Detroit Global Investors purpose is to invest our clients money in several markets and grow their financial portfolios. The main way that is done is by diversifying their money in the real estate market and the financial sector to include stocks etc… The wealth management sector is covered by my financial advisor.
I titled a post “ The Real Estate Vent” on Bigger Pockets back in 2016 in reference to tenant/landlord issues and I just really like the title but this time around I’m going to vent about my experiences in the real estate industry and how these situations directly affected me. For all my life I’ve been told that business and personal are separate but what about when someones personal attributes come into play during a business transaction, you can’t really separate someones personal truths from business because it will come out one way or the other. I’ll start with this, So I decided to do a little experiment using the video app Periscope. There is always someone on Periscope so you will likely get someone who’s watching your live broadcast. When I’m on Periscope talking about business I may have a few viewers, but when I’m on Periscope at a social gathering, drinking or partying I get hundreds of viewers. This leads me to the conclusion that most people don’t care about how to be successful because it’s not entertaining, they only want to be entertained and for the average person being entertained includes, drama, sex, alcohol, music etc. All the Real Estate Experts will tell you be careful what you post on social media, but the truth is people want to see what these people tell you not to post, thats how you get views, that’s how you get followers but that does not correlate to the message these so-called Gurus are telling you. In turn I’d like your thoughts on does someones social media profile affect whether or not you do business with them? And in closing does it make a difference who is doing it, will you trust a white man on Wall Street who just had a cocaine orgy last night but he manages millions in portfolios, or will you trust me a black girl who manages millions in real estate and helps people buy and sell properties everyday for a living who had a few drinks and said the “N” word.
Next topic, I’ve been made to think that I need to compromise or accept less because I’m a black female when most of these people that have requested these things would not ask that of a MAN. Here are a few things people have said to me.
“ I know this buyer and I’m not to fond of him, can you reduce your commission because he is paying you X” Why at all does it matter to me how you feel about a person If I fulfilled my contractual obligation and you accepted the offer? Puzzles me
“Me- Well If you buy the house at least you know you will have a friend in Detroit to help you.
Him- Right and I’m going to call you at 2am and ask you to come over?
Me- laughs it off and in my mind is thinking “Why would you call me at 2am, would you call a white man at 2am If you had a problem”
Me- All those houses are sold
Him- Well I guess that means I can’t see you then
Me- Do you want to see me or the houses?
Him- The houses are a must, you should be nice was looking forward to work with ya.
Me- You just came on to me that’s not how I do business
Him- When we finish this deal I have more houses for you to sell
Him- Oh never mind, I have no more cheap houses left.
Me- In my mind so your’e insinuating that i’m only good for selling cheap houses, wow.
The scenario’s can go on and on and they will continue because you can’t control what comes out of other peoples mouth but you can control how you react. The beauty about this industry is the choice is your’s. I work for myself so I don’t have to do anything I don’t want to do.
If you are interested in purchasing a home I have listed some required steps that must be taken to qualify for a mortgage. If you want something you’ve never had you must be willing to do something you’ve never done.
CREDIT- You absolutely need to know what your credit score is, you can check this at https://www.creditchecktotal.com for $1, make sure to cancel the FREE 7 day trial after you get your report because after 7 days you will be charged $29.95.
If you have NO CREDIT, you need to go to your local bank with $500 cash and get a secured credit card, make sure to only use 1/3 of the total available credit. You can also check this link that offers introductory deals for people trying to build their credit, I recommend https://verified.capitalone.com/sic-ui/#/esignin?Product=ENTERPRISE https://wallethub.com/credit-cards/free/
If you have LOW CREDIT score, ask someone you know who has a least a 20 year + credit history and have them add you as an authorized user, this will help boost your score.
DEBT- there is good debt and bad debt, but before you can even think about good debt you need to get rid of the bad. If you have COLLECTIONS, call the collector and negotiate the debt down and pay it off ASAP. Make sure they give you a payoff letter and remove from the credit bureaus, If you need help with the removal process ASK ME.
INQUIRY- Inquiries hurt your score a lot. HARD inquiries hit your credit SOFT inquiries don’t; ASK before you agree. During this process DO NOT apply for miscellaneous things car, credit cards etc. Inquiries stay on your credit for up to 2-3 years, there is a process for this removal but If most are accurate they will stay on your report until the 2-3 years is over.
If you are diligent and patient this can be done. I was able to grow my score from low 500’s to over a 720 in 3 years.
The best part of Real Estate for me is doing business with people around the world. You learn culture, tradition, attitude, perspectives and stigma's. Being so wrapped up in the business sometimes you forget the visual perspective. This young lady tells a story on what we see everyday is a very refreshing way. This is just a snippet from her short story you can find the full story in the link below.
