michigan rental properties

Background“This is now the greatest time, maybe ever, maybe in

history to buy a house (in the USA)” Donald Trump on Larry King Show 18th March 2009

• Mortgage lenders in the USA are repossessing thousands of properties per month due to the financial climate and sub-prime lending crisis.

• Investors in the USA cannot get mortgages and many of those cash investors are already heavily in the market.

• This leaves a unique opportunity for buyers with cash, to purchase repossessed stock at incredible discounts.

• 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.

Why Invest in Detroit Michigan ?Why Invest in Detroit Michigan ?

• Over 10,000 properties that have been repossessed so far• Prices haven’t been as cheap since the great depression of 1937• President Barack Obama has pledged billions of dollars in support to the

regeneration of Detroit under the ‘American Recovery and Reinvestment Act 2009’• Detroit is the home of the car industry which Barack Obama is pledging billions

into a bailout plan.• Expert team locally that know the areas and have been involved for 10 years• Strict selection criteria to meet the investment model• Local refurbishment team of builders• Local rental management company with online tracking system• Huge rental demand that is government back• Tenants who will look after your property • Genuine exit strategies

Scott is a local and has spent 10 years selecting, investing and renovating property in Detroit

Properties specifically targeted using local knowledge and contacts

The Homes and Renovations The Homes and Renovations Renovations and repairs to housing departments

standards. Includes warranties:• Plumbing and heating

• Electrics

• Roofs if necessary

• Kitchens and bathrooms

• Repairs to internal walls and floors

• Complete redecoration and painting

• New carpet, tiling and hardwood flooring

• Gardens and landscaping

• Garages

Property just acquired

Property just acquired

Property examples before during and after

Property just acquired

Some properties have single or double garages

Areas selected to be attractive to tenants

All repairs carried out to government standards

Some properties bought in good state of repair

Mike

Building Works Manager…..tends to get the job done correctly first time!

New furnaces fitted if required

Quality finishing

Refurbishment completed

Refurb completed

Refurb completed

The TenantsThe Tenants• Tenants rental is paid by the government directly to the

owner not the tenant through the department of Housing and Urban Development (HUD)

• Two year waiting list of tenants

• Over 9000 families approved for the program looking for housing

• The HUD scheme offers a zero tolerance policy

• Tenants are responsible for the welfare of their home

Property ManagementProperty Management• Screening prospective clients

• Regular property inspections and reports

• Handling and connecting utilities

• Collection of rent and government rental vouchers

• Maintenance covered by their home warranty

• Resident placement and all documentation

• Online client area to check financial statements and reports

• Evictions and legal proceedings

Exit StrategiesExit Strategies

• Sell to your tenant and become the bank

• Sell the property on the open market

• Refinance the property

• Buy to let

Investment Property Opportunity SummaryInvestment Property Opportunity Summary• Buying at highly discounted rate - bottom of the market

• Low risk investment

• Low entry level

• High rental yield

• Waiting list of tenants

• Longer term capital growth

• Hands-off hassle-free

• Government aided rent

• Price includes closing costs

• Properties newly renovated

Typical Investment 

Purchase & Refurbishment $44,000Appraised Current Market Value $80,000Instant Equity $36,000

Gross Rental Income per month

$800(government backed)

Gross Annual Income $9,600Gross Yield 21.81%

Annual Deductions

$3,460(taxes and management fees)

 Net Rental Per Annum $6,140Net Yield 13.95%