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.

Take a ride on High Flying Florida

Press Release (July 27, 2010)

Time To Take A Ride On High-Flying Florida

Figures released last month have indicated that the Sunshine State has become a prime holiday destination once more for both US, and overseas visitors. Visit Florida, the official tourism arm of the state, announced that in the first quarter of 2010 an estimated 22.7 million holidaymakers descended upon the golden coast – an increase of 2.7 percent on the same period last year.

The breakdown of the figures show that 19.7 million US residents enjoyed Florida’s beaches, and waters, while there was an 8.1 percent increase of overseas visitors arriving at Florida’s airports for their time in the sun.

Ed Fouche, chairman of Visit Florida, was quick to extol the figures as great news for the state, and for its own efforts in promoting vacations in Florida, as well as an upturn in trips across the border by Canadians, which was up by 5.3 percent of the total.

“This clearly demonstrates,” he said, “that well-executed tourism marketing is a smart investment.”

It is a mantra that Ollie Booth, CEO of USA Property Investor, is also keen to echo.
“Florida is hot, in more than ways than one at the moment”, says Ollie, “and we are forecasting a surge in property investment in the next few months. With prices too good to miss, there has never been a better time to invest in the Sunshine State.”

For instance, in West Palm Beach, Orlando, you can purchase a 2-bedroom, refurbished condo with fantastic onsite amenities at a jaw-dropping 80% reduction from the original sale price. A 10% net yield on this rakes in a profit of $295 a month.

Or take a brand new 3 bed, 3 bathroom Orlando town house currently tenanted at $1,000-$1,100 a month. These are selling at just $99,950. A third phase of new-build will be available later this year – but the prices then will be starting from $155,000 per property.

“These are just some of the amazing investment opportunities that are currently available to investors,” says Ollie, “but the key word here is currently because with the new interest in Florida as a holiday destination, prices won’t stay this competitive for long.”

On current trends, new high-flying Florida could well spawn a new breed of high-flying investor.

The Short Sale Phenomenon

Short sales have often been mentioned as a way of getting a really good deal in the current climate, even better than those on offer due to foreclosures.

What defines a Short Sale?
Basically a short sale is where the homeowner cannot afford to make any more mortgage payments, which means they have defaulted on their mortgage. Only once this happens will the lender consider a short sale.

So when a short sale occurs, the lender is prepared to accept an amount for the house which is less than the existing mortgage, hence the “short” element of the sale.

To get a lender to accept a short offer will depend on many factors such as how much you can put down, how much you are borrowing, how quickly you can close and if you will be able to get a mortgage.

Short Sales via Experience
It is vitally important that you work with an agent that has experience of short sales, and knows which houses are on offer for short sale. Many short sales will not be on offer to the public, so you need to know that your partner has connections so you can snap up these bargains.

Who Qualifies for a Short Sale?
It’s not as easy as just asking your lender for a short sale if you cannot pay the mortgage. You have to provide other proof such as a hardship letter, bank statement and other information; many sellers will need to be convinced that you cannot afford to make payments before they agree to a short sale.

How long does it All Take?
A short sale will take much longer than a traditional a sale, sometimes as much as 6 months, so even if the seller has accepted the offer, nothing can be done until the lender accepts.

Choices – Short Sale or Foreclosure?
If possible, it’s best to go for a short sale as this will have less impact on your credit rating than a foreclosure. It is imperative you work with professional and trustworthy people when considering your options between short sale and foreclosure.

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’.