Do You Really Want to Invest in Detroit Real Estate? Thoughts From a Successful Local
So you’ve worked hard, squirreled some cash, and want to find a way to make it work for you…
You are getting tired of the grind and not being master of your own life. Everybody is an “expert” how to invest your money – stocks, muscle cars, crypto currency – but everyone eventually mentions real estate. You’ve done a lot of research and know there are towns post-recession ready to move forward to heal, grow, expand, and invite companies back to provide jobs and invest in the community. Sounds like a win-win for you and real estate investment, one of the most lauded, tried and true methods to grow your money in a “safe” financial market.
Or is it?
Detroit MI is one of those “safe” real estate investment towns.
Detroit went through a direct ground zero hit during the economic downturn, barely weathering the recession of the decade. Massive layoffs occurred at the “Big 3” – Ford, GM, and Chrysler – starting post millennium. Things got a lot worse when the recession hit with more plant closing and layoffs. Desperate, Detroit finally filed bankruptcy, the country in horror this mega-size city had four out of ten zip codes with the highest foreclosure rates in the nation.
- Detroit is being called a phoenix by realtors and investment firms alike.
- As an investor, I looked hard at the real estate market in Detroit.
- You can make money on Detroit real estate – sort of.
- I am consistently making 80-90% profit on my lead-gen sites. How much is your real estate return on investment?
- Finding a fixer-upper is not a problem. Finding a good investment was, and still is.
- Then I ran into Dan and the lead gen business coaching program.
- In fact, this program was voted the #1 internet business opportunity of 2019 by businessreview.org and several other organizations.
- See, lead gen sites are a lot like physical real estate.
- Your customers get exclusive leads and you get quality customers.
- You, too, can get set free.
Detroit is being called a phoenix by realtors and investment firms alike.
In Crain’s Detroit Business’s 9/23/18 blog “Opportunity Abounds in Detroit – If You Know Where to Invest”, Brent Maxwell of IPS Realty – Detroit claims Millennials are flocking there for “out-of-the-box” careers.
Really? Millenials are all about lack of jobs and money. More likely they are looking for cheap housing.
Maxwell claims rightly that government is throwing money at Detroit. Detroit has long had a serious slumlord problem, and they are now being ticketed for derelict properties. With metro resources stretched to the limit and no relief in site, it is probably an effort to avoid the maintenance and safety issues run down properties bring to the city. Maxwell closes iterating that only locals can begin to know safe or recoverable neighborhoods and it has to be a grass-roots effort.
Sounds like challenging investment, especially if you live in SoCal or Arlington, VA.
Real estate investing in Detroit looks like it should be a no brainer.
Lots – and I mean LOTS – of vacant and run-down houses. A trained out-of-work work force. Government incentives to bring companies back. Detroit has nowhere to go but up, right?
As an investor, I looked hard at the real estate market in Detroit.
After all, I am a homegrown son, having spent most of my life here with no intention of moving. I am a successful business owner with dozens of lead-gen properties making me good, high ROI money every month and considerable disposable income. You would think that flipping houses would be high on my investment list since it appears to be easy money right in my back yard.
Uh, yah… Nope. I simply make too much money in my lead generation business, with far less risk and far less investment, and a lot less worry.
Let me explain. Detroit had a lot of cheap houses, but businesses are slower to recover than the housing market, due to capital investment.
You can make money on Detroit real estate – sort of.
Detroit’s housing median price in 2016 was $36,000 (yes, you read that right). There has been a 41% drop in foreclosure rates since 2016, according to the S&P/Case-Schiller Home Price Index quoted by HomeVestors Franchise in June, 2019. Many of the worst run down houses were bulldozed, others renovated, making available houses more limited. Motivated sellers still in foreclosure may have a property worth looking at to rehab in neighborhoods that might recover in the future.
And you may not have to do the manual labor and hunt yourself. There are lots of large investor groups nation wide that would love to play with your hard earned cash.
Reality is, Detroit’s renaissance is contingent on a number of things
Namely, governmental decisions revolving around tariffs, incentive programs targeted for cutback, mortgage rates that are stalling, and rumblings of another recession.
Are your hard earned dollars really going to be safe invested in cloud-in-the-sky promises of urban renewal and mega-industry regrowth? Ask GM.
I don’t know about you, but when I am investing my hard earned cash, words like “might”, “may”, “could” just do not provide me warm fuzzies.
Numbers warm my heart a lot more. Let me give you an example. My very first lead-gen web property I put up 4 years ago brings in $750 a month. It took me about 6 hours to write and launch, and I have barely touched it in 4 years.
I rented it the first month. $750 x 12 months = $9,000/yr x 4 years is $36,000. This site has cost me about $75/mo – $75 x 12 x 4 = $3,600. So I made $36,000 – $3,600 = $32,400 in profit. I get a direct deposit every month of $750. How much is it going to cost you to remodel and bring up to code one of those derelict houses you paid a $1,000 or more that you are going to sell at $36,000 or maybe$50,000?
I am consistently making 80-90% profit on my lead-gen sites. How much is your real estate return on investment?
Another thing about my lead gen business is I work about 20 hours a week and make high six figure income, all doing something people need and want. Do you? Or would you like to and just do not know how to get there? I can send you in the right direction.
I hate to say it, but I am leery of the economic future and its stability in an area so depressed.
