Detroit: Soon the new destination for French investors?

Given to be dead by some, Detroit has been experiencing an economic boom since 2015, making it the ideal destination for French investors. The prices remain affordable! To help you invest in it, Franck Nogues and Mathieu Lacaile have created L’Immobilier Américain.

Long considered a disaster forever, Detroit is now experiencing an unexpected economic renaissance. It recorded the largest increase in sales of single-family homes between May 2020 and May 2021, according to the NY Post. Michigan’s largest city is therefore an attractive destination today for real estate investors who can take advantage of historically low lending rates and the momentum given by Joe Biden’s massive stimulus package.

Detroit: a phoenix rising from its ashes

Investments are pouring in: billionaire Dan Gilbert will devote $ 500 million to his hometown, and GAFAM is finally settling in the capital of the automobile.

Amazon, in particular, has just invested $ 400 million to build a huge distribution center near the city center. This project is expected to generate 1,200 jobs paid at an hourly rate of $ 15, or 40% more than the average American hourly wage.

The other project that will give Detroit a new boost is the construction of the Gordie Howe International Bridge, which in 2024 will link the American city to Canada by spanning the Detroit River.

The mythical “Motown” has other assets, including its significant activity in the high-tech automotive sector, the underprivileged neighborhood rehabilitation program launched by the city’s mayor, Mike Duggan, and its location in the heart of the Great Lakes, which is the largest reserve of fresh water in the world.

An economic context and a city conducive to real estate investment

With growth of 12% over one year, against 6% in France, according to Oxford Economics, the real estate sector is doing very well in the United States. In addition, despite the pandemic, the American GDP is increasing, unlike France and the United Kingdom, which are experiencing respective declines of 4.4% and 3.3%. Detroit’s economic boom makes it the ideal destination for French investors. The prices remain affordable!

As it is not easy to invest in a foreign country, Franck Nogues and Mathieu Lacaile created L’Immobilier Américain. Thanks to its “turnkey package”, the company makes it possible to buy quality goods in the best areas of Detroit, enjoying a rate of return of over 7%. “It is still possible to buy beautiful brick houses of more than 100 square meters of living space for less than 90,000 €”, underlines Mathieu Lacaile, the co-founder of American Real Estate.

“Choosing houses in the area means ensuring good rental profitability and good resale potential,” he continues.

A turnkey pack for hassle-free investing

The American Real Estate turnkey investor pack brings together all the services and contacts needed to invest peacefully. American Real Estate thus controls the entire investment chain, from purchase to rental maintenance, which makes it possible to invest in a simple and reliable way. The pack offers the following services:

• Support throughout the acquisition process. The American Real Estate team supports its clients in signing documents, carrying out inspections, and dealing with notaries.
• Company opening. The accounting firm of American Real Estate opens and domiciles in the United States a company adapted to the needs of its clients.
• Opening of a company bank account. American Real Estate helps its clients open a corporate bank account with one of the largest banks in the country, either locally or online.
• International transfers and currency conversion. Through its partnership with Infinity International, American Real Estate enables its clients to convert and transfer funds internationally at preferential rates and without transfer fees.
• Rental management. The French-speaking team takes care of the management of the property: collection of rent, assistance to tenants, payment of property tax, etc.
• Accounting and tax support in France and the United States. The accounting firm of American Real Estate takes care of the accounting of its clients’ companies, their tax declaration, and the payment of taxes.

Carefully selected properties

Since not all of Detroit’s neighborhoods have been rehabilitated yet, it is important to invest wisely. American Real Estate chooses its properties in the best areas of the city, mainly historic areas in the west and northwest, taking into account the following criteria:

• Few or no empty and unoccupied houses;
• Neighborhood that maintains their homes;
• Close to good schools, shops and highways;
• Rapid movement of police and firefighters;
• City investment in roads, sanitation and development of parks and playgrounds;
• Strong rental demand.
• All properties offered by American Real Estate have been renovated in accordance with current standards, and are approved for rental by the City of Detroit.