2008 is already turning out to be a great year for real estate investors. With prices this low, in great neighborhoods, and rents going up across the board, this is really a no brainer. For those of you sitting on the sidelines wondering what to do, easy answer for you, BUY! The deals we are seeing are once in a lifetime prices. I doubt if we will ever see these prices again. Everybody talks about being in the right place at the right time, well, this is it. Buy single family houses in Detroit at prices that are so low it is ridiculous. I was having a conversation with my partner Jared and I was laughing at what we were saying. We were commenting on how cheap things were getting and how great the deals were getting. Six months ago, you had to buy junkers to get the deals. Now you can buy light rehabs for the same prices. Amazing isn’t it. If you don’t believe me, check out our current deals for proof. Bottom line here is get off of the side lines and get in on the action.

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SOLD
7701 Piedmont, Detroit 48228 (Warrendale)
Purchase Price: $25,000
Rehab Estimate: $10,000
After Repair Value: $75,000
Check out the YouTube video walk thru.

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15772 Ardmore, Detroit 48227 (5 bed, 2 bath)
Purchase Price: $17,000
Rehab Estimate: $19,000
After Repair Value: $80,000
Check out the YouTube video walk thru.

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18900 Fielding, Detroit 48219
Purchase Price: $23,000
Rented for $550 a month and already placed with property management.
After repair value $60k
See video walk thru posted on YouTube

Real Estate in the News
Seems like real estate is a bad word in the news these days with tons of bad press to boot. I’ve even read a few articles on how real estate is for living in, not investing. It borderlines on ridiculous so I have decided to take a stand on this issue of real estate experts and their predictions. Before you listen to anyone or take too much stock in the next article, ask yourself these questions.

Does that person own investment real estate in that market?
Are they truly an expert in real estate?
Is real estate investing their full time job?
Other than being in the paper or on TV, what credibility do they have?

What I’m trying to point out is be careful who you take advice from. Would you go to your car mechanic for advice on back surgery? Then why would you listen to a reporter, neighbor, or part time wannabe who doesn’t even own their own home! If you want accurate information from those who really know what they are talking about, ask a local expert. They can be found at any local Real Estate Meetings.

Quote of the week
“I buy when other people are selling.” ~J. Paul Getty

I stumbled across this quote last week and I love it! This exactly what very savvy investors do. You shop when things are on sale. This seems to escape some of those new to the real estate biz or even some who have been in it awhile. Let me put it to you in a slightly different manner. If 7 percent of the US population makes more than $1,000,000 a year and the other 93 percent don’t, who are you going to model your success on? Millionaires only buy when things are on sale and they can get DEEP discounts. Millionaires sell when the other 93 percent start to buy. Which end of the cycle do you want to be on?

Continuing Education
I speak with a lot of investors and a common theme is I have no time to learn. So I thought I would throw out a few things that I do to squeeze education into my daily activities.

1. Don’t listen to music in the car, get books on tape instead. (check them out from the library if you don’t have money.)
2. When you work out, listen to books on tape instead of music.
3. Get rid of your TV! This alone should clear up peoples schedules.
4. Attend local real estate meetings once a week.

Renegade Detroit Investors

For those of you in the area, don’t miss the next Renegade Detroit Investors Meeting tomorrow, February 5 at 6:30 PM above D’Amatos in Royal Oak. Darrick Scruggs is a local expert who has flipped over 100 houses and is actively investing in commercial real estate. This is a local expert who is actually investing and really knows his stuff. If you are at all interested in commercial real estate, you better not miss this. Renegade Detroit is where you will meet local experts making millions doing real estate, not selling courses on how too! See you there!

As always, Happy Investing!

Sincerely and Respectfully,
Jeremy Burgess
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