All Forum Posts by: Leslie Coxon

Hi Anthony, 

 Thank you for your feedback! I'm glad you liked it.  Honestly I had no idea which zip codes were going to be first. Obviously they decided to work in from Redford, Grosse Pt, and Mexican town. I would have thought they would work out from downtown and midtown. Works for me. 

Any areas related to certification or lead inspections you are interested in knowing more about? 

I've been an investor in Detroit since 2011 and it's been a roller coaster.  I am also a lead inspector, actually because of all the lead laws in the city of Detroit.  I was afraid of the process because I didn't know what I was going to have to spend, how to get a property to pass, what is the process, etc.  All I knew was that it's something I didn't want to do.  

I've recently launched a website for my lead business that has a blog aimed at professional investors.  I was wondering if you could read my first blog posts help me out by giving me some feedback? Also, are there any topics you would like me to write about?  

My website is:  leadsafeconsulting.com

If you have any specific questions about Detroit or lead inspections, please let me know.  Thanks in advance, I really appreciate it. 

DF defines land contacts as mortgages, making them subject to all kinds of crazy mortgage rules. To do it legally, without an MLO involved, you have to meet 10 different exemptions that boils down to: you can maybe do 1 if it was your home you lived in a long time. The law has taken the power away from individuals to make private contracts. In my opinion its just a power grab by the mortgage industry.

If you are trying to sell investments without being in mortgages, look at lease-option contacts. They are not specifically named by the act but a lecturer I saw warned "if it quacks like a duck, it is a duck." So don't sign a land contact that just says "lease-option" on top.

.... 4 years later: I never did bird dog. Getting my license gave me enough background on property rights, landlord-tenant laws, financing, etc. to know what was what. Then I met an experienced agent who showed me some tricks for finding deals with the MLS and I started buy-hold investing.

J Scott was right, all the laws are in place to create the hierarchy of power otherwise there would be no careers as real estate agents & brokers. Like how Dodd-Frank outlaws land contracts to keep the power with the mortgage companies. My bad, I mean it's for the protection of the naive public.

For you bird dogs out there who are worried about it, who's going to tell on you? I'm sure your state department in charge of real estate licensing is not looking for you. If there's one thing I've learned is that if you dwell on the narrow interpretations of state and federal law, which often contradict each other, you'll never make any money.

The previous occupant put stick tile on top of ceramic. Fashion statement? Don't know. The new tenants didn't mind it so we left it.

Hello,

I am a landlord in Detroit. I'm selling this property to raise cash for more rehabs. If you have questions you can call me or email me 313-338-8578, [email protected].

Thanks,

Leslie Coxon

12833 Steel, Detroit, MI 48227

2 Family Flat, each unit 2 Bed 1 Bath, lower unit occupied with a 12 month lease $525/mo. Upper unit occupied with a 12 month lease $450/mo. 2013 Taxes aprox $1000, water $0.

Asking $25000 cash

Repairs needed = $0, Income/mo $975, insurance/yr $432, taxes/yr $1000, aprox water/mo $100, aprox maintenance/yr $600. Yearly income = $11700, Yearly expenses = $3232. Cash flow/yr = $8468, Net ROI = 33.8%

I've been trying to figure out tax liens for Oakland County Michigan. Oakland county has a lot of nice home and a lot of great deals. They do their own sales, not through the state of Michigan. Here's what I've got so far:
1. After 24 months of delinquent taxes, the municipality forecloses. Foreclosure is final, no redemptions.
2. I can buy a listing of all the properties coming up for auction at the county court house for $5. Not sure when they become available though.
3. The auction is now a land auction instead of a lien auction. Therefore, if I'm the sucessful bidder, I will get the deed.
4. There is no warranty on the title because they quit claim the deed to you. But most of the liens should be wiped out during the foreclosure process.

