Scott Dillingham: 00:21

First, I'm gonna share my screen here because I wanna show you guys something. So this is, a Facebook post from Erwin Sido. So he he found this chart online. I'm gonna show you as well. I I found a chart as well.

Scott Dillingham: 00:40

So this chart, what this represents is Canada's investing dollars. Okay? And whether the money's coming into the country, or the money's coming out of the country. And honestly, guys, this is one of the main reasons why we started doing the US lending. It's because we see the writing on the wall.

Scott Dillingham: 00:57

So I

Scott Dillingham: 00:58

know it's really small, maybe I can zoom in here a little bit. Yes, I can.

Scott Dillingham: 01:02

Okay. So you see on

Scott Dillingham: 01:04

the very left of the chart, there's the the bar graph is below the line. So below the line means money coming into the country. So you can see in 2014, money was flowing in. So the investors globally thought Canada was placed to invest. So since that probably around 202,015, because it's kind of in

Scott Dillingham: 01:25

the middle there, you see, the bar is on the upper line. So the upper line represents money leaving Canada. Okay? And you can see what it was like during COVID. Right?

Scott Dillingham: 01:38

It it peaked, but it came back down right as as COVID ended. And it does go in cycles. Right? You see the up and down and up and down. But more than ever, investors are leaving.

Scott Dillingham: 01:51

And

Scott Dillingham: 01:51

I gotta say, since the capital gains tax as well, nothing that's gonna be coming out at the end of the month, it's it's totally against corporations. They don't have any buffer. Right? So in your personal name, your first 250 of the capital gains is taxed the old way, and then above that, you're taxed using the new capital gains. But for corporations, from the end of this month, they are taxed all in the new way.

Scott Dillingham: 02:17

They don't get a buffer. And so what that's causing investors to do is to lead. Now if you look, so I have another chart. So this chart, I did not find the source. I just found the Facebook post, but it it lists the source there.

Scott Dillingham: 02:32

So I could probably look that up on the on the site. But I actually found Statistics Canada, which is showing as well all of the countries. So this is Canada's net international investment. So what that means is people in Canada where they're starting to invest their money. And you see and it's not showing all the other countries.

Scott Dillingham: 02:55

Well, actually, let me rephrase that. It is showing all the countries, but it's grouping it into the light blue. You can't see any other countries' individual influx of dollars, but you can see United States. So United States is the dark blue line. So you can see here that money is just moving to the states, and this is only up until the end of 2023.

Scott Dillingham: 03:20

So this does not reflect anything in 2024, which we can see 2024 had a large jump based on this chart. And then also, we're not showing any of the capital gains. So if you guys look back to this link, I think that you'll you'll see and you'll find that tons of investors wants this chart update, the money is gonna be leaving further. Okay. So as this webinar is about why you should invest in

Scott Dillingham: 03:50

the states, I first wanted to show you where the money is going. So the states is very, very friendly for investors, they want that money, they encourage it. And because of that, things like lending is very, very easy. Canada, for an example, has a foreign time foreign buyer tax plan. And not only that, it was supposed to end.

Scott Dillingham: 04:14

So it first came out for 2 years, and now they've renewed it for years. So they're what they're ultimately saying, at least in the real estate market, is we don't want your foreign dollars here. Okay? So that obviously affects

Scott Dillingham: 04:30

our country. And I love Canada. I still invest here. I'm still going to invest here. So I'm not saying don't drop everything, go to the states.

Scott Dillingham: 04:38

I'm not saying that. I'm just saying look for other options. Okay? So what I'm gonna do, I'm gonna copy this link into the chat. So I'll paste it there.

Scott Dillingham: 04:48

So everybody can check that whenever you want down the road. So you can see, and I'm very positive once it updates to the capital gains, that things are you're gonna see that that graph, skyrocket again. And so for any of those who are just joining, today I'm actually working from home, so I'm in my home office. So it's, it's not the office, but, I just wanted to, you know, get this going anyways. So there's multiple things that are going on in Canada that are restricting investment as well.

