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click on a property image to enlarge
property details
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Michigan-
Detroit
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Reference |
HUD Detroit |
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Price (British Pound) |
From: 27270 To: 28482 |
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Type |
bedroom(s)
bathroom(s) |
HUD HOUSING PROGRAM - DETROIT
Prices from as little as $45,000 at 50% below current market value with minimum 15.77% PA NET (21.33% gross) government backed rental yields – 5,200 homes required in 2 years for tenant waiting list – No closing costs ($3,000 saving per property)
• Contracted services and supplies for refurbishment provided by HOME DEPOT give you a 24 month GUARANTEE on works carried out
• NO CLOSING COSTS representing a saving of approximately $3000+ per property
• NO costs for the set up of an LLC, each property will be transferred/sold within an LLC and the annual $150 resident agent fee is NOT payable until the second year 2
• Every property comes with a HOME WARRANTY for 24 months so everything is covered in addition to those items covered under Home Depot, this is supplied by a national insurer
• Backed by the management company so that ALL maintenance is FREE for 24 months
• Pre Tax NET yields of approx 15.77%
• Massive potential for Capital Growth
• An Ethical investment, Recycling Foreclosed empty Homes
• An Ethical investment, housing low income Families
• Properties are approved by HUD/Housing Authority
• No minimum investment term (ideally 3year plus is most secure)
• Secure Government Backed Rental Payments
• Your investment is Fully Managed & Regularly Inspected
• Inspection reports every year
• No shortage of Tenants
• Mortgage Re-Finance available (subject to availability and criteria)
• Real EXIT strategies
• Staggered Re-Sale Commissions
Full prospectus available on request - No introduction fee – Site visits arranged by request to view fully refurbished tenant ready properties
• 3 bed house – purchase price: $45,000
• 4 bed house – purchase price: $47,000
• NET rental returns PA:
• Single purchase:
• 3 bed house: 15.77% PA
• 4 bed house: 16.51% PA
DETROIT
Detroit is the largest city in the State of Michigan; this major industrial centre is also a port city on the Detroit River. Detroit is home to in excess of 5.4 million people, the State’s nine county areas have a workforce of nearly 2.8 million people, with approximately 240,000 businesses.
Metro Detroit has made Michigan's economy a leader in information technology, life sciences, advanced manufacturing, the automotive industry and Research & Development
THE CONCEPT
The Berkley project is a collaboration of Property, Finance, Investment and contracting professionals from both sides of the Atlantic. Through combining their talents they offer clients great yields with an ethical platform.
Foreclosed and uninhabitable houses in the US are refurbished into clean, safe homes and at the same time provide lower income families with a higher quality of housing. This project is designed for clients looking for a medium to long term investment, ideally 3 years plus.
Once fully refurbished and turned into a ‘home’ the houses are between 30% and 45% below current market prices. This is not a discount from a developer that can not sell his development or new homes that are ‘left over’ or failed to sell. All the properties are purchased with the aim of getting secure tenants backed by the US Department of Housing and Urban Development (HUD).
Working with and assisting Local Authorities in the US with their housing shortages we are providing working families with clean quality homes often in their own neighborhoods, at prices that are affordable. The aim is to help families and therefore they concentrate their efforts on the 3, 4, 5 and 6 bedroom housing market
Investors receive excellent yields with the additional benefit of knowing that they are contributing and assisting low income families in US with the security of the Section 8 HCV Program backed by the US Government.
The focus is on ‘65%’ Section 8 HUD program, tenants who are employed but earning less than 65% of the median income for the government statistical area and this means recycling homes in stable Working Neighbourhoods. The program is set to purchase and refurbish 5200 family homes in the Detroit area during 2009 and 2010.
HUD
US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
SECTION 8 HOUSING CHOICE VOUCHERS (HCV)
The project takes advantage of the affordable housing program formally put in place by the US Department of Housing and Urban Development (HUD) in co-operation with the State of Michigan. The Housing Choice Voucher Program (HCV) is seen as the best in the United States, benefiting both tenants and landlords alike, Section 8 was put in place 1937.
The aim of HUD and HCV is to ensure that slums disappear, that tenants have a home of a decent standard and that the property is maintained to a good standard by both the Landlord and the Tenant. HCV has been developed to assist qualified families by providing them with a housing voucher guarantee. This is provided to a Landlord so the monthly rent is guaranteed by the State and HUD for 12 months subject to ongoing qualification and condition.
HOUSING ASSOCIATION VOUCHERS
Currently the city of Detroit has a waiting list of more than 9,200 pre-approved families with Housing Choice Vouchers (HCV) who presently living in unsuitable, emergency or temporary accommodation, some simply can not find a suitable home. The majority of these vouchers are for Tenants on 100%, 90% and 80% programs.
HOW RENT IS PAID
With our program the government, HUD, pays the Tenant’s percentage of the rent directly to the management company. Additional amounts collected from each Tenant will also go into our client account. From here the rents collected on each and every home will be sent directly to the investor’s previously established US Bank Account. The management company’s 15% monthly fee will automatically be deducted from the monthly rental amount. In this way we can provide the additional service of record keeping for the investor.
TENANT DEMAND
Currently the Detroit Housing Association is looking to provide as many HUD homes as possible, we are looking to assist them with 5,200 refurbished houses for HCV coupon recipients.
PROCESS
• Decide on the number of properties & complete Purchase Document Pack (single or multiple purchases)
• We will confirm availability and time frames
• If applicable $400 transferred for LLC set up and filing fee
• 10% deposit/or 100% of price, plus lawyers fees transferred to client escrow account
• Customer then decides to use our lawyers or appoint their own at additional expense
• Contracts are signed and then we EXCHANGE
• Taxation code applied for
• US Bank Account opened
• HUD approval confirmed
• Balance of Funds are Transferred
• Closing/Completion
• HUD re-inspection, as new owner and tenant confirmed
• Tenants move in
• Rent Paid
EXIT STRATEGIES
Currently there are 5 main exit strategies.
As this is a medium to long term investment holding the properties for 3 years or more is advised, however you own the property so subject to liaison with the management company you are not tied to any specific term.
The property can even be sold mid tenancy but only to the Tenant or another investor or you can wait until the tenancy is due for renewal and choose not to renew.
If you don’t make a profit other than rental income the management company will not charge any commission and they have a team of experienced licensed Real Estate Professionals who on your instruction organise the sale of your property or portfolio.
The exit options at year 3 and onwards:
• Sell on the Open Market.
• Sell at Market Value to your Tenant.
• Berkeley matches sellers together so Single Units are bunched and sold off as Portfolios to investors. Clients with Portfolio’s can sell to Investors; both have the advantage of confirmed track record of rental return.
• A blend of the first three options will allow for a faster exit based on a portion of tenants taking up the mortgage guarantee offer as well as open market sales and portfolio sales.
• Subject to availability, refinance your portfolio and generate capital, tax free.
• Alternatively you can always retain ownership of your property and continue to benefit from excellent yields. You can choose to sell before year 3 and to do so, just let the management company know and they will find a buyer.
• This is a Cash investment there are no ‘up front’ mortgages available at the moment.
For further information on this property for sale contact us here. For further information on this property or other investment
properties call us on 0800 567 7116
Note: Whilst we endeavour to ensure that the information on this
site is accurate, complete and up-to-date, we cannot guarantee that. We are not
responsible for fluctuating currency markets, which may affect the property
prices. Property prices are subject to change without prior notice. We strongly recommend that you engage the services of an English speaking independent lawyer in all transactions.
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