Jason Hartman talks with his client Greg Scott, a real estate investor living in Detroit and employee at Ford, about the current state of the Detroit real estate market, whether it might actually be a GOOD investment now, the future of self driving cars and more.

Key Takeaways:

[4:09] Where Greg currently owns rental properties

[6:29] The peak of metro Detroit's population and what's going on right now that might be making the population grow again

[8:37] One of Detroit's suburbs is actually the 11th wealthiest county in the USA

[10:53] Some demographic trends in Detroit

[12:40] Why Greg is the most optimistic about the future of Detroit than he's been in his entire life

[17:12] Some areas of Detroit that go along with the automotive industry and some that don't

[19:40] Greg's road to preparing to do multifamily investing in Detroit

[24:27] What Greg does for Ford

[27:57] How quickly we're approaching self driving cars and the new city built to be a self driving car test ground

[30:15] How self driving cars can change the landscape of cities

[33:45] If cars didn't need parking spots, what would we do with the 40% of the city that's currently being used for parking

[36:25] If Greg would buy any of the $1 houses in Detroit

[39:10] Greg's investing history and why he doesn't do the stock market anymore

Jefferson Lilly is a mobile home park investment expert, educator, and industry consultant who has been featured in the New York Times, Bloomberg Magazine, and on the 'Real Money' television show.  Prior to co-founding Park Street Partners in 2013, Mr. Lilly spent seven years investing his own capital at Lilly & Company where he acquired and continues to operate mobile home parks in the Midwest.  Prior to becoming an investor full-time, Jefferson spent 10 years in sales leadership roles with several venture-backed startup companies in Silicon Valley that were acquired by Openwave Systems and VeriSign.  Earlier in his career he held operational roles at Viacom and was a consultant with Bain & Company.

Key Takeaways:

[2:30] The history of Jefferson's investing and value investing with mobile home parks

[4:38] Whether the mobile home park scene is too crowded or if there's still room

[7:07] How to find a broker for mobile home parks

[11:22] If Jefferson prefers park or tenant owned homes

[14:02] The interest rates being charged to tenants when they're buying homes

[18:20] Why mobile home parks aren't being built anymore

[19:25] The biggest mistake Jefferson made in the mobile home park real etate market

[22:20] How Jefferson went about turning a mobile home park into a better investment after purchase

Websites Mentioned:

www.parkstreetpartners.net
www.tulsaestatesmhp.com

Jeff K. Johnson is the President of Black Commercial, Inc., one of Spokane’s largest property management and commercial real estate companies. Jeff is a licensed REALTOR® and has worked in the real estate profession since 1975.

Jeff specializes in the sale, leasing, and development of office buildings. Much of Jeff’s work includes assisting Fortune 500 companies with the acquisition and disposition of corporate real estate. Jeff is also the managing general partner in numerous real estate investment partnerships. Prior to moving to Spokane, Jeff grew up in Iowa and attended Waldorf College in Forest City. Jeff has consistently been one of the top producing commercial real estate brokers in Spokane.

Key Takeaways:

[1:52] Jeff's start in the real estate business

[4:02] If paying off your mortgages is really a good idea

[6:40] The benefits of asset accumulation

[8:35] The positives and negatives of leverage

[10:04] Debt coverage ratios

[12:30] Whether cap rates are really that important

[16:00] An important key to being a successful real estate investor

[18:41] The false expectation paradigm

[21:30] Why zoning is so much harder to change today (and how that impacts buying land as an investment)

Website Mentioned:

www.naiblack.com