Bold purchases in Detroit

Posted on September 12, 2012 · Posted in Uncategorized

As Detroit becomes more and more popular we are witnessing some very bold plays from serious investors such as the recent Bill MacMachen auction sweep up. Bill has taken on a giant undertaking when he snatched up 650 houses in Detroit in a move that most real estate investors would consider to be extremely ambitious due to the sheer size of the project.

Auction

Image by niallkennedy via Flickr

A yacht-dealing millionaire ticked off hundreds of Detroit homebuyers when he swept an auction of 650 tax foreclosed properties last week.
Bill McMachen told Fox News 2 this is his first foray into the real estate business. He plunked down $4.8 million for the lot of homes, which averages out to just over $7,000 apiece. As far as his future plans, he says he’s shooting to make back $2 million by flipping some homes and donating others to needy families.
Like the some 300 consumers (and other, less well-heeled investors, to be sure) who were elbowed out by McMachen’s bid, potential homeowners are quickly finding themselves fighting losing battles against money-slinging investors.
“If we knew it was going to happen like this, we wouldn’t even have spent any time,” an anonymous investor who was beat out by McMachen’s bid told Fox. “They could’ve made more money, I mean triple the money they made.”

Whilst we fully endorse our fully vetted and refurbished tenanted properties, we also appreciate that the process of buying houses in good locations, managing the refurbishment and getting good tenants in them takes a lot of management.