All Forum Posts by: Justin Herrema

I have seen many investors in a tough spot in Michigan. My cousin actually had a bank call a large LOC on him. He did collect the entirety of the redemption period with no recourse. You should be fine but it I would look at your original mortgage on the assignment of rents clause.
There is also the renters rights in MI that banks have to honor which help protect you so they don't get the boot out on the street. Basically a bank has to honor a lease that was written prior to foreclosure and they must give the tenants a separate 90 day notice. Google this: Michigan renters rights foreclosure act of 2009

That is correct with most title companies. First American, Stewart title and others will NOT insure quit claims anymore. They got burned too many times. There are a few that do but like Kyle said....what's the point.
I did have a guy from California deed me a property for a small dollar amount because he moved and wanted out. However I did a search and knew there where 2 years taxes owing and a few city liens. situations like that I wouldn't pay extra for a policy unless you are at risk somehow.

I think it comes down to how motivated a seller is also. Usually a deal like that would be a total of 1.5% which the seller and agent negotiate.
Have you ever tried a contract for deed and then do an assignment of contract? That may be easier down the road for you. Just make sure there is no due on sale clause.

Any type of section 8 etc this for sure wouldn't work well as they inspect all the time to ensure properties are to their standards.
I would think a lease with option you may be able to implement this better without the liability risk.
I would also ask your insurance company if they would cover a claim that would arise from a tenant doing a repair. I believe aside form poor workmanship that liability is the biggest concern.

Mariah,

One thing I would look into is what the city codes are on foreclosed multi units in your area. In Grand Rapids you have to get city certs and occupancy permits which adds much more costs than anticipated. I have had many that we have to put thousands into after where already finished with a nice rehab.
I prefer to stay away from multis in certain cities specifically based on their procedures.

This is true. I have had this threatened on me when a police raided a property. To me they where good tenants and always paid but I had to evict them.

I wanted to say thank you to those of you that brought up VRBO. I realized I was not on there so I listed last week. Within 3 days I had around 40 new inquiries. So far VRBO is out performing other sites.

@ John, One thing I wanted to clear up is I do buy houses for 15k all the time in decent areas. Also I do rent to section 8 tenants in decent areas.
There are properties in bad areas of Grand Rapids that are priced sometimes more.
I say this so you don't rule out a deal because it's cheap. I don't know North Haven but around Grand Rapids you can have one block that is horrible and the next block is college students and FHA buyers....

Is it bank owned? If it's a local bank offer 20% down and you assume the balance. Otherwise offer 20% to the current owner for a land contract.

Bryan, How big is the loan? If over 20 million and good collateral behind it I may have an option.

Unfortunately banks are not lending anywhere regardless of credit, net worth and cash flow.
The best way I have found for JV is simply word of mouth. Jumping through a bunch of hoops though is something I wouldn't do unless you knew there was a serious interest level.