Detroit Real Estate News

Investors find real estate gold in Detroit

2009-03-23T10:48:00.000+02:00

The home is large for the area, around 1,600 square feet. By far the most attractive feature for Burgess is the price. While he says it may appraise at around $110,000, he bought it on March 11 for a mere $12,000.

"I'm selling it next week to an out-of-state investor for a little over $17,000," he says.

His company, Urban Detroit Wholesalers, buys, renovates, then flips or rents homes in Detroit, something that may seem foolhardy to some observers in one of the most economically depressed cities in the nation.

But Burgess, who started the company in 2007 with partner Jared Pomranky, says Detroit is a great place for real estate investment.

Commercial real estate brokers change teams

2009-03-17T09:12:00.000+02:00

Brokers are looking for large firms with the staying power to make it through the downturn, he said.

Commercial real estate firms are all looking for brokers who can produce because it can cost $50,000 to $75,000 per year for the rent, secretaries and technology costs associated with each broker.

“A firm might cut costs by reducing its less productive people,” he said. “Yet some brokers, with the right training and contacts, will be a success anywhere.”

Foreclosure Sales Continue Spike In Detroit Area

2009-03-10T20:28:00.000+02:00

Once again in February in the Detroit area real estate market, foreclosure sales are up and regular sales are down.

But foreclosure sales rose enough to drive total sales up.

That’s the word from Realcomp, the Farmington Hills provider of online information to real estate professionals.

In the five-county region tracked by Realcomp, foreclosure sales were 2,353 in the region in February, more than double 1,202 a year earlier.

Non-foreclosure sales fell to 1,829 in February from 2,389 a year earlier.

Foreclosure sales in Detroit rose from 465 in February 2008 to 676 in February 2009. Non-foreclosure sales tumbled from 465 a year ago to 201 this year.

Finding value in Detroit

2009-03-04T10:16:00.000+02:00

The challenges facing the Detroit area are certainly no secret. They have, in fact, been played out on the national stage.

From the state of the automotive industry to a market-wide economic downturn that has been both more severe and potentially longer lasting than in other states, real estate values in southeastern Michigan have been eroding at an unprecedented pace.

Of greatest concern are the countless broken residential developments that lie stagnant in various stages of incompletion, and are just now beginning to be liquidated by the project lenders and investors. These types of assets are potentially the most difficult to value. While banks continue to pursue the original developers for their personal guarantees, they often neglect the ongoing care of the real estate asset, not placing it within the hands of a receiver or asset manager as they would with a cash-flowing asset. These development projects unfortunately continue to lose tremendous value in real time.

Real estate firms retrench: Cost-cutting moves include bankruptcy, mergers

2009-03-04T10:11:00.000+02:00

According to the Michigan Association of Realtors, the number of association members statewide has decreased from 31,164 at the end of 2006 to 24,289 at the end of 2008.

In metro Detroit, the number of Realtors decreased from 13,155 at the end of 2006 to 9,918 at the end of 2008.

While losing business in the bad economy is the root cause of the companies' problems, losing agents hastens the downfall, Century 21 Town & Country said in its bankruptcy court filings.

Century 21 Town & Country President John Kersten did not respond to requests last Wednesday for an interview by phone and through e-mail. His bankruptcy attorney also declined to comment.

Three Detroit Real Estate Developments Win 2008 CREW

2008-09-30T16:04:00.000+02:00

Three Detroit real estate developments have won 2008 Impact Awards from the Detroit chapter of Commercial Real Estate Women (CREW Detroit): the Detroit East Riverfront, the Detroit Institute of Arts (DIA) master plan expansion and renovation and Whitdel Apartments, historic southwest Detroit apartments renovated into affordable housing aimed at aspiring artists.

The awards recognize three recent commercial property developments that positively impacted southeast Michigan.

