OfflineIS THERE ANY HOPE FOR THIS MARKET IN DETROIT EVERYONE IS SAYING DONT BUY DETROIT PROPERTIES... I AM JUST STARTING OUT AND I DONT WANT TO GET MYSELF STUCK IN HOLDING AND PAYING ON A PROPERTY AND ADDING A EXTRA BILL. HOW CAN I ATTACK THE REAL ESTATE INVESTING WORLD IN DETROIT.
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First of all I wouldn't invest in Detroit. I would invest in the suberbs like Warren, St. Clair Shores, Eastpointe, Sterling Heights Etc. Then you will have to buy the properties very cheap. Homes that were selling for $100,000 3 years ago need to be bought for $30,000 now. Then sell the home on a rent to own contract. This strategy works because there are so many people there who want to buy but can't qualify at a bank. With this stategy you should be able to create between $300-$500 per month in cashflow and $30,000-$60,000 in capital gains. Personally I am waiting a bit longer to invest in the area only because I am investing in an uptrending market now. I have a couple of friends that are making money investing in Detroit right now.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Thanks for the advice... is there another way besides the banks to get funds.
research this. It will work for you.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
thank you
Great Advice, I'm going to make sure to look into that.
Those who say it cannot be done should not interrupt those who are doing it.
The problem with Dety market is jobs. They have been so dependent on autos for so long and we all know how that story turned out.
you approach the owner of a property and negotiate a lease option on the property with favorable terms, i.e. no future valuing, no upfront option payment, rent credit, etc. you want to make sure the contract has right of assignment. then........
you find a lease option tenant, a person that either cant qualify for financing traditionally, or that want to try out a house before buying it, etc. then you negotiate with them for better terms on your part. upfront option payment, usually 2-3% of the property value, non refundable, future value the house, etc. but be sure to offer rent credit and apply the option consideration (the down payment) to the final purchase price, this way, you can make sure they qualify for financing. you'll also want to have a lender pre qualify your tenant based on their situation in two years. if you need that,
Anita
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"FAILURE IS NOT AN OPTION"
Is Detroit ever going to rebound in future? Are people so broke in Detroit that they can't afford to pay a half way decent rent? Reason am asking because properties are sooo cheap there right now. What are the neighborhoods like and what are the RE laws & city's policies with purchasing these houses?
"I will NOT BE BROKE! ANYMORE!"
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the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
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24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
You have to do your due diligence when buying in detroit. One block could have nice house with nice green cut lawn then the next block over is abandoned houses that are crime infested. I agree with Matt invest in the burbs. I invested in Det and all I got was low income residents. Now that im more educated I will never make that mistake again.
Joel Thomason
Thomasoninvestments.com