The Answers to All Your Questions
Our help center can instantly give you answer to many frequently asked questions. Design affects human. It changes the view of life and the self-image. According to the opinion specialists, a good design is a space.
1. Why invest in Real Estate?
Real estate investing is simple to understand, offers competitive risk-adjusted returns and attractive income streams, and can enhance an investment portfolio by lowering volatility through diversification. More.
2. Why invest in Detroit?
As with all investment types, real estate investing delivers the highest percentage returns when assets are acquired at lower prices and sold at higher values. Led by billionaire Dan Gilbert (Quicken Loans, Cleveland Cavaliers), the world’s most successful business people are investing in the revitalization of Detroit, a great American city that still hasn’t rebounded from the market crash in 2007. Detroit has been called “America’s Great Comeback Story” — and now there are myriad reasons why.
3. Why invest with Pioneer Homes?
Pioneer Homes was founded nearly a decade ago by Detroit native Al Beahn, a lifelong entrepreneur who has earned a reputation for delivering assets that perform, with honesty, integrity and transparency. Pioneer Homes doesn’t simply sell properties; we conduct thorough due diligence, renovate and renew properties, educate our investors, and only offer quality homes in favorable communities that meet our buyers’ investment goals. And we’ve completed more than 1,000 transactions to date. Check out what some of our satisfied clients have said about us.
4. What is “turnkey” cash flow real estate?
Want to invest in real estate but don’t have the time or know-how? With turnkey, hands-off real estate investing, we’re your eyes and ears on the ground — and, for you, there’s no legwork. We find you the right property, at the right price, in the right place, and we oversee the renovations, place qualified tenants, and provide you access to trusted property management. All you have to do is sign a closing document — and there’s cash flowing from day one.
5. What is the formula you use to determine a property’s return on investment (ROI)?
Gross Annual Rent – Taxes – Insurance – 10% Management Fee / Price = ROI
6. How bad is the crime in Detroit?
Detroit is like any metropolitan area in the United States — in any large area there is going to be crime. There are many beautiful, as well as up-and-coming, sections of Detroit, and we are highly selective in our property acquisition process.
7. Why are properties so cheap?
Detroit was in the midst of a steady decline until finally the City filed for bankruptcy in 2013, clearing up $7 billion in debt. In the past few years, with the help of several key investors, Detroit has been rebuilding to the great city it once was, but prices still haven’t caught up.
8. Are your properties all occupied by rent-paying tenants and ready for investment?
We ensure qualified tenants have been placed in all properties before point of sale.
9. Do you employ a property management company?
Yes, we use a few trusted local property managers in the greater Detroit area, and we will facilitate your relationship for you.
10. Do you provide a warranty deed?
Yes, all properties have a clear title at point of sale.
11. Do you provide title insurance?
Yes, with all property sales, the title company issues the title insurance, which is reflected in the HUD-1 Settlement Statement.
12. What other costs are we as buyers responsible for at the time we purchase the property?
The only other cost for which you’d be responsible is the closing cost — typically: $2 per $1,000, plus $250.
13. Do you rehab/renovate your properties before sale?
Yes, prior to the most recent (current) tenant move-in date, each property is renovated, either by Pioneer Homes or one of our affiliates.
14. Do you sell through land contracts?
15. Do you offer discounts to buyers paying in cash?
16. I live outside of the United States. How would I receive the rent payments from my tenants?
For guidance on receiving U.S. rental income from outside of the country, contact your CPA (Certified Public Accountant). To learn about opening a bank account or establishing an LLC (Limited Liability Company) in the U.S., we recommend consulting Stateside APM, a property investor support and service company.
17. What are your management terms of service?
Each management company dictates its own terms of service, and we recommend discussing these terms with the management company provided.
18. I found a property elsewhere selling for $25,000, with an ROI of 35%. Why don’t you offer anything like that?
Yes, these types of deals do become available from time to time, but our frequent buyers rely on us to do more than dig for diamonds in the rough. At Pioneer Homes, we thrive on delivering investors quality and consistency.
19. Do you offer financing?
20. Do you accept purchases through self-directed retirement accounts?