The Detroit East Riverfront, 3 1/2 miles of public Detroit River waterfront linked by a continuous RiverWalk, parks, plazas and green spaces, won the new construction award. The Detroit Riverfront Conservancy (DRC), the project's owner, developer, property manager, submitted the entry. The project team included these companies with a CREW member: the DRC, the project's owner, developer, property manager, which submitted the entry; LaMont Title of Detroit, title company, and JJR of Ann Arbor, the architect, designer and engineer.

FBI probing Lindsey Hunter's role in real estate deal

2008-09-05T19:40:00.000+02:00

Attorney Michael J. Smith of Sterling Heights said his client, Bruce McClellan of Waterford Township, recently told the FBI that Hunter and Iron Johnson, Hunter's partner in L&I Enterprises, promised to pay him $300,000 in 2007 to buy the house in the 1700 block of Morningside Way. The deal called for McClellan to hold the house for one or two months until it could be purchased by someone else.

But the purchaser never materialized, McClellan never got his $300,000, his excellent credit rating is ruined and the house went into foreclosure, McClellan told the FBI.

Smith told the Free Press he's contemplating suing Hunter and others to recover damages for McClellan, who is on the hook for the $1.25 million mortgage.

It's unclear what Hunter had to gain from the deal.

Hunter could not be reached for comment Monday, but his lawyer, Deano Ware of Redford, said: "Lindsey Hunter hasn't done anything wrong.

GR developer at center of Detroit corruption probe

2008-07-04T19:37:00.000+02:00

An Alpine Township man at the center of an investigation into alleged Detroit City Hall corruption was working for a company that holds a $3 million sludge-hauling contract with the city of Grand Rapids, as well as contracts with other West Michigan communities.

However, Grand Rapids city officials say they don't expect the Detroit case, which involves local developer James Rosendall Jr., to have an impact on their contract.

"It's of interest to us," said Grand Rapids Assistant Director of Environmental Services Mike Lunn. "I don't see how it would impact us at all."

Showcase of Detroit homes

2008-06-25T10:17:00.001+02:00

Ken Scott, chairman of the University Commons Home Buying Seminar and Neighborhood Open House Bus Tour, said more than 100 homes are for sale within the 3-square-mile area bordered by Eight Mile, the Lodge Freeway, Woodward Avenue and Schaefer.

"Our emphasis is getting families to consider purchasing a primary residence in these areas," said Scott, a real estate agent with Candler, Scott and Wallace Real Estate Consultants. "We want to showcase these communities and point out that the homes here have never been at a better value."

The event is free to the public and will start with a home-buying seminar from 11 a.m. to 2 p.m. at University of Detroit Mercy Student Center Building, 4001 W. McNichols Road, Detroit.

Rediscovering Detroit Real Estate

2008-06-11T09:45:00.000+02:00

Doom-and-gloom media coverage has commonly painted a picture of Detroit as a city in peril. Investors who do their own research, however, will probably discover undervalued opportunities for investment buried beneath the city’s tarnished reputation. Some speculators have already begun to take advantage of the market’s tremendously low property prices, while other buyers are still waiting for the market to hit bottom.

Of course, investors should not overlook the serious problems faced by Detroit’s real estate market—problems such as widespread foreclosures, a weakened local economy, high rates of unemployment and rampant crime in the city. Yet remarkably, more than 99 percent of its metro population has remained intact. How is that possible?

GM buys its Detroit headquarters for $626 million

2008-05-14T11:57:00.000+02:00

DETROIT (AP) — General Motors Corp. said Thursday that the shaky real estate market convinced the automaker that it was a good time to buy its previously leased headquarters in downtown Detroit's towering Renaissance Center for $626 million.

GM revealed the May 1 purchase in a filing Thursday with the Securities and Exchange Commission. GM said it paid $626 million cash for the headquarters and $200 million cash for two office properties in nearby Pontiac.

The move comes in the face of GM's own business difficulties, including a $3.3 billion loss in the first-quarter, when Toyota Motor Corp. took the lead in global sales.

