My Vision: Real Estate in Detroit

I like to give tips, although it's hard, sometimes, because I'm just learning real estate.

Today, I'm going to share a little about what I envision for the future and how I see real estate being a part of that. Specifically, this is going to be about investing in Detroit, but it will apply to other downtrodden urban areas, too.

This is going to be a heart-to-heart more than a professional focused post. So hang onto your seatbelts, Ladies and Gentleman.

1. Bridging the Gap

This could mean many things, but I am focusing on two things, which sadly have too much connection between them.

I moved to the Detroit Area in 2001, and I've lived in several areas--more than most 37-year-olds have. Nowhere else have I seen the flagrant division between the city and its surrounding suburbs. In fact, most people won't admit they're from Detroit. I even had one person so much as say that Waterford is a suburb of Pontiac (an urban-suburb north of Detroit).

This not only is silly, but it's also harmful. Why? Economies flow when money flows freely. This statement by itself could spur its own article, but I will stick with Detroit and its suburbs for now. How can a metropolis thrive if it's heart (read: Detroit) isn't pumping blood into it's veins (read: suburbs), and the veins aren't returning that blood into the heart? That's exactly what is happening here.

The other thing I'd like to improve, if not entirely solve, is our huge problem with racism. It occurs in so many forms, but in the Detroit Area, the largest--by far--is black vs. white people. This is true in an area that has the largest Arabic population outside of the Middle East, and this relationship isn't always so cozy around here. No questions, though. The black vs. white thing is a big problem everywhere in the United States, but it's an even bigger problem here than most.

What's this have to do with real estate?

I would like to learn how to make money, and real estate is a key strategy for doing this--not the only but a key method. I want to learn the "how" well enough to be able to teach other people how to do this, too.

I remember when I was a kid, I volunteered to help tutor students in a poor section in Chicago on Saturdays. I thought nothing of it, but someone who connected me with the opportunity told me that I may be the only white person who ever smiled at them. At the time, I was too young to appreciate this fully.

However, years later, I got mugged in Winston-Salem. I was in the wrong part of town at the wrong time. I was nearly circled until I just threw my wallet away from me. It was entirely clear that I was targeted because I was white. For about a half an hour afterward, I was pretty shook up, and I didn't trust ANY black person as I waited inside the nearby store until the police came. During that immediate timeframe, I would be avoiding Obama--maybe even Tyra Banks, and she was HOT in the ninties. Seriously! How crazy is that?

Amongst many other thoughts, I started wondering, what if I hadn't ever had good experiences with black people. Once my head cleared, I realized that these were bad people who happened to be black taking out their frustrations on a momentarily vulnerable white person. My previous experiences allowed me this perspective, but not everyone is lucky enough to have good experiences to realize that this horrible situation was an exception--not the rule.

Many people who are different (men vs. women, nerds vs. athletes, etc.) tend to learn to "get along" once they are forced to work together. Another words, these people are forced into a position to realize that helpful people are better than unhelpful people, regardless of any differences. "Oh...THIS is the benefit to this person being in my life." You have enough of these experiences, the "differences" become invisible to you.

I would like to learn how to make money to teach other people how to make money, including people who are different than me. After that, I would like to teach other people how to teach other people. How easy is it for you to hate me if I'm showing you how to enjoy your life more?

Only one color really matters to me, and that color is GREEN.

2. Improving Detroit

Many people see Detroit, and they see a wasteland. "Blow it up, I say." I hear this often, and it's not unfounded, unless you see the potential. Many parts are not sparkling. However, there is a lot of nice architecture there. For those of you a little uncomfortable (or are truly afraid) of checking Detroit, ask around. There are some really nice neighborhoods in the city. Because Detroit has such a bad reputation, many home prices are the price of a nice car. Some homes cost less than a mediocre one.

I would like to improve these nice structures.

More importantly, I would like to improve entire neighborhoods. I envision an entire neighborhood getting renovated. However, there aren't many stores within walking distance. So I would like to find a way to make it attractive to businesses to WANT to move there, beside these nicely renovated neighborhoods. Of course, police presence would have to be premier. I don't know how to do that, yet, but this is essential to reviving Detroit.

You know what else ails Detroit?

Let me answer that question with a few other questions:

• Do you know anyone who lives in the Detroit Area for any reason besides family or business?
• Is there any reason, besides work or family, that you would visit Detroit if you weren't here, already?

I know! It must be the nice weather. Ummmm....Well, how about the pretty area? For some parts of Michigan this is true. Southeast Michigan, however, is not laden with beautiful areas.

So what do we have to offer? Right now? Very little, if anything.

Why not create some reasons? I don't know the answers, yet, but I'm thinking of things like a huge family friendly indoor water park. (Family vacationers bring HUGE money with them, and they spend it!) Perhaps, we can develop the nicest developed bike or snowmobile trails. After we build activity-based attractions, we can build awesome museums or improve the ones we have. We can build a specialty restaurant area that is family friendly, perhaps transitioning with Wayne State University. There's a start there, but there's so much more potential that can be realized there.

This is what I see for Detroit (and other areas that need help, too). Am I nuts, or does anyone else share my vision?