Why dont Investors buy Vacant Blocks in Baltimore City?
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- Опубликовано: 3 июн 2024
- Here I talk about my experience with why investors in Baltimore City don't just buy blocks of vacant houses. This is from my experience as an investor for about a year and a half in Baltimore.
Ultimately this comes down to three main principles:
1) Excessive liens from the city for unpaid water bills, fines, and other code enforcement. This is stacked on the mortgages that might not be paid or are stuck in a long foreclosure process
2) The ARV (After Repair Value) is far under what the cost of the renovation would be. This prevents investors from selling the house after the renovation or doing a cash out refinance to get their money back. This means the investor would essentially have to rely on the low rents to make their money over the course of decades or operate at a loss
3) The tenants and slum lords in the area will much more difficult to work with. There is a high possibility the tenants will not pay rent and will likely trash the house. Also the rent prices will remain low since other landlords in the area wont take care of their properties.
#Vacants #Baltimore #Renovations
As a young naive investor I was looking at row homes in Baltimore to purchase in 2005. While touring one property I went next door to another property being renovated and spoke to the owner. His advice to me was, if you plan on doing renovations here, plan to live in it while you renovate because they we steal the stuff when you leave because it happened to him. I ran as fast as I could, 15 years later that neighborhood is still struggling
That's wild
I am from B-More and yes for years ppl will steal pipes to sell and other materials. You have to understand the majority of ppl are addicted to drugs so their goal is to rob just to get high
Thanks for the info
I had my Spanish worker guy stay in mine, I got him a air mattress and mini fridge, it worked out ok
One word, insurance
Good video. I live in Baltimore and I'm a real estate attorney. Another major problem is liability. If you buy a vacant home and don't start renovating right away, you can find yourself in big trouble. If some kid eats lead paint in your property, you can end up in jail. And no, owning it in an LLC won't save you. Scary stuff.
Good info, I’m a realtor in Reisterstown, looking to get back into sales in 2023. I would like to pick your brain, that’s some good info. TY
Honestly, why would any property you own have lead paint? It's well documented the effects of lead paint in small children not to mention its illegal. If someone is consuming lead paint in your property honestly you deserve the ramifications of that
@@sakiajohnson64 You must not be an investor. Many of the homes are old and built prior to 1978 and have guess what? Lead paint! Hence, why buying one of these old homes and not fixing it up asap is a LIABILITY!
@vax4leadman640 Thos is why as an investor, tou must do lead test before you can rent out your property and your home must get a home inspection before you can rent your home.
@@joltjolt5060 Also, in some cases depending on the state, it can be professionally removed (should only be done by trained pros as it can be dangerous airborne). Some people think folks are going around painting with lead when that's not the case. People come into property with lead and have to deal with it.
Baltimore has a HUGE problem that it must overcome if it has any hopes of real development. The city is not business friendly and is unwilling to take the bitter pill to curb its crime, drugs and gang problems.
Wow, I see..... Just saved me $500+.
@@rcnightlife9611 don’t be discourage by those facts ,I do live in West Baltimore and is one of the worse areas I ever lived in I had my motorcycle stolen from the back of my yard ,I walk to the store with protection all the time . But from what I seen and experience is that you can buy a building for 5k spend 35k to fixit and resell it for 90k and it won’t take more then a month to sell it. You know why ? Even under a pandemic there’s good jobs popping up in the city paying on an average of 40 to 80k a year . What ever you do don’t buy a property to rent out , you don’t want to take that risk like Pdxmax01 said . It’s better to buy and flip it , gentrification all ready started in the west by Maryland Medical University. And they taking over the west Baltimore street and a lot of this students will be making 100k a year and the downtown harbor area is very attractive to them .Me and my daughter who just turned 18 are seriously considering one of this vacant buildings not a house but a building and I would not consider doing it until my neighbor that bought a a building across the street and lived in it for a year before buying another building across the street did it .
@@OLMECTHUGS Thanks for the info. Don't rent but flip. Just learned something.
@@rcnightlife9611 yw and if you need more info about a building let me know if I can help .
What's the bitter pill?
As a general contractor I've done a few rehabs for investors in Baltimore. The biggest obstacles are CORRUPTION and CRIME . City officials are corrupt and are only good at sticking out their hands. I've had tools, materials and even my work van stolen. Good general contractors won't work in Baltimore.
Yes I agree it is very common for contractors to refuse to work in the city due to supplies being stolen
Cut off their hands!!!
Facts
@@DevinMorenoInvesting There is another major factor as to why investors are avoiding urban areas namely the eviction moratorium. I personally know small business landlords that have not received rent for more than a year!
@@chrisjimenez603 😂🤣😂
Living in Baltimore for years was mental torture. One friend was murdered, we were all burglarized, I was run over, and the guy didn't even get a ticket after flooring the gas from a stop at a red light after making eye contact with me. The investment strategy for Baltimore is to move far away and to live well and not be a constant victim of serious crime. Any investment made in that city is a waste, and literally puts your life at risk.
Don't live downtown! I live in west Baltimore...FAR west baltimore, damn near in the county off of Fredrick Ave. I've been here for 15 years and the only issue we have had was when a pregnant young women and her daughter were shot by the unborn child's father. That was targeted so I won't hold it against my neighborhood. He wasn't from this part. So other than that it's quiet and no issues. I am very lucky.
Sounds like home
@@wifeoftheparty9839 Oh, nothing other than that? Just a random pregnant lady being shot to death? Sounds reasonable.
Bingo. Left at 15 and never looked back.
Washington DC agrees LOL
The great TV series THE WIRE does a excellent job of showing Baltimore politicians as they truly are
One of the best shows produced. Good to know that I'm not alone.
