As you see, Detroit is on the 7th place, before cities like Atlanta, K.C., Vegas, Phoenix and some other ones.
Blame it on Detroit as much as you can, but so far is the best area cash-flow wise and rent vacancy; full of renters, while in some other "glorious" locations the number or rehabbed properties secured by investors are exceeding the number of potential tenants.
From my research, the prices in the suburbs around Detroit City are 15%-20% higher than they were at the beginning of the year. This confirms the trend started last year – in October Detroit's real state had an average price growth of 2.7%, which over passed ALL the other cities competing with Detroit.
For me it was and it still is the only option.Cheers, guys and happy investing
mihovi
Its exciting to see such quick turn around this year… We have been waiting for it for 4 years…. Still nothing like the go go days of 2001 to 2007,,, but its moving in the right direction.
Also, when a 20k house moves up 15% its now 23k so those kind of stats are misleading.
It will be very interesting to see where this all settles out in the next few years.
The bigger US players are buying right now… In my talks with one Silicon valley hedge fund they have bought 1200 homes since April in 5 states… Now it will be interesting to see how they stay on top of it all.
And foreclosure court house step actiivity according to another of my associates in PHX houses are bidding above retail forget wholesale… Its easier to buy a foreclosure than wade through the short sale disaster process.
For me I just count my self as one lucky SOB to have made 200 plus loans in detroit and got paid back 100% of my funds on 196 of them.. But the 4 I did not get out of in time cost me 200k or so in cash…
You get in the wrong street in Detroit and your going to get hosed thats for certain…
Just like any of the other inner big cities… suburbs are where its at for sure… Atl is the same way i would not buy fulton county sub 20k houses.. too hard to manage just like detroit.
What really excites me is the way our building business is coming back… we are making real money on each and every home we build and sell… there was a day there when I had to write checks to sell properties and that my friend was not fun.
JLH
As you see, Detroit is on the 7th place, before cities like Atlanta, K.C., Vegas, Phoenix and some other ones.
Lol, come on man. A yahoo article. It's like a little kid saying my area is better than your area.
Its all relative to the price of entry….
Yea its gone up in value with all the idiots that have invested there. Dont waste your money on this third rate city
Nigel Kibel | Property Know How
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Jay, you are right again, for a hundred-th time. In Detroit, if you are on the wrong block, you can go very wrong.
Of course, Yahoo's article is far from the truth, as we speak, but the prices in Detroit's suburbs are high, as well and is still good to invest there, if you are not familiar with the inner city.
But I'm sure , sooner or later, the majority of the cities will see a nice rebound, not the 2007-2008 prices, but even 75%-80% in the next 2-3 years will still be excellent.Nigel Kibel wrote:Yea its gone up in value with all the idiots that have invested there. Dont waste your money on this third rate cityNigel,
Please what do you really mean??? Please do not hold back
<br /
:)” title=”>:)” class=”bbcode_smiley” />JLH
Mihovi
I think the major issue Detroit has and some other venues..Rochester, buffalo,, anything Ohio come to mind
Is the spruikers be it OZ US or GB have hit it so hard and so many people have had bad experinces,
Poor detriot gets lumped in…
Really if you bought Inner city ATL you would have the same issues as detroit.
When everyone talks atlanta on this site they are really not talking atlanta but the suburbs..
so much like detroit suburbs….. Its just a different animal..
Me personally If the Detroit proper had not imloded like it did I loved those briker's
And I like Detroit,, Down town is fun and Safe ( albiet because there are mounted police on every corner and that is no fabrication)…. But there is a huge water front and big water just minute boat rides away.
I can go on and on and the poor Ozzies that bear to even read my stuff now will just puke.
Its the curse of being able to type 70 plus words a minutes and don't give a crap about spell check
Jay
I agree there are a lot of other bad areas in the USA Including ATL. The point is if you are going to spend your money there are plenty of better places top spend your money
Nigel Kibel | Property Know How
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I live in suburban Detroit and I can confirm that the housing market is on the move again. I can't confirm % increases, but houses are selling and rental demand remains strong.
Nigel Kibel wrote:Jay I agree there are a lot of other bad areas in the USA Including ATL. The point is if you are going to spend your money there are plenty of better places top spend your moneyNigel, as I'm one of those "idiots" investing in Detroit, I'm still confused about your late statements: are you talking about spending or investing? Of course, if you want to spend your money you can't go in the next Casino, but is this investing? C'mon man; it starts to be ridiculous…
Blame it on Detroit as much as you can, but so far is the best area cash-flow wise and rent vacancy; full of renters, while in some other "glorious" locations the number or rehabbed properties secured by investors are exceeding the number of potential tenants.
