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We are all aware that our neighborhoods are physically challenged, and some in more serious trouble than others. We have thousands of beautiful, vacant, brick homes on the east and west side and with a little loving care and investment these homes can be put back into service.
The question is, Who will do it…? Will it be: The CDC’s…? The Block Clubs…? The Churches…? The Realtors…? The Developers…? The Retirees…? The young Entrepreneurs...? The Community members…? The City of Detroit redevelopment agencies…? OR will it be the outsiders…? How about, the answer is US! There is no one coming to save our community. We will have to do this ourselves or the outsiders will take over and reap the upside. The Mayor has done great setting up wonderful redevelopment programs, but we have to do the work. So, will we get involved in redeveloping and taking back the “D” or will we sleep through this great metamorphosis? By the year 2020, Detroit’s housing values will more than double and that community demographics will change dramatically. How will existing Detroiters benefit from this tsunami? The future is in our hands.
Detroit has the most attractive investment opportunities in the world. We are now post-bankruptcy with a $100 million surplus on our balance sheet.
We have a “Can Do” Mayor that has already demonstrated that he can deliver quality services and create attractive redevelopment programs.
We have more than 20,000 young people clamoring to move Downtown, Midtown, Jefferson East and certain Detroit neighborhoods.
Rental rates are strong, but homes values are still depressed by at least 70%.
There is a huge demand for good quality housing stock and there are thousands of vacant houses in almost every neighborhood selling for huge discounts.
There are an abundance of available unemployed laborers in every community.
There are dozens of churches and CDC’s in every community.
There are Detroiters with money in every community. Detroiters has more millionaires than all the Grosse Pointes combined in addition to retired managers and executives with substantial retirement accounts.
Detroit has about a dozen serious developers.
The developers could not possibly do this alone, so the Block Clubs, CDC’s and Churches have to step up, and not to mention, the Pastors should be developers by definition. This is our inventory of community power. The good news is that it is enough to make things happen. After all, if one man can change downtown, the rest of us 500,000 adult citizens of Detroit can take care of the neighborhoods.
If we join together, we can overcome our challenges that will enable us to successfully develop our communities.
Ok, now some of you critics will say, “Herb, how about the problems?” So to that , I admit there are challenges of course and listed are a few obvious ones along with solutions that WE together can resolve:
We have to put a stop to the scrappers and thieves who are destroying our communities. Let us support Take Back the “D” at http://takebackthed.com ….or any other program available to our city with a mission to fight crime in Detroit. Take back the “D” is a non-profit organization developed for the purpose of Community Advocacy, wherein which we currently have an opportunity for the community to get involved via the Scrapper Reward Fund. By this fund, we the community will help Scrappers turn in dealers who do illegal business with scrappers and thieves.
There are the several lenders and appraisal management companies that have helped suppress our values. We have an obligation to our children and the future of our community to sue them. Take back the “D” will address this matter as well.
The high cost of insurance, which can be partially resolved by communities purchasing group or blanket policies or becoming self-insured with re-insurance for catastrophic losses. Block clubs can do this on their own communities now.
The educational system is daunting but collectively we can resolve this. I believe it is a marketing issue because the quality is there; however, most parents believe Charter Schools are better. Perhaps making all schools a Charter School is a beginning, even if DPS is the sponsor until they can find a corporate sponsor to help teach and inspire students. The sponsors could even have sub-titles under the school name (i.e. CODY High School SPONSORED BY FORD MOTOR COMPANY). I am sure many corporations would step up and help because they want better schools and a pipeline of good students (...and loyalty to them won’t hurt).
The question is: Are you going to help restore the “D” by advocating or investing your time and resources; or observe the restoration of the “D”, or relocate?
My primary interest is the redevelopment of Detroit’s neighborhoods. Therefore, those that are willing to help are in high demand, and it doesn’t matter where you live. Those that live outside of Detroit (and drive foreign cars) can still help us.
Many people are fully committed to Detroit and would not move under any circumstances. But a commitment to live in the City without helping is not enough. Everybody needs to help in some manner.
