Southeast, Michigan, especially the city of Detroit is a hotspot for real estate investors across the United States and the world. There are a variety of opportunities for those looking to make money in real estate investing. There are residential and commercial properties that can be held for residual rental income and there are residential and commercial properties priced right to fix-and-flip. Both the buy and hold and fix-and-flip opportunities are different beasts, but with the right due diligence and team, you can be successful.
Before we go deeper into the Detroit market, we should clear up the stigma that surround the city of Detroit. Detroit for many years has been presented as a dangerous, crime ridden city that you would not want to do business in, have a family in, and not go there at night. Does Detroit have crime? Yes, it is a large city and crime does happen. The crime rate is higher than that of a traditional suburban area. This can go for any city, Chicago, New York City, Boston, Orlando, Los Angeles and so on.
Detroit is a growing city. Many large businesses are starting to call it home. Google, Little Caesars, Quicken, GM, many tech start-ups, along with four major sports teams all call the downtown area home. In fact, the Detroit Pistons moved their operating from the suburbs of Auburn Hills to the downtown area where the Detroit Red Wings play, and major concerts happen. With the growth of the city, Detroit housing values are on the rise again. This is good for not only the homeowners, but for investors.
Without real estate investors, the city of Detroit and many communities would have a lack of rental properties and a higher number of blighted homes. Investors offer homes to those who cannot or do not want to own a home. They also buy homes that need repair to bring them back up to market value to rent or to sell. This brings in local jobs, revenue to the local community (supplies, food, gas and other items needed), and tax revenue. It is a win-win for more than just the investor. Many people benefit when others take interest in a community and bring outside money to spend within it.
Detroit is broken up into many districts. Over time, certain zip codes become able and drive the investors into an area, helping to drive up values and make the area much more appealing to those already there, for renters, and for people looking to buy their next home or investment property. Many of the factors that help drive up these specific zip codes have been, new construction, new businesses, improved amenities (shopping, medical, entertainment) and better forms of public transportation available.
Another factor that drives investors into an area is the type of homes available. Brick homes and multi-family properties become extremely popular to investors, as they can either get more money when they sell, or they will have more capital coming in from renting multiple units.
Price comes into play as much as the location of the property. Investors have revitalized areas that were “off-limits” if you wanted to make a profit from your investment. Investors draw other investors who do not want to miss out on the opportunity to make a profit investing in real estate. There are large areas within the city of Detroit now that are being looked at for the next major redevelopment of revitalizing current houses and enough land to create full brand-new neighborhoods.
Detroit is an endless canvas for real estate investors. With a mix of commercial, residential, land, strip centers, industrial and multi-families, the inventory allows for investors of all levels to have access to the right properties at the right pricing.
Having the right team behind you can make your investing experience much easier, especially for those who do not live locally. Mitten Realty Group has worked with investors locally, nationally, and through the world. Mitten Realty Group has an experienced team that specializes in working with investors, tracking down the right properties, analyzing them, making sure the right resources are available to accomplish the goals of the investors, verifying the title of the properties in question, getting the property for the right price and close it.
If you have any questions about real estate or would like to find out what properties are available in Detroit or Michigan, please e-mail us at firstname.lastname@example.org or call 248-294-7850.
Scott Fader and Gary Brincat
Mitten Realty Group, LLC
Mitten Realty Group is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.