Watch the corner if you like the wire
Greatest TV show ever.
@@danm9297 Watch "Charm City" a PBS show about BM
Are you a Trump supporter?
Two major reasons not mentioned.
1. Property Taxes: In Baltimore they are about 10 x higher than in Virginia. And keep in mind that for investors, the purchase price is often well below the tax assessed value of the property.
2. Non-Resident Withholding Tax: If you are an out of state investor, expect to pay an extra 5-8% in taxes on your net proceeds at closing.
Yep Maryland has been and still bad for real estate investors unlike PA
Same story in any Democrat run place, you have to pay for everyone else first. :-/
@@chillwill5080 yeah, like the red states...red states get blue state tax dollars while trash talking blue states. Whatever, hypocrite.
@@cyradragons Another myth sold to feeble minded slaves who believe anything their masters tell them. Red states don't have massive quantities of government "jobs", or other organizations dependent upon federal money. Just because it doesn't say "tax money" doesn't mean it isn't coming from federal money, IE: other states.
States like California, Illinois, New York, NJ.. Massive numbers of "government employees". The money to pay for all that comes from 95% federal funding.
I went past the house that my mom grew up in on Virginia Ave. Her old house was boarded up and her grandparent's house, next to it, had a tree growing up through the middle of it and the roof and upper level had collapsed. Was a shame as we have some old photos of those houses and they were absolutely beautiful in their prime.
My husband and I just purchased a home on Virginia avenue. The city knocked down all of the abandoned homes, the city os building shopping center, senior home and apartment building. The homes are now worth about $280k but once the shopping center is finish, I am sure the value will increase.
It’s not the actual house, it’s the neighborhoods that the property is in. Also a lot of these properties are not worth the time or money because a lot of the neighborhoods are just so dangerous and nobody in their right mind wants to deal with it
Absolutely correct! Most of my points are all focused on the neighborhood because of this. If that vacant was in a nice area, then it would be picked up pretty fast
I was just in Baltimore and ended up driving through the East side where I saw block after block of beautiful row houses boarded up and in shambles. It was honestly shocking and I’ve never seen something like it before. Then a few miles down in Canton, the row houses are beautiful, selling for around $450k. It was shocking to see the difference so close together!
Yeah it is definitely a shocking sight the first time you see it. I know it was definitely wierd for me
Baltimore is the most segregated city in America and it's not event close
@@lorenzomoore3994 YW
@@lorenzomoore3994 Qq.
You’re probably right. That’s what holds it back from unleashing it’s full potential. I think day by day we are improving. I’ve lived here 8 years and been a homeowner the entire time. I’d like to become a landlord in the next 2-3 years
Bought a property in Westport zip 21230 to renovate. Paid $19,000 for it. Sold it 2 years later for $14,000. Between the city trying to fine me for every little thing including them tearing down the wood fence on my property to store some of their construction equipment. They were working on the road. So then they fined me for my fence laying in my yard that their workers tore down without my permission. Paying a water bill higher then the one at my personal home, when the water on this property is shut off. But worse was the fine upstanding citizens that I'm sure are all preparing to go to college to better themselves. They felt they had the right to break in and steal everything of value and destroy everything else. I swear I think they would steal a dirty pair of underwear if you left them there. So my wife and myself just took the loss and swore to never even think about investing in Baltimore city again. To many of the people are just plain thugs and drug dealers and the city is corrupt from the top down. Learned my lesson the hard way.
robert huber Same here I’m from northern Va bought a townhouse in Curtis Bay last year for 12k and my contractor ran off with 7k for renovations and so I sold the house a couple months ago for only 9k just to get something back so yeah I learned my lesson the hard way as well.
The Greek Physik your right about that
Wow!!!!🤨😠😷🌍🌏🌎 Be Safe Be Well
@@Jaivon_InvestmentsAnyone who is decent ,would never live in those areas ,you should have looked into the area history before buying 🤔😷🌍🌏🌎 Be Safe Be Well
That sucks. ANYONE knows any area that would be good
What they need to do is what they did with Federal Hill. Instead of knocking them down, the City needs to seize them en mass. Erase all of the liens and sell them for $1 each. The only stipulation being that within 24 months, whatever structure is there must be completely up to code. Not up to code? The city takes the property back at no cost and sells it to someone else for $1. It worked wonders in the 80s.
That's called gentrification. Three goal is to serve your constituents... Not replace them with temperary while post grads. Three problem is that Baltimores population is in severe poverty. There are no economic opportunities for poor people and the ones who are working get paid penny change. It's disgusting. If we just double the min wage Baltimore, them target and Amazon would indirectly pay for these homes because hundreds of thousands of hard working people in Baltimore would instantly be able to qualify for a 100k loan.
@The Greek Physik Yup, they should have kept going and done the same thing all across Baltimore.
@The Greek Physik why are you here instead of the country where you were born?
@@dy9278 Maybe he's an American citizen whose ancestry is Greek? 🤷🏾♀️
Baltimore City officials don't have the brains to pull that off.
Baltimore has become the Detroit of the eastern United States...
Facts
Next up: San Francisco
That's an insult to Detroit. At least they had Motown music.
"Has become...."
Was it ever not?
@@nolongeramused8135 I live in SF. Not going to happen.
Come to Baltimore , become a statistic.
Please....I lived in Fells Point for ten years. During major snowstorms, WE had to dig out our street, it was NEVER plowed.. My water meter broke (city owned) in the front of my house and it took TWO WEEKS for them to come out and turn it off (the process took less than 3 minutes). In the meantime, my basement continued to flood. Every time I called they told me the same thing - they had no record of my previous calls, even though I told them who I spoke with. It is a great place to live if you stay stoned all the time, or don't work. City even managed to ruin the Inner Harbor Complex.