Scott Dillingham: 05:21

So I'm gonna make this all geared towards real estate investing. And as you guys know, the landlord tribunal and many provinces are very challenged. I'm even going through a situation myself. I'll share it here in a moment, but there's backlogs. Now I've heard they're they're getting better.

Scott Dillingham: 05:40

So we're between a 6 month to

Scott Dillingham: 05:42

an 8 month backlog that I'm hearing. But there's things that a tenant can do to delay things further. So I'll just share my story of what's going on. So I got a property. My I've I've had

Scott Dillingham: 05:56

it for years. And, I've always had the variable rate mortgages on it. And when I first signed up this tenant, I did sign below market rents. It was actually $400 a month below market rents is what I leased it to them for. And I did it on purpose because my property manager, he came to me and he said, Scott, you know what?

Scott Dillingham: 06:16

These tenants are so good. They're the best tenants I've ever had. They're gonna take care of your property. They're gonna do the renovations. They're gonna do gardening.

Scott Dillingham: 06:24

They're gonna really take care of it like it's their home. That's just how these guys are, but they can only pay this much. So again, it was 400 below market rents. So I rented it for $1400 a month. It should have rented for 1800.

Scott Dillingham: 06:40

I believe this was 2015, 2016. Now market rents on the home is 3,000 a month, for this property's location. So I'm already losing because of that. But then, anyways, I have the mortgage. I've always gotten variables.

Scott Dillingham: 06:56

So the mortgage comes up for renewal. So now it's renewed into these higher rates, right, that everybody is concerned with and and rightfully so.

Scott Dillingham: 07:06

But now it doesn't cash flow because I've accepted a lower market rents from day 1. And we have increased

Scott Dillingham: 07:13

the rents a little bit. I think it's up to, like, 14.60 now. But it still doesn't cash flow when you factor in, property taxes and all insurance. So I'm like, you know what? I'm just gonna sell it, and I'll redeploy my capital into another property or into the states, whatever.

Scott Dillingham: 07:30

It doesn't matter. I'll just sell it because it's a weak property. That's what investors do. Right? If it doesn't make you money anymore, you get rid of that investment and you you buy another one.

Scott Dillingham: 07:38

So I tell the tenants I'm selling, and the tenants are like, you know what? We're not moving. So I spoke to my lawyer, and what what they said was, if I get somebody to put an offer on this home and and buy it to move forward, and that then I have to submit a claim to tribunal to get these tenants out. Now if that process goes too long, like the 6 to 8 month waiting period, and the buyers back away because they can't take possession of the home right away, then I have to restart that tribunal process with a new buyer. So I don't know if you guys have ever well, I'm sure you've bought and sold.

Scott Dillingham: 08:18

Right? We're we're all investors here, but nobody is gonna say, oh, I'll buy your home in in 9 months. You know what I mean? It doesn't work like that. It's they want it in a month or 2.

Scott Dillingham: 08:26

So these guys found a loophole that they can pretty much stay there forever and stop me from selling the property. So it's quite unpleasant. I'm trying

Scott Dillingham: 08:36

to figure out some different solutions. But my point here is, is this type of thing does not happen in the states. This would not be acceptable. You need to sell the home, you need to move into the home, whatever. 2 to 4 weeks is the average, and I'm hearing the maximum is 2 months, and then they're out.

Scott Dillingham: 08:55

Right? And I just don't wanna kick people out, but it's, like, at the same point, it it's it costs money. Right? So the landlord tribunal issues that we have here are not going on in the States. So that is a major reason, as an investor, to add a few US properties to your portfolio, right, you're gonna diversify, and you're gonna actually reduce your risk because you're dealing with more landlord friendly rules.

Scott Dillingham: 09:24

So Ali in the chat put, yeah, me too, except I'm moving in with an n twelve. I may be homeless July 1st because the hearing is September 11th. Yeah. Like, it's crazy. You just never know what's gonna happen.

