[00:02] time. And this contractor kept telling me, Detroit. You got to buy something in Detroit. You're going to make so much money." And so I said, "All right, find me a deal."
[00:15] like, "Look, uh this is the first time that I didn't find my own deal." He was like, "Look, uh I promise we'll get everything done for $5,500 in two and we'll get it done in 2 weeks.
[00:28] going to be good to go. You're going to make a lot of money on this deal." I said, "Okay." So typically when I buy a property, the first thing I do is I get a property inspection done by private inspector.
[00:43] This time I didn't do that. I took my contractor's word for it and that one it was a horrible idea. Never never never buy a
[00:55] property without your own private property inspector. contractor. He's like, "Look, the property's in pretty good shape. Um all we got to do is do some cosmetic work. You're going to be good to go."
[01:09] getting a city inspection yet. Get it when we're done and you'll be you'll be fine." So later I go to find out that the me to get this deal is because he needed money and so he just wanted any deal
[01:24] where he would get paid. So property. And I paid him some money and he starts doing work. 2 weeks go by, which is what he said it was going to take to complete
[01:38] the deal, and he's like, "Yo, I need some more time. It's a little bit more we're going to get it done." I said, "Okay." Couple more weeks go by. on cuz now it's been like a month and
[01:51] nothing has been done. Nothing's been done. And I don't have a contract between me and my contractor. That's another mistake. Always get a contract matter how close of a relationship you have. Um I have
[02:05] and I had no issues, but this time he just wasn't getting want to get a contract between you and your contractor, no matter how many deals you've done. And have an attorney help you with that
[02:19] contract. So, now it's a month and nothing's been done. I start calling He's like, "Yo, I got you. I got you. I got you." Anyways, another month goes Pretty much nothing's been done. Like, they painted the walls and like it's
[02:33] been like pretty much nothing, essentially. And so, now like I'm getting heated. I'm like, "Dude, what the heck? I paid you this money. I got money invested in this property. You're not doing anything.
[02:45] so, you know, he starts becoming unresponsive. need to do something. I have this property. It can't just have it sit here vacant. I need to get somebody else to do the work."
[02:58] So, uh at the same time, I owned a commercial property or I'm a part owner in a commercial property where I had an onsite manager that I guess he wasn't doing too good of a job.
[03:10] was causing issues. He was starting fights. Like, he he wasn't doing a good job. So, I, being the smart person I am, said, "Hey, I'll take that manager off into my property. The guy that can't do
[03:24] property." So, I made a deal with him. So, you can see it's not going well. Um I put him in here and I said, "Hey, look, I'll give you free rent if you do the work." He said, "Okay." So, he starts living
[03:37] going to be?" He's like, "Give me a couple months just because I have other And now, keep in mind, I've had this property for months now. I've been paying out of my pocket for everything.
[03:50] And so, I get this guy to come live on my property. And now he's living in my property and he's not doing any work. He's living here for free. And so now I'm like, what's going on? He's oh, I
[04:03] need some money for supplies. So I start paying uh for Home Depot bills out that the supplies he's buying from Home Depot are not being used on my property, they're being used on other people's property and I don't have a
[04:17] lease with him in place. I just put him in my property because I thought, hey, I put him in my property without a lease. Now I have to figure out how I can evict the guy because he's not only not doing the work, he did a little bit
[04:30] of work, but everything he did was horrible. Like like horrible work. Like horrible quality work. Like just horrible. And so now I got to figure out how I can get him out. So I start talking to my
[04:45] can get him out. So we start threatening him and say, look, you got to leave the suit, we're going to, you know, call the sheriff, do all these things. or so. So now I don't know how many months it's been. It's been a long time
[05:00] And then >> [sighs and gasps] we come into the property and we see this property has been destroyed. I mean, he not only did he not take care of the property, he just destroyed the
[05:13] did, but there were like feces in the property. He he was he of. It was just bad. It was disgusting. It
[05:25] was So now not only have I spent all this money on supplies, repairs, contractor work, all this stuff, my property is in worse shape now than when I got it. So then I hire a new contractor. I
[05:41] finally get a new contractor. So guys, always work with a licensed and insured contractor. Don't I never I would never ever ever ever ever again work with a
[05:53] contractor who is not licensed or insured because of this very reason. Um it costs more. Costs more to get the work done, but you do not want to deal with this type of headache. Got a new contractor in here.
[06:06] And so he's cost more, but he got the work done. He made it look nice. He had contractor did. Redo the work that my second contractor did. So it's extremely property looks good. Let me get the city inspector on here because what you need
[06:22] to do when you have a rental property investment property, you need to let the property here and that you're going to put tenants in here. So a lot of times cities have their own inspections. Call up the city inspector and they So
[06:36] the city of Detroit has been especially when I bought this property we're struggling a lot financially. So city inspectors, you know, this is kind of their way of the city this is their way of making money by issuing
[06:51] permits. So now the city wanted us to pretty much do everything new on this the plumbing, to redo the mechanical, to redo electrical, like redo everything in redo electrical, like redo everything in the property. It was a lot of work.
