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                            THANKS GEORGE

George,

What do you want to know? I have done deals south of Buffalo but still inside NY State. Similar economics actually. Buffalo as a city saw its population peak over 20 years ago. Long term decline so the number of housing units should show a similar decline (fewer people living there, less need for housing).

A family member (extended member) made a comment about upstate NY. They said that if you buy a house and 10 years later sell it for the same price you paid you are doing just fine. Upstate NY (includes Buffalo) is not really showing much in the way of economic growth or capital appreciation. If you get the rate of inflation then you are doing OK or great.

Cash flow can be pretty good as that is really the only upside. The cash flow is the only thing motivating investors to invest so the return has to be high. Otherwise the investors would move to areas where capital appreciation is expected and normal.

John Corey

www.ChelseaPrivateEquity.com/blog

www.Twitter.com/John_Corey 

Hi John,

 I'm looking at investing in Detroit at the moment where yields are similarly high with Section 8 tenants - I guess the area around Detroit/Wayne County resembles the one in Buffalo but on a larger scale.

Have you invested anywhere outside NY state?

What would you say are the main pitfalls of dealing with Section 8 tenants?

Also, do you know anyone who will lend less than $50,000 against a foreclosure property? At the moment, I can't find any finance on these properties.

Any input would be much appreciated. 

Thanks

Hi,   My name is Todd Vanderlip.  I am a Real Estate Agent as well as an investor in Buffalo New York.  Please look at my web site granatorealtygroup.com

Once your there look under the resource section.  This section will give you websites to help you make a sound decision if Buffalo is a place for you.

I recommend that you travel  to any place you are considering investing.

Detroit is the poorest City in the United States and Buffalo is the third.

If you need anything else please email me at lip73@yahoo.com

myelmwoodvillage.com is a local website that may be useful.

Have a great weekend.

I sent an email reply so check your email.

Some general comments for the larger audience.

1. Detroit is imploding. Buffalo had it major contractions a decade ago or longer. The medium term outlook for Detroit is not very good. Outside of Detroit can be better. You need to check the demographics and the employment picture. It was 20+ years of contractions in Leeds, Liverpool and Manchester before the cities found a way to stabilize. Detroit might be early in is contraction period or it might go for longer give the auto sector problems.

In the US financing for a single property where the loan is less than $50K is tough. The lender just can not make much money lending small amounts. Local banks who hold their the loans on their books might be an option. They tent to lend to local residents and not out of country borrowers. Each can have different rules but most community based banks are set up to focus on the community and the people who live and work in the community. 

In other words the lower end of the market is dependent on cash buyers and those buyers want better yields. The properties will not appreciate much at all. Maybe no more than the rate of inflation or even less than the rate of inflation is there is a falling population. Cash flow but not much else.

John Corey

www.ChelseaPrivateEquity.com/blog

www.Twitter.com/John_Corey 

John

You have done your homework, I agree with your assessment of the Buffalo Market.

If you have properties here in Buffalo, give me the address and I can send you a Market Snapshot.  The snapshot will give you what is going on in the market.  Current listings, sold listings, neighborhood information, etc..

Have a great weekend.

Hi

 I have 2 x doubles in Buffalo. Todd found these for me and done a great job. These are let out returning great yeilds especially at the mo.

Paul5255:

Hi

 I have 2 x doubles in Buffalo. Todd found these for me and done a great job. These are let out returning great yeilds especially at the mo.

Paul,

So we are all on the same page, what is a 2 x double? The US translation if you can.

Thanks in advance.

John Corey

www.ChelseaPrivateEquity.com/blog

www.Twitter.com/John_Corey