Scott Dillingham: 09:36

So Landlord tribunal is absolutely one of the most important reasons why I would suggest, you know, picking up something in the states. Another reason is rent. Right? So let's just go back to my example. Right?

Scott Dillingham: 09:49

I I started renting to these guys at 1400. It's below market rents. My mortgage went up. If I'm in the state, I can go to the tenants and say, sorry, guys. I need you to pay 3 grand, or you have

Scott Dillingham: 10:01

to move because my mortgage payment went up, and it won't cash flow unless you do. And

Scott Dillingham: 10:06

the states, they don't wanna pay. They go, and then you put someone in for market rents. It's as simple as that. But in Canada, same thing. I can't.

Scott Dillingham: 10:13

I can't raise those rents like that. Right? You have to like Ali's doing. Right? Moving into a property.

Scott Dillingham: 10:19

There's obviously other strategies too. But in the states, these rising interest rates do not affect people like it does in Canada. So I think that is a super important thing to know. Another thing that's really neat, in the States is just their overall cost of the building. And the materials, even though it's in US dollars, right?

Scott Dillingham: 10:43

So dollar for dollar, we're paying a little bit more for materials. The fact that they have full houses that you can get. I mean, I don't recommend buying the cheap ones. But I mean, you could get, like, a nice house that's that doesn't need work for $50. I mean, you can't really do that here.

Scott Dillingham: 11:01

Now, again, those $50 properties might not be in the most prestigious neighborhoods, right? I wouldn't recommend it. But, it's still an option, right? So you can still get low costing real estate that does cash flow, depending on the market that you're looking to invest in.

Scott Dillingham: 11:17

And then the other major major thing is the lending, it is completely different over there. It's more of a common sense approach. So

Scott Dillingham: 11:30

let me give you an example. So in Canada, when we're processing an application for an investor, the lender is using the client's personal income. They're also using the rental income of the property. Now generally speaking, the lenders, they don't use 100 percent of the rental income, they wanna target around half of the rent.

Scott Dillingham: 11:51

Okay? Then we've also got

Scott Dillingham: 11:52

a stress test, which makes all the payments artificially high. Now I will say with the rising rate increases, the reason why there hasn't been so many foreclosures is because of the stress test. Okay? So I think it has some merit, which which is useful, and I can see it. Right?

Scott Dillingham: 12:11

Because people are renewing, but they can still pay their payments. And it's because they were tested at 5.25 or 5.34. The stress test changed there depending on the year when you when you bought your home. And rates are now around there and even in the fours, like 5 year fixed. We've got

Scott Dillingham: 12:29

a lender. We're doing one right now. It's at 4.59. So they're they're coming down. So where I'm going with this is, you know, you're not gonna see a ton of foreclosures.

Scott Dillingham: 12:37

But,

Scott Dillingham: 12:38

we still have this stress test which artificially limits the borrowing capacity of an investor, so it limits your,

Scott Dillingham: 12:46

your rental property.

Scott Dillingham: 12:49

And then again, the government of Canada says, we only will let you use 44% of the total income on the application, to be used for borrowing purposes. So they're not even using all of your income to qualify you. So they're using half the rental income, they're using stress test, and they're using, 44 percent of your income to go to debt. Now, keep in mind, these are a lenders, b lenders do allow elevated debt ratios. So with b lenders, there's fees, and there's higher rates.

Scott Dillingham: 13:19

So in the states, it's very common sense in this in in the way of how they qualify you. So what they do is they literally look at, a property's cash flow. And if it cash flows, they move forward. So it's very, very simple. And the link, you know what?

Scott Dillingham: 13:40

Pull it up here so you guys can see it. I'm gonna share my screen in one second. But if you go to the Investors Hub, we actually have the calculator in here for you to to, use and to work with. So you just go to USA Investing on the left here.