Michigan commercial real estate houses

2008-05-06T11:04:00.000+02:00

The Commercial Board of Realtors' listing information exchange will get a serious boost when two major commercial real estate houses begin this month to share all their historical data and proprietary listings.

Signature Associates, based in Detroit and with offices in Grand Rapids and Kalamazoo, announced it would hand over its 2,400 listings to CPIX, the information exchange used by CBOR members and the Michigan Economic Development Corp.

Colliers Inc., based in Southfield, also will share its information, including some 1,000 listings, Signature Vice President and managing director Mark Woods said.

Investors snap up big deals in Detroit

2008-04-18T18:28:00.000+02:00

Overall, metro Detroit home sales rose 2.5% in March compared with March 2007, according to figures released Monday by Realcomp Inc., a Farmington Hills-based multiple-listing service.

Sales for the month were down in Macomb, Oakland and Livingston counties, however. Sales fell by 12.6% in Livingston, 4.6% in Macomb, 4% in Oakland and 5.4% in the St. Clair area, which includes areas in the Thumb. Wayne County sales rose 17%.

"There are a lot of out-of-state investors coming in to town to buy homes. They seem to be aware of the fact that there are good deals in the city of Detroit," said Bryant Harris, an agent with 20th Century Real Estate in Detroit. "The market affords people the opportunity to own a home for as little as a couple thousand dollars."

America's Riskiest Real Estate Markets

2008-04-06T00:52:00.000+02:00

There's roulette and there's skydiving. Then there's investing in Detroit and Cleveland real estate.

That's especially risky because those markets are in freefall. Lenders have fled, foreclosures are on the rise, homes aren't selling and local economies have stalled.

The riskiest were those that had the highest foreclosure rates, slow job growth (or job loss) and a rash of listed homes.

Michigan Millionaire Makers Market Available To Real Estate Investors Through Michigan Income Properties

2008-03-25T10:54:00.001+02:00

Mt. Clemens, MI--Michigan's Premier Investment Property Buyers (http://www.MichiganIncomeProperties.com are delivering real estate investors homes with mega equity. Due to strong relationships with local banks, Michigan Income Properties is able to offer Michigan real estate investors homes at less than 50 cents on the dollar.

"I can buy houses from Michigan Income Properties for thousands of dollars less than what the banks are letting them go for" says Robert Eloot, a Michigan real estate investor and current client of the company.

Now is the opportunity to buy a home

2008-03-17T12:52:00.000+02:00

As a real estate agent in the lakes country area, which includes the communities of Detroit Lakes, Lake Park, Audubon, Pelican Rapids, Hawley, Mahnomen, Park Rapids and points in between, I’m struck by the apprehension about buying a home in today’s market.

The truth of the matter is that there has never been a better time to buy when we consider the unique forces at play. Interest rates are near 40 year lows, prices have moderated, and the number of homes on the market is greater than it has been in years.

Profiting from problems of others

2008-03-10T11:14:00.000+02:00

Last year, Detroit led the United States in foreclosures, with close to 5 percent of its households entering some stage of foreclosure, according to RealtyTrac, an online marketplace for foreclosure listings.

That number was nearly five times the national average, and almost double the number of foreclosures in Detroit in 2006.

But every cloud has a silver lining. Just ask Ralph R. Roberts, a top real estate agent in Detroit who says he has personally bought and sold more than 2,000 foreclosed properties during his career.

"This could be a great time to buy a home - if you have the resources," he said.

Roberts, who is the author of Foreclosure Investing for Dummies and Flipping Houses for Dummies, said in a recent interview that he believes that more than 6 million families are in distress nationwide.

"Maybe 1 or 2 million are behind in their mortgages, and more have received their foreclosure notice," he said. "But 2 million families will lose their homes this year."

