@Travis Biziorek - thanks for your insights on here.
I am a non-US citizen, living in the US. I came across a French investment group marketing houses in Detroit to French investors. They offer to locate, purchase, finance, rehab houses and lastly manage future rentals on the properties. They also guarantee rental income even if the house is vacant. They advertise a cash on cash return of around 12% and a house appreciating about 150% of the purchased price within 5 years. As far as financing, it’s 60% down on the house and they finance the rest. All they need from you as an “investor” is your cash.
I was wondering if you had an opinion on this? What bothers me is 1) they guarantee returns (anything with the words “guaranteed” and “return” within the same sentence rubs me the wrong way. 2) are those companies usually able to grab houses in the best areas (i.e. no war zones)? Seems really easy for them to grab anything and everything since the end investor is thousands of miles away. I’m just trying to get a better idea (from an outsider), of how those groups operate.