Scott Dillingham: 13:58

And hold on here

Scott Dillingham: 14:02

nope sorry it's under cash flow calculators okay and then there's the calculator so just for fun I'm going

Scott Dillingham: 14:08

to open it up and we're gonna take a look at this. I want to

Scott Dillingham: 14:11

show you. So just taking a second here.

Scott Dillingham: 14:14

So this is the calculator. So we literally put in

Scott Dillingham: 14:17

the property's value, the loan amounts, and the LTV. So generally speaking it's 70% LTV if we're going based on rental income, or you can go to 75% LTV if you're confirming your income. So they do give you that option for better loan to values, but it's not necessary. Okay? So then they look at the property's rental income that it generates, and then they look at these expenses.

Scott Dillingham: 14:43

So they factor in property taxes, hazard insurance, which is the same thing as home insurance here. HOA is, homeowners association fees. Those would be similar to, like, a condo fee over here. And that's it. And if the property has a DSCR, which stands for debt service coverage ratio of 1 or above, we even actually have lenders that will go below.

Scott Dillingham: 15:07

But I don't recommend that because it's not a strong investment, I would look at at least 1 or above. But, DSCR of 1 or above means the whole property covers itself, you're good to go. As long as your money is not from funny sources, they will absolutely move forward with you. There's no Canadian credit that you have to prove. You don't even have to show them a job.

Scott Dillingham: 15:30

You don't have to even have a job. They'll move forward because they know that the property is going to cover itself. And you're good to go. What they will do though, is they'll ask for reserves. So depending on the lender, the reserve will be anywhere from 3 months to 12 months.

Scott Dillingham: 15:47

So what the reserve is is like kinda just repaying the the mortgage interest and it's held in trust at the title company. And and actually let me rephrase that. Not a lot of lenders do actually have to pre prepay. Some of them they just wanna see that you have the reserve. But some of them do want a small prepayment there, and they'll take your payments from that.

Scott Dillingham: 16:09

And you're good to go. So, there's many, many reasons here. But I think fundamentally, and just to touch on this too, I'm gonna try to get the video, but I was at an event speaking about US funding last week. Benjamin Tao was there. He's Canada's lead economist with CIBC.

Scott Dillingham: 16:28

And his whole presentation was how all the money is leaving Canada, and what Canada can do to stop it. Right? Because that's the thing. You don't want this to happen for a long period of time or will really negatively alter our economy. But there's even, like, the Canadian retirement funds.

Scott Dillingham: 16:47

So I didn't know this, but there's some retirement funds in Canada through the pensions, directly through the government and through third party providers. They invest in real estate. We see it on the commercial end actually. So behind the scenes on some of the commercial deals, they're actually the lenders is the pension funds. And they do that so that way their pensioners, their assets are secured to real estate.

Scott Dillingham: 17:11

And then they make the interest off the real estate to pay them. Right? Because they might lend out commercial real estate at 6 to 8. But they might offer an investor 1 or 2 percent, you know, annual return, something like a GIC. So, that's usually where we see them.

Scott Dillingham: 17:29

But what they're doing now, one of the pension funds that I'm not gonna announce it here, you can you can look it up, but they've announced they're gonna start with $1,000,000,000 And they're gonna buy us single family properties instead of Canadian properties. So even the large pension funds are saying, let's invest over here. Things are better over here. So when I see that personally, it just makes me think, okay, you know, we have to diversify. I actually am in the process of of moving money there.

Scott Dillingham: 18:01

I don't have a property in the state yet. I have my entity set up, I've got my bank account, I've got all that stuff. But we're moving over there's a platform where you can potentially move your RSPs depending on your net worth. And you can invest them into real estate in the states. So I'm actually leveraging my RSPs to to do this.

Scott Dillingham: 18:24

But yeah, so that's that's going on. Obviously, once I sell the the weak cash flowing property, I'm gonna invest those funds there too. Now I want this to be a little bit more interactive. We went over multiple reasons why investing in

Scott Dillingham: 18:36

the states is good. Is there any comments or questions that anybody has? If so, drop them in the chat. I'll answer them and then we'll we'll go from there.

