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Updated about 9 years ago on . Most recent reply

User Stats

34
Posts
34
Votes
Ramone Reese
  • Investor
  • Dearborn, MI
34
Votes |
34
Posts

DETROIT 9 SFR: INSTANT cashflow, INSTANT Equity, LOTS of Upside!

Ramone Reese
  • Investor
  • Dearborn, MI
Posted

The Offering:Nine (9) Single-Family Residential homes on Detroit's Northwest Side all centrally located within five (5) miles of each other, with 6 located within one (1) square mile of each other. This area has seen significant investment. Within the past year alone, a new Sav-A-Lot Grocery Store, Dollar General, and shopping center anchored by Meijer superstore have all been built within the past year within two square miles of seven (7) of the properties. This portfolio offers immediate cash flow and tremendous upside. Several properties have already been rehabbed and rented.

As much upside as the portfolio already has, with current monthly rent over $3,000 per month, and market rent for the entire portfolio over $6,000 per month. Property taxes are great candidates for significant reduction once appealed, further improving cash flow and profitability. Some rents are $50-$150 per month below market rental rates. Fully occupied at market rent, this portfolio offers over 28% return per year at offering price. At the height of Detroit's real estate market, this portfolio would have been worth approximately $800,000! Values have been steadily recovering, so there is significant opportunity for appreciation. Properties will be conveyed by warranty deed. Pricing reflects property taxes owed and assumes I will pay my pro-rata portion at closing. Price can be negotiated if buyer is willing to assume some or all of the back taxes.

Properties20201 Archdale • 19169 Avon • 18538 Edinborough • 19437 Ferguson • 19201 Grandville • 16860 Manor • 19210 Mendota • 19158 Stahelin • 19313 Stahelin

Occupancy 78%

Offering Price $272,000 (~$32 per square foot)

Current Rent $3,810 per month ($45,720 per year)

Market Rent $6,325 per month ($75,900 per year)

About the owner/seller:

Before my undergraduate studies at the University of Michigan at Ann Arbor and Washington University School of Law, I grew up within 3 square miles of the properties I have listed for sale. I reviewed and visited hundreds of properties over 18 months and hand-picked these properties in late 2014. I moved back to Detroit in February of 2014 with my chief goal being to capitalize on the immense investment opportunities in Detroit. During my undergraduate degree, I invested in Detroit before the crash.

As great as the opportunity was before the crash, it is even greater now. Although home prices are as much as 80% less than they were 10 years ago, the rental rates have not changed. I estimate that 10 years ago, this portfolio would have been valued at around $800,000!! While the market may not recover to those rates, the RENT is still the same!! And if financed, interest rates are at ALL TIME LOWS, especially given Brexit! I left the large law firm, and with my severance and some savvy friends and family, purchased this portfolio. Some early investors weren't as hearty as I hoped, so I have continued to rehab, redevelop, and rent these properties on my own. I do not want to sell, but it seems that I must to keep it going. I am also open to a partial sell, partnership, or management. It is my belief that honorable and reasonable people can always reach an agreement. Contact me, and let's see what we can accomplish together!! I have relationships with many key players all over the Metro-Detroit area.

I am very aware that some unsavory individuals here in Detroit have over-promised and under-delivered. I cannot speak for them. I think that the numbers speak for themselves. I do not know of a better legal investment opportunity. I am an open book. Please review this offering, and let's talk about the opportunities here in Detroit. You would be hard pressed to find a better, more concentrated and easy to manage portfolio if you choose to purchase it all. You will also be hard-pressed to find a better or more qualified partner. I love to talk shop. Feel free to call or email me and let's see if we can find a mutually acceptable, and wildly lucrative investment structure. We can improve Detroit while securing a financial stability future for our families. While I spent the lion's share of my life in Detroit, there are great flipping opportunities here as well. I am not only interested in selling this portfolio, but also interested in finding partners to continue to invest with.

http://www.crainsdetroit.com/article/20151129/NEWS...

Additional information about me:

https://www.linkedin.com/in/ramonereese

Please contact seller to access rent roll during due diligence. Some properties are still actively being rehabbed and rented. The most current rent roll will reflect any changes.

Download the Offering Memorandum to view pictures and short summaries here: Offering Memorandum

DISCLAIMER:
The Properties are being sold "as is" by the respective Owner, without representation or warranty as to condition or profitability. The only party authorized to represent the Owner of the Properties, other than himself, is Broker. Owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with Owner shall be obligated to pay any fees or commissions due any advisor, brokers or representatives, other than Broker, dealing with such a party. Owner is a Missouri-licensed attorney.

This ad is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Properties, and is subject to withdrawal, all without notice or liability. In no event shall the delivery or receipt of this ad be deemed to create any legal obligation to enter into any transactions with respect to the Properties, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction.

Offering

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