Nah, that statement was ridiculous.
But so far is the best area cash-flow wise
Compared to what?
You post a general story from Yahoo and you can wow somebody not from the states. Your general comments aren't cutting it. I still can't get over the statement you made earlier.
I believe that money can be made in any city as long as you have great people managing your investments. Even in a "third rate city" as mentioned in a post above.
My business partner and I have successfully been investing in Rochester, NY (Jay's favourite city haha jks)
My partner has been invested in the area for over 10 years with great success.
I dont know much about Mihovi only from what I have read from a few of his posts but maybe he works the Detroit market well.
EngeloRumora | Ohio Cashflow
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Well, altogether, it seems that most of the Easter region of the US is not doing so fair in real estate, besides cities like Norfolk (Virginia), Boston (Mass.), and some of the cities in North Carolina. So, I guess the <a href="
/evansmarc.wordpress.com/2010/09/24/real-estate-virus-generic-marketing/” target=”_blank”>real estate virus is running through other areas, as well.Everyone should take Nigel's advice on this one…
Nothing against Detroit or any of the other cities mentioned before hand but be careful and take the time to do your due diligence before spending a dime. Unfortunately there are people in the States and across the globe that are going to scam people with false expectations of real estate in America.
It may take a little more effort and time but there are ways to research yourself and get more comfortable with certain areas of the country before you even reach out to someone in the states to rely on for assistance.
John-USA-CommercialRE
Email MeNigel Kibel wrote:Yea its gone up in value with all the idiots that have invested there. Dont waste your money on this third rate city[/quote)
Nigel I am afraid this is happening in most USA markets .The investor demand is driving the prices up. Most are overpaying forcing even wholesale guys to raise the prices. Things changing fast here in the USA with alot of funds stepping in to buy properties. We are having fierce competition from one group. They are buying both in Atlanta and Charlotte NC.Hope all is well.
Let me know about your travel plans to the USA ..
I have to agree with Nigel’s straight to the point comment.
I visited Detroit back in 1993 and it was a basket case back then, with dirty slums, dangerous african-american gangs, thugs at every corner and crack addicts roaming around like zombies in downtown Detroit. I do remember feeling sorry for the police and paramedics having to deal with all that violence and mayhem. Post GFC I imagine that things must be 100 times worse in places like Detroit, Cleveland and the like.
I cannot understand why anyone would travel to the other side of the world and risk their hard earned money to buy property in cities like Detroit, Cleveland? Plenty of comments/posts on these forums on foreign buyers getting ripped off one way or another, yet people are still investing-queuing up to become slum-lords.
You can do as much ‘due diligence’ as you like, but at the end of the day you are trusting some Schmuck that you hardly know, who is on the other side of the world to manage/refurbish your property – alarm bells anyone?
Not to mention the low quality tenants you find in these cities.leonR
Leon,,, Downtown detroit has actually improved since your day,, GM built a big office building and I think it Harrahs built a big casino.
And the police are there in force one on horse back on every corner.. So the downtown core your relativly safe in.
go a few miles and you do not want to be alone at night regardless of ethnicity…..
Investors buy these on a hope and prayer and they just really want to beleive that a nice 40k brick home in detroit that looks great on paper will be as stable as an investment in other areas…
Each city in our wonderful country has its Ghetto hoods, whether they are white , Black, Meixican, Vietnamese, cambodian,,, Korean, Cuban,
and the list goes on just depends on where your at in the country,,,,
The very most violent crimes right now in the US are at the TEXAS Mexican border…. Its mayhem there… Yet dallas and Houstan investors like…. So its area specific for sure…
Slums are slums are slums no matter where they are at.
The fact is if you have money to spend be selective as to where you buy. There are plenty of better locations than Detroit
Nigel Kibel | Property Know How
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Nigel Kibel wrote:The fact is if you have money to spend be selective as to where you buy. There are plenty of better locations than DetroitHave to agree with both Jay and Nigel
jay you are right slums are slums no matter where they are.Was in Charlotte today looking at a house for $5k yes $5k ( located in Hidden valley ) Gang area, I counted 28 homes in area that are investor homes. Easy to spot by the amount of rehab done on each home. I stopped at a convenience store just up the road. Man you should have seen the looks I got.
Long story short I would not invest their not feeling safe and I am not a little guy.
Nigel I am sure there are some good areas in Detroit but there is a reason very few and I mean very few USA investors buy their.
talk soon
:)” title=”>:)” class=”bbcode_smiley” />
/evansmarc.wordpress.com/2010/09/24/real-estate-virus-generic-marketing/” target=”_blank”>real estate virus is running through other areas, as well.
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