Real Estate Fund Investments vs. Owning Property in Detroit

More and more investors are turning to real estate to grow their wealth, and Detroit is on their radar. With its low entry prices, high rental demand, and ongoing revitalization, the Motor City offers powerful returns for those who know how to tap into the market.

The key question for investors is whether to purchase individual properties or invest in a professionally managed real estate fund. In this blog, we’ll examine both options.

Fund Investments vs. Owning Property

Before you choose your path, it helps to know what each strategy really involves.

Real estate fund investing means pooling your money with other investors in a professionally managed fund. The MTMA Real Estate Fund, for example, acquires and manages income-producing properties in Detroit. Investors get passive income, portfolio diversification, and expert oversight.

Direct property ownership means buying individual properties yourself. You’re responsible for everything: finding the deals, renovating units, leasing to tenants, handling maintenance, and making strategic decisions.

Both strategies can be profitable, but they serve different types of investors.

Pros and Cons of Directly Owning Detroit Real Estate Investment Properties

Owning property gives you the chance to take full control of your investment, but it also requires time, capital, and hands-on management. Let’s review the pros and cons.

Pros

There are clear advantages to owning your own rental properties:

• Full control: You call the shots. From rent pricing to renovations, you decide how to manage your asset.
• Equity gains: Over time, you can build substantial equity, especially in a market like Detroit, where home values are rising.
• Tax benefits: Direct owners can access depreciation, mortgage interest deductions, and other tax write-offs.

These benefits make direct ownership appealing for investors who want to build long-term wealth and stay involved in the day-to-day strategy.

Cons

However, direct ownership also comes with responsibilities and risks:

• Time-intensive: Managing a property is a full-time job, especially if you’re handling multiple units.
• Property maintenance and tenant issues: From leaky roofs to late rent payments, the headaches are yours to deal with.
• Higher costs: Buying and maintaining a property requires more upfront capital, plus ongoing expenses and risk exposure.

These drawbacks can make direct ownership challenging, especially for busy professionals or out-of-state investors.

Pros and Cons of Investing in a Real Estate Fund

Investing in a real estate fund is a different approach. It’s usually easier to manage, more passive, and offers built-in diversification. Let’s look at the pros and cons.

Pros

For many investors, real estate funds offer the best of both worlds:

• Passive income: Sit back while experienced professionals handle property operations and tenant management.
• Portfolio Diversification: Funds spread your investment across multiple properties, reducing risk.
• Low time commitment: No need to manage contractors, collect rent, or deal with tenant calls.

These features make real estate funds ideal for investors who want strong returns without taking on the work of owning and managing properties directly.

Cons

There are a few trade-offs to keep in mind:

• Less control: You won’t be making day-to-day decisions about individual properties.
• Accreditation requirements: Some funds are limited to accredited investors.
• Fees: Like any professional investment vehicle, funds charge management fees.

Even with these considerations, many investors find that the hands-off structure and built-in expertise outweigh the limitations.

Why MTMA May Be the Smarter Option for Detroit Investors

At Own It Detroit, we’ve spent years building one of the most successful property management companies in the city. Now, we’re giving investors a way to benefit from that same expertise, without the stress of direct ownership.

The MTMA Real Estate Fund is built for investors who want reliable, hands-off returns in a market we know inside and out.

Here’s what makes MTMA stand out:

• Proven strategy: We acquire undervalued properties, renovate them for high ROI, and place qualified tenants for stable cash flow.
• In-house management: Because Own It Detroit handles the property operations, there’s no middleman cutting into your profits.
• Real returns: MTMA offers Class A and Class B shares, targeting annualized total returns of 10% to 16%.
• Community impact: Your investment helps rebuild Detroit neighborhoods, one rental property at a time.

It’s a fund designed to generate strong returns while making a real difference in the communities we serve.

When Does It Make Sense to Own Property Instead?

While fund investing offers simplicity and scale, there are times when direct ownership still makes sense.

You may prefer owning property if:

• You want complete control over your investment decisions.
• You enjoy hands-on involvement and property renovations.
• You already have a local team in place and understand the Detroit market.
• You’re targeting a niche investment (like short-term rentals or specialty multifamily assets).

However, it's important to note that these advantages also require a greater investment of time and capital.

Key Factors to Help You Decide

If you’re still unsure which path is right for you, consider these key questions:

• What are your investment goals? Are you looking for steady cash flow, long-term growth, or both?
• How much time do you have? Do you want to manage properties or let someone else handle them?
• What’s your risk tolerance? Are you comfortable putting a large sum into one property, or would you rather diversify across multiple assets?
• How liquid do you need to be? Fund investments often offer greater flexibility than selling a single property.

There’s no one-size-fits-all answer. However, MTMA is designed to meet the needs of busy investors who want smart, streamlined exposure to a booming market.

How the MTMA Fund Works

The MTMA Fund is engineered for performance. Here’s how it delivers results:

1. Property Acquisition: We target undervalued single-family and multifamily properties in key Detroit neighborhoods.
2. Renovation & Leasing: Each property is renovated with tenant satisfaction and long-term durability in mind, then professionally leased and managed.
3. Income Distribution: Investors choose from two classes:
   • Class A: 8% annual preferred return, compounded.
   • Class B: 4% quarterly distributions + 4% compounded returns.
4. Long-Term Value Creation: As property values rise and rents increase, your investment grows without your day-to-day involvement.

Together, these strategies create a reliable, high-performing investment model built to generate consistent returns and long-term growth.

Fund Investments vs Owning Property: A Quick Comparison

Here’s a side-by-side look at the core differences:

Choose the Right Path for Your Investment Goals with Own It Detroit

Real estate is one of the most powerful wealth-building tools available today. Whether you choose to buy individual properties or invest in a fund like MTMA depends on your personal goals, resources, and risk profile.

For investors who want the returns of Detroit real estate, without the hassles, the MTMA Real Estate Fund is a smart, strategic choice. With a strong team, a clear mission, and a proven process, MTMA makes it easy to build wealth and make an impact.

Own It Detroit is here to guide you every step of the way. Whether you’re new to real estate investing or looking to scale your portfolio, the MTMA Fund gives you direct access to one of the best-performing markets in the country, with none of the stress.

Need more info? Contact us to learn how the MTMA Real Estate Fund can help you build long-term wealth.