I have relocated from Perth , WA to Detroit. I made the move and have formed a LLC named ” Michigan Global Estates” with the aim of building a successful real estate portfolio and assisting others where possible.So far it’s been great and I am learning the ins and outs of wholesaling and have partnered with well regarded individuals.Wholesale opportunities will be paramount to my business model.
I posted previously but for some reason it was deleted , Admin/ Mods if you are going to delete this post please send me a message explaining why , I am not seeking to do anything untoward – Our Ethos is trust , honesty and reliability. There are great opportunities here so long as the right systems are implemented , something i am in the process of developing,
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?
I wouldn’t consider my post solicitation but rather an introduction on me and what I am seeking to achieve. Is your logo not advertising?As is your signature.
Yes ” Our Ethos is trust , honesty and reliability” , what else could one ask for ? I’m doing the right thing and will do my best to uphold the ethos as I’m a genuine person.
You say Detroit is a poor investment but any market has the potential to be a poor investment if you do not put the right systems in place.
There are many good areas in Detroit to invest in , make no mistake I by no means plan to invest in 10k homes promising gigantic returns that have title issues , back taxes etc.I focus on the good and stable areas with solid structures in good community groups etc. There are many good deals to be found.
Do some simple math , I gather you are familiar with the market.If you have the right systems and people in place Detroit property outperforms Australian property for net return all day long and many other markets for that matter.
Redwood ,I am doing the wholesaling myself JV with a very well respected guy here on the ground- I actually go and view these homes day in day out and speak to sellers etc. It’s integral for me to be the best I possibly can be – I’m learning the ins and outs of each aspect of the market and my next step will becoming a licensed Realtor. I’m here to succeed and take advantage of the great opportunity that exists.
With great levels of due diligence and actually being here on the ground i think that puts me in the best position to decide what is a good deal and whats not.
If you wait for banks to pull the trigger you’ll always be behind the eight ball.
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.
Unfortunately some people did rip of investors which has made my task a little bit harder but if I wanted easy I wouldn’t have moved to Detroit.
I live here , I don’t have a remote partner on the ground. This is full time.
I understand and take into account everything you but it still doesn’t change the fact that there is opportunity to blossom and succeed here.You paint a very glum picture of the city , of course there are some area’s that are no go zones in terms of investments but you are overlooking the great opportunities.
I’m here to invest and if someone wants advice on the market guess what ? they can pick up the phone and call me or shoot me an email. No hidden sales pitch and no hidden agenda.It’s free , and If I can’t answer the question I will find out.As soon as I see a seedy sales pitch where someone actively promotes ” Pay me for info ” guru stuff I instantly lose all interest them. Strongly detest such behavior.I digress…
There is no listings on the page as I’m not looking at selling at present – I’m still building a solid foundation which will enable me to succeed long term in Detroit and if someone would like to invest in Detroit I want to be able to provide sound advice and the best possible deals.
I’m not here to set up one day and be gone the next. I’m here to build a strong and trustworthy business. I didn’t move here from Australia to do the wrong thing.
With the exchange rate ( I think its around the long term historic rate ) the returns are still good on rents etc , who knows what the currency market will do.
There are many people that cash flow strongly in Detroit due to the fact that they have the right system in place. If you think that Australian property will continue to rise , that is your opinion.My Opinion is that the yield is low and the property overpriced and all gains are speculative.
Their are certain area’s in Detroit where the market has skyrocketed take EEV for instance or UVD.
Investing in Property we can control the location , the type of structure brought , we can mitigate the risk of tenant abuse and mismanagement of funds etc by relationship building with the stakeholders and due diligence of property managers etc.
Also , being from Perth when I say Detroit I mean Detroit and Detroit Metro also.Both have great opportunities.
Due Diligence and a strong team with a good system is the best chance at success.
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.
that site is amazing and I use it on a regular basis.
There are a lot of people that owe that gentleman a pat on the back for the great work that’s been done.
My home in Perth give me 0 headaches , matter of fact I left if got 18 months without an inspection and rent was always paid , but it’s not a practical wealth building strategy without taking on massive amounts of debt . I think the Aussie market has the potential for a correction.
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.
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.
I also spend a lot of time i Florida and have a full time business partner in Orlando who is fully licenced. Frankly there are a number of great places to invest in the United States including Florida and Texas. With 79,000 vacant buildings and a bankrupt city I cannot think of any good reasons to buy in Detroit. There are a lot of other places to make you money work so why take the risk.
The fact remains that there are far better places to invest than Detroit. To me a state like Florida offers solid population growth and a stable economy. So why would you risk putting your money into Detroit?
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.
The fact remains that there are far better places to invest than Detroit. To me a state like Florida offers solid population growth and a stable economy. So why would you risk putting your money into Detroit?
Success when investing in real estate(especially if out of state or country) comes down to the people on the ground and not the stats and demographics. There are pockets of Michigan that are still very very desirable and have felt minimum impact from the GFC.
The numbers work great and as long as you have the right people on the ground, you can do very well.
I am not one to plug my area of business but I can say the same thing for Ohio. There are pockets here that no other state can match when it come to ROI. To be honest, Michigan offers even better numbers than Ohio.
Thanks and have a great day.
This reply was modified 9 years, 8 months ago by EngeloRumora.
I fly in and out of Florida every few months and have a partner on the ground full time
I do not doubt your ability and who you are dealing with in the ground s critical. I am not interested in dealing in the bottom of the market and believe there are much better and safer markets to invest in.