I think
you know luckily I think it's a blessing that in January my company was like Hey you know laid off it's like all right
now this is the sign this is the time for me to do this I'm lucky enough that my rental income supports you know all
of our expenses or the majority of them so I'm not stressing to have to go find another job right now and let me put
100% of my efforts in on this and I can't lose um I think when people have you know seen on Instagram like don't
have a plan B if you don't have a plan B like you you have to put everything into this one basket and you know hopefully
you don't fail um so that's kind of where my mentality is now like don't have a plan B focus on this 100% and see
where it goes and I think I've gone through enough trials and tribulations and have learned enough have built my
network and have a team that I can get to where I want to go um that's kind of
where I am now so did you have any metrics that you wanted before you went
to um full-time did you have any metrics of hey I need to be at X number of
dollars coming in of cash flow to make sure before I go fulltime obviously you
were forced into it a little bit but did you have any of those metrics uh thinking about that forward
yeah so uh what I do every month is I sit down and look at like what are my like this living expenses between you
know just you know utilities uh car node Etc and that was my number so that you know then also
having to call and figure out how much is insurance to cover myself and my family and that was my number so I like
let me that's why we kind of you know reached out to Danielle like hey we need three to five houses soon as possible
because this was last year and I thought that I was getting laid off luckily I had you know a little bit longer uh
before that happened and I was able to add those two properties which paid for our health insurance which paid for some
of our utilities so that was my number so I'm lucky enough to be able to have gotten to that so now I can focus on
this plan a 100% versus having to think about this plan B and going to get another job that I'm not gonna be happy
at knowing that I want to go do this other thing full time so so you had you
know um did you meet that by time you got laid off did you meet that metric that you that you planned yeah we met it
last last June we were able to meet that goal thanks to those last two properties that we picked up that's awesome yeah it
was a so my wife's biggest thing she like I'm blessed that she like trusts
and Believes In Me um she's like long as we have health insurance go for it so
that was that was the first thing I did was make sure that our health insurance was covered um and we're also very so
our family calls us the penny pinching Parkers so you know we we have one car
you know we you know eat at home we don't you know buying the luxury that is not a bad thing I'm telling you so it is
not people want listen I'm gonna tell you people on the outside they're going to give you crap about it yeah and say I
tell people this unless you're gonna be coming to pay my bills don't say
yeah exactly all right soad I tell people like when they're
likewell why don't you have any kids why don't you have any kids yet why don't you have any kids I said because I want
to be stable in my household yeah my income needs to be stable oh it doesn't
cost that much I go are you going to pay my bills are you going to pay all of that no so shut your mouth Y and sorry
to mean to be rude about that but it's just it's just straight you got to be straight with people yeah you know 100%
and they they either respect it or they don't and if they don't respect it they don't need to be a part of your life
even if they're family exactly yeah and I mean I we from the beginning so you
know living in California you know cost of living is expensive so yeah my wife bought a studio out there 460 square
feet that's we both live in there so that definitely living there for years
with her we knew all right we can marry each other because we survive living in this small space but me we were living there we're paying
each like $600 a month um towards the mortgage I was working remote so I sold
my car you know so we were saving money and all the extra money that we did have put into a separate account and didn't
even no didn't even think about it saved up some money bought a house in La um
stayed there during covid you know property values went up during Co people were just buying because thees were low
sold bad and then uh moved up moved up north to San Francisco and um same thing
we're saving money here and you know just investing all of our income or money that we do have towards our real
estate portfolio so you're in San Francisco area in the Bay area right now yep yep all right I need to come visit
you now don't come right the weather is I don't know if I can curse but it's shitty up here it's been rainy for it'll
be a while I come dur in summertime come in the summertime man yeah definitely come out here I'll take you out go eat I
don't know if you drink or not we'll go out oh most definitely I I'll have a I'll have a drink or two you know I
don't get smashed or anything but I'll have a drink or you like that yeah last
time I've been in uh I I I don't want to keep keep you on here too long but last
time I was uh in San Francisco it was 10 years ago I was
working on a cruise ship and I we are coming back
from uh I spent a whole summer in Alaska so uh basically I I was working
on the cruise ship and so we did a whole tour in Alaska okay I was a photographer
actually on the cruise ship that was my job damn nice okay yeah so and one of
the stops coming back was in San Francisco and so we we it was a
repositioning Cruise coming from Alaska going through the panal canal back to
Miami so out there for a yeah so it was I mean
I was I did it for around a little bit over a year so okay um nice and
basically we spent about six months on a month off and then so on and so forth so
okay um but that was that was the only time I been to LA or been to San Francisco okay
and I was walking distance and things like that so okay um it was fun though
it was fun yeah next time you come out here man definitely hit me up let me know all right so what we're GNA do we
run out of time here I don't I want to be respectful your time here as well um how can if anybody can needs to get a
hold of you or wants to send you deals how can they get a hold of you uh please send me an email um email address is 460
flips gmail.com the number four 60 spelled out flips with an S okay
awesome sweet and then if you can't get a hold of him send me the deal and I'll wholesale it to
[Laughter] him that's why I'm scar you wholesalers
man no I wouldn't do you like that so but I would wholesale you a deal
so I'm waiting but it's gota be work it's gota work on both sides so you
know but uh all right so I'm gonna bring you down real quick stay back after we'll talk in in a minute all right
sounds good I appreciate you coming on one thing that I've always wanted to do can I I want to say if you guys like
this channel click right here and subscribe heck yeah please I always
forget to say that always want to do that man yeah click down there and hit
subscribe hit subscribe button comment down below for what you need if you're
watching the replay the replay stays on if you are somebody who's watching right now
send this video to somebody you think that would uh enjoy it or they can gain
some value out of it uh please like share subscribe all of that so I always
forget to say that at the end of the got man I only even charge you for that I was on the house all right I appreciate
that right it was awesome honestly everyone thank you for joining me it was
really awesome having Dean on here and I know that you guys got a ton of value
out of this if you like this video please do like hit comment you know it shares with the algorithm things like
that uh and we'll go from there now if you need to get a if you want to get a
hold of me if you want to do any JV deals my number is right here at the bottom right there yeah right there and
we can work together things like that and I'm happy to work with anybody or at least gives give any type of advice or
anything like that so with all that being said let's all do deals together