Lol So you are saying the City caused homeowners to become drug users due to their lack of response during an emergency. Interesting never thought that was part of the problem
@@aprilbrown2279 She's saying the city is useless to hardworking folks who are serious about getting things done in an orderly & timely fashion.
Baltimore has a sharp divide between the haves and have nots.
And a democrat mayor.
I used to work with a client who bought homes in Baltimore that were literally shells. I understand the lien issue and he would buy ones without liens or the ones without major ones. After making the mistake once of leaving renovations unattended and having pipes and material stolen several times, he would hire an armed security guard to basically live in the house while the renovations were being done and he would or his wife would watch the cameras when the security guard was sleeping or off and at home. They caught many people trying to break in and intercepted them this way. After he flips the house, it is up to the new owners how they want to keep the property secure. He told me he would get contacted by recent buyers complaining about attempted burglaries.
It is honestly a real shame. Too many criminals in that area. You arrest one breaking in, another guy shows up next week. They never stop. Can't keep new construction nice unless you stay on top of it 24/7. They should pass a law in MD that anyone that gets convicted of burglary in MD with intent to gut a house, should either have a choice of being sentenced with a felony and 5 years in prison or 5 years probation and a full time work requirement. These guys are gutting houses because they need money. Thats nice. How about finding a job?
I am laughing
The original projects in Baltimore were very nice. The these mamas had get mixed up with the boyfriends and drugs ruined it you would think having a nice place too live would incentive but noooo that's why I say the will ruin and the generation since then are more destructive
@Jhenacie You are one of those who voted for Biden, I see. I get it. We are on different planets here with how we feel politically and even how we speak. Things like critical race theory and white priv are not part my daily conversation topics or vocabulary. The point of my comment is that it is difficult to invest in Baltimore because the city has more than it's fair share of criminals who are all unrelated but have a common goal to seek out new renovations and steal for their own profit. All the stuff you are going off about, while maybe related, has nothing to do with what I am talking about.
I apologize but I never confronted thieves who were caught stealing copper pipe and copper wire from any of my client's investment properties and asked them if they were homeless or had a drug problem or their opinion on racism in the city. No. The only problem I have is the property was there, secured, and minding it's own business and this thief thought it would be a good idea to interject themselves into my life and my client's life by NOT minding their own business, burglarizing the investment property, and causing thousands of dollars in damage. I do not care what color their skin is or their gender identity or their sexual preference. I care that they have forced entry and are inside the property I manage without permission and all I want to see is them in handcuffs and hauled away by the police.
Obviously, you and I care about two different things here.
It would be cool if jobs were available in the city. Maybe now after COVID but not a few years ago
I grew up in inner city democrat plantations. I have watched the same thing happen in EVERY place where the democrat infection takes hold, the fields and buildings are stripped bare by the vermin and the plantation lords sip mint juleps up in their big houses, surrounded by armed guards while the people who pay for it all have to fear attack all day every day. It's so sad what the USA has turned into. :-/
I live 15 mins outside of Baltimore, & have wondered for *years* why these 6k houses aren't getting snatched up & flipped. The liens you describe are predatory & awful, & it FINALLY makes sense.
Now, remember,
1) My county has free trash pickup, & free landfill access. Baltimore citizens have to pay.
2) The water & utilities are super-high compared to ours
3) Public transportation, to help ppl there get to higher-paying jobs, has been promised for decades, but not delivered.
4) Salaries in these neighborhoods are ridiculously low.
5) When someone grows up in these neighborhoods, & can't get a better job, & can't ever GET TO a better job, they end up stuck in a cycle of poverty while the rest of us blame them for the crime of "trying anything" to get out.
Something has to change, but gentrification & supply-side economics aren't going to be it. You can develop all the housing in the world, but if there's no parking, & no reliable public transportation, they're not going to be able to afford it.
So, thank you for explaining the part about the liens. What we need to do now is think of a win-win solution to get the city to drop them, so gentrification doesn't NEED to be part of the conversation.
Gentrification has to be part of the conversation. It’s no decrease in crime of increase in value of these neighborhoods without some level of gentrification.
The city has change its approach and to be open for business to bring in quality jobs, get serious about crime and get serious about public health.
Yall both make great points....somehow we gotta find that middle ground...nobody gets everything they want....
No neighborhood had ever gotten worse due to gentrification. They only people who complain about gentrification are those who are the problem. Take out the trash of the neighborhood and the neighborhood instantly improves. It’s been proven over and over that it works
Why cant people GET TO a job? Oh yeah, they don't try. My first job, i had to ride a bike to. No matter the weather, i still made it. Resorting to crime is a lazy cop out. Success is hard for everyone.
They built the light rail to the airport from the city, believe me people do travel from the city for jobs at the airport, I know because I work at the airport.
