- Who are Electra Property Investments?
Electra Property Invesments as a company has developed more than $250 Million worth of real estate. With a proven track record of successful projects throughout the United States, our highly skilled professional team is well versed in all areas of single-family and multi-family residential real estate. We hold solid, long-term relationships within the development community, rehab community and the local housing authorities enabling us to seamlessly assist you with your property needs. We can partner in any manner, with any group, to move the development forward.
Together we offer complete turnkey investment solutions in real estate, with a fresh new approach which includes the best customer care in the industry, all of this offered with ROIs of up to 25% with huge upside potential.
- Why do you recommend Detroit?
Our operational team are based solely in Detroit, so for the properties we sell; we are then able to offer our clients our own in house full property management service.
Our basic areas of interest are aligned with that of the city. We offer high Yielding Property Investments in the better areas of Detroit, which are designated for stabilization. Stabilization involves demolition, urban greening and providing safe, secure, energy efficient, above-par housing.
- Do you have a local office in Detroit?
Yes with a full operational team which take care of acquisitions, rehab and property management
Head Office In Detroit:
1420 Washington Blvd
Detroit, MI 48226
Tel: +1 3137396013
- What type of properties do you sell?
We have a wide selection of properties at any one time, ranging for single family (from $20,000), multi-family (from $45,000) to apartments ranging from $150,000 and upwards.
- What is the size/volume of your inventory?
We currently have in excess of 60 properties, with approximately thirty ready to purchase at any one time.
- How many properties do you sell per month?
An average of 20.
- How fast does each property sell in general?
Depending on the type of property and the demands of our current clients we have properties that sell within 24 hours of availability, but on average it is approximately two weeks
- Do you put new listings on the website
We do put new properties on our website with complete pricings for transparency but our current clients receive advance notice, so we advise you sign up for our regular newsletter – Get the latest deals; click Here!
- What sets you apart from your competition?
All of our properties are freehold so you own the building and land, all of our properties are refurbished and 100% occupied by fully vetted market tenants or government subsidized section 8 tenants, and generate income from day 1, they also include full Insured Title and Warranty Deed.
- Why should we choose you as our supplier for investment property?
Our own property management company dedicated to you the investor. The single most important factor for an overseas real estate investor, is property management and the single most important factor in successful property management is to take care of the tenant, which means listening, responding and taking care of their issues on the first visit. If we take care of the tenant, the tenant takes care of your property, it is as simple as that.
- FREE! Warranty Deed included for every purchase!
- FREE! We set up your LLC to ensure tax efficiency!
- FREE! Closing costs for our first-time clients!
- FREE! Back taxes and liens cleared!
- Refurbished throughout
- Professionally managed in-house and on the ground
- Over 50% of our clients are repeat buyers
- What is the purchase process?
Our purchase is very simple and direct. All our properties are available at the time of listing, fully refurbished, tenanted and cash flowing prior to close and we normally close within 15 days of signing the purchase agreement.
A reservation form is initially completed, together with only $500 (most others charge $5000) earnest money deposit per unit, which is totally refundable! This takes the property off the market whilst all the papers are drawn up. The deposit is paid into an escrow account held by the Attorney. There are no further funds required until closing.
- We assist you to set up the LLC (costs included in the purchase price)
- A Purchase Agreement is drawn up, as required by the State Of Michigan
- Closing documents are then prepared by The Title Company and sent to you for review
- The papers are then signed and closing funds sent direct to the Title Company
- Your income / rent payments start from day one
- Do you charge and arrangement fee?
There is no arrangement fee. In fact there are no hidden fees what so ever. The price you see is the price you pay, unlike others (who ask for a $5000 deposit) we only ask for a $500 earnest money deposit per unit and even that is refundable, there are no further funds required until closing. As part of the purchase we help you set up your LLC (no extra charges).
- Are there any other costs involved in the purchase?
There are no hidden fees at all – as we said above, the price you see is the price you pay and we mean it!
- If I would like to visit the house before buying it, do you have someone to go there with me?
