Opportunity exists in the unlikeliest of places. This adage rings true for value-added real estate investing. And it is certainly true of Detroit, MI.
Cities like Detroit are often discounted and discarded from the public narrative. People think of the scandal, poverty and grit but discount the strategic proximity and intrinsic economic value.
But that’s what being a value investor is all about. Seeing the opportunity that others ignore. And it’s paid off. Investing where others won’t has allowed us to control trophy properties that are literally larger than football fields!
I was thinking about this while performing an “existing conditions” analysis for the 66,000 square feet redevelopment. Now, I’m not a big social media guy, but even I couldn’t pass up the opportunity to record myself doing very a macho construction walk through in a graffitied backdrop.
Unfortunately my attempt to balance my light roast Colombian blend coffee in one hand while trying to film with the other ended up as a fifteen second clip of me spilling coffee all over myself. Fail.
How does a 30-something New Yorker end up spilling his overpriced coffee in this partially walled, abandoned midwestern warehouse?
It all started with afternoon boredom on black Friday back home in Columbus, Ohio.
Black Friday Shopping for Real Estate
It was a typical Friday night in 2017. My beautiful, brilliant wife Richelle and I were perched on the couch – trolling Craigslist for good “for sale by owner” deals to fuel Housing JV Impact Investors.
We weren’t finding anything that fit the investing formula close to home, so Richelle decided to take a look at the Detroit market- just for a little fun.
Within seconds she’d sent me an unbelievable deal: an apartment building listed for $85,000 cash.
The Fullerton Manor was a 1920s, 4 story brick apartment building. Completely vacant and in need of a savvy developer. The price was incredibly low and the project was just what we’d been looking for.
Before I finished reading the ad, I was already dialing “Eyal”, the California investor who published the ad on Craigslist.
The wife agreed it was crazy. But she was game.
We dropped everything and jumped in the car immediately! Three and a half hours later we were in Detroit looking at this GOLD MINE in person.
The $85,000 apartment building was both unbelievable yet completely believable at the same time. It was just another glaring example of a broken lending system. The systemic redlining of entire neighborhoods that had been staring me in the face my entire career greeted me once again.
This is how Housing Joint Venture was born. We exist to restore quality in forgotten neighborhoods that have undergone years, sometimes decades, of neglect.
Welcome to the Birthplace of Motown.
That night I looked at my wife and said —
We have to buy this building.
That was three and a half years ago. We didn’t buy that building …. but we did purchase another building. We went on to build a relationship with a seller and buy multiple residential and commercial properties in the West side of Detroit.
Today Housing JV is redeveloping seven properties in Detroit including four duplexes, a 1920s Spanish colonial 14-unit apartment building, and two warehouses– including the one where I spilled my coffee. And we are just getting started.
Housing JV has big plans for the West Side of Detroit – and we want you here too.
This winter Housing Joint Venture launched its first ever Reg D, accredited investor only fund. We packaged a set of buildings for investment to move the Detroit properties forward.
These buildings are the initial stepping stone to a larger infrastructure in Detroit one day and the neighborhood of the future.
So What Really Led us to Detroit?
Detroit has a lot going for it. High purchasing power and quality housing stock are key. The entire city fit our Growth Value NeighborhoodTM premise.
The fact that Detroit is underrated is an asset. We don’t like competition. Winners create their own areas to operate. Detroit presents the rare opportunity to become a real estate market maker. More on this concept later…
Don’t count Detroit out. The city is poised for a come back and we are tackling this city head on.
Join the movement.
Schedule time on my calendar to talk to about investing in our accredited offering.