Feelin the Detroit City heat and loving it!

I’ve traveled to Detroit this week to meet my team and meet some new members of our expanding team.

Looks like I came at the right time as the weather here is scorching hot! must be mid 30’s everyday – beats old blighty right now!

We’ve got so much going on here, property purchasing for clients, refurbishments, inspections, tenant screening, title work, new areas we’re looking at investing in, land contracts, the list is endless.

It’s not all work though. Downtown Detroit is lots of fun. Shopping centres, IMAX cinemas, Detroit Tigers played yesterday (I missed the game by the way,) bars and restaurants. I’d definitely recommend taking a visit here if you get the chance.

Detroit’s housing market continues to strengthen. Lots of demolishen of old redundant neighborhoods being converted into parks, and scenic areas within the city. Demand for rental property is soaring amongst investors and we feel this first hand. Section 8 are struggling to keep up with demand to do their inspections, which although frustrating for us and our clients, it is still a very good problem to have!

All in all a Detroit is a great city, business or pleasure, and I’d totally recommend putting it on your itinerary.

As for me, today I’m going back into downtown Detroit to do some shopping and then back to Dearborn for some more meetings with some of our team members this afternoon, then back to Plymouth to watch a movie and some dinner – well, I can’t work all the time!

Californian Property Baron sweeps up houses in Detroit

As we have said many times on this blog, Detroit is one of the hottest property areas for investors, and today we’ll bring you a story about one US investor who is making hay amongst the Detroit property market.

Michael Alexander is founder and co-owner of his property buying company in Detroit and together with his partner has already purchased 250 homes in Detroit and has a waiting list of buyers; the strategy is that when the Motor City rises again, and workers move back into the area, he can sell his properties for a tidy profit.

Finding the Properties
Alexander’s formula is pretty simple – he drives around nice neighbourhoods in Detroit and purchases any houses for sale in the street in the price range $20,000 – $30,000.

He then spends anywhere between $10,000 – $20,000 refurbishing the properties before either selling or renting the property.

Alexander avoids bad neighbourhoods in inner-city Detroit, as even though the house prices are very low, the houses will be impossible to rent out and hence offer no return.

Renting or Selling
Once the house has been refurbished, then it’s the turn of the property manager to earn his wages. His job is either to sell the property for anything between 20-30% profit, or alternatively to rent the property for a good return.

Success Rate
Of the 70 houses Alexander has refurbished since last winter, 64 have been successfully rented giving an extremely good return and success rate.

Summary
Alexander is executing exactly the strategy offered by UPI; we also source low-cost properties in good areas. Refurbish to a high-standard and then our property manger rents them out to give you a guaranteed 13% minimum return.

USA Property Investor | Driving Force in the Rejuvenation of Detroit

Latest press release on USA Property Investor & the Detroit housing market

UPI creates unique investment opportunities to ensure Detroit renters and families get access to quality homes following the recession

After being hit hard in the recession, Detroit has begun to find its feet again in a big way. This improved economic outlook means serious investment potential for savvy investors. UPI is leading the way in this, applying their investment knowledge to bring together families who have lost everything with those able to help them reclaim home life.

In Detroit, the recession struck particularly hard and escalating unemployment along with business closure has meant that many people who lost their jobs were simply unable to find another. The severity of the recession has left an unprecedented number of people finding themselves without the security of a job and a roof over their head.

As things begin to turn a corner, however, what was looking like a dire situation is now one that is offering a great deal of opportunity for those who want to purchase a property in Detroit at this time. Both investors and those now back in employment can look forward to a brighter future as people return to steady jobs and begin looking for somewhere to live and settle with their family.

UPI is an organisation assisting investors able to purchase and restore properties in this region, helping people to secure much needed homes in the area. In a region where there is a shortage in excess of 30,000 rental properties, UPI is now providing a much needed service.

This real estate organisation is providing a service for investors by taking over the sourcing of quality properties. Those who invest with UPI, can finance the property deals and are able to gain returns without having to take responsibility for the restoration and management of the rental property.