I would love nothing more than to see Detroit rise like a phoenix from the ashes, but I am also a smart, shrewd, observant, successful business owner. There are too many red flags and promises rather than realities in the chance of investment profit through the salvation of Detroit real estate. I would much rather reinvest my extra funds in my lead generation business.
If you are thinking, “Ippei, you are abandoning your home town” – it’s not true.
My lead-gens, while now all over the U.S., started and still focus first on Detroit and the surrounding areas. I help local businesses grow so they can stay open, provide more jobs, open second locations. I am nearly 100% guaranteed residual income while still helping local business owners heal and grow into healthy, positive cash flow entities that make Detroit the place you dowant to come back to for the opportunities.
It is pretty amusing to me that HomeVestors Franchise quickly points out in their June, 2019 article that:
When it comes down to it, Detroit’s real estate market is worth investing in. But, to have a good chance of finding deals that can yield potentially great returns, don’t rely on fire sales or fireside chats. Rely on a property investor lead generation strategy that finds distressed homeowners of undervalued properties and leads them to you.
I want to be the guy who owns the lead generation machine,
not questionable real estate or the stressed out worrying about somebody I don’t know playing with my hard earned cash on “maybe” neighborhood recovery.
Sure, there are houses to be bought cheap – as little as $100 to get them off the city’s tax roles. But how do you know it is a house in a neighborhood that has any chance of recovery? Detroit is a city of neighborhoods – and hoods – and you have to know what you are getting into. Maxwell openly admits that some areas are ripe for investment property and others will never recover and even the city does not want some to recover as they are too bad and hopelessly far gone.
Finding a fixer-upper is not a problem. Finding a good investment was, and still is.
Realtors in Detroit want you to believe that investing in run-down blocks of single and multi-family homes is the golden key to making a lot of return on investment – fast.
Detroit is vast – 136 square miles. It is estimated there are roughly 1,000 out-of-town investors putting down $50K here and $100K there, picking out houses or even an occasional block to refurbish. But how do you pick what has potential or is hopeless and will never recover in Detroit? You either have to be on site, or have someone you can trust who is very knowledgeable acting on your behalf who is not trying to screw you .
This is one arena where armchair internet investing is likely to blow a big, ugly hole in your wallet.
I like knowing my investment is safe, and growing not only for me but helping the business owners I work with.
When my customers prosper, I prosper. And I like being my own boss – less stress, more time, pride of ownership. It feels really good.
When I graduated from MSU at 25 and jumped into the hated $35K/yr, I knew immediately I would never get ahead or be happy working for “the man”. I spent a lot on every internet investment and business model golden egg you can name – drop shipping, Amazon, lots more. I knew I wanted to be my own boss and control my life. Yeah, I made some money, but it was a lot of work, I still had no control over my time, the risk was high, and, I could not make enough to feel safe killing the 9-5.
Then I ran into Dan and the lead gen business coaching program.
I paid my tuition, took the training, and never looked back.
Five months later I was able to safely and comfortably kill my j-o-b.
Once in the training program for the lead-gen business, I got way more than I paid for – a coaching program, hands-on and personnel, 24/7 support, twice weekly exclusive trainings, tons of materials, forms, programs – all free. A world-wide private work group where questions and challenges are tackled head on with professional, polite, expert advice, often in a spirit of fun. And I made like-minded friends, many heavy hitters, who push me to be a better businessman and entrepreneur.
Are you going to get that dealing with contractors or a non-descript and non-explanatory property investment group?
I average 80-90% profit on my lead-gen sites, and have consistently for four years. I can put you in contact with the leadership of the group to schedule a no cost conversation to see if the lead-gen model might be a great match for you.
“Ok, Ippei, I get it, you like your lead gen business. Enough. Is it for real or is it another lead-on internet business where my money disappears?”
I will answer that with yes, it is very real. You do have to put in some work and perseverance. And yes, there is very real opportunity. Last year 64% of all searches were on mobile devices. People looking for goods and services they already had decided to purchase or they would not be looking!
And, in case you are wondering, we are not some sleazy MLM. There are millions of business owners who need our help and often come to us. The market will never be saturated.
In fact, this program was voted the #1 internet business opportunity of 2019 by businessreview.org and several other organizations.
See, lead gen sites are a lot like physical real estate.
You own the property and what you do with it is your business. If you are an investor, you build it up to sell or rent and make money. When you build lead generation sites, websites that direct customers to a local, vetted business, to get services or goods, you own the online real estate.
Your customers get exclusive leads and you get quality customers.
You build a site – a property – that exclusively gives leads to one business in an area, helping them increase traffic. It also problem solves for the customer hunting someone to fix their furnace, tint their windows, or provide limo service for their daughter’s wedding.
It has cost you maybe a couple hundred bucks to build, not tens of thousands and tons of time to refurbish like a house. And you rent business owners use of the space, providing them leads that only go to them, unlike other large referral services that send the leads to many, sometimes dozens, of companies vying to provide the low ball dollar quote – and often, lower quality goods or service.
It was all there for me to grab ahold of my own future and destiny, responsible for my own business and motivation.
I was 25 and still working 40+ when I started, and you can as well. Four years later I make high six-figure income and take time to travel, enjoy outdoor activities, and build my business. It is easy to automate and scale the system once you get rolling.
You, too, can get set free.
Ask me how. It is painless and the phone call is free. Or go straight there at https://www.bestrealestatedirectory.com/lead-gen/
Believe in yourself and learn how to launch yourself towards freedom. There is no time like right now.