Scott Dillingham: 18:48

We're just gonna wait, give you guys a minute, see if anything comes through. So, Ali, are you saying you're looking to hear more about the RSP? So now you're typing. So

Scott Dillingham: 18:58

okay. So Arlene and and Ali. So Mhmm. It's, it's called Seaport Credit. So you wanna look up Seaport Credit.

Scott Dillingham: 19:08

You wanna set up a call with them. In fact, if you guys send me a message through the Investors Hub, like, just look me up under the members and send me a message, I'll get you the direct introduction to the guy. There's different net worth requirements and things that you have to have as an investor to determine how much of your RSV's you can use for for down payments. So we'll be a different figure per person.

Scott Dillingham: 19:38

But, yeah, it's it's amazing. So Amy and Chip are saying, who are my US bank accounts with? So I opened with Comerica Bank. They're quite local to me because I'm in Windsor, which is a border city. So they're right across in Michigan.

Scott Dillingham: 19:54

The reason I chose Comerica Bank is one, the account is free. So you don't need to maintain a minimum balance and it's completely free. So I like that. And then secondly, they don't require that you have a US address to set up the account, because a lot of the banks will open an account for Canadian, but you have to have a US address. Okay, so I don't.

Scott Dillingham: 20:18

Well, I mean, I do now. But I didn't then because I got the my Detroit mailbox thing. So I've got the address and whatever. But they might I actually don't know, they might not even use that address as your physical address. So anyways, Comerica Bank, they've got location all over the place and, they did it.

Scott Dillingham: 20:37

So so Glenn, Amy is also asking Glenn Glenn Brash is who I I set this up with. And yes, it's a us business bank account. Okay. Moyo is saying you talked about DSCR loan type. How much down payment is required by the lenders?

Scott Dillingham: 20:57

So there's 2 programs for that 30% down is the standard program, where they're basing the approval strictly on the property. And then we can go down as low as 25% down. But that's the confirmed income. So they're gonna look at your Canadian income, they're gonna look at your debt ratios, they accept much higher debt to income ratios than Canada does. So it's still quite easy.

Scott Dillingham: 21:22

But, yeah, that's that's the minimum. And we have a ton of lenders. So that's, like, across the board. I will share that minimum lending amount is 75. So do keep that in mind because we do have investors that do wanna buy those 50 key properties I talked about, but they just can't get a mortgage on it.

Scott Dillingham: 21:40

So we'll we'll refinance properties in Canada, so they can buy those ones cash. But if you want a mortgage, you gotta be buying around a 110. So then with the 30% down, you need that 75 k minimum. K. Simon says, what US markets look good from your perspective?

Scott Dillingham: 21:59

So here is where I want to buy. I like Ohio for the low purchase price and strong cash flow percentage numbers. Sorry guys. Just you to that.

Scott Dillingham: 22:12

Okay. So I like Ohio for that purpose. Again, cash flow, low purchase prices.

Scott Dillingham: 22:18

I like Cleveland and Columbus in Ohio. There's some places you gotta avoid, like, Toledo. Right? Toledo, lots of people are leaving Toledo, vacancy is going up so you don't wanna, you don't wanna be there. So for Ohio, my strategy is cash flow.

Scott Dillingham: 22:34

I really like Florida for the Airbnb style market and the lifestyle market. And what I mean by that is so you buy an Airbnb and it's vacant, you can use it yourself, which I like. Right? Because Florida is beautiful. Right?

Scott Dillingham: 22:47

It's like paradise of of the US. So I really like that. And then Texas, there's a lot of business opportunity in Texas in

Scott Dillingham: 22:56

the sense of of jobs and major corporations opening up there. So for Texas, I would do something like a pad split. So think Airbnb, but it's for executives. So pad split will rent your rooms out of your property, but they rent it to executives on a midterm basis, but they're paying short term rents. So you kind of get a I don't wanna say a better tenant, but the fact that they're they're longer paying short term rents because a lot of the people that do Padsplit, their employers are helping the sponsor or their employers are fully paying their rent.

