This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buy a $1 House in Detroit?

This is really an unprecedented situation due to the size of the bankruptcy, the amount of abandoned property, the amount of violent crime and the $443,818,881.92 owed in overdue taxes and penalties.

And even if you want to throw caution to the wind and get in on the Rust Belt real estate trend, you might find manuevering the logistics rough sailing.

There are 384,861 properties in Detroit, and of those, around 100,000 are owned by various government agencies, banks and mortgage companies, according to Jerry Paffendorf, CEO of Detroit-based Loveland Technologies, which develops crowdfunding and social mapping systems in the area.

"Most of those properties are technically available for application and purchase, although the formal processes are currently difficult to navigate and the bankruptcy has put a freeze on the city selling properties,"

Paffendord said.

[Read: <a href="" data-add-tracking="true" target="blank"><em> 10 Sustainability Tips That Will Save You Cash</em></a>]

Paffendorf highlighted concern over Detroit's Gini coefficient, which measures income and wealth differences within a population. Detroit may be bankrupt and devolving, but Paffendorf sees it as a symptom of a much larger problem for the middle class--one that make you hold the trigger finger on that real estate purchase.

"I think Detroit is at a very different scale than most other cities and municipalities going through this," Paffendorf said. "It honestly makes me think more about the future of the country as a whole rather than other individual places. Where's it going to go?"

--Written by Leigh Held for MainStreet
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $109.27 0.00%
FB $88.26 0.00%
GOOG $600.70 0.00%
TSLA $241.93 0.00%
YHOO $31.58 0.00%


Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs