I apologize in advance to all the out of country investors that want to buy Metro Detroit foreclosures. Whether you are from Australia, England, India, or Sweden Detroit's not the place for you to put your money.
Call it what you will, but I call it ethics. I am making a ethical decision, not to help out of country investors buy homes here in Detroit. I know it is not feasibly possible to be a competent real estate investor from thousands of miles away. I don't believe you can comprehend the Detroit real estate market, all it's problems and issues from talking or reading about it. So how can I ethically sell a house that I think will be a bad investment for you.
I myself would not invest in it. So how can I promote it to you and make money off selling you a property that I feel you will lose money on. I don't have issues with buyers that come here and see the properties. I don't have problems selling to in-state investors that will be hands on. If the out of state investors are buying 10 or 20 homes then I think it may be feasible to make money and if they come into the state to look after their properties at least once a year. In the last month I have helped people by a $2000, a $6500, and a $12,000 Detroit foreclosure. But they live here, they are hands on. Even then it is tough to make money on. Some of those people may fail at it. But they truly know all the pitfalls. They have seen the problems first hand.
Detroit is a very rough and tough real estate market not for novices, not for out-of-country investors that have been hyped up on $100 foreclosures or cheap real estate in Detroit.
That $100 house is a money pit, That $10,000 Detroit foreclosure may have a $4000 annual property tax bill. That Detroit home will most likely be vandalized at some point when it is empty. They steal furnaces, hot water heaters, and even the copper plumbing. Why last night on the news they showed fire fighters taking a screen door from a vacant home. Sad but true and those fire fighters probably will never be disciplined or brought to court for their suspected theft. This is Detroit. They will strip the house when it is vacant.
Don't just wire me money to buy you some great Detroit deals. Don't expect to make a wise investment that way. I have read a couple of stories on MSN and Yahoo news about people buying Detroit foreclosures. I feel sorry for them. It's like the media are the con men sucking these investors in. Detroit foreclosures are now almost like swamp land in Florida in the 1940's and 1950's.
I unfortunately won't help you get seperated from your hard earned money, if you want to buy Detroit foreclosures. Please send your money to a charity and get a tax deduction. You will be happy you did instead of investing in a Detroit foreclosure. Especially if you are going to buy one or two homes under $5000. If you are from out of the country as much as we can use your money here don't be crazy, keep your money.
My motto has always been "invest in what you know and in an area you know". Research it to death so you can make a sound decision.
As much as it is my job to sell real estate.... I want to sleep at night. I want customers that will be happy with the homes they buy in years to come. So sorry out of country investors I'm not the metro Detroit real estate agent for you.
Russ Ravary your metro Detroit real estate agent
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Russ Ravary your Metro Detroit realtor
Interesting post! Your honesty is refreshing! Have you had a lot of inquiries from foreign investors?
I'll take 5 at that price. JK, It's not all about the money. I appritiate your stance.
In the last month I have helped people by a $2000, a $6500, and a $12,000 Detroit foreclosure.
I'm stunned. I guess I haven't been paying close enough attention to Detroit.
I get at least one a week. I have gotten tired of responding about all the issues. Most good in-state real estate investors won't buy properties in Detroit. They like the suburbs better.
Very interesting post. I sold a 5 unit apartment building to an investor from England a year ago. THe deal was fraught with difficulties leading up to settlement and then after. We are still not finished dealing with this buyer. I have to say I'd think twice about selling to a foreign buyer for investment again. And, this was a $350,000 sale.
Russ - Interesting post. I admire your honesty. In this materialistic society, it is refreshing to see an agent like you.
Just a thought: Visit the website at www.nomoremrniceguy.com
Russ, You really put a different perspective on selling to foreign buyers.
Thank you for your post. I wanted to find a local, Detroit real estate professional. I've got ONE WORD for "foreign" investors . . . can you say FIRPTA boys and girls?
I'm going to blog out Detroit, MI this weekend. My heart is going out to Detroit . . . it's an AMERICAN CITY last time I checked. I'm going to run it by you, prior to posting. Hope that's okay? I searched "Detroit" and found you . . . I want to get a local opinion before I post. It'll be a good blog post about the Motor City!