This questions gets asked of me more than I care to count. Unfortunately whenever I mention the great investment opportunities for foreclosure real estate that we are doing in Detroit, I get the wince. For those of you that may not have seen it, I liken it to someone that just realized they have a very intense pain deep in their gut. Now, do I tell you this to impress you? No, I’m sure I should be telling you that literally everyone else is investing in Detroit Real Estate except for you in order to get you coming to our fair city. Well, that’s just not true.

The media and just plain fear advocates have done such a good job at selling Detroit as the worst city and communities ever to hit earth, that people who know not a single thing about Detroit are dead set against it. That’s why I get the wince. This does work out well for those of us that like to form our own opinion instead of being told what we should think as there are less people out there buying. It also works against us because there are less people out there buying.

For those of you that are new to our blog, make sure you check out the great blogs we have had on real estate development in Detroit, different ways to invest in Detroit, buying low and selling high, and it’s all about the neighborhood. Last night I had the opportunity to sit down to listen and speak personally with Billionaire Detroit Deal Maker Herb Strather and hear his take on Detroit. Herb is more bullish on Detroit than ever and had some great points on what makes Detroit such a unique place to invest an so profitable!

Also, quickly before we move on, we have had quite a few requests for a Cash Flow Analysis Spreadsheet and an Investment Property Analysis Spreadsheet for how we look at investments here in Detroit. We have created this at www.DetroitCashFlowAnalysis.com/ and are making it available for Free to everyone. Make sure you check it out.

Herb talked last night about what he said is the floatability of the Detroit market. I didn’t quite know what he meant until he explained that we’re in one of the few markets that actually has sales in 3 different levels of price points even within the same neighborhood. We have the foreclosures and junk sales at the bottom of the market, the quick flip and distressed homeowner sales in the middle, and then the retail sales at the top. As an investor, this is good because you have houses that you can purchase and fix-up for $35,000 to $40,000 that are right next door to a house that recently sold for $90,000.

For these lower priced houses that we’re purchasing, we can immediately show comparable sales that are far and above higher than what we paid. Because there are a fair number of retail sales occurring each month, these comparable sales are consistent. There aren’t quite enough retail sales for me to sell on the open market without selling to a specific niche but I can still use the comps. This value may not be fully realized right now with a quick retail sale at 100% but it can put some refinance money into your pocket pretty quickly and as the market stabilizes, that equity will become more and more attainable.

Herb has many ways to realize this equity in his book “Getting Rich is Easy: The Master’s Guide to Real Estate Acquisition” and he remains an active investor in Detroit. With more and more investment in Detroit and the incoming jobs from different industries (see above), the market will stabilize. Will you be taking advantage of the current market or will you be the one wincing when I mention Detroit and not even take the time to hear about the opportunity?

Successfully Yours,
Jared Pomranky
Detroit Market Expert

Detroit investment properties
Free Report on Detroit foreclosure investing “how to”

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