Turnkey Providers in Detroit
Investor · Norman, OK · Member since 2017 · 75 posts · 53 votes
@Adam Demchik and @Renee Bacon I assume by your posts that you do not have any Detroit investments and that you are not very informed on Detroit investing. You are correct that Detroit has many issues and it is a huge area but Detroit investments are strong. I invest in the suburbs and in the city. Some of my best are in the city. You need to do your research and invest in the right areas but Detroit is booming. I would pick a lot of areas in the city to invest before I would invest in some of the suburbs. Before you completely write it off and post about it I would do a little more research. Good luck with your investments.
Jon
How did Royal Oak and Berkley make this list?!
I noticed you're in AZ and yet have turnkey properties in Detroit.
Please elaborate on who you are and what you provide.
Thank you.
I attended the live Real Wealth Network seminar about turn key in Detroit.
The main strategy here is to buy in C/C- neighborhood and rent out to section 8. The income is steady as government is paying majority of the rent. You'll get a reasonable return on your money. This is the positive.
The reason why I did not invest in this area is because there is very little rent appreciation and there is very little property appreciation. This means that there is very little "up side" if you are really thinking long term beyond the initial cash flow.
Other reasons why I did not go with RWN turn key in Detroit
I also considered RWN for Cleveland and passed on Cleveland as well. Again, the cash flow is good but the upside potential is capped. There isn't any rent appreciation or property appreciation anywhere in the Rust Belt states.
@Robert Culberson let's setup a time to conference call with me and my business partners.
Thank you.
@Ken Ngo would you be willing to share the locations you are referring to?
I attended the live Real Wealth Network seminar about turn key in Detroit.
The main strategy here is to buy in C/C- neighborhood and rent out to section 8. The income is steady as government is paying majority of the rent. You'll get a reasonable return on your money. This is the positive.
The reason why I did not invest in this area is because there is very little rent appreciation and there is very little property appreciation. This means that there is very little "up side" if you are really thinking long term beyond the initial cash flow.
Other reasons why I did not go with RWN turn key in Detroit
I also considered RWN for Cleveland and passed on Cleveland as well. Again, the cash flow is good but the upside potential is capped. There isn't any rent appreciation or property appreciation anywhere in the Rust Belt states.
Most markets in the Midwest are looked at for cashflow not appreciation. Appreciation happens in places like CA.
I attended the live Real Wealth Network seminar about turn key in Detroit.
The main strategy here is to buy in C/C- neighborhood and rent out to section 8. The income is steady as government is paying majority of the rent. You'll get a reasonable return on your money. This is the positive.
The reason why I did not invest in this area is because there is very little rent appreciation and there is very little property appreciation. This means that there is very little "up side" if you are really thinking long term beyond the initial cash flow.
Other reasons why I did not go with RWN turn key in Detroit
I also considered RWN for Cleveland and passed on Cleveland as well. Again, the cash flow is good but the upside potential is capped. There isn't any rent appreciation or property appreciation anywhere in the Rust Belt states.
Most markets in the Midwest are looked at for cashflow not appreciation. Appreciation happens in places like CA.
Appreciation was the lowest of my objectives. I, too, am investing for income. The problem is that there is also no rent appreciation. Rents for rust belt states have been flat for the past 10 years. A common idea is to add value to a property and then increase income by increasing rent. The city, like in Cleveland, forces owner to add value (like exterior home maintenance) but I cannot easily get more rental income for the reinvestment.
I can buy a property in a growing area and have a lower initial cash flow. Given a few years of rent appreciation, then the income generated will surpass and accelerate way beyond the "fixed income" rate of rust belt states.
Source:
Summary of suburbs from the thread:
Warren Con, Redford, Berkeley, Royal Oak, Lamphere, Westland,Rosedale park, Ferndale, Oak Park, Hazel Park, Roseville, Warren, Eastpointe, bagley, woodbridge, Rosedale park,mexicantown and new center areas
I attended the live Real Wealth Network seminar about turn key in Detroit.
The main strategy here is to buy in C/C- neighborhood and rent out to section 8. The income is steady as government is paying majority of the rent. You'll get a reasonable return on your money. This is the positive.
The reason why I did not invest in this area is because there is very little rent appreciation and there is very little property appreciation. This means that there is very little "up side" if you are really thinking long term beyond the initial cash flow.
Other reasons why I did not go with RWN turn key in Detroit
I also considered RWN for Cleveland and passed on Cleveland as well. Again, the cash flow is good but the upside potential is capped. There isn't any rent appreciation or property appreciation anywhere in the Rust Belt states.
Most markets in the Midwest are looked at for cashflow not appreciation. Appreciation happens in places like CA.
Appreciation was the lowest of my objectives. I, too, am investing for income. The problem is that there is also no rent appreciation. Rents for rust belt states have been flat for the past 10 years. A common idea is to add value to a property and then increase income by increasing rent. The city, like in Cleveland, forces owner to add value (like exterior home maintenance) but I cannot easily get more rental income for the reinvestment.
I can buy a property in a growing area and have a lower initial cash flow. Given a few years of rent appreciation, then the income generated will surpass and accelerate way beyond the "fixed income" rate of rust belt states.
Source:
Those are great points. So where have you invested and where are you looking now?
I attended the live Real Wealth Network seminar about turn key in Detroit.
The main strategy here is to buy in C/C- neighborhood and rent out to section 8. The income is steady as government is paying majority of the rent. You'll get a reasonable return on your money. This is the positive.
The reason why I did not invest in this area is because there is very little rent appreciation and there is very little property appreciation. This means that there is very little "up side" if you are really thinking long term beyond the initial cash flow.