Scott Dillingham: 23:33

So I really like Texas for pads pads split. So again, my perspective is cash flow. That's my personal choice of what I like to invest in. So your markets might be different. The ones I've just stated might not be the highest appreciating and and that type of thing, and that might be what you're looking for.

Scott Dillingham: 23:49

So just take what

Scott Dillingham: 23:51

I'm saying with a grain of salt and do your own research, because, again, my investing goals are different. Okay. So Nadia is saying

Scott Dillingham: 23:58

the down payment minimum is 30%.

Scott Dillingham: 24:00

Is that what you said? Yes. That is exactly that is exactly it. And then Moyo's saying, and what is the interest rates for the DSCR? So there there's 2 things, and I'll share I'll share this with you.

Scott Dillingham: 24:12

So rates, the lowest is 6% right now, which is actually really good. In, fall, the lowest was around 7. Okay. So it's actually come down over there. Now the default you're gonna see is between 7 to 8 and a half without any credits.

Scott Dillingham: 24:32

So in this state, you can, you can buy down your interest rate, which means you're sort of prepaying a bit of the lender's profit. So because you're doing that

Scott Dillingham: 24:44

the lender gives you a better deal on on the lending, okay. And you can do that with any mortgage, whether you're refinancing, doing a purchase, whatever. But what I would recommend and what I educate poach all of our clients is you wanna ask for a seller credit. And you can go up to 5% of the purchase price. So you say to the the seller, I'm gonna offer you I'm just making up numbers here so we can we can see the map.

Scott Dillingham: 25:08

But let's say, I'm gonna offer you a 100,000 for this home, but I want 5,000 cash on closing. Okay? It's better to ask for the seller credit if you're gonna use it to buy down the rate to then to get a lower purchase price. Because if I finance the home at 95,000, I might save 10, maybe $15 a month. But if my rate's coming in at 7 and

Scott Dillingham: 25:32

a half, and I use the seller credit to buy down my rate, so now I can get it fixed you're gonna save $100,150 a

Scott Dillingham: 25:41

month so it's gonna be much more worth it to have that lower rate right so not only are you saving on the monthly payment but you're saving on the interest okay so always ask for seller credit. Try to get both. Try to get a reduction in purchase price and the seller credit, but it may not always be possible. Okay. So Amy and Kip is saying, can we share your banking contact information?

Scott Dillingham: 26:03

So, Glenn has asked me not to publicize it. I don't know why. I mean, if if I

Scott Dillingham: 26:08

was a branch manager, I would want everybody to know. But, I

Scott Dillingham: 26:14

can send it to you separately or I can have Jillian send it to you. That's

Scott Dillingham: 26:16

fine. And then Ali's saying, I has found lenders in Georgia at 8.5 to 10 with 3 points and 30% buy down. So it does depend on the location. Absolutely, Ali. Portfolio loans do tend to be a little bit higher in interest rate.

Scott Dillingham: 26:40

Yeah.

Scott Dillingham: 26:40

Because I know you guys are working on that, that larger portfolio loan. So the thing with portfolio loans is there's less lenders that do them, and they kinda do price them a little bit higher than an individual loan. And the reason for doing that is they know you're gonna save a ton of money on closing as a portfolio loan than if you finance each property individual. Because if you finance each one individually, it's, right? You'll have closing costs on every single property.

Scott Dillingham: 27:10

So you're you're spending so much money. So the portfolio loans, they tend to price a little bit higher on the rates, but you're saving a ton on the closing costs. So all in all, I'm sure if we ran dollars and cents, it would be cheaper.

