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Michigan Rental Properties


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A short presentation of discounted investment property with very high rental yields in the USA

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Michigan Rental Properties

  1. 2. Background <ul><li>“ This is now the greatest time, maybe ever, maybe in history to buy a house (in the USA)” </li></ul><ul><li>Donald Trump on Larry King Show 18 th March 2009 </li></ul><ul><li>Mortgage lenders in the USA are repossessing thousands of properties per month due to the financial climate and sub-prime lending crisis. </li></ul><ul><li>Investors in the USA cannot get mortgages and many of those cash investors are already heavily in the market. </li></ul><ul><li>This leaves a unique opportunity for buyers with cash, to purchase repossessed stock at incredible discounts. </li></ul><ul><li>Olive Tree has sourced what it considers to be the best opportunity currently in the US and gathered a team of professionals together to help create a fantastic deal for the property investor. </li></ul>
  2. 7. Why Invest in Detroit Michigan ? <ul><li>Over 10,000 properties that have been repossessed so far </li></ul><ul><li>Prices haven’t been as cheap since the great depression of 1937 </li></ul><ul><li>President Barack Obama has pledged billions of dollars in support to the regeneration of Detroit under the ‘American Recovery and Reinvestment Act 2009’ </li></ul><ul><li>Detroit is the home of the car industry which Barack Obama is pledging billions into a bailout plan. </li></ul><ul><li>Expert team locally that know the areas and have been involved for 10 years </li></ul><ul><li>Strict selection criteria to meet the investment model </li></ul><ul><li>Local refurbishment team of builders </li></ul><ul><li>Local rental management company with online tracking system </li></ul><ul><li>Huge rental demand that is government back </li></ul><ul><li>Tenants who will look after your property </li></ul><ul><li>Genuine exit strategies </li></ul>
  3. 12. Scott is a local and has spent 10 years selecting, investing and renovating property in Detroit
  4. 13. Properties specifically targeted using local knowledge and contacts
  5. 14. The Homes and Renovations <ul><li>Renovations and repairs to housing departments standards. Includes warranties: </li></ul><ul><li>Plumbing and heating </li></ul><ul><li>Electrics </li></ul><ul><li>Roofs if necessary </li></ul><ul><li>Kitchens and bathrooms </li></ul><ul><li>Repairs to internal walls and floors </li></ul><ul><li>Complete redecoration and painting </li></ul><ul><li>New carpet, tiling and hardwood flooring </li></ul><ul><li>Gardens and landscaping </li></ul><ul><li>Garages </li></ul>
  6. 15. Property just acquired
  7. 16. Property just acquired
  8. 17. Property examples before during and after Property just acquired
  9. 18. Some properties have single or double garages
  10. 21. Areas selected to be attractive to tenants
  11. 25. All repairs carried out to government standards
  12. 28. Some properties bought in good state of repair
  13. 31. Mike Building Works Manager…..tends to get the job done correctly first time!
  14. 32. New furnaces fitted if required
  15. 33. Quality finishing
  16. 39. Refurbishment completed
  17. 43. Refurb completed
  18. 45. Refurb completed
  19. 46. The Tenants <ul><li>Tenants rental is paid by the government directly to the owner not the tenant through the department of Housing and Urban Development (HUD) </li></ul><ul><li>Two year waiting list of tenants </li></ul><ul><li>Over 9000 families approved for the program looking for housing </li></ul><ul><li>The HUD scheme offers a zero tolerance policy </li></ul><ul><li>Tenants are responsible for the welfare of their home </li></ul>
  20. 49. Property Management <ul><li>Screening prospective clients </li></ul><ul><li>Regular property inspections and reports </li></ul><ul><li>Handling and connecting utilities </li></ul><ul><li>Collection of rent and government rental vouchers </li></ul><ul><li>Maintenance covered by their home warranty </li></ul><ul><li>Resident placement and all documentation </li></ul><ul><li>Online client area to check financial statements and reports </li></ul><ul><li>Evictions and legal proceedings </li></ul>
  21. 51. Exit Strategies <ul><li>Sell to your tenant and become the bank </li></ul><ul><li>Sell the property on the open market </li></ul><ul><li>Refinance the property </li></ul><ul><li>Buy to let </li></ul>
  22. 54. Investment Property Opportunity Summary <ul><li>Buying at highly discounted rate - bottom of the market </li></ul><ul><li>Low risk investment </li></ul><ul><li>Low entry level </li></ul><ul><li>High rental yield </li></ul><ul><li>Waiting list of tenants </li></ul><ul><li>Longer term capital growth </li></ul><ul><li>Hands-off hassle-free </li></ul><ul><li>Government aided rent </li></ul><ul><li>Price includes closing costs </li></ul><ul><li>Properties newly renovated </li></ul>
  23. 55. 13.95% Net Yield $6,140 Net Rental Per Annum   (taxes and management fees) $3,460 Annual Deductions 21.81% Gross Yield $9,600 Gross Annual Income (government backed) $800 Gross Rental Income per month $36,000 Instant Equity $80,000 Appraised Current Market Value $44,000 Purchase & Refurbishment   Typical Investment