I've rehabbed properties in Baltimore. I can tell you that the issue for me wasn't corruption from the city or liability. The issue was THE PEOPLE! From robbing the homes, breaking into them for a night of drugs and god knows what else to stealing tools from the trucks of my contractors; I experienced so much rehabbing in Baltimore! I'm a woman and I went to one property one day to check out what my contractor had done. I was alone. As I was opening the front door, someone was running out of the back door! The person left their CAR KEYS! I found some garbage and a blanket upstairs in the home, but the person CLEARLY had a vehicle! Since I was alone, I just left the keys there and left the property. I didn't even go looking from room to room to possibly surprise someone. I had people break into one of my properties and steal all the materials. Even with video cameras (ie. Ring), the police don't respond quickly enough to stop the property crimes. It was a really hard thing to manage, along with trying to get everything done. I rented dumpsters. The very first property I did, I notified the dumpster people that the dumpster should be picked up. They didn't come get it for 2 days. By the time they came to get it, the neighborhood people had dumped EVERYTHING into it. It had been WAYYYY overfilled! That was a nightmare! I had to battle the dumpster company because they didn't come immediately when I asked them to! I thank American Express for ruling in my favor, but it was so much of this. I had someone break in and have a drug party. I was happy when I called the police because I thought we were going to "get them" since we had needles, bottles and lots of DNA evidence! The cop laughed at me and told me I watch too much CSI! He said the crime lab doesn't even come out unless there is a murder! LMAO! He said that even if they did and they found each person, each person would just say someone planted their DNA at the scene! LMAO! I had video, but the video showed ONE person coming in and then letting everyone else in. So no one but the first person could even possibly be prosecuted because everyone else would just say they were invited to a party! LOL! No! I walked away from 4 properties I purchased in the city because I just had enough. If you find GOOD solid contractors, hold on to them like gold! And invest in SOLID security! I might try it again in the future, now that I have some rehabs under my belt in other areas and I have a better handle on what to do, but Baltimore was my first foray into rehabbing and I can admit that I got my butt spanked! I can laugh about it now, but there were some moments that I just wished I could strangle some of the criminals there.
vermin everyplace
What a beautiful write up
This is such a shame. Lived in the Inner Harbor area 20 years ago and remember seeing streets full of these dilapidated row homes all over. Sad to see it’s still the case.
Not only is it still the case. It's grown tremendously.
This is my hometown and there are about 17,000 abandons. This is heartbreaking and wasn’t like this 30 years ago. I would love to rebuild my city
Let’s do it
It starts with ONE!!!!!!!
I'm not from there but I've been there and could see the greatness of Baltimore. Good luck to you!
Invite Starbucks
Get rid of the crooked black politicians.
Stringer tried but failed.
bahaaaaaaaaaaaaaaaaaaaaaaaaa
Exactly 😂
Sounds like you’re mad at the truth :-)
I am happy to see such a young face making such an investment in Baltimore. Unfortunately, the reason that the city is this way is because Private Ownership began to be removed between 1955 and 1968, since that time more and more slumlord, out of town investors moved in and less real people owning real property. I was born in Baltimore and have spent my life doing Baltimore history. Gentrification was called "Blockbusting" when Nancy Pelosi's father in 1955 and it DESTTOYED the unification of the community.
All great info. I want to steer clear of how the city got this way. Certainly a lot of corrupt and prejudice practices. Just maybe best for a different channel to cover those topics. This is really just a video on why small investors don't buy them
@@DevinMorenoInvesting
😂😂😂 ( DUUUUH ) ( LOL )
THE...HISTORY....OF...HOW /
IS....WHY.....BUYING....AND
MAINTENANCE.....IS.....THA
WAY....IT....IS !!!! THOSE...TWO
THINGS....WENT....AND...STILL
GO....HAND...&...HAND !!!!!! WHAT
ARE...U....TALKING !!!! ABOUT !!!!
@@moneymoney6817 I think you may be misunderstanding my comment. The history is how it got this way for sure, but the channel is not focused on how it got this way. Investors only think about the math when buying regardless of why. The simply math is the ARVs don't support the renovation. Therefore they don't buy it
What happened between 1955-1968? 🤡🌎
@@oveidasinclair982 But why did they leave? Lol... Nevermind I know why, the same reason the blacks that could leave, did leave... The only hope many of these areas have now realistically is Hispanics coming in and fixing it up, it's working in KCKS... Otherwise, it would take way too much money to demolish and rebuild with no job market in the area. Harlem improved because it was in NYC with hi rents and good paying jobs, Baltimore has neither of those...
Why, Here's why, as soon as you remodel the block everything inside the houses will be stolen. They will be stripped of all the copper. Anything of value will be gone. Good luck..
Also if you get that individual house back and running with decent value the rest of the block is still a shit hole and 10 little kids are on your doorstep and outfront of your house selling dope and coke
Yes but that is only if you have a lazy investor that refuses to take the steps necessary to monitor the property.
@@BradD-qc4ep Why not remove all of the metal pipes and replace it with PVC (plastic), seal up all access under the home with a key lock. Would this stop the problem of stealing metal pipes?
Good info…always saw those units when searching….now I know why I’ll never invest in those…also the fact about the liens is a must know for anyone…sadly the only real-time solution would best be the bulldozer….the city can clear the debt and clear the land…
Someone should set up a house like the McAllister kid did. Lol.
Answering your question would get me banned.
@Not Needed oh no its be not rite
This whole 10 minutes video can be said with 1 word: LOCATION
Absolutely true. Most videos can be summed up in a few words. However many investors dont understand the logistical reasons on why these vacant blocks aren't just bought up in mass. This video explains that in more detail than just saying "location".
@@DevinMorenoInvesting
If they place them all at once - the market as a whole is low..
It's a flake market game - like that store savings card
Democrats
Who wants to live in the ghetto?
Imagine if he made a 2 second video
Because when they are finished.... the investment is in Baltimore City run by clowns. That is how the city got in the condition it did.
@David Lotti It seemed like the comment in which you responded to was pretty non political...... 🤷🏾♂️
@@MichaelWashingtonAE Facts aren't political.
City needs to clear those leans, and allow investors come in to flip it. Bring the gays,hipsters, artist in
@@demikpre Investors are too smart to put their capital into a city that has decades of failed policies and clown politicians.
Actually it is centrist corporatist democrats that ruined Baltimore not liberals.