Scott Dillingham: 27:27

Now one thing to keep in mind too, Ali, is I would ask I, like, is it open right away? Is it open after 2 years? Is it open after 5 years? Because in the states, the maximum is open after 5. So if the rates are coming down, and you're in that product, as soon as it becomes open, we can we can swap lenders for you.

Scott Dillingham: 27:49

So, that's kind of,

Scott Dillingham: 27:52

how that works. Any other questions, guys, before we we get going in? Again, I do apologize for those that were not here right away. Our main guest is a realtor in the states, and he was gonna do a deep dive because he also invests in Canada. And he was gonna share even more examples and from his

Scott Dillingham: 28:09

perspective, but he had

Scott Dillingham: 28:11

a medical emergency, so he wasn't able to join us. We do this landing all day, so I figured I would,

Scott Dillingham: 28:16

I would hop on here.

Scott Dillingham: 28:18

But any other questions before we let everybody go? I'll leave

Scott Dillingham: 28:21

you guys with one final thought. If you're interested in buying in the states, how it works is we generally review the property first. So we'll run it through one of the lenders pricing. And, sorry, anyways.

Scott Dillingham: 28:38

My phone's always freaking we run it through the lenders, pricers, and we have many, many lenders. So we we check them all, and we'll say, okay, here's what this looks like with this lender. Here's what it looks like over here. We think that this will be the best lender for you. And we kind of price it up front.

Scott Dillingham: 28:55

So that's kind of like the pre approval, as we price the property, analyze the cash flow, and let you know what this looks like. You don't need any documents upfront. Then if that goes good, and you put in an offer, we'll give you a pre approval letter. So you can submit that. And then regarding documents, it's literally at that point, then we do an application, and then we send in, like, your IDs.

Scott Dillingham: 29:19

There there are some basic things. Right? They're gonna wanna see proof of dump payment. Right? Just like Canada.

Scott Dillingham: 29:25

But in Canada, it's reversed. You kinda do all the documents upfront, and then, you get your approval. But over there, you get approved first, and then they want the documents. So it's it's backwards. And I I know I know I get a lot of investors that are confused about that that process.

Scott Dillingham: 29:44

But over there, it's property first. So just remember that. So that's what we're presenting to the lender. And we're saying, here's the property. Do you like it?

Scott Dillingham: 29:51

And if they do, then we get the

Scott Dillingham: 29:53

paperwork. So Amy and Kip saying, what are my thoughts on purchasing in

Scott Dillingham: 29:57

in Detroit? Being that it's right across the water, I know it's very attractive over there. Real estate pricing is cheap. And I gotta say, like, I really like the improvements that Detroit has done in the past recent years. They lost a lot of government funding a few years ago, because their population dipped below a million.

Scott Dillingham: 30:17

So in the states, if your population's over a1000000, there's a ton of government incentives and extra funding that a city gets. So when Detroit's

Scott Dillingham: 30:25

population shrunk, they lost a

Scott Dillingham: 30:28

lot of that funding. And it was really they were in the slumps for a long period of time. But they've really revitalized, and they're getting private investments, in the downtown core. And, I mean, I don't know if you've been there recently, but it looks much better and and nicer, and there's so many more things to do than there was before. Yeah.

Scott Dillingham: 30:47

At least saying that the downtown looks stunning. Yeah. It just they've completely redone it. So so now people are moving back. Right?

Scott Dillingham: 30:53

Which means the more people that move back, then there's more funding, and the more it's gonna grow. So I really like the trajectory of where Detroit is now. You just obviously wanna be careful, the lower income areas, just like any town, but but Detroit, because it's a big city, it's, you know, more of a problem. But in low income areas, there's there's more crime. Right?

Scott Dillingham: 31:17

There's there's violence, there's guns, drugs. Right? So you just wanna,

Scott Dillingham: 31:22

be careful and try to focus on, you know, not the the low income markets, but buying something for 150 in Detroit would be considered, like, pretty nice neighborhood. So that's that's the cool thing, in comparison is that you can get absolutely cheap properties for for good areas with good cash flow that type of thing.

