Learn from mistakes - tips and suggestions # 1

Good.
As I promised Lior I would like to tell you about a bad, good deal, and give you some tips for real estate investors, so that your path will be easier and smoother even though I understand that you can't succeed in this world without perseverance, hard work, ability to absorb losses, and more.
So let's start in 2011, I'm dealing in real estate in the country, and there's an exhibition in the land of real estate in the sand. I turn around and finally stumble upon a company that sold me a first property, by chance, in the Detroit Metro. So I knew nothing about Detroit, not about real estate in Michigan or the US. is nothing. I knew there was a ZILLOW site…

It cost me $ 45000 then.
I hoped I was not stung, and indeed the company knew what they were doing, and got a (not completely) renovated property in Eastpoint, north of Detroit, a standard property.
What I didn't know is that the company bought it a few months earlier at $ 17000, some paint and repairs and sold me at about 80% above market price.
A terrible mistake.
I am fortunate that the property has always worked. And the luck that real estate prices in Michigan have been flying in the last 4 years.
The same family has lived on the property since 12012, pays slightly below market price (now $ 880) and meanwhile the price of the property has risen to about 70-85 $ 1,000

What have we learned?
1. You all know Zilo. Prohibited Prohibited Do not rely on Zilo or its like to know the value of the property. The ZESTIMATE can be very close to reality or very far away. Don't rely on Zilo.
2. Zilo does not know the condition of the foundations, the roof, mechanical systems, etc. Only windows in this house cost $ 4000-5000, a new roof $ 5000 heater and a stove $ 1500… etc etc.
3. Take an example of a site that will give you more accurate directions on rentals in the area you're looking at: RENTOMETER
Enter an address, rental amount that you see and a number of rooms. Enter. You will immediately receive an average price for rental in the area, median and more.
4. Although I started purchasing from the above Israeli company, I will buy a large fund that you all know, another company of two lawyers that collapsed and several other companies, I realized (and not very quickly unfortunately) that if you buy property from an Israeli company, that is, Israeli company owns The property, chances are you are buying above market price. (Don't buy above market price, remember?) So what's the solution? Get in touch with local people: brokers, real estate brokers, management companies. There is nothing like personal contact with this company to get a true picture, worthwhile assets, buy right and make money.
Today when I'm in Detroit, most of the time I'm at meals, pubs and fun days with friends. They are the foundation of my business. Don't underestimate your personal relationship with them. It is a cornerstone of success.
5. Go To The Place (Rubeck 1000 $ You In New York) Drive In The Streets. Walk. Talk to the residents at the grocery store. You have to touch, smell. See.
6. And maybe I'll end with him today:
You're building a business. It has an initial investment. There is tuition. This is not a bankruptcy. There will always be difficulties, faults, problems, unpaid tenants, repairs, maintenance and more. the solution ? Buy more. I know it's easy to say. Buy more. Don't settle for one house. Buy 10. In the amount of houses, you feel a real rental. 2 Homes Not Working? Not too bad the other 8 will cover.
I'm now on my last cents (again) at the bank, because I'm now buying another 2 property in Detroit. And as a result, another 2-3 months, these assets will add to my bank account every month, every month, another 800 $ net.
This is for today.
Next time (remind me?) I'll talk about section 6 then. How to increase the amount of assets when we do not have much equity.
Hope you enjoyed and donated
Good luck to everyone

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum):
http://bit.ly/2NrD4b7

The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion

• Thanks to Shay for the excellent post. Shay is our Entrepreneur of the Week and his post will stay on top until Saturday - welcome to ask Shay questions about the post and real estate in general - you have the opportunity - an entrepreneur with lots of experience that there is a lot to learn from!
• Kobi Ben-hayun
• Thanks a lot Shai Bar
• Thanks..the first story seems to me a great deal..a working asset..value. The developer bought at a price he bought because he was able to find foreclosed assets..or another source..check what was needed .. and sold at a price with excellent returns. We learned that we need to check if the numbers make sense for the investor and check market value..No matter how much profit the entrepreneur makes..But the Israelis always make the calculation how much the entrepreneur earns and why ...
• Experience brings wisdom.
  Thanks for the important information.
  rise and succeed
• thanks for sharing
• How true. I remember my first property I bought in Bat Yam many, many years ago after I started a yielding real estate course at Cash Palau College that no longer exists. We have been taught as you say to go and talk to the people on the street, in the grocery store, neighbors, tenants, etc. and to this day I make sure to do it in every new area I check. If I am with the family I always ask a neighbor with children what it is like for her to live here if I would like to move here with the family - does she feel safe, how the schools, public transport, etc. - no one has more knowledge than the person who lives there. And always cross-reference information. One mediator can tell one thing, and another mediator something else - take an opinion from another third mediator and come to the truth. And Shai will definitely be happy to hear next time how to buy more homes without equity. Definitely left a taste for more 🙂 Thanks again for sharing. This is not at all obvious. ??? ♥ ️
• Thanks! Moshe Katzir Mother Amira
• Thanks everyone for the thanks. Just a note about the correct rebellion of blessing response. This is true. I don't care how much it bought that I buy from. I'm interested in how much I buy, and how many my customers buy, and make sure I don't buy above market price. this is the most important. In my case I bought a much more expensive price above market price, but that's history. I'm the Israeli who lives in Israel, although spending a lot of time in Detroit, I can't find the best deals. I'm looking for deals that are good enough. Good enough .. that meet my criteria and give me and my investors a good long-term return. If I always look for the best deals I probably will be looking for lots and lots of deals I won't. Have a wonderful day for everyone.
• Excellent post… Well done on your way… Agree with your conclusions… on quantity
• Absolutely amount is a strong asset creation…
  We would love to hear more battle stories this week
• Thanks so much for sharing and sincerity. ??
• Kobi Ifergan
• Mordy Arnon
• Amazing, attractive article !!!
• Thank you very much Shi. Very interesting what you share with us. I wanted to ask about what you wrote that you earn $ 800 net. You mean the two assets together. Not for everyone.
• thanks for sharing
• Great post!
• What fun to hear the elaborate comments on the post. It is not self-evident that an entrepreneur spends a whole week telling us about his work and answering questions. By the way Shai Bar this week as you know is dedicated so you do not have to stop in one post - if you have more stories and analyzes we would love to hear, and the rest - we did not stop the forum - Shi is the developer in our focus this week but the forum continues to function normally. If you have any posts with questions feel free to upload them. do not be shy. We are here for you. ???
• After the donuts tonight we will talk about management companies. About importance. Bitter experience, and good experience. Thanks to Lior
• Looks like if he doesn't stop we won't sleep at night? Lior Liorchik Shai Bar ??
• Read the 4,5,6 Roni Kagno
• Osher Shiluk
• Good post! thanks for sharing…
• Thanks for the post!
  Rentometer checks rent.
  Is there a site that checks house prices?