To investors and those who are aspiring: members of communities do not destroy the properties nearest to them for sport. They are in a community that is so stricken by poverty people will do anything to eat.
The causes of poverty are cyclical-job opportunities are based on education, education is based on property taxes, property taxes are based on property values, property values are based on investment in a community, no investment means crime and drugs (a black market literally caused and created by a lack of resources both from sociological/psychological despair and monetary incentives of those who have few other opportunities).
Crime and drugs mean no investment, no investment mean lower values, lower values mean lower taxes, lower taxes mean poor schooling, poor schooling mean fewer economic opportunities which lead to higher crime and the cycle begins again.
.
I hear you and much of what you said is valid. I used to work in Baltimore and if we’re being honest, most (if not all) of the people doing these crimes aren’t doing it because they are hungry or have starving children at home. They are opportunists who will take the shirt off your back if you’re not looking. The problem is that the behavior is essentially sanctioned and it ends up keeping people out. Also, if you look at crime rates, 19 of the 20 poorest countries are all African countries, but only 1 of them is in the top 10 for crime, so the argument that poverty equals crime isn’t completely true. If you’re hungry and have starving children at home, then you’d steal from supermarkets, not destroy someone’s property to pawn and buy electronics and consumer goods.
The vicious cycle was designed for failure. Some people don't want these types of cities like Baltimore and Philly to improve. Animals must be kept in a stable only befitting for an animal. Then again Wild animals that live in the jungle and in the forest live in a better environment than the humans that live in these cities. It's all by design.
The root cause is lots and lots of unprotected sex.
So what's a viable solution?
Cool story, but if they didnt sell their taxpayer funded food stamps they wouldn't have to steal to eat...
As an investment group a conversation could be had with the city council to determine a deal. Tax breaks, contractor deals etc...Also a waiver of liens. Once a total renovation and rollout plan is presented Multiple blocks can be razed and reconstructed increasing the taxbase in the city. But the project would need to be sizable
i looked up houses when i use to hang out in nefarious spots of Philly... you can get a super nice row house completely renovated for under 50 grand...just have to deal with people shooting up outside on your doorstep
I'm not even into anything your channel is about but this topic I've just always wondered. Thank you for explaining it in so much detail
It’s great when you google a question and you get exactly the answer you’re looking for. This plus your renovation cost breakdown = gold! Now I can bid with a little more knowledge and confidence on these two upcoming B-more properties up for auction.
predatory liens for sure. I would love to interview you over at the classy climb channel.
Sure thing! I think that's a great idea!
Classy climber
@julio ochoa Mexican= higher marriage rate, and multiple family members in one house. And also that's pretty far off. Over 52% of black people live in suburbs and rural areas. So majority of black folks live just fine.
@@ErickaWilliamsCC Thanks for educating that clown.
& how dare he compare the plight of Mexicans to that of African Americans. No other race even comes close to how our people suffered. Not even the Jewish Holocaust
Ericka Williams I’d like to interview YOU on the 4 the kulture podcast 🙂
Very informative... I just started taking a second look at Bmore $1 properties. And yes, the Comps are an issue, if the Realtors and banks wont go 3 miles away. And it doesn't makes sense to have 1 unit Reno's but the left and right unit still bad. An investor must get an entire block, rehabilitation them all, and try to sell from there. That easily get into the millions, and that's if the natives dont destroy it in the process.
In one breath, they dont want the run down area, but on the other hand they dont want to see develops come through, because they know the developers are not there for them. DC has done the same thing, now look at it. $1mil property that only top people can afford.
Gotta get a group together to attack a whole block at once.
Natives 😂
@@FAKETV96 u are native to where?
As stated in the video and above, the city's unwillingness to deal with the tax lien problems makes whole block solutions impossible. The lien issue absolutely needs to get fixed before major progress is possible... and it is fixable.
Classy Climb Crew here. This was very informative. I have always wondered why these cheap and almost free houses just sit there but you provided a very clear explanation. Thank you! I think I'll check out some of your other videos.
"Pushes them out"
Gentrification
Thank you for this information. For some reason I am always angry when I see the conditions in the city of Baltimore. This has helped me to understand what the real causes are.
You can take the people out of the trash, but you can't take the trash out of the people is what I think the real causes are.
Most interesting video I’ve seen in awhile! Great job. Hopefully you have more like this on other dilapidated cities. Keep up the good work please !!
Great job Devin! Very informative videos. I have watched tons of real estate videos but I find your videos very realistic and devoid of all the bogus stuff that puts me off many other videos. Thank you for sharing. However, I have a question. Can you recommend a resource to me where I can learn how to fund a project with hard money lenders and have the bank pay them back etc? I am totally new to this and I need some hand-holding. Thanks again.
Thank you for this, I worked at the Cleveland Land Bank and this is all accurate. There are way too many strings attached to these properties for anything productive to happen, unless large scale projects and/or companies start moving back into urban areas. I don’t see happening anytime soon.
It might cost even more to demolish the buildings given that they are older and have asbestos. So the EPA won't even let you do a simple demolition without high costs for asbestos removal. The government should do something bold and repurpose the land or create programs that help disenfranchised communities all while improving communities. It's so tough. Not an easy solution. Great vid!
Excellent point! Something certainly to think about since many wonder why the city won't just demolish them
@ George Nikokiris.... you said "the government should do something...." which made me wonder if you were referencing the federal government.... the same federal government that gives away billions of dollars in "grant" monies (these are not loans) to mostly Middle Eastern nations every-single-year....
I kind of wonder if they could like, crowdfund a square mile of the city and basically guarantee employment from companies and basically "aggressively gentrify" areas where no one lives anyway and actually stimulate the economy. Might be an interesting idea.