For those motivated by economics consider this. Where else can you buy real estate for $15,000, invest $5,000 and sell for $50,000 or collect $850.00 monthly rent? Where else can you acquire an apartment building fully leveraged for $1M that is worth $1.8M? or, purchase a mortgage from a homeowner approved to short their house and receive a 100% return legally. These scenarios should be exciting to everybody, regardless of where in the world you live.
The bottom line: Would you consider helping to redevelop Detroit regardless of your age, where you reside, or how much money you have? If the answer is yes, then welcome to the “Good Fight”. Please join me at http://takebackthed.com.
Herb Strather, Developer and Coach
If the answer is no, then the good news is that you can learn about it. There is great buoyancy in the real estate market that allows for transactions to be leveraged at 100 % without exceeding normal debt coverage ratios or stretching loan-to-value ratios.
How is this possible?
Interest rates are 4-5% and cap rates are at 9-10%. If you know how to structure deals properly, they can be leveraged at 100 % and still enjoy a great cash flow.
Rents are equal to the pre-recession numbers, yet prices are at a fraction of the previous sale prices.
Many people have lost substantial equity during the last recession, while others have watched on the sidelines afraid to jump in. Either way, now is the time to recoup or accumulate wealth.
It is not just about the money. Detroit needs you, and you need Detroit!
If you compare the housing market to the rebound of the auto companies, Detroit real estate is positioned for a significant rebound. The demand for housing is greater than the existing supply.
There are perhaps, thousands of people seeking a middle class home at an affordable price in the $75,000 range. The problem is that there are not enough $75,000 houses on the market to buy. Yet, there are thousands of homes selling for $25-30k that with some moderate improvements would appraise and sale for $75-90k. Which means a couple of things for you and your community:
You are in the position to buy low and sale high in the current market for a great profit!
You may easily create a cash flow for yourself.
You can buy a beautiful home with a monthly obligation substantially lower than you would have to pay for rent!
You can become the landlord on your block, and decide who becomes your neighbors
There is so… much more! Whether you are interested in leveraging, flipping or just investing in the “D”, you are invited to join the Strather Academy class and get involved. Just Go to www.stratheracademy.com or call (313) 999-4446 to register. Any interested parties can come sit in on our first class for FREE!
Let’s be honest, it is February 2015, and there are no grass root movements to redevelop our neighborhoods. If you are fortunate enough to live in the Greater Downtown, New Center, East English Village or perhaps Marygrove areas, there are numerous signs of redevelopment projects. These few pockets of the city have experienced exponential growth and the rents have almost doubled. However, the facts are simple: There is a big-time demand for Downtown and its surrounding areas, yet, the average Detroit neighborhood is still devastated. New families would not consider moving onto the average Detroit block. To make matters worse, the banks have red-lined these neighborhoods and made it impossible to get a mortgage due to the minimum value to finance under FHA rules.
The Mayor has produced some great tools and programs through the Land Bank and DPDD, but what good is it if we are not going to jump in and find out how these programs work?
The $64 million dollar question is: How do we redevelop our communities? The answer? Let’s start by looking in the mirror! This is where you we realize that it’s up to YOU! No one is going to do it for us.
It is hard to believe that we actually have a city with over 700,000 people in America that:
Do not have a nationally recognized sit-down restaurant that you can enjoy dinner and an alcoholic beverage.
Has deteriorating communities without a communicated game plan to improve them.
Has over two thousand churches that operate amongst the devastation
Has allowed the banks to depreciate our real estate values without suing them
Wake up Detroiters! No one is going to save us but us. If we do not get involved in the redevelopment of our communities, then they will not get redeveloped. It is a disgrace to ask others to do for us what we haven’t done for ourselves. Others provide gas stations, restaurants (Coney Islands), liquor stores and tons of automotive shops in our community. We provide hair salons and soul food. How long should we put up with this!
At Strather Academy we are creating the next generation of urban developers that will see to it that Detroit takes back its proper place in the world. We are looking for interested people, churches, and Community Development Corporations that want to make it happen.
If you have a burning desire to get involved and help your community get redeveloped or if you want to purchase one of the thousands of vacant houses in Detroit and put it back into service, then you are invited to join Strather Academy . Just Go to www.stratheracademy.com or call (313) 999-4446 to register. Any interested parties can come sit in on our first class for FREE!