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.
Monday, March 23, 2009
Tuesday, March 17, 2009
Commercial real estate brokers change teams
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.”
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.”
Tuesday, March 10, 2009
Foreclosure Sales Continue Spike In Detroit Area
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.
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.
Wednesday, March 4, 2009
Finding value in Detroit
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.
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
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.
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.
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