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Thread: Property in Detroit

  1. #1

    Property in Detroit

    This is my first post on here so here goes:
    Last year I was naive enough to purchase a 3 bed property in Detroit, US.which was touted by the
    selling agents here in UK as refurbished and with existing tenants and having a management
    firm collecting rent and seeing to any maintenance, etc.so effectively a hands off investment. I knew this was a bit of a risky first time
    venture due to the location primarily, but somehow got blinded by the overall returns promised. I managed to receive rent for about 6 months. The tenants at that time wrecked and destroyed the whole house causing damage estimated to be nearly as much as what I paid for the property. Obviously the property management firm in Detroit deny any liability or responsibility. Consequently the property has been vacant since the start of this year and now boarded up.
    I did not have any insurance on the property for the good that would have been as it would have been very restrictive and not covered that type of risk. I realize that it would be almost futile to try
    and get whoever is responsible to pay damages in another country.
    So now, because I cannot afford to have the property repaired, I just want to cut my losses and be
    rid of it as I still have to pay their property tax and other maintenance fees as well as the
    US tax returns. Unfortunately it would be very hard to sell the property in its present condition. The
    only solution I have been offered so far is to transfer my name to a limited liability company, the benefits of which are not quite clear to me. I do not have any liabilities
    on the property (no mortgage or bills.etc) I am now at a loss on what to do next .

    Can anyone shed any light on this? Any form of advice which might lead to a satisfactory solution, is greatly appreciated.
    Sorry it is so long winded.

  2. #2
    I guess someone is suggesting that if you were a limited company you would not be personally responsible for paying the bills and could walk away. Probably true.

  3. #3
    Wow, what a mess! I appreciate it may be difficult but is there any way the selling agents here may be at fault in so much that it would be normal practice here to obtain references on prospective tenants - was this done? Failing any form of redress then your options appear limited. If you are any good at diy, how about a holiday in the US and fix it up as best you can? I imagine that trying to arrange someone to do it for you from such a distance would indeed cost a small fortune. What is the market like there, would the property be saleable if fixed up? If you are correct and the cost of fixing it is the same as it's value then maybe talk to a local agent there re offering it for sale for just enough to cover their fees - must be someone prepared to buy it for a couple of thousand dollars??

  4. #4
    I'm afraid this sounds like it has total loss written all over it, and the only saving grace appears to be if you transfer your asset you will not be liable for any additional liabilities.
    Detroit does not seem to be part of the USA anymore, the rest of the Country wishing Canada would extend its border and take it off their hands ( some hope ).
    It really is a picture of despair, if you Google Earth at most of Detroit it is a scene of tens of thousands of abandoned, burnt out homes, cars, and business premises.

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