This is an response to a contact from Kevin Brass who wrote about the UK investors in the Detroit Housing Market
It is easy for investors 1/3 of the world away to think they are getting a great investment. But I am going over a few of the points the UK investment company made.
1.) First point. They said for about $45,000 you can have a great home in Detroit after fixing it up. But look at the box below. Here is what has happened in Detroit Real estate in the last 360 days.
| Detroit Sold Home Information 2009 ( last 360 days) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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So if the average sold price was $10,715 then why in your right mind would you put $45,000 into a home. Are you crazy? Do you think that is a wise decision?
93% of the homes sold under $25,000. So why would you but more money into a home than you can sell it for. If you use the rule of 72 for figuring out how long it will take for your investment to get to $45,000. 14 years.
That is why I refuse to get involved. I can't justify an investment like that. I can't. I wouldn't put my money, my friends money, or my families money into an investment like that. Would you?
Metro Detroit real estate investment information
Investing in Detroit real estate isn't for beginners. Part I
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Russ Ravary
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