Detroit Property Investment

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Presentation Description

http://www.Detroit-Property.co.uk This is a slide show of one of our recent Detroit property Seminars. Its outlines why now is a good time to invest in a Detroit property, with a couple of examples of houses in Detroit ideal for the investment. It also details the buying process. If more information and to download our investor Detroit property report go to http://www.Detroit-Property.co.uk

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Presentation Transcript

Slide 1:

Detroit

About us:

About us 5 Key Principles Income and returns Credibility Security Ease of purchase Exit Strategy

Why the USA? Why now?:

Why the USA? Why now? Largest price correction of property prices in history Strong rebound- economy growing 3% annually Unemployment reducing sharply, now down to 8.9% Exceptional rental yields: Prices fallen while rents have increased

Introduction to Detroit:

Introduction to Detroit Major industrial city, headquarters of GM, Ford Thousands of families searching for quality affordable homes to rent Famous for cars, manufacturing 3 casinos bring in additional tax revenue for long term regeneration

Why Detroit? Why now?:

Why Detroit? Why now? High quality, brick built properties with high net yields Detroit benefiting from ‘Made in USA’ manufacturing GM increasing production of GM Volt (electric plug in car) – all made in Detroit Tram feasibility study, expanding film industry Unemployment down to 11.1% (Dec 2010) Huge investment into education: 4 world class universities Quicken moved HQ to Detroit in Summer 2010 (4000 jobs)

THE INVESTMENT:

THE INVESTMENT The proposition: Brick built refurbished detached houses, priced $36,000-$51,000 delivering 13% to 17% net yields (most pre-tenanted)

Investment in detail:

Investment in detail Freehold 2, 3 and 4 bed detached houses Fully refurbished from $36,000 Gross yields upto 25%, net 13-17% Strong capital appreciation potential Renovation compliant to Section 8 Standards Complete management service, including regular inspections Includes legal and closings costs, creation of LLC and warranty

Security:

Security Freehold house, clear title, debt free Desirable suburbs – in depth research carried out on each neighbourhood Comprehensive refurbishment 5 year warranty Section 8 certified

Returns and Income: Section 8:

Returns and Income: Section 8 9000 people on the Detroit Section 8 waiting list Eligibility based on household income ‘One strike and out’ policy 80%+ of rent paid direct to landlord if household income is $22,000 to $35,000 Fair market rent Detroit in 2010 3 bed $952, 4 bed $981 Net yields 13-17% after management fees, insurance and property tax

Returns and Income: Capital Appreciation:

Returns and Income: Capital Appreciation Selling substantially below rebuild cost Typically 65% below real prices paid in 2006 Lack of mortgage availability main reason for low current prices Location: where families want to live Close to areas of employment, schools and universities

Returns and Income: Tax:

Returns and Income: Tax Purchased within an LLC (included in purchase price) Owner (not tenant) responsible for property tax (equivalent of council tax) USA tax free allowance of approximately $3600 per named person (ie $7200 if jointly buying) Above allowance and upto $50,000, USA tax 15% Double taxation agreement with the UK We are not tax advisors, and you should seek independent taxation advice

Credibility: Comprehensively Managed:

Credibility: Comprehensively Managed Experienced partners: Over 400 properties refurbished and managed in the last 4 years High quality refurbishment Independent 5 year warranty Turn key solution- everything done with the international investor in mind Online portal for property management updates

Exit Strategy:

Exit Strategy There are a variety of exit strategies available Sell to tenant Sell on open market when finance conditions improve Sell to investors through ourselves or other agency Keep and receive the income (6 year payback)

Property Example: 11873 Roxbury Street $44,000:

Property Example: 11873 Roxbury Street $44,000 3 bed 2 storey bungalow Harper Woods (East) 2 reception rooms 1352 Sq ft (818 sq ft basement) Pre-tenanted rent $825pcm Net cashflow $6393 ( after 10% management fee and $2487 property tax ) £322pcm Last Sold Aug 2005 for $130,000

Roxbury Street:

Roxbury Street

11873 Roxbury Street:

11873 Roxbury Street

Ease of Purchase:

Ease of Purchase Let us help you select a suitable property Fill in reservation form, transfer £1500 enabling fee ( includes legal costs and after sales support ) Initial paperwork is completed Deposit of $5000 paid within 7 days to Escrow account Pay remaining balance We arrange to open USA bank account for you

Slide 18:

For further details www.Detroit-Property.co.uk