Scott Dillingham: 31:44

And then Amy saying do I recommend any realtors? So I don't have a strong Detroit realtor referral yet. I've I've tried and spoke to a few. There is a company that I can introduce you to, And what they do is you let them know what you're looking for. And they find properties off market, they've actually been doing this for 10 years.

Scott Dillingham: 32:07

And they've helped over 500 investors find properties in Detroit. So they'll find off market properties, they fully renovate it, and then they sell it to you based on an appraisal value. So it's not like you're buying it for some outrageous price. I mean, you're buying it completely turnkey property management in place. If you're open to that sort of thing, I can let you know, they don't have any fees.

Scott Dillingham: 32:33

I mean, they get their markup from because they're doing the work like they're doing all of that stuff. So they're making a little bit of money on sale. But again, it's it's still supported. So if you want that connection, I can give you that today. And then as I work on building a realtor relationship, I can let you know that.

Scott Dillingham: 32:52

And then I just says, will you do section 8 in Detroit? Oh, yeah. We do section 8 anywhere. The lenders love section 8 because it's guaranteed rent from the government. And, not only that, it's generally higher than average market rents.

Scott Dillingham: 33:08

The government generally pays top top tier rents. So section eights are great. The lenders do not discriminate about that. Again, you just want to be careful if you're doing a section 8. Is the property in a good location?

Scott Dillingham: 33:22

Right? That's the number one question. So I see Amy and Kip and Arlene talking about getting the info on Detroit. Do you I know Amy means, you know, she wants that contact. Are you saying Arlene that you want that contact as well?

Scott Dillingham: 33:39

Because I'll message you the details right when we're done here for the US, turnkey properties in Detroit. Just waiting for your that's fine. Okay. Perfect. Okay.

Scott Dillingham: 33:47

And then Allie is saying, oh, maybe that's what I need to tell. I have 1 third of the properties of section 8 and want to switch more over to section 8. Yeah. That won't let me, let me rephrase this. Having section 8 rent versus non section 8 rent will not change your interest rate.

Scott Dillingham: 34:04

However, if your Section 8 rents are so much more massive than regular rents, and that changes your Debt Service Coverage Ratio higher, then you can get better interest rates. So it may help with your rates, but it it may

Scott Dillingham: 34:20

not. Okay. So I'm gonna just take some notes here because

Scott Dillingham: 34:25

I don't wanna miss. So we gotta send I'm just gonna write down everybody's name who's looking for that contact in Detroit. A and then for you as well, Ida. Perfect. And there's no, like, affiliation, guys.

Scott Dillingham: 34:40

They don't pay me for giving out his name or anything like that. It's just I know them from doing it, and we do work with some of their clients for for lending. Okay. Perfect. So I will get you guys in contact with Wojtek or James.

Scott Dillingham: 34:53

They're the ones that run, and sell them. Okay. So, yeah, it's gonna be Wojtek or James that reaches out. I can get everybody's email address because you're all members of the hub. So I'll pull that up.

Scott Dillingham: 35:06

I'll get your emails, and then I'll introduce everybody, via email, and I'll let you guys connect. But I do appreciate you guys. Please let me know or my team if you're already working with them if there's any questions at all. And at the end, this recording will be there. If you wanna see it, you can see the comments as well.

Scott Dillingham: 35:24

And at the top, within the hub, it it says book a strategy call, with somebody on my team. So if you're interested in this or you wanna sit down and and talk further and make sure that this makes sense for you, then that's available for you as well. Naya is saying she knows that. Perfect. So then you know that.

Scott Dillingham: 35:43

So that's great. So I'll I'll scratch you off the list item. But that's who I would, give a call to. So awesome. Well, you guys have a great day.

Scott Dillingham: 35:51

You were you're fun to to chat with. I appreciate that. And, looking forward to seeing you guys soon and watching everybody grow together. This is, so exciting. Have a great day, guys.