I love that idea
I learned way more than I thought I would in this video great content
I've never been interested in owning real estate for investment purposes, however, I have rented three times. Some renters "intend" to increase the value of the rental, while they live there, because that "improves" the quality of their lifestyle while renting. Some people don't understand that. Whether one "owns" (and that is always debatable) or rents, some people are "invested" in their own lives and want a certain kind of environment to live in. Some people DONT. Remember, Take Good Care.
Thanks for the information. My wife and I loved to go to the Harbor to stay. We were warned by multiple people to stay within the Harbor area. One day we decided to venture out by car to the surrounding areas and saw just how bad some of it was. Our first thought was to pick up a block and renovate it. We thought that surely this could be the next Harlem revival. Unfortunately, a friend was explaining what you were saying. It’s easier said than done, especially with the politicians in office.
Yeah its generally a common thought for a lot of people to just buy a whole block, especially when they learn about the prices. It's fortunate that you consulted your friend before making the purchase
yo boys
I lived in Baltimore one year, to be close to Johns Hopkins Hospital. That was more than enough of that terrible city. I couldn't wait to get out of there and move to Virginia.
Im in DC and was thinking of moving there but now having second thoughts
I have heard that from every single person I've ever known that's lived in Baltimore, including my younger brother. I've never encountered anything like it with people from any other city.
I lived ten yrs in the city, moved in from the county. Went to JHU area first, then Charles Village, across to Marble Hill/Bolton Hill, a few years in Midtown (Station North), and finally Downtown on Pratt Street & MLK.
After that I chose to leave because the city had more crime & violence than I was willing to put with. Most of my friends who knew me before/after commented about how I had become “hard”. Im 6’ 200 lbs and covered in tattoos, and yeah, even on the inside that city broke something inside me to where I really don’t want to go back.
Wow, good info! Ericka Williams' Classy Climb Channel brought me here!
Great information and thank you very much!
They answered the question when they said Baltimore, Baltimore is the reason.
I'm so glad I got out of MD in the summer of 07
The entire state of Maryland is bigger than just the one city of Baltimore 🙄
@@ltphilipg I know, was born and raised in Chuck County, but worked around DC and Baltimore until 30, only thing I miss is the seafood
@@ltphilipg Yet it, Montgomery, and Prince George's County have a complete stranglehold on the state. Then you wonder why everything is dysfunctional.....
Great video good info because I was definitely curious about Baltimore cities market 👌🏿
I'll be posting more on the neighborhoods in Baltimore soon. I'm actually thinking of doing a few neighborhood studies
thank you. like your friendly,info approach. helped explain liens that an elderly,underfinanced friend found encombering selling her home.
Found you through the Classy Climb Channel. You both give solid information.
Awesome! Thank you! I appreciate that this content is very helpful!
Well said, I learned a lot. You should teach.
The only reason they tear down houses is because it is cheaper than to renovate the existing houses. Which is really sad because the city then loses its historic buildings....Baltimore can be a beautiful city if they renovate the existing houses instead of tearing them down...just look at DC and how the area behind Capitol Hill has improved. It's the best part of DC because it kept those historic row houses intact.
I really hope that Baltimore decides to preserve these homes. Developers building a bunch of high-rises will turn it into yet another American city with no history.
I'm looking at Baltimore right now to buy a property. I just can't stand to see the city's history destroyed like that.
I agree with alot of what you said. However. I've lived there myself in the past and there are thousands of abandoned homes in Baltimore. It's to many to preserve. At the rate it would take to do renovation during the process thousands more would be created. They have to tear them all down in order for healthy progress to begin. The crime rate in the city is comparable to a 3rd world country, and the housing has alot to do with it. As well as the city's low education rate. I would encourage you and I'm saying this nicely, please don't buy property there unless your planing to rent or live in Baltimore county. Stay away from Baltimore City tenants or living your self there. One - two people get murdered there every single day. Not a good place to live. After 10 people take 2 min Uber rides to their homes because they simply can not even walk home. The culture will always be there because the people are there. The abandoned homes need to go. It's the reason why it's so much rat & Roach . The people who live in those areas could care less about keeping those streets clean. I hope they rebuild soon. I moved to Charlotte after 37 years in Baltimore. Before I couldnt see how bad Baltimore truly was. Living here has really opened my eyes.
@@nubianqueen45 Thanks for your informative response. My general belief is that all inner city ghettos across the United States are going to disappear in the next 20 years. Baltimore won't be immune to this. Trends are changing, young people want to live in cities and could care less about owning a car. They want to walk and bike to work and be where the action is in cities.
I'm over in DC and it's impossible to rent a room anywhere downtown for less than 1,000 a month. I would like to test out whether it is possible to live in central Baltimore near Penn Station and commute to DC in the mornings via train. I looked at the schedule and it only takes an hour and you can take your bike on the commuter train for free.
I think that more and more people will begin relocating to live in Baltimore as DC becomes too expensive. That's why I think it would be a good investment. I guess I see a lot of potential in Baltimore given its proximity to DC, and then also on a larger scale to Philadelphia and New York.
A lot of the arguments people gave about the center of DC and New York involved them being filled with crime and dangerous. But those individuals that bought apartments in those areas 20 years ago made the best decisions. I think that buying an apartment in Baltimore now is like buying an apartment in central New York in the 1990s.
Of course, I could be very wrong about this and I'll find out tomorrow how 'bad' it really is in Baltimore. Please tell me if I am being delusional with my thinking. It might be that the situation is a lot worse than I imagine.