From the Ashes of the Detroit Housing Market

2008-03-03T19:33:00.000+02:00

Detroit, MI – In the Detroit market is now possible to stop making house payment and/or stop paying rent and yet enjoy the pride of home ownership independent of credit score. The depressed Michigan housing market allows investors to buy bank owned properties for les than 20 cents on the dollar. These properties can be re-habbed, HUD-appraised and purchased by a senior, who is 62 or older and approved for a reversed mortgage. This senior can now be a proud home owner without ever having to make house payments again! The investors are willing to help the seniors by providing a private mortgage or land contract on the home while the reverse mortgage is obtained.

What is a reverse mortgage? A reverse mortgage lets an owner convert home equity into cash. However, unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as a primary residence.

Michigan’s Largest Real Estate Broker Reports $5.4 Billion in Sales

2008-02-25T13:36:00.000+02:00

Morris works with John Adams Mortgage Company offering quick approval, equity and bridge loans and a variety of mortgage products designed to meet specific needs. Capital Title Insurance assists sales associates and customers by coordinating the details of the transaction. Insurance One provides complete insurance coverage for associates and customers. Home Services One helps customers coordinate the many details connected with a move, from hiring a moving company to cleaning carpets. The full time professional staff is experienced in real estate and very knowledgeable in all aspects of relocations assisting more than 3,000 families moving to and from the metro Detroit area each year. First American Home Buyers plan offers a one year residential service contract that provides repair and replacement coverage on many of the home’s major systems and appliances that fail due to normal wear and tear.

The Real (Estate) Deal

2008-02-20T11:52:00.001+02:00

The Detroit Investment Fund's Dave Blaskewicz presented an overview of the last six years of development in Greater Downtown – new housing, retail and dining and entertainment venues, not to mention cornerstone changes such as Compuware, Campus Martius and the Detroit RiverWalk.

Detroit registered the highest foreclosure rate among the nation's 100 largest metro areas

2008-02-16T20:10:00.000+02:00

Detroit registered the highest foreclosure rate among the nation's 100 largest metro areas, with close to 5 percent of its households entering some stage of foreclosure during the year -- 4.8 times the national average and up from about 3 percent in 2006. A total of 72,616 foreclosure filings on 41,273 properties were reported in the Detroit metro area in 2007, up 68 percent from 2006. The other Michigan metro area with a foreclosure rate in the top 20 was Warren-Farmington Hills-Troy at No. 17.

With 4.866 percent of its households entering some stage of foreclosure during the year, Stockton, Calif., documented the second highest metro foreclosure rate.

Campaign helps developers market inexpensive Detroit properties

2008-02-12T00:55:00.000+02:00

he D Brand is about promoting the city's strengths while acknowledging its challenges. Developers and business owners say an application of the brand for urban revitalization works too.

Resurrecting a dead property has been a fascination for Avinash Rachmale, CEO of Lakeshore Engineering Services. Rachmale first renovated a warehouse in Highland Park with his own money. He recruited investors and landed government contracts, which enabled him to restore an eight-story, 245,000-square-foot building once owned by Henry Ford's prototype team.

Residential real estate market in Detroit

2008-02-06T00:59:00.000+02:00

Dave Blaszkiewicz, president of the Detroit Investment Fund, will give a presentation on who's moving to Detroit and what are the residential real estate opportunities. The $52 million Detroit Investment Fund is a private-capital fund that offers financing for businesses and real estate projects that can stimulate economic development in Detroit.

Afterward, a panel of Realtors who sell in Detroit will discuss their experiences and take questions from the audience.

Outside investors hot on Detroit commercial real estate

2008-02-02T11:11:00.000+02:00

Metro Detroit's inventory of commercial real estate continues to provide hot prospects for out-of-town investors.

Seven of 2007's 10 biggest sales were purchased by companies or investors outside metro Detroit. The area's reputation as a risky place for investment has been both good and bad.

People making news

2008-01-28T08:34:00.000+02:00

Jerry Moyer of Livonia, a property manager at Broder & Sachse Real Estate Services Inc. in Birmingham, has been elected president of the Institute of Real Estate Management's (IREM) metropolitan Detroit chapter. Moyer has had a 15-year property management career.