Best way to invest in Detroit?

[Wordplay]

Looks like others with 20000x more money have the same idea as me. Sigh.

Nothing wrong, but it would be nice if they started to clean up the neighborhoods as well. As good as downtown might look one day, the surrounding areas are still shit.

 

[Mr.IncrediblyBored]

Nothing wrong, but it would be nice if they started to clean up the neighborhoods as well. As good as downtown might look one day, the surrounding areas are still shit.

Have to start somewhere. An active downtown will draw investment to nearby neighborhoods where people want to be close to work and play.

Redevelopment needs critical mass that you just can't get with piecemeal neighborhood projects.

 

[Blackjack200]

Here you go OP.

http://www.nytimes.com/2014/07/13/magazine/the-post-post-apocalyptic-detroit.html?_r=0

OP, did you seriously expect to get any relevant advice here? It seems to me than anyone shrewd enough to invest anything in that wasteland would be shrewd enough to not let anyone in on their plan.

For something like a city revival, yeah, investors want others to know because more people investing in the city will help their investments.

 

[Hacp]

I've done a lot of searching this weekend and I can conclude that there is no good hands-off way to invest in Detroit.

 

[IEC]

I've done a lot of searching this weekend and I can conclude that there is no good hands-off way to invest in Detroit.

Nor would anyone give up competitive advantage by telling you what they are doing to make money in Detroit, because that would hurt their profits...

 

[BoomerD]

Buy a bulldozer

Yep...maybe several...the bigger the better.

Doze it all down to bare ground...start again.

 

[mmntech]

With Detroit's credit rating in the toilet, it's going to be very difficult to secure any long term investment in infrastructure projects. Which is what the city desperately needs. Shutting off the water and power to decaying neighbourhoods is a start. The city needs to downsize first and foremost. Yep, that means bulldozing and converting it to farmland.

However, they have to convince the few remaining hold outs that they must move in order to keep receiving municipal services. Problem is the land is pretty much worthless, and the government has no money to provide financial incentives to get people to pack up and leave.

Once the city is consolidated into a smaller place, then it has to somehow secure investment to repair all the damaged roads, bridges, and buildings, and dealing with the massive crime problem. Without decent infrastructure, you can't attract business, and without business, you can't attract investment to build that infrastructure. The city may need to tap in to higher levels of government to cover the costs.

Once you start getting everything fixed up, then it's time to start diversifying the economy. That means low corporate taxes and other incentives to lure new business in. Detroit cannot survive on the auto industry alone. Indeed it has to start functioning as if it no longer exists at all.

Of course you also have to somehow attract skilled workers to come with those businesses. Detroit doesn't have easy access to an educated workforce in its downtown, and that's a big problem. So what do you do? Find hipsters. They're educated, love diamonds in the rough, have money, and have a proven track record of turning shithole neighbourhoods around. They're a little more willing to put up with crap in the short term too. Sounds crazy, but it just might work.

The other big thing Detroit has to deal with is getting it's government in shape. Actually, that has to be the first thing to do really. Corruption has long been a massive problem. The problem with rebuilding the city is it will take a long time. Unfortunately politicians tend to be shortsighted and plans don't last much longer than election cycles. Everyone is looking for a quick fix, and there isn't one. It will take years to fix Detroit. Perhaps a higher level of government will need to take over the city to oversee the project, given how poor a job the municipal officials have done.

 

[rudder]

Here is my money making idea... I am going to buy up a block of dilapidated houses and turn them into a post-apocalyptic prepper summer camp.

People can come in and live for a week at a time fending off druggies and gang thugs all the while scavenging the local area for supplies. They can learn how to secure a house and learn how to move around while avoiding thugs.

 

[NoCreativity]

From what I understand its so much blight it would take years and cost way more than they have to spend which is nothing.

$850 million for residential, over $1 billion for commercial and industrial.

“So when you add it all together,” Gilbert said, “30% of all the structures in the city of Detroit — this has nothing to do with vacant land — are blighted, or 70,500 of them.”

http://www.freep.com/apps/pbcs.dll/article?AID=2014307060041

Bulldozer is an appropriate suggestion.

 

[Exterous]

I think he also said not to invest in communist shit holes so horrible that people make movies to put across the message that only a robot could fix that broken city. btw that movie is from 1987, so it's had the reputation of "how could it possibly get worse?" for about 27 years.

The big thing holding Detroit back is democracy. The people in that city keep thinking their bankruptcy is caused by some evil corporate cabal, so they keep raising property taxes instead of cutting spending, allowing citizens to have guns, and executing criminals behind closed doors. The result is capital flight; people with money flee to the surrounding areas where the taxes are lower and crime is lower.

When real estate was down 50%, people asked how it could possibly go lower. It has. You can buy houses in Detroit for $500. The houses still have no bids because they're literally worthless. When their local government has such an anti-business mindset, I can't imagine it getting better any time soon. If you're going to invest, start small. Buy 1 house, not 20. Treat this as a high risk speculation.

