Array Management Group

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Recent leadership changes at GM could ultimately boost Detroit’s local economy and stimulate the job and housing markets.

GM chairman Edward E. Whitacre, the former AT&T CEO will take over as CEO of GM, replacing Fritz Henderson who resigned after 10 months at the helm. The company is now in a position to make some power moves and regain its status as being an industry leader.

If GM increases productivity, jobs should follow. UAW healthcare and wage concessions  could give GM the incentives needed to keep jobs in Detroit. This will help retain and create jobs at auto suppliers, local restaurants, and other small businesses in the area.

 It can also help to revitalize the Detroit Real Estate market. A fresh crop of newly employed people will look for affordable housing in and around their job location. Real estate investors will be an important factor in this equation. Because of the lower wage scale, most workers will only be able to afford homes in moderate income neighborhoods. Also, if gas prices stay at the current levels, many people will prefer to live closer to the workplace. With this in mind investors can target designated investment areas.

 In order for GM to turnaround their fortune, 2 things need to happen.

 1.       Get a Younger and Stronger Management Team

GM has traditionally been a large, slow company that used its size to maintain market share. Younger leadership is needed to bring in new ideas and continue to create products that appeal to a younger demographic. The best companies are the ones that can identify market and technological shifts and quickly make changes.

 2.       Use New Cost  Structures to Make Big Bucks

GM recently exited bankruptcy which is greatly reduced its debt and healthcare cost. There have also been UAW wage concessions which will further allow GM to be more competitive. If sales can increase steadily, GM is poised to be a cash cow in the near future.

Investors of Detroit Real Estate could benefit from billions in government funding slated for local housing.

 The Obama administration is considering committing up to $35B to help state and local housing agencies provide financing to low and moderate income families.

 Government operated housing finance agencies have struggled during the downturn and this funding could provide much needed relief.

 These agencies are not major players in the world of lenders, but they are critical to many first time and low income home buyers.

 If this was to materialize, it would be huge for Detroit real estate investors. With a large inventory of bank foreclosures and a job market where starting salaries are low, homebuyers lining up financing will provide a welcome opportunity for those who can provide affordable housing.

 Detroit real estate is one of the best kept secrets in the country, the foreclosure crises allow you to but cheap houses, rehab quickly, and rent with great cash flow, provided you have good property management in place. An added bonus would be to sell your property to a first time homebuyer and make money while helping someone realize their dream of homeownership.

Detroit Investment Properties can provide real estate investors with quality assets that yield some of the highest spreads in the country.

 We help investors grow their portfolio by offering turnkey homes that are:

• Fully renovated (No repairs needed)

• Mostly tenant occupied

• Below 60% market value

• Cash-flow positive

• All under $30,000

 If you are interested in taking advantage of a golden opportunity, sign up to receive our list of inventory.

 P.S. By joining this list, you will get access to deals well before they are available to the general public.