What I do like about Baltimore from the streets and documentaries I've watched is that the center has retained a bunch of old buildings that make the city feel a lot closer to European cities. I really hope that history that made Baltimore such a great city in the past is lost forever just because currently the city is in a bad situation. There's so much history to the city, it's a shame for it to disappear.
I have a European background, my parents are from Serbia and Croatia and I live in Europe for a significant part of the year. The reason Europe is so great is that it preserves its historic architecture.
Cincinnati has managed to clean up its center and keep the old classic architecture. A lot of other cities have managed to do the same. I hope Baltimore is able to do the same.
Yes you can get nice apts under 1k. Just stay away from the city area. Your life is valuable. Stay in Baltimore county and you will be fine. And if you do move to the city do not walk anywhere alone at night.
@@nubianqueen45 It just seems crazy that it would be that dangerous there, but I will visit tomorrow and see firsthand what it's like. I'm looking at areas near Penn Station and Mount Vernon.
People are leaving the city to live out in the county .
Excellent breakdown to a question I had for a while now
Awesome video thank you for sharing!
One thing I've learned from my mentors is that it's better to buy a great investment at a fair price than a modest investment at a cheap price.
Interesting breakdown of the problems. I live in a nearby state and have experienced some of the issues. I bought a beautiful old house that was pretty sound, structurally, at a rock bottom price. My plan was to live mortgage free so I could retire early. I'm satisfied with the choice but am happy only if I ignore the blight all around me. Mine is the only owner-occupied residence; the rest are slumlord owned with low-quality tenants. To be fair, the neighbors are sometimes very nice, but their struggles and low expectations guarantee that my property value will remain low. I do all renovations for my own enjoyment and accept that I won't earn it back on resale.
Same here but in the UK. love my home but the area is a dump!
@@therewdy4038 Curious as to where in the UK..
@@myscorpions L4 LIVERPOOL
nicely told....you truly schooled me literally
This was very eye opening. Thank you
The Baltimore market will change in those warzone neighborhoods. Investors would just have to be willing to wait many years. Possibly decades
And then push the people somewhere else? The problem still exists
@@tjpaiva3296 Welcome to America
Organized action can cure pretty much any problem.
Well presented vid on the hidden pitfalls of investing in low value real estate in Baltimore.
This is absolutly craziness! What a very broken system. Thanks for the video bro. I was talking to another investor the other day about one of those areas.
I'm glad I could help. Just please keep in mind that this video is only referring to entire rows of vacants. You can still buy a vacant if it is surrounded by well off properties
For some reason I’ve found these old row houses in Baltimore to be really fascinating. Must have been hopping back in the day. Sad it’s difficult to bring them back. Perfect for “gentrification,” even though that can be a bad word.
Pushing them to other neighborhoods does one thing. Brings down the neighborhood they move too. I grew up on northeast and its gone way downhill
Thanks for making this video. very interesting. I'd be interested in hearing more about the reason/story/politics behind the lien situation on these properties.
My channel really doesn't get into the politics or history. I think other channels are better for that. We here only talk about the investor perspective of how it is today.
Did I miss the part where he says that entire neighborhoods are filled with criminals and drug addicts?
The only way to invest in inner city Baltimore and profit is if Gentrification happens. The quality of people who reside in the area doesn't care for the area which is the problem.
Without gentrification there'll never be any human developement anywhere on earth. Its the only way to develope cities, towns and even villages. Its a neccessary part of any development plan.
@@pdxmax01 No it's not... Maybe if you didn't need to benefit from everything you could just fund it.
@@xaviermccloud4586 giving funding blindly in Baltimore is a bad idea and it has been tried and it was a total failure. If the people who lived there cared and took care of things then gentrification wouldn't be even a discussion.
@@pdxmax01 it is a mix. I think gentrification can save most rundown urban areas in key locations. Baltimore would need it and probably won't be anything more without it. I think the principal up there is that they keep the crime in a particular area while the suburbs thrive. Washington DC shared the same principal until recently.
You speak with honesty.
I worked in some of these renovations, so sad to see people walking home from the corner store and drop trash on the ground. Every day sitting in my work van having lunch I’d see this.
Trash everywhere in that city, truly ugly place.
Same problem in Detroit!😡
@@loisaustin6200 such a shame , most of my neighbors moved out of there in the late 70’s. I’ve heard so many story’s about what it was like before. Politics ruined the city
@@sherrygorman9083 shameful what’s happening to Americas once shining examples.
I live in a nice middle class neighborhood on a through street and sometimes people throw their garbage out the car window. It lasts only till I see it and I pick it up, it only costs me minutes. If left it attracts more garbage, same goes for graffiti.
Dear Mr. Moreno, Thank you for an honest, unbiased, and careful analysis of this problem. ;-)
Great video. Keep the great info flowing.
Thanks, will do!
Hi, I like your video, can you put more updated video? like where and how to get public action, city wound property's and so on. I am planing to do just that with a very low budget. Thank you
AJAY hello are you willing to exchange information ? I’m really interested.
No one mentioned the rats the size of cats.... if you rent them out after you sink money into it, you just have to do it all over after renters tear it up again.... been there, done that....
Really interesting take on vacant houses. I think this deserves more views.
Very good explanations for some very "taboo" subjects. Thanks
Wait what? This is the most generous description of Gentrification I've ever heard. And it's carried but, I don't know how it works.
Gentrification does not help those people it replaces them with others who have the financial ability to pay more, pushing disenfranchised people further away from services.
Thank you for this information, I live in DC and wondered the same thing. Would love to meet up and learn more about investing into real estate .
Dc is a total win if you can afford it
@Epic iTunes if I buy properties with the sole intention of renting, not flipping, do you think I could do well in baltimore?