This is so much wrong with this that I don't even know where to start...

Looks like others with 20000x more money have the same idea as me. Sigh.

That was pretty much your issue to start with and why I suggested an REIT. The opportunities are there just not for those with small wallets.

Here is my money making idea... I am going to buy up a block of dilapidated houses and turn them into a post-apocalyptic prepper summer camp.

I always thought they should put an action movie there. We see cities and towns get blown up all the time in movies. Why not use real buildings?

 

[alkemyst]

Condom machines?

 

[poofyhairguy]

I always thought they should put an action movie there. We see cities and towns get blown up all the time in movies. Why not use real buildings?

Sounds racist

 

[Blackjack200]

Looks like others with 20000x more money have the same idea as me. Sigh.

I've done a lot of searching this weekend and I can conclude that there is no good hands-off way to invest in Detroit.

ROFL, the next Warren Buffet right here. Go buy some SPY and leave the real investing to the adults.

 

[Train]

It only stands to reason that political stagnation is dangerous regardless of where you are or which party has become complacent and inbred? Nope, can't be that. It's probably just those liberals trying to undermine everything Murricah was founded on, the godsless bastards.

lol, it's always "both parties are at fault!!!" when someone blames your favorite party.

For Detroit, one, and ONLY one, party is at fault.

 

[Blackjack200]

lol, it's always "both parties are at fault!!!" when someone blames your favorite party.

For Detroit, one, and ONLY one, party is at fault.

I'm guessing it's the same party that runs NYC too. Wonder why they're doing fine?

 

[Train]

I'm guessing it's the same party that runs NYC too. Wonder why they're doing fine?

Did NYC have 50+ years of one party rule?

 

[Squisher]

I've done a lot of searching this weekend and I can conclude that there is no good hands-off way to invest in Detroit.

Hands off would be tough, but I was listening to local talk radio today and they were saying that right now that what little job growth that is going on is far outpacing available housing downtown and because of this pricing for rental housing is at a premium. Someone looking for a condo apartment that would be willing to sublet it out might just see some serious capital gains down the road.

Although, the biggest detriment to a housing boom downtown or really anywhere in the city is the schools. All housing at the present has to be geared toward singles and childless couples. Until the schools come up to snuff you're cutting out a lot of the market.

 

[Train]

Hands off would be tough, but I was listening to local talk radio today and they were saying that right now that what little job growth that is going on is far outpacing available housing downtown and because of this pricing for rental housing is at a premium. Someone looking for a condo apartment that would be willing to sublet it out might just see some serious capital gains down the road.

Although, the biggest detriment to a housing boom downtown or really anywhere in the city is the schools. All housing at the present has to be geared toward singles and childless couples. Until the schools come up to snuff you're cutting out a lot of the market.

IIRC, even the private schools ran for the burbs. Detroit CC is now way out in Novi

 

[Blackjack200]

Philly has horrible schools too, in a way it helps the rental market since everyone wants to rent until their kids are school age, and then move out to the 'burbs.

 

[Ruptga]

Did NYC have 50+ years of one party rule?

In the last 50 years their mayors have been about evenly split between D and R, with a few independents thrown in. Looking at presidential elections, they have voted D every time since at least 1952.
http://en.wikipedia.org/wiki/New_Yo...cipal_candidates.27_City-wide_vote_since_1897
http://en.wikipedia.org/wiki/Nyc#Law_and_government

Chicago has had Democrat mayors since 1931.
http://en.wikipedia.org/wiki/Mayor_of_Chicago#List_of_mayors
It's not a wasteland either, but it is very well-known for corrupt politics.

Sorry if that flies in the face of your conservative master race theory.

What I originally said was that political inbreeding is extremely dangerous, no matter who's involved, and I'm standing by that. It has nothing to do with deflecting blame from the Democrat leaders of a city I've never even seen, and everything to do with being impartial and rational. It's true whether we're talking about Chicago, Detroit, Tea Party Republicans, or a despotic dynasty running some banana republic somewhere; stagnation leads to decay.

 

[OverVolt]

Detroit is steadily circling the drain. Basically the only people left in the city were the ones too stupid to leave. They're also too stupid to make money. Thus the catch-22 of trying to separate the fools from their money. The money was already taken, they have none left. You seem to have missed your chance by 30 years or so.

 

[DigDog]

pardon my ignorance, but isn't detroit essentially one-half of toronto ? a city with a very high standard of living ??

 

[Tweak155]

pardon my ignorance, but isn't detroit essentially one-half of toronto ? a city with a very high standard of living ??

Maybe a few blocks of it, but for the most part not even close.

 

[Train]

Sorry if that flies in the face of your conservative master race theory.

I'm sorry, I can't see past your complete ignorance. Just go away.

 

[soulcougher73]

Id probably invest in a nuke and start over.