"There are incredible opportunities for those who know what they’re doing!"
(Or who work with seasoned investors who do!):
There is a new boom in real estate caused by a rare combination of critical market factors. While some cities have low-cost housing and others have high rental demand, few have both. However, in a few areas, real estate investors have the rare combination of both these ideal market factors.
This is why savvy investors are flocking to cities like Detroit from all over America, and even from Canada and other countries. Investors are purchasing these properties for the long-term growth and positive cash flow, not short term profit — and they’re doing so in droves.
Low Price Alone Does Not Always Make a Good Investment!
Not every low-cost property is a good deal. Sure, there are stories of houses going for $1 to $1,000 and, if you buy in lots of 100 you can get those mixed in. But the average investor who’s going to buy 1-4 houses won’t get those and to be quite honest you don’t want those houses anyway, because most of them are junk.
We've walked through them. Unless you're a glutton for punishment, we'd never recommend anyone buy those properties.
Buying quality cash flow properties in these prime cities is not as simple as clicking on ads on the internet. It takes research, contacts, good systems, and a working knowledge of the area. With those in place, plus a team of excellent contractors and managers, an investor can purchase great homes for a long-term investment.
Most out of state investors don’t have these systems. We do.
We have a team of about 300 people consisting of office staff, attorneys, title companies, property managers and contractors. They’re on the ground, driving the streets every day, analyzing about 400 properties per week and making sure we buy the right houses in the right areas so we can offer the best values to you.
Let's look at one of, if not THE best area where all of these pieces come together.
CNN.com recently posted “Investors find real estate Gold in Detroit”, Nu Wire Investor named Detroit as one of the “Top 10 Cash Flowing Markets” and US Real Estate Consultants said “Right now is THE BIGGEST 24 month opportunity you will ever get in your lifetime to own investment properties with great cash flow… and HUGE equity in suburban Detroit, Michigan.”
Surprised?
There are good areas and there are some bad areas and it’s critical to know which is which. We know, for instance, Northwest Detroit and other surrounding suburbs are in high demand rent wise. They have low crime rates, high rates of ownership, and a large amount of investment money coming in. This creates a stable environment for long-term cash flow.
By working with local teams on the ground, we know the areas where there’s going to be strong economic growth and local government involvement well in advance of general public knowledge. For instance, if a new park, a school or shopping center is coming into an area, we’ll buy there long before many people living there know about the upcoming projects. We have our thumb on the pulse of what’s going on in the city.
Investors can ensure their profit potential and long-term cash flow by working smart. Always, always, always use professionals! Our company has gone through literally dozens of property managers and contractors to get to the solid group of reliable professionals we have now. They do what they say they’re going to do when they say they’re going to do it.
Detroit’s Highest Valued, Fastest Selling Homes
| Red: | Highest values and fastest selling homes |
| Yellow: | Moderate |
| Light Green: | Lower |
| Dark Green: | Lowest |
Concentrations of Owner Occupied Homes
The dark blue areas are the most dense with owner-occupied homes. Where people own their homes the pride of ownership clearly visible when you drive the neighborhood. Kids are playing in the yards. There are cookouts on the weekend. It’s a place they’re happy to call home.
Concentration of Renter Occupied Housing
This is where the rentals are. There are folks who enjoy living in multi-family housing and we want to accommodate them, but it has to fit the metric we’re looking for…Highest valued, fastest selling, highest owner occupied, and now lowest rental area. In this map the more white the area of the map, the lower the percentage of rental units. Remember the rings? Look at where the red rings would be on this map when they’re stacked up. The SFHs have the lowest number rental properties.
Vacancies
Finally, the Vacancy map, this is Very important because we don’t want to buy homes in neighborhood where every other house on the street is boarded up.
By studying these maps and overlaying them on top of each other we find the sweet spots where investors can reap the best bang for their buck. This is just a brief example of the powerful system we use to ensure you get the best values. It gives you a glimpse into all the work that can go into investing wisely in a market like this.
Just finding a property in a good neighborhood is tricky enough if you are unfamiliar with the area. Couple this with finding an honest contractor, coordinating the rehab work , finding a reliable and honest property manager and dealing with other service professionals and you can see how daunting a task this truly is. However…