My father made his living gutting houses. Copper, aluminum, brass, nickel, tin. Lead and bronze. A concrete floor will be veined with steel, and the steel will fetch a good price. In smaller quantities, gold, silver, platinum. These are found in the derelict mansions. It is a tedious assignment, though, like mushroom hunting. Plucking a gold-plated faucet from the wall, gathering the doorknobs. There will be imposters, alloys. Any fair merchant will only deal in unalloyed metals. If you mistakenly throw an alloy on the pile, he will turn you away forever. My father never made this mistake. He did honest work. My father studied engineering, but there was no work for an engineer. --- I was born in lean times. I don’t remember, so I go by how my father told it. He told it: The expense of heating and illuminating a house grew enormous, untenable. People did without water indoors. Then heat. A luxurious utility. Electricity went last. Finally, a person will not endure shivering stinking in a black house. They left, abrupt as birds. (I don’t remember the great migration, I was too young.) They went south. They went west. The houses sat. The houses filled with rot and rats. Most everyone, my father tells it, locked the front door. A quaint habit. A sentimental gesture. But they must have known they would not return. He would go in through the windows. He worked alone. He was sometimes unnerved by the empty houses, eerie, echoing. Moss creeping across the floors, a damp green carpet. Rosettes of black mold unfurling on the ceilings. Once, he came across a golden deer in a dining room, sniffing the lace curtains. More often, he found the lice-livid sleeping bags and piss-pots of squatters. The squatters were skittish as deer. They made themselves scarce when they heard his work-boots on the stairs. By the time I came up, the houses had been picked over. There is no money to be made in it anymore. I had to find work of my own. My work is not so different from my father’s.
By: Heidi Kaloustian
Find more of her work at the Kresge Arts In Detroit
This article applies to the following persons and companies
Winnie Lee (My Client)
Joel Lam Kok Wai (Business Owner)
First Asia Alliance (Marketing Company)
Mycofarm Mushroom PTE LTD
Long story short my client was offered a 17.8% return on 30K in 9months, sounds great, but little did this sweet soul know she would be in for it. My client has lost a total of roughly 165K. This bothers me because this is someone who genuinely just wanted to use their retirement funds to secure investments for their own personal goals and family savings. The best advice I can offer is know your source. There are thousand's of things to invest in, but honestly when you make a decision to invest it is a risk, but you are not investing in a thing you are investing in a person you trust to achieve the desired result you are looking for. Bigger is not always better research, research, research, referral, referral, referral!
I could go on for days about the system, the banks, red-lining, sub-prime mortgages and etc, who really has your best interest at heart? Look for someone who has credentials and shares content. It is easy to be fooled but go along with your gut it's usually right.
A business relationship is supposed to be beneficial to both parties. In Real Estate most of us are our own boss, some are new at this and some have been in the business for years. I have encountered many clients; some I have built recurring business and others have purchased a home and I never heard from them again or they didn't buy at all. If you have been in this business long enough you will come to find that you won't close every deal and the things you do today may not materialize until months from now.
I have heard the saying "Realtors are disposable" many times. There are over 9,000 of us in Metro Detroit. "Buyers are liars", people will use you as long as you are valuable to them and then they move on, clients will call you and 10 other Realtors. I don't know many people who want to deal with people they don't like, so as much as people say "it's business not personal", that's not entirely true. Are you going to buy a brand you don't relate with, are you going to buy a car you don't like, are you going to eat at a restaraunt you don't like? Probably not, and If you do that was that one time you tried something out and discovered you didn't like it.
People will talk to people they like, people will do business with people they trust. In this business you will sit next to many people, you will talk over coffee, have dinners and cocktails If you're lucky. If you are always giving something to a client and the only thing you get is monetary in return it better be some big deals, because money is temporary, relationships last years, you want the people around you that are doing recurring business and that value your position and know that by dealing with you, you are the best.
Help and advice goes a long way, this is a referral business and referrals should not be taken lightly. If you are the reason a transaction happens you need to be compensated. In closing, don't waste time with clients who don't respect your position and If they can't handle it move on, after all there are 7.4 Billion people on this planet.
This post is dedicated to a young man whom I only knew for a moment. We met at a OREI (Oakland Real Estate Investors) meeting, my first and his last. Most people there don't deal with Detroit but he had a property in Redford that was right up my alley. We chatted for a moment, exchanged information and I got the deal under contract. This guy was 30 years young and me and him seemed to be on very similar paths. I didn't know he had a son, as do I.
We began communicating via email, he was very nice and professional and even said "Please let me know if you have any questions, and thanks for working with me!" It was my pleasure to have worked with him before he left this place. I am thankful to have met his acquaintance; young and successful.
Moral of the story
Death is promised, Life is a blessing. Most of us that are seriously involved in Real Estate it takes up ALL our time. Make time for the things that matter most to you, family, friends and fun. If you leave this earth tomorrow Real Estate won't matter. Take it easy. I encourage you right now as you're reading this, stop for a moment and do something you love, something that makes you happy. Work will be there when you get back.