Do Good and Make Some Money

by Roy Malone
Detroit, MI

I've found the Detroit real estate market to be a gold mine for smart investors. I purchased a home, 3-bedroom brick, from the bank for $6,500 put in another $2,500 in clean up and repair work. I sold the property on a land contract for $80,000 with minimal monthly payment to a senior citizen (actual FHA appraised value).

Six months later the senior was qualified to do a reverse mortgage--which provides a percentage of the market value. I took a short pay off of $45,000. I made a profit of $36,000; the senior had a great home;, the neighborhood had one less vacant property--every body won!

We just purchased two more homes, 3-bedroom bricks, one for $3,700 (had a minor fire damage in back bedroom), the other for $6,500 (needed a furnace and hot water tank). We'll do the same thing with these properties. Talk about an entry and exit strategy!