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How one entrepreneur is marketing new homes in the middle of America's most challenging real estate market
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It's -- assuming.
But this building in Plymouth Michigan which ironically used to be a century 21 real estate office before it went bankrupt.
Is now the home of marketplace homes a started that's trying to redefine the way the housing market works.
So I think.
Roughly one in 41 of five people across the United States are upside down on their mortgage.
But.
Four out of four people across the United States probably shouldn't be selling their home right now because it's -- great -- -- even if you're not upside down in your home.
-- it's a challenging time to get the money out of your home that you do you really deserve.
That's my Calif the thirty year old founder of market -- homes dot com and he's not exaggerating.
According to core logic one in every four homeowners in the US which is about eleven million people.
Owe more on the house and it's worth.
The Calif has found opportunity in the real estate slump.
By helping battered homeowners take advantage of what seems to be the only bright side to the market.
It is of course a great time to buy.
I'm so we're helping people be able to purchase and build the amazing home's incredible prices without having to sell.
Kayla says his company's program is simple.
You buy a new home and marketplace homes will rent out your old house for a guaranteed six years.
The cats you can only buy a new construction home from one of the builders it works -- Marketplace homes get six to 8% of the builders profit.
You also need to qualify for a second mortgage that if you do -- says this is a real solution to beat market blues.
So we're really just going through kind of listening to people and helping solve that problem a traditional.
Real estate brokerage.
They would -- home and call -- every two weeks since it's time -- drop price again.
Than they would reach some point where you owe more than what they're saying they have solid four and then they would start talking to you about the benefits of short selling them for closing.
And we think that that's pretty disingenuous there's a lot of people out there who have great jobs could -- this is really gonna hurt them.
And we're seeing why would you do that if you can create -- essentials is AT and just keep -- cash and your bank account every month.
And gives you great tax incentives why wouldn't turn -- -- -- now.
We're -- right outside Detroit where this company is hoping to boost in new home production.
So far this year marketplace -- is on track to sell 175.
Houses in the area.
That's about 14%.
Of the market share.
-- walks me around the suburbs of motor city.
A place that was hit hardest in the real estate collapse and shows me -- some of these new construction houses.
This kind of symbolizes.
A turnaround -- Detroit -- market.
Yeah I I think -- what's great and what this means bigger than just.
There's a house being built -- means that -- -- we have the confidence.
Probably to be able to -- their home as they were probably able to salad I'm into come out in to say you know I know that my job stable.
I know that -- -- to make a mortgage and -- a great time to lock in the price in the interest rates that are out there and I'm start they'll.
And what about when things go sour land meg not paying their bills.
Land not renteria isn't paying their bills.
Mean just to kind of because all sounds too good to be -- out -- kind of give me a realistic view of what happens land and.
When he goes that direction I guess -- -- I have if they're working with us.
That they were like an insurance policies that does happen on the we spread it over hundreds and hundreds of house is that we maintenance and so for -- it's not paying we continue to paint them.
He says the commission from the builder helps to subsidize the money they're putting out to manage the property.
What you're saying is this is an incredible deal for a lot of people.
It is an absolutely amazing deal to be able to get into a brand new home that's built exactly how you -- -- headquarters cameras and I will walk around their new offices.
We first started this is all vacant it was just Meehan and a couple of offices here and we we look at it is an open slate.
And it's so funny because I remember thinking in that some -- -- -- below the Phillies -- And he's kept his word the company has grown from sixteen employees to sixty since the beginning of 2011.
And is now in more than seventeen states.
That's in -- -- got are our teaching now.
Why is that are so out of every time we get a -- as a -- -- we entering.
And in 2011.
With over eight million dollars in revenue.
Kayla says they were able to ring the bell more than 500 times.
Reporting in Plymouth Michigan I'm Christina Scotty.
