Yes, the media says it’s going under but I have proof that it’s going over the top-and it is landing in the lap of savvy investors from as far away as California, and all the way to Japan and Australia.
While making a splash with the now famous “100 dollar home” video, as previewed by YouTube celeb Shea Woods for his Detroit Cheap Property channel- it suddenly dawned on me that Detroit has the dubious distinction of being the worst and best real estate market in the country.
Where else can you buy a house for 100 bucks and sell the very same property for many times over the purchase price? That would be Detroit silly, the Mecca of opportunity and misunderstood economy. It is this variance that is causing a distinct window of opportunity that I personally give a 12-18 month life span.
(Rock bottom pricing has this mysterious way of disappearing once the trampling begins and the doors fling wide open.)
What is the temperature in the water?
Well, investors seeking solid monthly cash flow and 20-35 percent ROI (return on investments) are acting like sharks in the water. They smell blood and are giddy over the opportunity to dine like lions of the Safari.
And in the time since I started my investment ventures in the city of misunderstood economy, I too have seen incredible deals, bought and sold- and as I watch as the competition is getting tough (as seemingly the 2nd wave of what I call the 3 wave markets kicks in) the Detroit goldmine is shining so bright that mom and pops are getting in the game too.
Just recently, I was contacted by a construction worker from Manhattan. He saw my article written by Anne Kadet for SmartMoney magazine’s June 2009 issue entitled- “The new Prospectors of the Downturn Real Estate Market.”
I received emails from a Sacramento, California investor named Helen who needed to find homes in Detroit to flip and rent for cash flow. Then there is Yasu Miyamoto from Japan, who indeed purchased not one, but three of my turnkey income properties.
As Yasu’s colleagues put it “are these prices a mistake or a typo?” You see, from the outsiders looking in- Detroit represents a glimmer of sunshine towards their otherwise dismal returns and floundering portfolios.
In Australia, the paltry returns on real estate investments are more negative than positive.The entry point on such properties require at least $20,000 down at a medium price of $416,000 Australian dollars.
So conversely, Detroit with its low entry point and high yields look like “Disneyland” in the middle of Beirut -even amidst the supposed crime and decay, gold can be found in them darn hills (and homes).
Don’t believe me? Check this video of Jason an Australian investor who came into town looking for deals.
http://www.youtube.com/user/volontewilliams#play/uploads/4/x_Mqrip5YOk
Written by Volonte Williams, July 28th, 2009
