Again I say investing in Detroit if you are an out of state or out of country investor is crazy. You might as well write a check to a charity and feel good about it. You will get a better return on your money than investing in Detroit real estate.
So many investors forget about the maintenance costs, the higher taxes for investment properties, the management company fees. You see I have never been a fan of companies that find investments for people. I was a stock broker for E.F. Hutton many years ago. They sold limited partnerships for people promising good returns. Very few of them ever made money for the investors.
The people that made money on the limited partnerships is the people who put them together and the people that sold them. Most people who bought them lost money or made very little. I think investing in Detroit real estate is the same way. Sure the management company and the company that finds the investors will make the money.
And you do have a chance to make money too. I won't say that you won't make any money. It is possible but it is very risky.
Add to the decaying climate of Metro Detroit you have problems. Mayor Bing and many business leaders are trying to save Detroit. But I think the City of Detroit is going to be an example of the rest of the nation of what not to do. I myself think it is too little to late for the City of Detroit.
There are many plans to rebuild the city but the city has to consolidate. It can't survive unless the city can provide services to it's residents. With a slowly diminishing population, falling property values, and lower tax base it is going to be hard to resurrect Detroit. It has to become smaller to survive. It has to reduce it's overhead to a smaller area to take care off.
The city cannot go on trying to take care of such a large area with a smaller budget. Something has to give. Detroit has to draw all races, all cultures, all income levels to live in the city. Sadly some of the immigrant population is moving out of the city. People have to want to move into the city, not out of. Unless there is major investment, major redevelopment, and a new top notch private school Detroit can't rise from the ashes. But I hope they can rebuild the city. It will be a shame to see it die.
Metro Detroit real estate investment information
Investing in Detroit real estate isn't for beginners. Part I
Investing in Detroit real estate isn't for beginners. Part II
Investing in Detroit real estate isn't for beginners. Part III
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