HOUSINGNEWS REPORT
DETROIT’S ROCKY HOUSING REBOUND
houses throughout the city. “We have groups coming in from Israel, Argentina and Brazil as well as investors from Florida. Eighty percent overseas investors and 20 percent locals. And they’re all buying a minimum of 10 properties each.” Hakim provided as an example Miami brokers who come to him, buy a rental property for $35,000 with a renter in place who’s paying $750 a month,
getting state aid. If you can get between $600 and $750 (a month) be happy.”
giving the investor a nice return on their money. Those brokers then turn around and sell the property to a Brazilian investor for $70,000 — still providing solid rental returns.
“Investors only want the city because of the numbers. It’s all about the numbers. Every one of these investors are buying with cash. Not one mortgage. Then they’re selling them with tenants in place,” he explained. Hakim also said that a lot of the properties he’s selling are off-market properties he finds through his sources like other investors who bought them and now want to sell. Detroit Demolition Derby Some off-market, vacant properties in Detroit prove even too risky for investors.
But those eye-popping rental returns to come with risk, Hakim cautioned.
“You’re dealing with lower income people,” he said. “The problem is half the people don’t have jobs. They’re
“We had to start doing property management because of all of the overseas investors. We have groups coming in from Israel, Argentina and Brazil as well as investors from Florida. Eighty percent overseas investors and 20 percent locals. And they’re all buying a minimum of 10 properties each.”
Those properties are identified by the Detroit Land Bank Authority and, when
ALBERT HAKIM FOUNDER, CITY MANAGEMENT GROUP
WHERE FLIPPERS ARE FLOCKING, AND FLEEING Q3 2017 YEAR-OVER-YEAR PCT CHANGE IN HOME FLIPPING -140% 140%
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JANUARY 2018 | ATTOM DATA SOLUTIONS
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