Global Investments Incorporated have been selling homes to the overseas investor for almost five years now and have sold and closed on almost 4000 homes. CEO Mike Moodie believes that the motor city is coming out of some very tough times and getting stronger and stronger each day with prices and sales moving in a positive direction. Mike was quoted in saying “ Detroit in my opinion is one of the best investments on the planet with a lot of regeneration and positive news coming out every day, however it sometimes gets a bad wrap from the media and also different sites that are out there on the web which can cause a lot of confusion with investors. I think that these opinions and articles are written by people who do not know the city like people who work and live there.
Global Investments Incorporated work with many different Brokers in Detroit but their best man on the ground is CEO Al Beahn, who provides homes on an exclusive basis to Global and their investors. Who better to tell us about the rise and fall of Detroit than someone who works, lives and has been brought up in the city most famous for its Motor Industry. We asked Al what he feels potential investors should know about what is going on in Detroit.
Al started by saying. “Why Detroit?” A question I get asked more often than my fiancé asks what’s for dinner. A question I love to answer. As a local investor and turnkey provider, I can tell you all about the good and also all the bad. The pros and cons of Detroit are both important things to know when deciding if this city is the right market for you.
My company has been a locally based turnkey property sourcer for almost 10 years to both foreign and domestic clientele. I can try and give you as much insight as I can into the city of Detroit that hopefully will help you decide if this is the right place for you and your investments.
Detroit has come a long away over the last 10 years, from a crooked mayor to bankruptcy, it has been great to see the city overcome and prosper through the adversity it has faced. When everyone else saw challenge, we saw opportunity. A lot of people were scared to invest. I saw a lot of people sit on the sidelines, while others jumped right in, understanding a down market and seeing the opportunity to take advantage of something that only happens once or twice in our lifetimes.
More likely than not, as a reader of this article you may be one of the many people who has a media skewed perception of the city. The media that only shows the bad, rarely shows the good. As a Detroit native I hope you have had a chance to read about some of the good, the billions of dollars that have been invested into the city over the last 5-7 years. The likes of Dan Gilbert; Quicken Loans founder and CEO, or better known as the owner of the most recent NBA champion Cleveland Cavaliers. The second richest man in the world, Carlos Slime Helu, also decided to park some money in our city.
Look, I am not the smartest person in the world, but it does not take rocket science to understand that if some of the richest people in the world are investing here, it has to make some kind of sense, right? It sure makes me comfortable knowing people like this are also investing in the same places I invest and it sure makes Detroit seem like somewhere that has opportunity.
Bankruptcy. Probably one of the best things that could have happened to Detroit. Bad debts. Bad leaders. Bad employees. Bad systems. A reason for the city to be put under a microscope and see what is right and what is wrong. Getting rid of all the “bad” and building a new foundation to move towards the “good”. Of course it looked bad. How couldn’t it? What people fail to understand is that it was an opportunity for the city to get a fresh start. A new start down the path to being a healthy, stabile city. A chance for us to put the right people at the helm and get us steering in the right direction.
I have seen it all. From the absolute lowest of the low, to where we are now, what I would consider the strongest we’ve been in decades. It has come a long way and all indicators are pointing towards constant growth and opportunity to be a part of.
A lot of people ask me what do you need to know as a foreign investor looking to buy in Detroit? There are a few very important factors to consider when making a decision….
KNOW WHO YOU ARE WORKING WITH.
Make sure you work with a reputable broker or turnkey provider if you are planning to remotely invest. Too many people look to work with anyone that says they are experts. Do your homework. Do some digging. Make sure they have a track record. This aspect of the process could make or break you. Some of the things you hear on TV is real in certain areas and buying in the wrong areas is not what I am saying here. Investing in the wrong parts of the city will lose you money. The right areas will make you money.
DUE DILIGENCE
Make sure you do your due diligence, or at least make sure whoever you are buying from has done it for you. 3rd party inspections are MANDATORY if you are buying a home. If you aren’t coming to look at it yourself, you better make sure an inspection is done. Make sure you verify the house is actually rented and cash flowing. Don’t buy houses from someone you find on Craigslist, who doesn’t have a website and tells you he has a ton of houses for sale. Craigslist sellers are a dime a dozen. Buy from an expert with verifiable track records who are investors themselves.
PROPERTY MANAGEMENT.
If you don’t have a good property manager, you can kiss your chances of success goodbye. This is the single most important part of the process. Global Investments and myself have several licensed and insured management companies we can refer you to. Feel free to reach out to us and ask. We have learned the hard way finding out who is good and bad. Take advantage of our mistakes so you don’t do the same.
LOCATION, LOCATION, LOCATION
This is real estate 101. Location is IMPORTANT!! Yes, some of what you hear in the media is actually true. There are bad areas in Detroit. Just like any major city in the country. More often than not, major metropolitan cities have pockets of bad areas. You need to make sure you don’t buy houses there. Looking for the cheapest houses you can find with the highest ROI possible without knowing about the area is a sure fire way to fail in a heartbeat. Know where you are buying homes. If it is the cheapest house in the area, there is probably a reason why. Don’t buy a headache. Buy a quality home in a good area and create positive cash flow and build wealth the right way. Working with reputable turnkey providers or brokers will ensure you are buying in the right areas.
I hope that my thoughts and ideas will change your perception of the city. It is a resilient place which has fought back from diversity and is getting stronger and stronger every day. It certainly is not what media makes you think.
Al, and Global Investments have now been working together for 18 months providing investors with turn key solutions in Detroit. If you would like any further information or to see there latest inventory please contact mike@globalinvestmentsincorporated.com for further information.
