Shea Woods is the unofficial out-of-state investors OO7. He is licensed to thrill and sometimes kills a deal with his video camera and with the aid of his trusty sidekick- “Dave the Camera man” they venture from location to location seeking out solid properties on behalf of their investors.

Shea offers an informative video preview service for out of town investors before they buy and also supplies insights to the neighborhoods.

His service is featured on YouTube under the Shea Show and Cheap Detroit Property channel. We caught up with Shea and asked him about the investors he is working for and why he is the man to get the job done.
Watch the conversation and interview here.

THe Detroit Investors- Shea, Yasu, Volonte Williams

Upon reading a few articles and watching my video’s explaining the investment opportunities in the Detroit metro area, Yasu knew he wanted “in.” Now was the time to purchase and purchase he did. Not only did he buy one property, he actually bought (3) within days of meeting up with me. All were turnkey and rehabbed and all of them were purchased from stock of properties within my portfolio.

“This guy was cleaning me out!”

 Yasu, a Japanese citizen, Harvard Graduate, and Senior Analyst for a major investment house based in Boston, is seeking a good place to harvest returns based on cash investments.

He may or may not be a wealthy man, but one thing I can say for sure is he is taking the calculated risk that most mavericks take -and that is to be a trail blazer in a down turn housing market (that will eventually rebound) and is making bets that his money will earn much more than his financial institution will just sitting there in a CD or money market account.

It is safe to say that Yasu is a smart man and makes informed decisions based on many factors including; data backed and formulaic analytically supported  information (as well as basic economic  dollar and sense math).

And that is what the market is in Detroit…. dollars and sense math.

There are over 1,027,974  people living in Detroit and over 40 percent are renters (600,000). Hud has 9,200 pre-approved people on the Sec 8 waiting list and more to come. This is fact!

 Did you know that homes can be bought for 20 cents on the dollar and sometime less but the only people who can afford to buy are actually people with cash?  By this I mean if you have the means you can capitalize on the opportunity as it stands today but will morph into a higher price point later as the cycle changes and the old supply and demand adage hits hyper-drive.

If Detroit’s foreclosure investment market where a car that went up to 100 per hour we would be driving at around 45 mph right now. And, as Yasu and many other investors start to rev up their financial enginuity, this blog writer, full time investor and  part time classic car enthusiast continues to delve deeper into the market place of one of the most exciting places to park cash and buy property in the USA…just ask Yasu, he’ll back me up.

 Written by Volonte Williams, July 31st, 2009

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 28^th, 2009

First, some background on Detroit as an investment opportunity:

Motor City topped the national list of metro-area foreclosures in 2007 with nearly 5% of its households affected. The trend continued in 2008, and Detroit is now popularly known as the foreclosure capital of the U.S.

As such, Detroit presents a unique set of opportunities for the real estate investor. Solidly built homes, historically low prices, a thriving rental market. In some neighborhoods, median housing sales prices are down as much as 80% over two years ago.

In 2008 investors began to take note. Housing sales are up 50% in 2009 over last year according to a recent National Public Radio piece on Detroit’s housing rebound, a “strange revival” in the current economy.

We can help you get into the Detroit market with a turnkey income property. Get your Detroit Goldmine.

Turnkey Income Properties For Sale

Cortland Multi Unit Rented Property

Properties Coming Soon

Vaughn Street Single Family $32,500
Monthly rent: $800
Check the Zillow Property Report and ARV.
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Cortland Street Multi-Unit $42,900

Monthly Rent: $1,250 (two 3 BR units @ $625 each)

Check the Zillow Property Report and ARV.
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Tacoma Ave. Single Family $19,900

Monthly Rent: $575
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Wondering about taxes, tenants, neighborhoods? Check out our Detroit Investing FAQs.

Curious whether Detroit prices have hit rock bottom? Check out my article on the subject.

Up-And-Running Income Property

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Michelle Maynard, New York Times

This interactive piece, which appeared on The New York Times‘ website, shows a cross section of residents determined to withstand automakers’ difficulties.

This new federal program for first-time homebuyers is really good news for Detroit’s foreclosed neighborhoods.

My take on it is as follows: The rehabbing of properties that have been purchased in bulk in areas designated by the program (eyesore blocks) will help to stabilize these neighborhoods. This investment will attract new property owners (the program described above is for first-time owners, not renters), who will have a sense of ownership in their community, leading to further improvements.

The program has received a flood of interest from developers but the criteria for loans has to be looked at closely. The plan should offer a lower down payment as an entry point and fixed low-rate (affordable) mortgage for an extended period of time—say, 40 years versus the industry standard of 30 years. This would curtail foreclosures based on payment.

At present time, the program does not extend itself to individual investors, which is a mistep in my opinion —as individual investors may wish to use their own funds to purchase and rehab the property and avoid the 203K FHA rehab loans which involve a complicated and lengthy qualification process.

Another possibility would be to offer high-risk applicants, those who do meet the credit criteria, a trial purchase period. It would go something like this: say Mrs. Smith doesn’t meet the credit criteria, but has a stable job and occupation. She agrees to attend the mandatory homeowner class, has a down payment, and can afford the monthly mortgage. Place her in the home for 12 months. If she pays on time without any late payments, she proceeds to step #2: credit counseling classes to improve her credit.

During this time she is expected to pay her mortgage on time for another 6 months. If there are no late payments after six months, she moves onto the final stage. This would be a review by program administrators to determine whether she should be awarded a guaranteed loan from private funds set aside specifically for her and others like her. People with less than perfect credit sometimes deserve a second chance and with every successful homeowner, Detroit will be that much closer to becoming a thriving city.

Here’s yet another story on this trend, this time from NPR.

Check out this CNN report on creative types taking advantage of affordable housing.

Sophia Martineck, New York Times

Because Detroit is filled with world-class architecture and tons of vacant green space (and because it’s cheap), it appeals to artists. Even so, this article was an eye-opener. It’s an op-ed piece from the New York Times written by Toby Barlow, a writer, who moved from New York to a Mies Van Der Rohe development in downtown Detroit. Barlow sees Detroit as a great big blank canvas. Check out his piece here.