Mike Jordan is a Detroit native with $100 million in transactions under his belt. He started in real estate on the construction side, before becoming a property manager and then a broker. Now, he helps investors from all over find great deals in the rebounding Detroit market. On this episode, he shares how his firm Strategy Properties looks for the path of progress in Detroit, the due diligence investors need to take when buying out of market and how to find the right team to be your boots on the ground.
Key Market Insights
- Started in construction, saved up money and then got into real estate
- Became accidental landlord in 2008 and looked to scale
- Bought notes, foreclosures, buy and hold and then had investors buying from all over the world
- Became a property manager and then built out a brokerage
- Finding the Path of Progress: Look for stability in rental demand and home ownership demand and 5-year growth
- 140 square miles large – can fit Boston and San Francisco inside of it
- Lots of factories, new development opportunities such asFord factory just bought the old police station
- Detroit is ranked Top 20 in tech jobs in the US
- Large healthcare industry with diversifying economy
- Growth driven by a strong mayor in Mike Dugan, and investors like Dan Gilbert and Mike Ilitch
- Downtown is thriving, but is trickling out to the suburbs
- Looks at police force, schools, location, days on market for sales
- Company meets daily to review properties and changes
- Buying paper returns is the biggest mistake investors make
- Most PM companies aren’t that great
- If buying out of market, have an independent inspection company go out
- Key Detroit Neighborhoods: Grandmont, Rosedale Park, Aviation, University District, and Bagley
- Key Suburbs: East point, warren, Dearborn, Dearborn heights, Southfield, Ferndale, Southgate, Taylor, and parts of Inkster
Bull’s Eye Tips:
Winning Your Market: Work with people of integrity
Tracking Market Changes: Boots on the ground
Daily Habit: Reviewing Flow of Inventory and KPIs
Resources:
Best Business Books:
Traction by Gino Wickman
Digital Resources
Use keywords when putting contacts in his phone
Tweet This:
“The right team managing the property is important”
“If you’re not going to hold a property for 5+ years, turnkey isn’t for you”
“Buying paper returns is the biggest mistake investors make”
Places to Grab a Bite:
Connect with Mike:
Website: Strategyproperties.com
Phone: 734-224-5454
Email: info@strategyproperties.com
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