Detroit – Detroit has been the center of attention for a lot of real estate investors worldwide for several years now. The large quantity of foreclosures brought about a great opportunity for investors to purchase single family homes inexpensively while rent demands increased. However, Detroit’s real estate climate is changing. Home prices are not what they were in 2005, but they are much higher than they were in 2010. Dean Killingbeck and his group notice that apartments provide bargains at similar levels single family homes used to provide. Killingbeck and his group are positioned to capitalize on that part of the market and want to join other people interested in investing within Detroit’s real estate market.
Killingbeck’s group declares, “We’re looking for long-term investors that can take advantage of this market. Our goal is (with the help of these long-term investors) to acquire 1000 units in the Metro Detroit Area within the next 36 months.”
Most local investors are focused on single family homes in Detroit. Killingbeck’s group (http://www.deankillingbeck.com/about/) states, “We are in the trenches in Detroit real estate every day and saw the market turning a huge sharp corner upward in late 2013. Prices in stable neighborhoods started to go up. Supply in bank foreclosures started to go down sharply.”
“Earlier this decade was one of the best times in Detroit to invest in single family homes, but today, an overlooked investing gem is apartments. Obviously, there is no such thing as a guaranteed investment, but for many reasons Detroit apartments are an intelligent investment when purchased the right way.”
“Plus, apartments have a more scalable system to build than residential units. We created this system and use it in the (investment apartment) acquisition process.”
Even though house prices in Detroit have risen, that does not mean it is easy to find lenders for would-be homeowners to buy single family homes. In many cases, the home prices inside the City of Detroit are not large enough to generate the amount of money many banks prefer to make on mortgage loans, especially at the perceived risk level of defaulting on that loan. So it is not easy to get a loan for single family homes, which means that it might not be that easy for a real estate investor to exit his or her investment.
However, funding apartments tends to be easier, because banks tend to make loan decisions based upon the amount of income an apartment building generates. So it is based more on actual values rather than perceived ones.
Killingbeck’s group remarked, “Detroit apartment buildings are made for value-investors. Most of them are owned by mom & pop investors in their 60's and 70's who have been owner operators for a long time. They already made their money of their apartment's long time ago and mostly have lost interest in them with time and burned out with day to day management. We bring a new hands-on management with our purchase that is focused on cutting expenses and increasing rental income by repositioning the property as a veteran or senior community.”
The group is looking to acquire more investment partners to take advantage of these deals. If you would like to learn more about this, call Dean Killingbeck at (517) 202-6985 or email Dean@DeanKillingbeck.com.
About Dean Killingbeck: Dean Killingbeck has been successful in real estate and other businesses, and he is a lifelong Michigan resident. He is well-connected and has an extensive background in real estate investing. If you would like to learn more about his group’s Detroit apartment building investment opportunities, call (517) 202-6985.