Other reasons why I did not go with RWN turn key in Detroit
I also considered RWN for Cleveland and passed on Cleveland as well. Again, the cash flow is good but the upside potential is capped. There isn't any rent appreciation or property appreciation anywhere in the Rust Belt states.
Most markets in the Midwest are looked at for cashflow not appreciation. Appreciation happens in places like CA.
Appreciation was the lowest of my objectives. I, too, am investing for income. The problem is that there is also no rent appreciation. Rents for rust belt states have been flat for the past 10 years. A common idea is to add value to a property and then increase income by increasing rent. The city, like in Cleveland, forces owner to add value (like exterior home maintenance) but I cannot easily get more rental income for the reinvestment.
I can buy a property in a growing area and have a lower initial cash flow. Given a few years of rent appreciation, then the income generated will surpass and accelerate way beyond the "fixed income" rate of rust belt states.
Source:
Those are great points. So where have you invested and where are you looking now?
I have property in Sacramento that is doing okay. I think there is better areas and I am still looking for them. Rust belts was where I spent a lot of time learning, researching, and evaluating. I'll apply what I learned to other areas and, hopefully, come across a gem.
If you are doing a long term game, Sacramento is going to be good. I've been there a few times and great environment for stability and growth.
How long have you been looking and researching those rust belts areas?
Hi Josh Walker,
We have an investor who is liquidating 45 brick and framed occupied homes in Detroit solid zip codes. Message if interested. Thx
@Josh Walker Al Bazzy, our Property Specialist, has been trying to contact you via email. I met with him and he showed me the email chain to ensure me that he has been trying to correspond with you to answer any questions you may have and assist you in any way possible.
Strategy Properties prides itself on high customer service and I would greatly appreciate you contacting me directly to discuss any questions that you may have.
I look forward to talking to you.
@Josh Walker I'm so sorry you didn't get the response time you were expecting. Please always let us know at RWN so we can help. I hope you've had a chance to talk to Mike and his team since this thread began (which I just discovered as I'm not on BP very often.)
I am very excited to lead a Real Wealth Network property tour in Detroit on November 10th. The city reminds me of when I first bought in Cleveland - where the cash flow has been incredible and values have doubled since I bought just a few years ago. I love areas with a bad reputation (but in the process of cleaning it up) because that's when you get the best deals. Good things are happening in Detroit and Cleveland. I plan to buy more in both places.
Many people are surprised that I walk the talk. :-) I absolutely use the turnkey companies we recommend - and I don't ask for any special treatment beyond what our members already get.
I love investing in cities that invest in themselves - especially when the rest of the world hasn't figured that out yet. When they do, those of us who jumped in early will benefit big time. @Ken Ngo I think you may regret your decision in a few years. You might want to join us on tour to see for yourself.
@Josh Walker I'm so sorry you didn't get the response time you were expecting. Please always let us know at RWN so we can help. I hope you've had a chance to talk to Mike and his team since this thread began (which I just discovered as I'm not on BP very often.)
I am very excited to lead a Real Wealth Network property tour in Detroit on November 10th. The city reminds me of when I first bought in Cleveland - where the cash flow has been incredible and values have doubled since I bought just a few years ago. I love areas with a bad reputation (but in the process of cleaning it up) because that's when you get the best deals. Good things are happening in Detroit and Cleveland. I plan to buy more in both places.
Many people are surprised that I walk the talk. :-) I absolutely use the turnkey companies we recommend - and I don't ask for any special treatment beyond what our members already get.
I love investing in cities that invest in themselves - especially when the rest of the world hasn't figured that out yet. When they do, those of us who jumped in early will benefit big time. @Ken Ngo I think you may regret your decision in a few years. You might want to join us on tour to see for yourself.
You will find most turnkeys in D are located in areas that are not seeing significant large investments or have any logical investment connection to that new D growth. In addition, double check property taxes as I found this is nearly always understated beforehand and usually will be double to triple to what any seller quoted. Figure some locals snag these same properties for much much less everyday.
Undertand most TK companies in D are in the zips that have been losing population decade after decade including the TK top this page example. Still many locals do just fine in these same areas by getting really good deals. By design that will not be the case if you buy retail TK.
Any previous appreciation rates during post GFC run up, most locals probably would not expect that rate today if that zip is still losing population YOY. Plenty of other good opps all over MI and D is the good news.
Good luck in D!
@Josh Walker Turnkey as in tenanted properties?
@Adam Demchik Hey have you seen all the big people coming here? Or witnessed the current action and increase in the market here in Detroit?
@Jon W. I was thinking the same thing. I know we dont manage millions in assets for stupid investors. They have to know or be advised well on investments. I've been doing decent with this market.
There are people who like texas hold'em and 21 and those who like roulette and dice all of those games have risk and reward roulette and dice have far more than Poker however rewards for dice and roulette come quicker and larger in a shorter amount of time. Detroit is roulette and Dice, there are some strategy to both but risk and chance are higher. In short roulette, Dice and Detroit are not for beginner investors. Rookies always start out their investment strategy based on where can I put my money and have no risk (and minimizing your risk in an investment is always good). Detroit can get you returns in the 20s but with very high risk. Other suburbs (Roseville, Warren and Eastpointe), you can still get 12 to 15 but more likely to get 7 to 10%. Most people have a bad taste about Detroit because investing in it will tell you how savvy of an investor you are and when people find that out that they are not as sharp as an investor as they thought they were so they say it's Detroit's fault but numbers are numbers (meaning do your investment math and research). There are a lot of people with a lot of money investing in Detroit and making a ton of money doing so. You can't spell Detroit without ROI