Absolutely! As our office is in the Detroit we would love to show you the city and properties that we have available.
- Will I get an inspection report?
Yes. For all of our properties, we conduct an extremely thorough survey and present an Inspection Report for you.
- Do you have a property management agreement?
Yes all sample Purchase/Management agreements are available upon request.
- Do you manage the rental and do you get any percentage of it?
For the property management, our fees are just a nominal 10% of the gross rental income.
- Is there an exit strategy?
We have a simple exit strategy
Future Rise in Rental Rates – As the population in many areas continue to grow and mortgage financing remains tight for local potential homeowners, rental demand will increase (currently there is a ratio of 4 tenants to every property for rent) in a market where new homes are not being built (construction costs far exceed existing property prices). As long as lending remains tight, rents will increase.
Return on equity – When financing does become readily available which is a President Obama priority, property values will increase dramatically, this will drastically surpass any decrease in market rents, and this is when you start considering the disposition of your property, whether selling or financing, this is the time to take your profits.
This is Déjà vu. We haven’t seen a better time to buy real estate since the savings and loan crash of 1989, most investors that had purchase property at the bottom of the market in 1991 (as we did) did very well over the next few years. If you let the opportunities of 1991 slip you by, don’t let it happen again this year. Simply put, “this is Déjà vu”! Just look back and learn from the past. Sure, Detroit has had more than her fair share of problems, but now she is back at full stride and is firing on all 8 cylinders. The time IS NOW to jump on board before it’s too late!
- Would the tenants be standard private renters or Section 8?
They are a combination of Section 8 and thoroughly vetted market tenants who have placed only after completing our stringent criminal and credit background checks.
- What is a Section 8 tenant?
Just a question that occurred to me.
- What is the tax abatement program and how does this affect tax on my property?
There is no fixed standard property tax across Detroit – It is extremely complex. Public Act 146 of 2000 the Obsolete Rehabilitation Act, provides reductions of property taxes on Houses, which are converted for rental, residential use. We will submit your property for property tax abatement to the state of Michigan, this would normally cost you over $1000, but we charge just $850 tax reduction of around 50% if your taxes are $2000 your abatement taxes would average $1000. On a $35,000 property this reduction in property taxes would increase your ROI by 5%.
- Who is the title company?
Embassy Title Company carry out all our title work because they have the same philosophy as ourselves – It´s all about the client! http://www.embassytitle.com/
- Do I need to set up an LLC? Can you help set up the LLC?
Yes we encourage our clients to set up an LLC as this reduces the tax liability and we carry this out for you! The cost is also included in the purchase price
- Who is your attorney?
- Financing – How can we help you?
- Loan amounts from $75,000 to $1,000,000 (minimum property buy price is $125,000)
- Max loan to value is 60%
- Borrowers are most entity types in the US. Partnerships, LLC’s, Trust, etc. (FYI-Electra set up your LLC for FREE!)
- The loans are 5/1 ARM’s with 30 year amortizations, so they are fully amortizing loans
- The ARM’s (Adjustable Rate Mortgage) are at a minimum 450 bps over the 1 year LIBOR with a floor of 6% at this time
- The lender requires an escrow for taxes, insurance and HOA dues
- Normal closing requirements of appraisal, title insurance, hazard insurance, etc
- The properties must cash flow above the PITIA, which is principal, interest, taxes, insurance and any HOA dues. This is calculated on a monthly basis. The PITIA to the income may not exceed 85%
- Approximately only 30 days to close!
INFORMATION REQUIRED FOR LENDER
- Name and address, email address etc. for the foreign nationals
- Entity info. (If it is an LLC)
- Copy of a U.S. Bank Statement (FYI-Electra set up your U.S. Bank Account for FREE!) with the funds for the down payment. We advise that the Borrower has at least 50% of the overall figure in the Bank Account (funds will need to be in place for at least 30 days before closing date of the property)
- We need to know how many properties the Borrower has purchased and owns or has sold in their lifetime, in the last 12 months and the last 6 months