US Detroit

I’m just waiting for the independent market appraisals /valuations on 5 properties , please ....

 

I sure can and will post atleast 5 transactions with comparative market analysis (cma) of properties sold in the quarter mile radius. Just watch this space in the next few hours!

In the meantime, going to watch my 18 y.o son play for the Pendle hill soccer club. They are in the finals of the NSW champion of champions!

(Versing Bankstown FC today at Valentine park Glenwood today...)

Champion of Champions - Football NSW

Win, lose or draw, a proud moment indeed

 

For those who are interested

http://www.noradarealestate.com/blog/detroit-real-estate-market/

 

Okay here we go.
These are the latest transactions purchased for investors, concluded in the last 12 days.
All deals done after 9th oct (today being the 21st).
And their CMA (Sold and Pending listings)...

1) 5790 Oldtown St Detroit
Purchase price - 34,350
3 Bed - 1.1 Bath


0.25-mile radius Comps (screengrab from MLS):




2) 10336 Lakepointe St Detroit
Purchase price - 36,000
3 Bed 1 bath



0.5-mile radius Comps (screengrab from MLS):


3) 16904 Stout St Detroit
Purchase price - 41,500
3 bed 1.1 bath


0.25-mile radius Comps (screengrab from MLS):



4) 17535 Ohio
Purchase Price - 56,000
Rehab Estimate - 20-22K
3 bed 2 bath (can be converted as a 4 bed 2 bath)



This one is a full rehab and flip project.
Requires 20-22K.
But check out the selling comps below:



7 Sold prices between 103K and 146K.
1 Pending at 119K. (Pending = Under offer)

So, I think this gives an idea as to what we are buying and how we are getting stressed assets from Foreclosure Tax auctions, Sheriff deed sales etc.

Happy to answer any questions in a constructive manner.

Cheers,

P.S - just noticed a cool feature on PC. Just single click on the above images and it shows the full sized image. Makes data analysis easier. Pretty cool imho.

 

Congratulations to your son......

I asked for independent appraisals from banks.

 

Thanks Euro73,

Pendle Hill FC is the NSW Champion of Champions this year!!!
(which also happens to be 50th year for Soccer NSW)



168 teams in NSW. 1 team gets the trophy with some very capable and competitive teams in the hunt, 33 wins in a row.
Even our coach admits we were not the strongest or technically superior, but what matters on the day is the heart and belief. And the boys believing in each other to band together as mates and deliver.
So a proud moment indeed for our Soccer club!

 

Bank appraisals would require to apply for a Bank loan,
The very same CMA is used by Bank appraisers to assess and appraise.
The most common appraisal method is "Comparison" and that is realtime Sold/Pending data of CMA with a radius search from MLS.
just saying,

 

CMA is standard practise here too. Is a good guide and the best way to compare for like product.

In fact, it's so good that banks themselves generally do it as part of a desktop val.

 

Can you tell when those 'comparable' sales were?

 

Not from a screen snip, no. Are you suggesting we all just use screen snips to form DD?

 

All CMA data was in the last 365 days.
As it does not report beyond 3 years.
And btw we know that data on Detroit or many of the US cities are bad & gets worse if you went back, (upto 2008).

 

I think GC has provided addresses, size of homes, type of home etc. ..... the rest is up to investors to work out as part of your DD. Seriously how much hand holding do people need....

I am not specifically directing this at anyone on this thread, but how do you think we all got started in US. We got some information and we researched it. If you don't believe the data is correct, then work it out yourself, don't shoot the messenger

Just phone realtors in Detroit, this is what I have done in Atlanta and Detroit, they will give you a good indications on whether market is rising, stock coming to market, product that's selling etc. and values in the neighbourhood.

Another option is fly over, meet with people. If you seriously interested in US.its another option

 

Unlike some Australian investors who got burned I believe you spent time on the ground getting to know the market?

On the other hand Australians flew over, jumped on bus tour with spruikers and got totally burned. No DD.

Your results are evidence that DD and getting involved works.

 

@MTR / @GentleChief : Can you please answer my query about break-even on page # 4 of this thread?

Also, if I were to invest in 'rehab and sell' property, does your team help execute the whole project, @GentleChief ? What's the turnaround time from start (purchase) to end (sale) and return expectations?

For US - Australia taxation issues, do you have an expert accountant in your team? I reckon this can be an expensive service too. I think that apart from the general market risk associated with those cities, cross-country finance and tax management is a major hindrance for many.

Appreciate it, mate.

 

Hi @virhlpool
Yes, we help projects with the rehabs. On a Detroit property, we are able to help with end to end jobs. Plumbing, Tiling, Electrical, Painting, Roofing, Kitchen & bath installations etc etc. And we keep the costs down to a minimum because of multi vendor bids. Turnaround time depends on the project. A full house rehab project (including new kitchen, Bathroom, roof etc) can be 5-7 weeks.

And yes, I can introduce you to expert accountants in US and the same here in Australia.
And no they are not expensive.

 

Love the OHS in America

 

US cities that have become ‘third world’

 

So you believe everything you read.
Even when there are no answers given to the difficult questions.

 

Are you sure these aren't Hurricane Katrina clean-up photos?

 

People are anonymous on this forum and can post whatever comes to mind.
And move to the next thread, without understanding what goes in the business to buy well and keep costs down, and who are being serviced and how investor outcomes are met.
We run a respectable business and have helped investors secure cash flow positive deals in Detroit.
And their voices are above, investors on this forum. And they are continuously buying in Detroit - and being serviced by us and the crew team. Because the vision is on how the City is turning and experiencing real CF at the same time.

I believe "one who does a lot, gets criticized a lot"
So be it.

That was Hillary Clinton's words btw.