Thoughts on this investment property please

[AUSSIE]

30%!

http://www.arkadia.com/usa/real-esta...zpoc-t2485263/

What have i missed, or is it a Ponzi in the making?

The money i make with this i buy 8200 Mack

Cheers

[Richard]

The money that you would pay for that risk you could buy mack and make it a community center/play theater and hall rental /dinner and a movie and still have enough left over to buy a Bush Park mansion and refurbish that and still have some left over.

What happens if you pay the deposit and their VA/HUD funding does not go through?

12k per unit ,if it was such a good deal why would they not do it and hold for themselves?

Just my thoughts.

CY for CC 2013

[Honky Tonk]

30%!

http://www.arkadia.com/usa/real-esta...zpoc-t2485263/

What have i missed, or is it a Ponzi in the making?

The money i make with this i buy 8200 Mack

Cheers

What I think is you ought to come to Detroit for a month long vacation. This way you can get a real feel for the place and you'll be able to seperate reality from the feel good bullshit. Come in the summer when all the residents are out and about.

[AUSSIE]

12k per unit ,if it was such a good deal why would they not do it and hold for themselves?

AMEN!

Keep them ideas for 8200 Mack coming, seats 1600, [as long as u dont sink into the washed-out/destroyed basement] must be HUGE!

I must need help, thinking of that place every day...lol

Cheers

[Richard]

The washed out basement is the money maker as a hidden blind pig/high stakes poker games ,the other business or uses are just the front as not to draw attention.

Property may seem cheap but no matter where you go in the world everything is relevant.

[corktownyuppie]

CY for CC 2013

Made my day, Richard

What have i missed, or is it a Ponzi in the making?

[[1) First problem is that you need cash, you won't be able to finance this deal. They won't do the work unless they have a committed buyer. You can't get a bank loan until the work is done.

[[2) Construction risk. They'll be using your deposit money, in part, to fund the construction. What if construction costs are twice what was expected? Guess who they'll be coming to when the project needs another $50-100k to finish the job? Yes, my friend, you.

[[3) Management Risk. This is not a child's game. An Australian investor -- beloved by his tenants -- went into an area to rehab a building. One tenant wouldn't pay rent. After telling her to leave several times, she called her uncle. The uncle, who had just won the lottery, showed up and killed the landlord.

You are not just a landlord. You'll be an enforcer, a mediator, and a social worker.

So if you have the combination of all 4 of those skills -- and you have $500,000 in liquid assets available -- hell, you deserve the 30% per year return.

Now, back to forming my exploratory committee...
CY

[davewindsor]

Another sucker's born every minute scam, brought to you by the carpet bagging scum of greater Detroit. It wouldn't surprise me if they picked up this boarded up apartment building for a few grand at the county tax sale auction. Even if they skipped town with the deposit, they'd still probably get their investment back ten fold.

I remember last year there was a post about someone who picked up the Arnold Nursing Home at 7th mile for $21K a few years ago at one of the county tax sale auctions. That thing was a monstrosity on 13 acres. Here's a tour of it http://www.detroityes.com/webisodes/...omeDiscuss.htm

The guy who bought it spent years trying to get government grants and loans to rehab it into a retirement home and never raised a dime. Scrappers where in and out of there constantly and last year it was in the news that 2 scrappers were killed when the roof collapsed on them.

I hope it's not the same company I was posting about a year ago that was selling boarded up apartment buildings on e-bay they picked up at county tax sale auctions claiming it's an easy rehab with huge returns and plenty of government rehab grants available.

That's a rehab in the millions and the money they are asking is just a downpayment. If it was so easy to get government money to rehab apartment buildings, there wouldn't be so many boarded up apartment buildings across metro.

[Richard]

flavor of the year is funding for veterans housing so good odds there but you still need some skin in the game and they are minimizing their risk by using your skin. But listen to what they are saying and use your due diligence and see if it works for you.

It may be legit and they are not supplying high dollar housing just basic utilitarian accommodations and without seeing what they look like inside etc. it is hard to really make a decision weather it is a good investment or not,but these guys know the area good and bad and that is the key as to who would take advantage of the housing situation,coming from another outsider the posters here have a knowledge of their city that is hard to not pay attention to and I am sure for the same amount of funds they could find you something a little bit less risky.

But for what it is worth absentee land lording is not a good idea from here state to state or worse from a different country you need to be eyes on or at the very least partner with somebody there who you can trust and be comfortable with.

Detroit is a B-1 visa certified city,although they try and hide it ,but you could get a few buddies there and put some cash together and go from there ,you can see there is opportunity and all and all even in the currant crunch the right real estate is still showing a better return then anything else.

[Hamtragedy]

A fool and his money will soon part.

The apartments on Southfield Fwy looks like a fishing expedition. The other building is substantially burned but not pictured, and there is zero demand to live in that neighborhood.

[Vic_doucette]

What have i missed

Being here and getting the lay of the land.

You can't even begin to understand a place until you've lived in it for a while.

If you don't come here and spend at least a couple months [[and a year would be better) learning about this area, its people, its problems and the possible solutions, you're just a fool waiting to parted from your money.

I've often thought I'd like to visit Australia, but I wouldn't even dream of investing a penny there unless I understood very well what I was getting into. You can't do that from the other side of the world. You can't do that on a web site.

[EastsideAl]

Why would anyone buy a vacant and likely stripped out and/or burned apartment building in a neighborhood where no one wants to live? Goodness, there are actual occupied, and somewhat maintained, apartment buildings around here that can't be sold and make the owners very little, if any, money. There's a reason why there are so many half-full and vacant apartment buildings in this city. There's certainly no reason to go on a fool's errand and buy something in this condition.

[Khartoum]

Ha! Weren't these on that double dirty dozen demolition list that King Kwame presented during his "modern day lynching" speech?

I wouldn't be surprised if you invested in these & the city came along and mistakenly demolished them some random Monday.

[DetroitPlanner]

I grew up in Franklin Park. These apartments were not great places to be 40 years ago. They are located less than a block from the Southfield Freeway and a major rail line so it would be very noisy. Your neighbors are mostly abandoned tool and die shops. Poor freeway access unless you only consider going SB on the Southfield. Not a great location.

[softailrider]

There were a bunch of apartment buildings around there, they've been vacant for decades, most have been torn down by now. There's a police station near there [[If it's still open) I wouldn't take that place if somebody paid me.