I have buyers calling me from all across the country because of the housing prices here in the Detroit area. At some point, and it's probably going to take a couple of years, prices will be back and all of these real estate investors who took a chance on Detroit are going to cash in. Okay, maybe not like the boom years but until then their properties will cash flow nicely and when the prices increase, and it will be slowly, they can sell for a profit.
The big problem Detroit is facing right now is the deflated prices due to the quick flip investors who put a couple thousand into a house to clean it up and sell wholesale for a fast profit. That's keeping the values down and crushing values. I can't blame anyone for making a buck in this economy but we need more investors who can take a longer term investment by carrying back a note here and there, selling on a land contract and asking a little higher price, something that will help the sale prices go up.
We all know it's going to take longer to get the prices to increase, that's a tall steep hill to climb. Buying and renting isn't going to help values when there is no sale. Sure, you now have an occupied house where before you had a vacant house and that's an admirable step in the right direction. But until houses start selling at higher prices, probably through private means, the appraisers are never going to have anything to prove values are not where they should be.
If you need 100% financing to purchase and rehab bank-owned investment houses in the Detroit area, give me a call at (248) 547-3006 or send me an e-mail, at Trent@metro-mi.com. More information can be found at our web site at www.metro-mi.com.