I was recently buying some reclaimed lumber, it was quite expensive. It occurs to me that 6000 homes depending on how old they are might be worth that much in materials alone.
Mystery Bidder Bids $3.2M for 6000 Detroit Homes
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Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#12Land grab? Maybe. But at least someone is buying the property. The prices are very low for a reason, very little demand. I believe a renovation plan needs to be in place within 6 months of purchase. I very much doubt it'll happen for all 6000 homes, but will probably happen for at least some portion of them. I really hope the city doesn't twiddle its thumbs following up on these.
The main reason this bid is surprising is if no one bought these properties at this county level auction, they would show up cheaper at a city auction.
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#13Pretty easy to see how this'll turn out: Some moderatley rich person with access to a 10% down payment of 3.2M is taking a gamble and is in way over their head... Just wait, within a year they will lose ownership of all these properties in bankruptcy and they'll be back in the hands of the city.
I'm guessing you've never actually gone through the process of getting a mortgage?
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#14It's only possible to have a "mystery bidder" because real estate is exempt from money laundering regulations.
I'd bet 2:1 it's shadily acquired money from overseas looking to be stashed out of the reach of local anti-corruption agencies.
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#15The one thing they're not making any more of in this world is land. $3.2M isn't much money for a very large number of people in this world.
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#16I was recently buying some reclaimed lumber, it was quite expensive. It occurs to me that 6000 homes depending on how old they are might be worth that much in materials alone.
I was under the impression that most US houses in that price range will be cheapish wood and drywall? Not sure you'd get much reclaimed lumber worth anything out of there.
Still - innovative idea.
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#17The value of one single house is basically negative because of the bad neighborhood, bad surrounding homes, high crime, etc. By buying a larger number of contiguous homes, you can greatly reduce those problems. Sounds like a fantastic idea.
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#18"Be fearful when others are greedy and greedy when others are fearful." - Warren Buffet
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Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#19It's only possible to have a "mystery bidder" because real estate is exempt from money laundering regulations. I'd bet 2:1 it's shadily acquired money from overseas looking to be stashed out of the reach of local anti-corruption agencies.
It's likely billionaire Dan Gilbert...
Re: Mystery Bidder Bids $3.2M for 6000 Detroit Homes
#20I was recently buying some reclaimed lumber, it was quite expensive. It occurs to me that 6000 homes depending on how old they are might be worth that much in materials alone.
I was under the impression that most US houses in that price range will be cheapish wood and drywall? Not sure you'd get much reclaimed lumber worth anything out of there. Still - innovative idea.
These are older houses, most of them likely made from much better materials.
Still, with the kind of weathering an empty house would get in Michigan, a lot of it could be totally ruined.