| Q: |
Why should I Invest in Detroit? |
| A: |
The Discounts are so Incredibly Huge
The Acquisition Cost is so Incredibly Small
The Rental Market is still strong
This market provides deals at 1-50 Cents on The Dollar! (Lowest In The Nation)
"Turn-Key" Rental Properties are selling like Hot Cakes!
Homes need to be mortgage able, there-for they need to be livable/updated
Metro Detroit is one of the STRONGEST Cash Flowing Markets in the entire Nation
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| Q: |
What types of clients do you usually work with? |
| A: |
At Help Build Detroit, we work with ALL types of investors from local investors who want to buy their first rental in the City of Detroit, to large Hedge Funds who want to acquire blocks of 50-100 houses at a time. We also work with Financial Planners, Professional Money Managers and companies of various Financial Investment Mediums. |
| Q: |
Where are most of your clients based out of? |
| A: |
This is truly one of the coolest things about Help Build Detroit. We work with investors from all over the Globe...Literally! We've had inquiries from as close as local cities, to states such as California, Texas, Flordia, Utah, New York, to foreign countries such as Italy, Germany, Spain, Mexico, Canada, The Middle East, and The Philippines to name a few. Because of our duplicatable systems, and our turn-key solutions, our investors don't have to physically be in Detroit to own/manage their investments. |
| Q: |
What is the average rent on a rental in the city of Detroit? |
| A: |
The average rent for a 3 bedroom homes in the city of Detroit range from $700-$900 a month. Rent on a 3 bedroom home in a first-tier suburb typically rent for $800-$1400 per month. |
| Q: |
Can I get a property under contract and then assign a Purchase Agreement? |
| A: |
NO, you can't assign purchase agreements in the state of Michigan. This means when you sign a purchase agreement and intend to close a property, YOU must buy it. You cannot move your earnest money to another buyer, or assign the deal to an investor. The buyer, who signed the purchase contract, must close the transaction. |
| Q: |
Will the Banks Lend on a Typical $1 Bank Owned Home? |
| A: |
NO, banks will not lend on a home that does not have running water, working heat & cooling, and have any serious damage or missing parts such as kitchens, bathrooms, plumbing, broken windows, a leaky roof, etc. This is why if your exit strategy is to "Flip" into a consumer with a traditional mortgage, that a proper rehab with licensed contractors and strict contracts is necessary. At Help Build Detroit, we have all that done for you. |
| Q: |
What are the taxes like when I purchase a Detroit property? |
| A: |
The City of Detroit (Detroit Proper) taxes are extremely high.
For an average $100K house, they can run between $1K-$10K. The reason why is because on average of
just 12-24 months ago, most were appraised in the $100-$150K range and during the standard foreclosure process,
the city take the homestead exemption off, which escalated the taxes after each season.
When you purchase a home from a bank, taxes are ALWAYS pro-rated, meaning you have to pay the current
tax bill from the last tax bill to the date of closing, and credit the seller for that bill.
Taxes can be fought but can be expensive/grueling but doable. - See Us for More Details - |
| Q: |
When I buy a house, do I need a pre-sale inspections, or anything? |
| A: |
In the city of Detroit, Every sale, purchase or sale requires a pre-sale inspection. This inspection cost
$295 dollars, and is an in-depth inspection of the property, inside and out. The main objective here is to
figure out what condition the home is in, so the property can be repaired and obtain a Certificate of Occupancy.
All sales are required to have a Pre-sale inspection done, typically when a bank owned home is put on the market,
they are ordered, but 9 out of 10 sellers require you to now pay for them and sometimes order them upon an accepted
deal. Once a pre-sale inspection is completed, the buyer must always sign off on this before closing. The
buyer themselves must go to the city of Detroit build, downtown Detroit, to the 4th floor and sign the ACR.
This is a 1 page form stating your buying the home, as-is and you are responsible for making the necessary
repairs. If you are an out of state buyer/investor, and cannot be local to sign, you will have to
give me or someone the Power Of Attorney to handle this matter. This can also allow me/a designated
person to be the signer when you close or acquire properties. |
| Q: |
What is an ACR? |
| A: |
ACR stands for Affidavit of Compliance Responsibility. It is a MANDATORY City of Detroit house inspection that
must be completed every time a house is sold. The city inspects the property to check against certain
criteria for a properly rehabbed property. Help Build Detroit utilizes a specialized "Rehab Checklist"
and "Contractor Estimate" so you can be certain your rehab project is up to code. |
| Q: |
When I rent a City of Detroit home, what are my related expenses? |
| A: |
The great thing about the Detroit market is that people are always looking to rent and buy homes.
A lot of investors and buyers are picking up these homes, redoing the interiors/exteriors, and then reselling them, or
renting. When you rent, you need to pay insurance, and property taxes, along with the water bill, and sometimes
DTE (electricity).
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| Q: |
Why Are City of Detroit Homes So Cheap? |
| A: |
It isn't necessarily a news flash that all the job losses and difficult times in Michigan recently have
caused construction (i.e. rehab) to be VERY INEXPENSIVE, making Detroit an easy choice to invest in!
You can redo an entire house in Detroit for less than 40k and some
homes only need 5-20k, but every home is different! Homes in the suburbs of Detroit range for sale between
$20K and $5 million. (Yes, Metro Detroit has a very affluent market that is never covered in the media).
There are foreclosures at every level of the game from $1 all the way to $2 Million, but the
higher up in price you go the higher the corresponding risk & reward.
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| Q: |
Does Detroit have a good Commercial Real Estate Market Too? |
| A: |
YES!!! It's one of the Great Secrets of this market. Because acquisition cost is SO LOW in Metro Detroit,
Commercial properties, especially in the Multi-Family industry are literally Cash Flow Cows! We at Help Build
Detroit expect with the correlating market factors that 2009 and 2010 will make for an amazing amount of strong,
steady cash flowing investment properties. Cash is definitely KING right now, and there are tremendous
opportunities in the Multi-Family arena. We can discuss this more on the phone (There isn't enough room to
type it all here!)
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| Q: |
Where/What Do I Look For To Buy in The City of Detroit? |
| A: |
When it comes to the often asked question of where and what do you buy in this market,
we have many suggestions depending on the particular goals of the individual investor. In Single
Family Homes we have very strict criteria that must be met for us to acquire a home. Including build, style,
location, amenities, etc
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| Q: |
I have 10,000-$500,000 to invest, what should I do next? |
| A: |
We get that question all of the time at Help Build Detroit and it's one best discussed over the phone as it's
a complex matter with many factors coming into play. If you have that question, give us a ring and we'll be sure to help.
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| Q: |
Can't I Just Do This On My Own? |
| A: |
Absolutely! We work very hard at Help Build Detroit to build relationships and to build the best
team of banking relationships, brokers, appraisers, title companies, agents, inspectors, renters, plumbers,
electricians, roofers, landscapers, bird dogs, etc. to provide 5 star services for our clients.
So if you want to take the time needed to build your own team, go for it! We just want to see you succeed, and
that's why we're here.
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| Q: |
Who is Help Build Detroit anyways? |
| A: |
Help Build Detroit is the brainchild of Anthony Sevy & Andrew Kuhn.
See more about us and our company on the "About Us" Page.
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| Q: |
What Do I need to do to get started? |
| A: |
Pick up the phone and give us a call and let's get started making money today! |
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We hope we gave you some insight on Help Build Detroit and buying Bank Owned Homes and managing them from all aspects of both in and around the City of Detroit. If you have any further questions or are ready to take action and start investing in your future, please pick up the phone and give us a call today (248) 246-0546 or contact us.
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