Think 2 Invest are pleased to offer our clients an amazing opportunity to invest in high yielding, completely refurbished, detached 3 and 4 bed homes in Detroit, Michigan. Working in conjunction with the City housing department to purchase and completely renovate foreclosure homes and re-housing families.
Investment Outline
Mortgage lenders in the USA are currently repossessing thousands of properties per month due to the current financial climate and the sub-prime lending crisis.Typically the homes have been sold within the past 5 years for upwards of $120,000 and the previous owners now leaving mortgage lenders with substantial amounts owing. Our properties are sold to investors free and clear in title with no mortgage debts or liens attached to the property.
This investment does not require any mortgage qualification or finance applications as properties are acquired for a cash outlay from just £24,000 ($38,000 USD). Our properties are completely renovated to exceed the requirements of the US department of Housing and Urban Development (HUD) and in high demand by a waiting list of government approved tenants. These homes are sold at a minimum discount of 40% from a current appraised market value giving an investor substantial equity from day one.
Mortgage lenders in the USA are currently repossessing thousands of properties per month due to the current financial climate and the sub-prime lending crisis.
Our unique turnkey investment offers you the opportunity to take advantage of purchasing foreclosure homes at significant discounts of up to 60% below current market values. We have access to many foreclosure properties in Detroit, Michigan, direct from mortgage lenders and banks. We have teamed up with the Detroit’s department of Housing and Urban Development to ‘recycle’ these foreclosure homes, by completely renovating them and providing much needed housing for families approved for the government backed rental scheme.
Typically the homes have been sold within the past 5 years for upwards of $120,000 and the previous owners now leaving mortgage lenders with substantial amounts owing. Our properties are sold to investors free and clear in title with no mortgage debts or liens attached to the property. "With a lack of suitable and affordable housing and ever increasing rental demand, Detroit is the place to invest for substantial long term returns."
The properties we focus on in Detroit are substantial, detached, 3-4 bedroom homes in carefully selected communities where existing homes are to a high standard. Our properties undergo complete renovation to exceed the standard of the department of Housing and Urban Development and are in high demand by waiting tenants. We ‘recycle’ foreclosure homes that are in desirable suburbs of the city where people want to live and will benefit from the highest capital growth for the future.
Why Detroit?
Detroit is the largest city in the state of Michigan with a population in excess of 5.4 million people. Due to the current economic downturn, this has led to a shortfall of affordable housing and high numbers of families needing quality homes.
The most foreclosures - the biggest discounts - Michigan has some of the highest numbers of foreclosure homes with over 10,000 properties being repossessed so far. This has meant that greater discounts can be achieved than in other states such as California, meaning investors get so much more for their money.
Property prices - Property prices have bottomed out, there has not been a better time to buy in the USA as prices haven’t been so cheap since the great depression of 1937.
Presidential support - President Barak Obama has pledged billions of dollars in support to the regeneration of Detroit under the American Recovery and Reinvestment Act 2009. This will mean good long term prospects for Michigan as it has the largest amount of money being invested to kick start the economy.
It is the home of the car industry - With the added benefit of Detroit being the home of the American car industry which is one of the major employers for the state, Barack Obama is also pledging billions into a bailout plan to keep the car industry alive.
Huge rental demand that is government backed - More home foreclosures, fewer homebuyers and stringent lending criteria means the demand for residential rentals is drastically increasing in Michigan. With over 30,000 people approved for the (HUD) scheme currently in unsuitable or temporary accommodation looking for homes to rent. There is also a 2 year waiting list for people looking to join the department of Housing and Urban Development program.
Tenants who will look after your property - The department of Housing and Urban Development also operates a zero tolerance policy, meaning if a tenant is evicted from their home for any reason they lose entitlement to the program again in the future in any US state. Tenants are therefore responsible for the general welfare of their home and this system ensures that they take care of the property and treat it as if it were their own.
Genuine Exit Strategies - With options such as 'land contracts' and tenant buy back schemes, we have many ways for you to get an immediate return on your investment
Your Investment Will Consist of the Following...
- Minimum 40% equity built in from day one and substantial long term capital growth.
- Guaranteed tenant – government backed rental scheme.
- Complete renovation of the property to a high standard.
- All inclusive Home warranty to cover any future maintenance or costs.
- Gross rental yields of 25% compared to the average 5% in the UK.
- Established Property Management Company in place to take care of the property.
- Fully project managed turnkey investment.
Example of a Typical Deal
- Appraised current value: $90,000
- Investor Purchase & Refurbishment: $38,000 (£24,000 GBP)
- Closing costs: $4,800 (£3,000 GBP)
- Instant Equity: $52,000
- Government backed rental: $900
- Annual income: $10,800
- Gross yield: 28.4%
Your Total Outlay, just £27,000.
Highlights
- Minimum 40% equity built in from day one and substantial long term capital growth.
- Guaranteed tenant – government backed rental scheme.
- Complete renovation of the property to a high standard.
- All inclusive Home warranty to cover any future maintenance or costs.
- Gross rental yields of 25% compared to the average 5% in the UK.
- Established Property Management Company in place to take care of the property.
- Fully project managed turnkey investment.
It's a Win-Win Situation for All Parties...
- The bank / lender removes a property from their balance sheet.
- You gain an investment with massive amounts of equity and significant monthly returns.
- An American family is able to rent a property through a government backed scheme.
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