[07:06] we're getting this work done and we find out that for some reason our drains are not working. The water is not going down the drains. So let me take you guys to the basement. So what happened was
[07:22] we did some research and we found out that somebody living in this property beforehand took cement and they poured cement down the drain. I guess this is something that happens when tenants don't like their landlords in areas
[07:35] this drain right here. I don't know if around. Just turn it like this. There was no way for water to leave this property
[07:49] all of the drains outside of the property which were filled with cement. Again, another huge reason why you have to have a property inspection by your
[08:01] uh contractor so you can figure out these type of things. So, then we had to bust out the cement in this basement, bust out the pipe all the way to like bust out the pipe all the way to like the city like line and we had to redo
[08:14] that in plumbing. So, we had to bust out the cement, redo that plumbing, and then repour the cement. It was extremely expensive. So, that happens. Then, we uh you know, the city
[08:27] inspectors were just not helpful. Like they were asking us to pay for permits smoke detectors. They wanted us to pay like a $100 permit fee to replace smoke detectors. We had to paint window sills. They wanted a
[08:39] as a permit fee to paint paint window sills. And then on top of that, the city other. We had one city inspector come out and he said, "Hey, your electrical riser, your electrical pole in the back, needs to be 15-ft tall." Like so, we
[08:54] changed it. The second inspector comes out and said, "No, it needs to be 12-ft tall. Why is it 15?" We're like, "What the heck? Your first inspector said 15." >> Investing your money is hard. And on this channel, I teach how you can start
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[10:27] for you down in the description. So, this pretty much happened for like a long time. So, we kept paying, paying, paying and then they were like, "Hey, you guys need to change the grade, the elevation of your property." We're like,
[10:42] to." They really didn't give us a reason but they're like, "You're not going to get past this as a rental unless you do this." And that was another $7,000 job. So, we go through this, like these type of issues again and again and again. So
[10:55] many property issues that should have been discovered earlier on but I made the mistake of not getting a property inspection. So, now finally time to rent the property,
[11:07] so I can explain everything that happens. So, when you rent a property, you uh you know, no one's living in the property and so what we have is we have
[11:20] a lock box, which is like a little box that has the key to the property. So, property, they just push the buttons in there, get the key and take it inside. Take take the tenant or the person they want to
[11:32] What we first made the mistake of doing was putting the lock box on the front which is why, you know, property is a little bit cheaper. And so, we had the lock box on the front door.
[11:48] People realized that, okay, if there's a lock box here, then there's no one living inside. So, then someone broke into the house and stole our into the house and stole our water tank, our hot water tank. So, that
[12:00] was another cost. So, then we realized, okay, never put your lock box on the or where any of our stuff is. Obviously, we started putting the lock box back I'll show you on the electrical meter. See you guys can see the lock box right
[12:14] there. So, that that happens. Now, we finally get a tenant. Woo! We got somebody living in the property. We've, you know, been through months of city inspections, finally getting it
[12:28] licensed. And now we finally got a tenant. All good, right? the tenant is living there. We're getting paid. Things are looking good. Few months go by and the city inspector, for no reason,
[12:43] um let me just go see how this property is know. He had no reason to go out there. We, you know, passed We all had all of our certifications.
[12:56] Goes to the property and apparently, the tenant living in the property was was conducting an illegal babysitting operation. We did not know this. So, now the city inspector is like,
[13:11] He gives us a call, gives us a fine, and now we have this babysitting operation that we now need to evict because that's not allowed. So,
[13:23] young kids in the property and doing this type of stuff. This eviction process took so long where we were not getting paid. getting paid. So, it was just like issue after issue
[13:35] after issue after issue after issue. Um trying to do a deal that now wasn't very experienced in, but taking the advice of somebody else who didn't really have any financial interest in the property,
[13:48] right? I mean, he just wanted to get paid with uh the contractor fees. So, yeah, I mean, this is exactly what you do not want to do
[14:01] let me go through something that you should do. When you buy a property, make sure you get your own private that. There's no ifs, ands, or buts about it. It's an extra cost, but you
[14:14] inspection. Then, you get your own contractor out there to go through the property to tell you how much it's going to cost. Then, you get the city out there to see what needs to be done for the city, so we're all on the same page
[14:26] your own end, and making sure the property is not going to implode, by having your contractor out there. Number two, work with your management company so that they know how to rent out the
[14:41] property properly. Make sure you don't put your lock box at the front door uh on the side. Put it in the back so it's not so obvious. when you're having issues with the city like city like this where they keep
[14:57] coming and like giving you different things to do, they're not supposed to do that. Uh talk to the higher city officials early on. Let them know that, "Hey, your inspectors are not agreeing with each other. I need to know what to
[15:10] do. Get a higher-level official out here and tell us what to do." >> It's official. President Trump's plan to abolish the IRS is progressing. Why? Over the last few days, he has renewed or increased tariffs on dozens
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