Investors Rehabilitate Detroit Housing Market

CAMPBELL, Calif. - June 2, 2013 - PRLog -- Home prices are often a fickle thing and depend on many factors.  Some of these factors include proximity to conveniences, numbers of rooms, age of the home, and many others.  Since it’s a factor not under their direct control, one of the most frustrating to many owners is the appraised value of other homes in the area, and how it affects the value of their home.  Currently a Campbell, CA based real estate investment firm is working to increase the value of homes in a city hit hardest by the economic decline of recent years – Detroit.

    A few years ago the most commonly shared advice among real estate professionals was to stay away from Detroit.  Fast forward to the present day and this piece of advice has been turned on its head, due in no small part to the real estate investment specialists at Bay Area Equity Group.  While others fled the city taking their financing with them, CEO Antranik Kabajouzian saw an opportunity, and began offering Detroit based residential real estate properties to his investors.  These properties bucked the trend of investing based on estimated appreciation, and instead focused solely on the monthly cash flow these properties could generate.  Detroit was still a viable, vibrant city and the clients of Bay Area Equity Group have been earning double digit returns on their investments since 2009.

    While Bay Area Equity Group’s focus has never been on appreciation, its activities and investments in the city have played a key part in driving the upward trending of home prices in certain areas.  Through purchasing, rehabilitating, and then selling these homes to clients, Bay Area Equity Group has been steadily increasing the average home value within areas it has selected to invest in.  

    As part of the appraisal process, recent home sales are used to determine an estimate of value within an area.  With each property Bay Area Equity Group is able to increase value through rehabilitation and therefore selling price, the other surrounding homes in the area receive a boost in their appraised value.  This positive cycle of increased value continues to perpetuate as long as nearby homes do not fall into disrepair.   In addition to increasing home values for local home owners, the increased appraisals will provide an additional benefit to investors when they decide to place their investment asset on the market once again.  Albeit a side benefit of the monthly cash flow returns its investors receive from their investment properties, Antranik Kabajouzian is nonetheless proud to be able to help the communities of Detroit in their revitalization efforts.

    “It’s always exciting when a business is able to do something good for the communities it operates in simply by carrying out its day to day operations.”  Operations are continuing strong for the company, and as of May Bay Area Equity Group has already met and exceeded total investment property sales seen in 2012.  Due to the volume of properties being sold to investors and the positive effects Bay Area Equity Group has had the Detroit real estate market, local real estate brokers such as Frank Thomas of Torin Properties, LLC have begun contacting the company with an eye toward forming informal partnerships that continue to increase real estate values and revitalize Detroit.  “Increasing the value of all homes within Detroit adds to the vibrancy of Detroit and further encourages investment in this great city.  Being able to show prospective home buyers gains in appreciation is another selling tool that I can use thanks, in part, to other homes Bay Area Equity Group has improved upon within the community” says Frank.
     While real estate investment professionals are often in competition for hot properties, the competitive nature is placed on the backburner where increased property values are concerned.  “Although at times we may be in competition with each other for a specific property, everyone in this industry can see the benefits of increasing home values within Detroit.  From both a business and community standpoint, it’s a win-win for everyone involved” says Antranik.