Investing in Detroit ?

[Christophe Noualhat]

Hello everyone,

I hope this question finds you well.

After visiting a few U.S. real estate investing websites for French nationals, I am receiving offers for full packages investments in Detroit.  

I would like the opinions of this fine crowd on BP about distant investment in Detroit... still a bit risky for a distant investment ? good opportunity ? 

I am sharing a link I received today

https://www.dropbox.com/sh/v17s8ca1xx07x0i/AADfA4a...

Thanks in advance for your replies,

Best

Christophe

[Joel Owens]

If you think buying rougher area assets is hard being out of state just wait until you are out of the country.

What happens when problems come up and you are not getting a response?? Spend thousands for flight and hotels to travel there. Guess what your expected cash flow just went down the toilet for a few years.

I think out of the country investors should not be buying these low quality properties and areas. It's cheap but it's for a reason. The reality is the great properties in good areas get bought up by the local investors because they can act often in a day. The foreign investors have to perform a ton of due diligence from afar and go through multiple hurdles to buy. Landing financing is really tough as well if they are not paying all cash. If it's a foreign investor they would have to put down considerable non-refundable EM to tie it up. I have heard many instances where they get here and do not like something about an area etc. or find out a tax consequence they didn't know of and the deal falls apart.

Most investors like the warm belt states for investment and growth. Tens of millions of retirees are flocking to warmer climates. The cold belt states are dying off. Some growth there in spots but they can't touch the upside to the warm climate states long term.

Just my opinion and everyone has one.......... : ) Detroit would not be on my radar as a top spot.