This is a win-win situation in which there is a net increase in the number of rental homes, providing much needed accommodation; plus investors can feel confident that they have secured in-demand, rental property in a location which has strong projections for future appreciation in property values.

In the current climate there is an overwhelming demand for property that is not being met. That means right now is the ideal time for investors to get involved. Putting money into rejuvenating properties will give the city a boost, and there is no doubt that this will in turn bring in positive cash flow for those investors who grab hold of this opportunity at this time.

When discussing how this investment system would play a part in rejuvenating Detroit, UPI owner Ollie Booth described what the boom in Detroit property means at this time. ‘Right now the city is changing and this means really great opportunities for investors who are ready to take advantage of that outstanding opportunity’.

“ReFresh” Detroit Success Has Bearing On Real Estate Market

When once there were automobiles, now there are businesses. Two weeks ago Detroit’s Mayoral Office announced it had selected five new neighborhood commercial corridors in the district as part of its on-going drive to encourage re-investment in the city.

Since the projects inception just over a year ago, the Office of Neighborhood Commercial Revitalization has overseen the birth of 211 new businesses, 700 new jobs, and delivered technical assistance, and start-up loans to a total of 2,000 firms seeking advice on business growth, and expansion. As a direct result of the ONCR influence, over $100 million of private investment has been pumped into the Detroit economy.

It’s good news for Detroit, and possibly the catalyst for a surge in domestic property investment as now has never been a better time to acquire a foothold in the market. Prices have been rising steadily since the turn of the year, and Ollie Booth of USA Property Investor (UPI) is quick to point out that those prices will keep on rising now in light of the recent upturn in fortunes for Detroit’s business community:

“While it’s good news for the city’s businesses, it won’t be good news for those looking to get a foot on the property ladder,” Ollie says earnestly. “Prices have continued to climb in the housing market, and really now is the best time for all those looking to invest in single homes for families, or multi units of two, three, or four apartments, or even commercial properties.”

And that’s where real estate firms such as UPI come in, bringing all their experience and know-how to make such investments easy, and stress-free. Detroit has been hot for a while, and UPI has been busy spreading the word that Detroit has been the place to make serious financial stakes for some time.

“Our aim,” says Ollie, “is to recycle low cost housing, turning foreclosed and uninhabitable houses in Detroit into refurbished, clean, safe homes for low income and often homeless families. These families are homeless, in many instances due to landlord foreclosures.

We provide a much-required service to a region struggling with a shortage of 30,000 rental homes. We are offering all our investors the benefit of a ‘hands free’ or ‘armchair’ investment. In return our investors will receive solid, passive income every month and a property that is poised to appreciate in value in the coming years. We refurbish all our investors’ properties at outset, within one all encompassing cost.
Our investors receive excellent yields with the additional benefit of knowing that they are helping to solve a housing crisis, assisting low income families in US, often not as fortunate as themselves, with the security of the Section 8 HCV Program backed by the US Government. This ensures that your rents are paid on time every month with no exceptions.”

So with the Mayor of Detroit giving the city ‘Refresh’, perhaps, says Ollie, it is time for private investors to Refresh their stakes in the city too.

USA ranks 12th most profitable housing market

A worldwide survey of the best (and worst) housing markets has been released by some economic boffins in a library somewhere and the USA ranks 12th overall.

Quarterly Rank: 12
Quarterly Price Change: 1.3%

comments:
The U.S. was mired in recession for most of 2008, spelling doom for its housing market. Vacancy rates skyrocketed, with Los Angeles reporting a rate of 10% at the end of last year. But the U.S. is starting to see signs of recovery. Asking prices in several housing markets across the country increased in August, particularly in San Jose and San Diego, which experienced jumps of 1.7% and 1.3%, respectively. What’s more, inventory levels declined in 22 of 26 markets, with San Francisco reporting a healthy contraction of 5.1%.

These findings marry up to our own. All the markets we invest in, Detroit, parts of Florida like Orlando, Naples, Kissimmee and others have all shown signs of recovery. Prices are stable and in many areas competition for investment property is driving values up.

Bottom line, whilst values are still extremely low and rental yields are high investors will continue to buy.