@@topdog8678 not really ….lol it’s just as bad crime wise , and much more expensive . the food scene in bmore is also much better , dc has better nightlife and public transit . DC is a scam , charge outrageous prices for housing , decent property taxes but the houses are crazy expensive .
Wow thanks brother for sharing, hey i have a friend bought a houses he fixed now have problem to sell, what you recommend? He have hard money lender and the interest rate killing him.
Great job man!
You just described "Gentrification". I worked in NYC back in the 80's for NYC at a very good salery. A group or my coworkers ,combined resorces and purchased abandoned propertirs from the city for as little as one dollar. The city forgave tax leans and absorbed utility liens ,by allowing the companies to raise rates on everybody else.. They paid the tax rates for 5 to 10 years.Rehabed the properties slowiy. Now those rehabed townhowses in Harlem go for 5 million each. The ones in Brooklyn go for 3 million . As a Young person you should start donating to local politictians , who can make that happen. As the politician Clay Davis in the HBO series "The Wire". said"Shhheeeeit".
Donate lmao you mean try to buy?
@@jambajoby32 Not really, when people or industries "donate" stuff. They just use it as a tax deduction for money they wouldn't see anyway. Have you ever wondered why every millionaire athlete has a "Charitable foundation"? It's because their accountants tell them, not to give their relatives money, give them jobs in your "Foundation" and because every dime they lose is deductible from the over %50 they pay in taxes ( a 20-million-dollar contract equals 11 million in your bank account)., on their multimillion-dollar salaries. If one gets out of filing the 10-40 EZ. You learn stuff like that.
Good content, I am doing a house hack in dc right now been looking to understand the Baltimore market better. This helps thanks
House Hacking in D.C. is definetly something I will be trying in a year or two. I think the market there can work if you dont get a house that is too expensive
Thank you this was very informative
Can you talk about what areas in maryland would be a great idea to filp or invest in?
Great video! So what is the path of progress in Baltimore right now? Some say it’s north east and others are saying it’s south west
You’ll be a fool south west is a third world county
investors are pouring Millions of dollars in east baltimore
I have seen those homes and they are falling down due to old age and neglect. In Washington D.C. they purchased entire neighborhood of bad row homes, knocked them down and built brand new homes instead.
While this sounds to be a great idea, the way building and construction of homes now are different, expensive and the materials aren’t of excellent quality like back in the days. I’ve seen Victorian homes with great wood. These homes are going up in prices.
Liked and subbed. Great info, interesting comments
I always had this weird thought that if you bought 4 city blocks, knock down all the houses, wall off the 4 city blocks with high concrete walls, and a heavy gate, bring in top soil, trees and build a large house in the center. It's a crazy pipe deam.
Ugh because they don't want to have to call the cops and t hen become targets...unless u plan to allow drugs to be dealt on Your block..
Or in your front yard..😩🤭🤭
If it’s your block then keep it that way. Make it a gate access only community
Good questions, I think investors of a different sort are buying and selling. The boarded up houses are often used same as the tokens in the Monopoly board game. Ramshackle house is bought for much more than its worth, a large wad of cash changes hands, the city gets its taxes for the transactions, they building sits for a couple years and is sold again, this time for a radically different amount, money changes hands, taxes are paid, and the cycle goes on. Another interesting aspect to the board game is that many of the people who are involved with the transactions are immigrants. Now, I have no dislike for immigrants, my ancestors were once immigrants, but why is it that people who are recent to America are buying and selling dilapidated buildings????? yet not doing anything with them??? I say its money laundering or tax evasion. When large amounts of money leave or enter a person's bank account, and there is no explanation, like a sale or purchase of real estate, red flags are raised.
THE CITY GOVERNMENT IS NOT INTERESTED IN DILAPIDATED BUILDINGS. If it was a concern they would be dealing with the slumlords.
Why is the Uni MD Bio Park being funded by taxpayers while the buildings are owned by an LLC at a PO box number in Pheonix AZ????? Why does the city gov. buy up land around the Bio Park, level it then hand it over free or for pennies on the dollar to the insiders of the Bio- Park. Once they demo the properties, the history of the previous owners and sales transactions are erased on the MD Real Property search web site.
Please keep producing these videos and keep digging for the truth.
Best comment !
🙂💖🏆💎
all your side is spot on David
Thanks Devin nice job.
Do you know of anyone that has rehabed a property in Baltimore and chose to rent via the ‘Section 8’ program? If so, can you share any of their experiences. Thank you very much.
Yes, a family member did a fews years back in NE Baltimore. Tenants were a nightmare. It eventually got dragged through the court system. One of the hearings I attended, the judge actually threw the tenant's girlfriend out of the courtroom because she was being so disrespectful to the judge. Needless to say that relative had major regrets about getting involved with that program.
AND.....while your renovating be sure and wear a bullseye on your shirt!!!
If I had the money I would .What's sad is so many celebrities and rich people were born or raised in Baltimore and what are they doing nothing . Even through I left that is still my home .It's sucking when wealthy people with money watch there hometown get boarded up and torn down .
I had the same thoughts. If came into a fortune, revitalizing bmore would be a amazing way to spend it.
Ericka Williams' Classy Climb Channel brought me here! Great Content!
Thanks! Welcome to the channel!
The vacant still have the bodies put there by Chris and Snoop.
Here in England we have a quaint expression which adequately sums up the situation here: "You cannot polish a turd."
Over here ,we have a saying "picking up a turd by the opposite end doesn't make it smell better".
🤣🤣🤣🤣
Just curious if there's any value in a "buy n hold" strategy? That is, buy the property, do nothing and hold expecting the value to rise as development moves in later, thus eating the small property tax loss in the meantime?
Great vid!