Cicada Investments Detroit

Investments in Detroit

Fact?

House Price Decline & Derelict Properties?
High Unemployment & Failing Industries?
Rogue Property Sales Agents?

Fiction?

Detroit – one of the hardest hit real estate markets in the USA - is now ranked at number 1 in the Housing Predictor’s list of the top US Real Estate Markets for growth in 2010 and is forecast to experience a 21.5% appreciation in home prices for the year, as prices rebound from market lows.

USA property prices increased by 2.3% in January 2010 - the first year-on-year increase for over 3 years. Detroit led all Met Areas with a 14.6% quarterly gain in January.

Ford’s $2.1bn Q1 2010 profit was double Wall Street forecast and Ford are on track for their most profitable year since 2000. Ford is Detroit Metro’s largest employer with 44,000 staff – twice as many as GM.

GE currently investing $150m on a new renewable energy manufacturing facility creating 220 jobs on top of the 1,100 they have already committed to creating over the next 5 years.

$1.3bn investment by Xtreme Power and Clairvoyant Energy to redevelop the old Ford Site in Wixom creating over 3,250 jobs in the renewable energy industry sector.

Vanguard Health Systems to invest $850m in Detroit Medical Centre project, creating 1,000’s of jobs in the Health IT and Construction sectors.

U.S. Department of Housing and Urban Development (HUD) awarded Michigan $223m (the largest state-wide grant) in Recovery Act funding under HUD's Neighborhood Stabilization Program to combat the effects of vacant and abandoned homes while creating jobs.

Apr 2010 - Detroit Mayor Dave Bing commences demolition of 3,000 derelict & dangerous homes, as pledged by as part of a regeneration project to stabilise neighbourhoods, with 10,000 to go by the end of his term in 2013

Investments in Detroit - Figures

16-28% Gross Yields
£180-£380 net monthly rental income
9-18% Year 1 RoI - Excluding any equity growth – (45-90% Year 5)

Cicada Investments Detroit - Option 1

5 year Rental Guarantee

Cicada Investments Detroit - Option 2

5 year Managed Let †

Capital Investment

25,000

Annual income

4,000

7,200

Gross yield

16%

28.8%

Less:

Property Tax ♦

1,380

Letting agent fee

900

Buildings Insurance ∆

360

Net profit

2,260

4,560

RoI

18.2%

5 Year Net profit

11,300

22,800

5 Year RoI

45.2%

91.2%

N.B. All figures quoted in £ sterling and based on a rate of exchange of $1.5:£1 and profit calculations exclude any potential gains from equity growth
† Based on a typical rental value for a 3 bed property of $900 per calendar month
♦ Property tax refers to State Equalised Value Tax which varies between properties re-salevalue of the house
∆ Standard insurance covers public liability and fire damage

Cicada Investments Detroit follow the Smart Money

Oct 2009 - Michigan University’s start-up company (HandyLab Inc) sold for $300m which, following the sale of HealthMedia Inc (another University start-up), is stimulating a large flow of Venture Capital investing into the state. VC funding soared from $8.4m in Q1 2009 to nearly $62m by the end of Q3 2009 pushing Michigan up from 24th to 14th in the USA National Investment rankings in just 6 months.

Further Info on Cicada Investments Detroit

Cicada Investments Limited is a London based company, specialising in Detroit foreclosed property investments. We source residential properties for our clients through trade agreements direct with US banks – not through local estate agents or public auctions and we only select properties in a good state of repair, within specific neighbourhoods with high rental demand and good potential for long-term equity growth. We manage the entire purchase process on behalf of our clients, ensuring property titles are clear of any charges and we demonstrate complete transparency through our fixed-cost pricing model, so there are no hidden charges, additional legal expenses, inspection fees or any other unknown outlays for our investors.