Here's what I still don't know:
1. Can I buy a Tax Lien Certificate before the property is foreclosed upon? The goal being that someone will redeem the property and I'll get a return on my investment. Does anyone know what percentage I would get in Oakland County/Michigan?
2. Do I have to pay all the taxes? Some places have $10-20K in back taxes & penalties. What if I have $5K to invest? If the property is redeemed, I would assume I'd get my $5K + XX% interest. If the property is foreclosed, do I have an interest in the property and have a chance at the deed? Or will I lose my money?
3. Goes along with question 2, What happens if several people have an interest in the property through purchase of tax liens? I have read in BP forums that the last person to pay has the priority claim. That's different than what I've learned about title encumberances where the FIRST date in has priority. That's why the mortgage lien is always recorded at closing, so the bank can have first dibs.
4. Just to double check, the municipality's claim trumps all other liens, correct? That means that the foreclosure will wipe out other existing liens.

Can anyone guide me through my questions? I am basically wondering what happens if I pay the delinquent taxes on a property nearing foreclosure. What my options are and what to avoid. If any other newbies this area wants to research it together, send me a message. Thanks!

Thanks for the responses. I guess I should get my real estate license in case I ever do want to receive a fee.

I did ask about bird dogging in class. My instructor, a broker, was repulsed by the concept. He said that it was illegal and I asked him why. He said that because you are brining properties to potential buyers, you are acting as a real estate agent.

Here is my personal thought about the issue. I'm not a lawyer or a real estate licensee (yet) but I don't see how this makes sense. As a bird dog, I have no power to act on behalf of 'my client' in the transaction, so there is no actual agency. So now we are saying that even recommending a property is illegal. I told my instructor how I found a BEAUTIFUL Detroit home for $17,000 3 bed, 2 bath in a really nice neighborhood. I don't want to own in Detroit so I told my girlfriend about it since she's a Detroiter and wants to buy in Detroit. Currently she rents for $650/mo so she could probably save $400-$500/mo if she bought this place. So I asked him if what I did is illegal. He said "Yes." But why?? She know's I'm not an agent and if necessary I could have said "based on my unlicensed, unqualified opinion, this place might be a great deal for you, but you should seek the opinion of a licensed professional before proceeding." So what if she loves it, hires an agent to help her buy it, then takes me for a day at the spa in thanks? Laws requiring licensing are usually in place to protect the public from people who represent themselves as capable when they are not. So who does this law protect? It's like if my friend had a headache, and I offer her asprin or ibuprophen, what I'm doing is illegal because I'm not a doctor. I'm sure this law is in place because it prevents some kind of higher level fraud that I'm not aware of but when it's applied to bird dogging, it seems like the industry is just trying to protect it's interests. I feel like it's not warranted because I don't see a conflict of interest or potential for fraud like with kickbacks, and I don't see a danger to the public because investors are not unaware of your qualifications or ignorant about real estate transactions.

Like I said, I accept all your advice. If there is anyone out there who can clarify the purpose of this law for me, I'd be glad to hear it.

Thanks!
Leslie

I just got done reading the post "Attention Birddogs: This is a Must Read For You! (7 Steps To Get Started Now)" There was a question raised about the legality of bird dogging. The conclusion was basically to check with a local real estate lawyer to find out for sure. I will do that but I would still like some feedback from BP on 3 questions:

1. I want to bird dog because I have no REI experience and it seems like a great way to get my feet wet. I don't care about making any money. If I did it for free just so I can learn, wouldn't that be legal anywhere? If an investor was grateful and wanted to give me money, like a tip or something, should I refuse it (assuming it is illegal where I am)?

2. Do wholesalers need real estate licenses? If not, please explain how wholesaling is legal if bird dogging is illegal. From that post the law was quoted as: "Anyone who, for compensation, sells, offers to sell, buys or offer to buy, or negotiates the purchase or sale or exchange of real estate...leases or offers to lease or rents or offers to rent any real estate or improvements thereon is required to hold a real estate license."

3. I've read other places on the internet that paying "finders fees" is only illegal for licensed real estate professionals. Well, I am currently taking classes to get my real estate license. Does that mean I could not use bird dogs if I became a wholesaler? I will ask this in my next class and follow up with that response.

Thanks,
Leslie
:clap: