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How to Buy Detroit Investment Properties Part 1

7 Keys to Successfully Investing in Detroit Real Estate

Many out-of-state and even foreign investors are attracted to the Detroit real estate market due to the unprecedented low-priced foreclosures. Detroit has recently been in the spotlight as a place where investors can purchase properties for under $10,000!

Many of these investors are following the buy-low-sell-high strategy and intend to buy Detroit investment properties for under $10,000, make the necessary repairs, rent out the property for cash flow and hold onto the properties until the market turns around at which time, they will cash out for big bucks. While buying and holding real estate is one of the surest ways to become wealthy, there are 7 keys to success. Let’s discuss 2 of those keys in part 1:

1). Timing:
Timing is everything. I am amazed at how many real estate investors have gotten out of the game because of the depressed real estate market we’re in. The truth is, never in the history of real estate has there been a better time than now to buy! I love what Donald Trump recently said in an interview with Good Morning America,

“This is a great time to buy. Now is the time to start looking, and start buying. Over the course of the next year, this is going to be the time to buy. If you don’t do it, you are going to be very, very disappointed in the years to come. This is the bottom of the market. It may go down a little, or it may not, but this is about the bottom of the market.”

The real estate market is always cyclical. Those of us who have the foresight to buy now will become very wealthy in the years to come when the markets rebound.

2). Location:
We’ve all heard it before: Location, location, location. The single most important factor when investing n real estate is finding the right location where it is possible to conservatively predict potential growth. This is why savvy investors want to buy Detroit investment properties in Michigan. Currently, with automotive and manufacturing layoffs, high foreclosures and high unemployment, Michigan is a struggling market, to say the least. As a result, real estate is at all time lows. However, Michigan has a great future. It is heavily investing in industries and businesses that will enable MI to be an economic leader in the future. Industries such as alternative energy, bio technology and the movie industry. In fact, recently, MI instituted a film incentive giving the most aggressive in the country with a 42% tax credit for film makers to come to MI. Recently on 2/03 it was released that Motown Motion pictures, LLC plans to invest about $70 million in a 600,000 square-foot development in Pontiac and is expected to bring in more than 5,130 jobs. Several other movie production companies have announced a relocation to MI as well. As these new industries emerge and Michigan’s economy recovers, real estate will rebound. Remember, if you buy real estate in the path of growth and hang on to it, you will prosper!

On a more micro level, it’s important to invest in cities and neighborhoods that are positioned for growth and appreciation. One such area in Michigan is the city of Pontiac. Pontiac is a blue collar city of approximately 66,000 residents located in the heart of Oakland County, which is one of the top 5 wealthiest counties in the U.S. Given it’s location of being situated in a very affluent county, Pontiac is positioned for excellent long-term appreciation making Pontiac investment properties desirable.

Furthermore, if you intent to buy Detroit investment properties in the city of Detroit, be sure to learn and understand which neighborhoods are best to invest in. Many investors are attracted to the cheap prices and overlook the neighborhood locations. Some neighborhoods are in very poor condition and may never rebound. Consult with an expert in the area to make sure of the location before buying.

Be sure to read, How to Buy Detroit Investment Properties Part 2 and Part 3

Jerry Norton is co-owner of Equity Services, LLC. His company provides investors with fully renovated, positive cash flowing investment properties for under $50,000.

To learn more about how to buy Detroit investment properties, visit our site and download our FREE worksheets “Rental Income and Expense Tracking worksheet” and “Financial Analysis Worksheet.”

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