New Detroit LLC
Detroit, MI 48034, US
New Detroit LLC provides investors with a 12% cumulative annual return. The manager of the LLC is not paid for his services until the members have received a 10% cumulative annual return. Members capital purchases rehabilitated and leased homes.
In 2010, Detroit native Dan Gilbert moved his Quicken Loans headquarters to Detroit, purchased nearly $10 billion of prime real-estate, and has dedicated most of his time to his vision for the “new” Detroit. And since he started putting his vision into action, scores of companies (with an estimated 10,000 workers) have followed his lead and moved their offices to Detroit.
Dozens of companies, many of them in creative industries such as advertising, architecture and design, are flocking to central-city Detroit in a surprising reversal of the mass exodus to the suburbs that took place during the past half century. (for more detail see http://www.businessinsider.com/after-filing-bankruptcy-detroit-is-on-the-verge-of-an-epic-comeback-2013-7?op=1)
Detroit is rebounding from its “depression” of a decade ago. However, real estate values in many areas of the city have yet to respond. There are a substantial number of homes, owned by banks, whose values have yet to respond to the improving economy in Detroit. (In 2010 the average price of a home was $7,500.)
New Detroit will acquire homes located in neighbourhoods which are experiencing a “rebirth”. The homes must have been rehabilitated within the last 3 months and leased to Section 8 tenants or other acceptable tenants. The purchase price for the homes must be such that the net cash flow, after property taxes, management fees, insurance and a repair allowance, will yield cash returns of at least 10% per annum.
The supply of vacant homes available at discount prices is substantial. In 2015 Wayne County estimates that 30,000 homes will be sold for delinquent taxes. There are a number of companies which purchase foreclosed homes or homes sold for delinquent taxes. These companies rehabilitate the homes, secure acceptable tenants and sell the leased homes.
Products / Services
Purchase and management of rehabilitated and leased homes in designated neighbourhoods of Detroit.
New Detroit operations will consist of the purchase of rehabilitated and leased homes which meet the Company’s criteria. The acquired homes will be managed by professional property management companies, under the supervision of New Detroit’s CEO.
As the Detroit real estate market returns to “normal” the leased homes will be sold, thereby realizing the increased value created by the company’s operations.
President Executive Officer
R. Bev Harrison
Chief Executive Officer responsible for ensuring compliance with the LLC Operating Agreement.
A mature financial executive with strategic leadership and expertise in both traditional and entrepreneurial environments. Personal strengths include superb organization, and an energetic, systematic approach to all challenges. Experienced relationship-builder with Boards of Directors, lenders, investors and auditors. Identifies new opportunities and successfully pursues them.
See http://www.bevharrison.biz/ for more details.