All Forum Posts by: Faith Steller

Investment Info:

Other buy & hold investments.

Bought vacant land to build on. Sellers' records showed the property as 7 acres and marketed the land as 7 acres for almost a year. Did some of my own math and research about the vacant land and wrote an offer requiring the seller to cover the cost of a perc test as well as a survey. Long story short and a bit longer than most purchase agreements since the property had to go through the quiet title process for a clear title before we could close on the vacant land and it is just over 12 acres.

What made you interested in investing in this type of deal?

Wanting to build my own home.
We have building permits and make progress to building an ICF basement for a 3 bedroom 2 bath ranch. So far we have experienced a lot of delays in the supply change but remain patience and claim to work on the next step of the build. So far we have cleared the land put a gravel driveway in and dug out the walkout basement. Last week we were able to pour our footings which is what the second image is of 27 yards of concrete. Next, we will start on our Fox Block wall

How did you find this deal and how did you negotiate it?

The deal was on the MLS but negotiations did involve a lot of patience and due diligence on my park of adding additional costs like perc test and survey cost to the seller's responsibilities.

How did you finance this deal?

Cash all the way

How did you add value to the deal?

The vacant parcel was listed at 7 acres but the math when looking at lot dimensions was over the 7 acres listed. Value in the land and now has some improvements like driveway and basement foundation footer.

What was the outcome?

Still working on the outcome of a more efficient home with lower utility bills and design-friendly with minimal stairs.

Lessons learned? Challenges?

Learning so much about the building process every step of the way.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes

Hello Nathan, It is great to see other Greater Lansing Investors in the area. I'm a local Greater Lansing Realtor that would be happy to assist with real estate related questions. There is Oppportunity in Greater Lansings that is for sure. Looking forward to connecting with you.

I know of a good commercial electrician if you find your self in the need of one in that area? 

Nice work!

Hello Mark, 

I think you are smart getting educated on the subject before jumping headfirst into a large purchase. If you are planning on getting involved with getting your Michigan real estate licensee,  I would recommend getting familiar with the brokerages in the area to do a couple of things first find an agent that can give you some current market data and second to find a brokerage that you work well with, have similar goals and training programs that aline with your needs and wants.   

Assemble your team is what I would tell one of my clients and bigger pockets talked a lot about assembling your team too. Finding a lender you work well with, possibly an inspector or handyman and anyone else that has market knowledge or experience in the field. Even just having the knowledge of local laws and regulations is a factor to consider when assembling your dream team to achieve your goals.   

Long story short, I got my real estate licensed in Michigan in 2013 and still highly enjoy assisting my clients to achieve their housing goals. Always happy to chat more about Michigan real estate with you @Mark Ledwell 

What area of Michigan are you planning on investing in? Also, do you already own your primary residence?  Do you want to keep rental properties in the same area or are you planning to expand? 

You have tons of options in Michigan, let me know if you would like to chat more @Michael Lloyd. 

Hello Joe,

Sounds like you have been doing a lot of research a studying a lot which is a good place to start investing your time into knowledge.  Depending on if you plan to manage your rental your self or have a company do all your management would be the way I would figure out what location is a good fit for you? On the one hand, you can save money if your handy and available to your tenants but on the other hand, having a known company to take care of what you do not want to but needs to be done can have its advantages. 
Anyway, I love up chat about real estate, yes I'm a Realtor in the Greater Lansing Area but always willing to chat with someone about their real estate goals. 

Investment Info:

Single-family residence other investment.

Sale price: $35,000

LandContract is being extended to allow for the purchaser to obtain financing.

What made you interested in investing in this type of deal?

Personal property in the basement of the house making the delay possible. The seller plans to clean out the basement from junk and personal property. The seller lived in the property from 1994-2008, the owner fell behind in taxes after moving to hand over rights to the current seller who paid property taxes removed code violated garage and made necessary repairs to bring up to living condition i.e remodel a bathroom, reroofed half the roof, flooring major cleanout.

How did you finance this deal?

Seller financed for the first year or so to allow the purchaser to obtain financing.

How did you add value to the deal?

Remodeled almost tax foreclosed property and brought it back up to cash flowing property.

What was the outcome?

Delays...

Lessons learned? Challenges?

Need a hard out with my land contact we are now past balloon payment due date and I hate to be the bad guy and foreclosure on the current purchaser.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I always recommend talking with your circle of people. I speak with my broker and other agents as well as other professionals in the business that /I might know.

I've seen 5.5% at local Michigan credit unions but I believe that is at 80% loan to value not 95%. 

Ludington is a lovely part of Michigan with many great events and Michigan traditions, glad to have you to join the state.