Here in Detroit !

Maybe your post was deleted due to you soliciting business and advertising just like you are doing above. Read the forum rules.

“Our Ethos is trust , honesty and reliability”

I have heard that before, Detroit is a poor investment, I believe in quality not quantity, and many will not finance Detroit without a hefty upfront fee. Thats a good indicator.

Wholesale opportunities? where are you sourcing your properties from?

Hi there,

Thanks for the reply.

Yes, I know the US very well – in fact very very well, I am not a promoter but know most of the US sellers – I am independent – ask anyone they know. I have lived in the states, invested there successfully, and have over 150 clients investing in the states.

Unfortunately I have also seen the property gurus kill Aussie’s investors with ‘cheap as chips’ real estate- Detroit was prime for this. That is not a reflection on you however its known that the many ‘gurus’ that were on the site are no longer here due to ripping off Aussie investors. Detroit was a place promoted 2009-2011 – didn’t work out well generally speaking. Not many promoting there now.

Objectively, your starting out, my first question to anyone on the due diligence checklist is what is you track record of success? Any investor will ask you before investing in a flip (I assume thats what you are doing?) – how many flips have you done and what was the cost of rehab and return for the investor?

You may have someone on the ground but generally people want more. I would want people to ask that question.

You mention that Detroit property outperfoms Australian property any day.I disagree strongly with this statement. Detroit has been a dud for a long time. Please show me a real life example of this. They are different markets, In Australia you can achieve capital growth and yield, neither of these have been achieved successfully in Detroit.

Further, in popular markets such as Atlanta, Memphis Houston and Orlando people are struggling to generate a strong yield due to many factors, and worsened by the decreasing exchange rate. Promoters are under real pressure and less Aussies are looking at the USA now to invest – numbers are down.

If you provide an example of your properties in detroit for an aussie investor, Please take into account the FX effect, tenants potentially trashing your house, vacancy rate, rehab costs etc. Detroit for me, based on experience, is not a place that will bring long term yield. Further acquisition costs including structures and buyers fees. If you disclose location, please provide analysis of crime rates and schools.

I noticed on your site, you had no listings, I know detroit fairly well, inner city has limited opportunities, I always consider schools and crime rates in due diligence – thats where detroit fails over the course of the last 5 years.

‘Greater’ Detroit does have opportunities as many Detroit residents moved out of the city.

I don’t think the banks will pull the trigger on Detroit, they have been there.

Look forward to hearing more from you.

There is a bloke on here operating from Ohio – Engelo, seems his decisions to go there are working but detroit for me is a no-go.

P.S I love the people of Detroit, maybe 97% of people have a gun license, but they are great people.

Cheers and all the best

Ivan

Redwood if you want to understand whats happening in Detroit then follow ‎Jerry Paffendorf. I met him here in NY as part of the tech startup space but he relocated to Detroit a few years ago and has been doing amazing stats and information collection as part of his startup Loveland Technologies eg his work on http://WDWOT.com is first class eg – https://detroit.whydontweownthis.com/#11/42.3529/-83.0992

Whether people should invest there is up to their own risk appetite…….my investment properties are in Sydney as I like no headaches, however I agree with @aussieindetroit as well in that Sydney investment properties are hardly delivering returns “over inflation” and we are too reliant on “Capital Growth” which is “on a tear” but could stop and come to a juddering halt once pay increases meet top down pressure.

Cheers,
Dean

Don’t give Jerry a pat on the back….hire him for some consulting and crunching numbers :)
He’s a very approachable guy – call him and have a chat.

I agree with you about Australian property management being “passive” but disagree with you about correction……..more likely going to be a flatness – I don’t see Aussie investors having the appetite risk for forex investments or USA equities with inherent tax/exchange headaches etc and Australian equities is snoozeville “big fish” in a little pond when it comes to earnings etc…….so the slosh naturally pushes property up in the only 3 cities we have.

Hi Aussie in Detroit,

I am also an Australian, living in Florida for close on six years now. Did you get a work visa or have you just come over to set up your business? You may find you have an issue with obtaining a Real Estate license without an SSN so will have to partner with someone. I have a client looking for a Property Manager in Detroit and would be happy if you would recommend someone if you have gotten to that stage as yet.

Cheers
Judith

• This reply was modified 9 years, 9 months ago by  Judith Ottosen.

Outskirts of Detroit offer some great opportunities.

I see tons of potential in Michigan in the years to come.

Thanks

I don’t know where EngeloRumora is but I tried to contact via phone and email and received no response. I had a referral for him!! If you see this please contact me.

You are 100% right Nigel on Florida being a great place to invest. There is development and new construction going on everywhere with employment numbers growing and demand for rentals skyrocketing. It can be lucrative investing in up and coming areas but you have to pick your moment. I think the moment in Detroit is a very long way off yet and from what I hear, rental monies are being paid right back as repairs, property management have simply given up due to being worn down with the type of tenants available, unpaid rent remains unpaid and there appears no end in sight. If you bought in a better area of Detroit then you are probably OK but most were sucked in and are paying the price.

Thanks Judith,

I have been living in the US for over 30months now :)

I am quite easy to find.

Google is my business card hehe

Ohio Cashflow

Engelo Rumora

Thanks and I’m looking forward to hearing from you soon.

Thanks for your reply Nigel,

I appreciate your response and with all due respect I wasn’t offering any dealings to you in the “bottom of the market”.

Just stressing facts about my neck of the woods just like you do about Florida.

Have a great day.