Tackling an Underserved Rental Market

✔ The demand for Single Family Homes to rent in the metro Detroit area is far greater than the supply — 98% occupancy rate.

✔ The growing employment base has caused a shortage in rental homes thus developing a gap in this real estate market.

✔ The abundance of homes available on the Detroit land bank and property auctions provide investors ample opportunity to meet the needs of Detroit’s rental market.

Low Acquisition Costs and Abundant Inventory

✔ Despite the economic growth, Detroit remains the #1 in the US with the most homes under $100,000, making it one of the most affordable markets. The median home value is $42,800 and the share of homes below $100,000 is 85%.

✔ After the post-2008 meltdown, houses could be purchased for as little as $500 from the land bank; in 2018 homes could still be purchased for as little as $5,000 from the land bank.

✔ The land bank rehabilitation program has had tremendous impact in improving communities, however, the land bank still holds over 100,000 vacant parcels and properties.

Experienced Partners for Long-Term Stability

✔ Strong partnerships with experienced property management companies in Detroit facilitates the daily operations of the project.

✔ Performance of rigorous screening - developed over the years for Detroit - helps us secure high-quality long-term reliable tenants.

✔ Connections with reputable trade teams provides trust-worthy labour required for a successful, cost-effective and timely repair.

Once in a Life Time Opportunity

✔ Detroit is in a different trajectory than most big American cities. Surrendering its economy to the will of the auto industry back in the 1970s led to Detroit losing half its population.

✔ With the auto bailout, boom of the tech industry and rise of electric and self-driving cars, Detroit is experiencing a come back unlike any other big American city.

✔ There is no other place in the US where you can: 1) buy single-family homes at Detroit prices, 2) expect the population to increase due to the inflow of workers and 3) expect the economy to improve as Detroit continues its rise from rock bottom.

Small Investments in Multiple Assets

✔ We like owning many small real estate assets with a few thousand dollars invested in each one as opposed to holding a single large real estate asset.

✔ Easy portfolio optimization can happen through effective buying and strategic selling. This wouldn’t be possible with a multi-family investment.

✔ Smaller investments allow our investors to get more assets and diversification for less capital.

Best Bang for Your Buck

✔ Detroit has the one of the highest rent-to-value ratios in the US. While a 1% rent-to-value ratio is good in certain markets like California, Class B and C properties in Detroit have ratios of 10% and 20%.

✔ Properties purchased without leverage can deliver cash-on-cash returns in excess of 10%. Using debt, the cash-on-cash returns jump to over 20%.

✔ Detroit has seen tremendous recovery and is poised to continue to recover, driving property values up. Appreciation could deliver great value - however, with only the cash flow profile, single-family homes are the best way to build generational wealth.