Detroit: High Risk ... Especially For Absentee Investors

[Mia S.]

For the past few weeks I've been investigating the markets in Michigan. The deals in Detroit have been really tempting, but they are so high risk for investors unfamiliar with the area. Just read the following article that should be food for thought... 

http://www.housingwire.com/articles/32235-homeowne...

Will Detroit rebound? Eventually. When? Who knows. After speaking with several investors and local Realtors, I would warn any investor to really evaluate their investment strategy. When more than one local Realtor tells me that buying a mortgage note for $3k is a bad investment, I take note. Perhaps if your investment appetite allows for long-term buy & holds, you may be sitting on a gold mine. Currently it seems that there is so much blight, that it's hard to even get Realtors to venture to many areas. 

Despite my desire to redevelop depressed areas in hopes of revitalizing neighborhoods, the safety and security of my assets takes first priority.

Mia

Note Buyer

[Scott K.]

Originally posted by @Joe Villeneuve:

@Mia S. Good to hear.  Too often I hear people talk about this area as if Michigan is in Detroit.  Investing in Detroit can be very profitable, but I would never recommend anyone from out of state doing it...even with someone with boots on the ground.

My partner does it, and swears by it...but she knows the area, and like any REI, you must know your market. The beauty of the suburbs, is that out of state investors can safely invest their...with someone with boots on the ground. Many do...and quite well.

The 'burbs here is one great target rich environment for REI.

AGree Joe (go figure).  That's why I tell people the burbs is the place to be.  When you can get good properties for a good price and be in a way better city why even risk it.  That the biggest thing that I just don't get.

why why why why