All Forum Posts by: Joe Semifero

Jack Clough What you are saying is complete speculation and it isn’t based on anything that history has shown repeatedly. Lowering taxes on businesses does primarily one thing: it puts more money in business owner’s pockets. They are consumers just like everyone else and some of that money MAY go back into the business or it may go to other areas such as savings, investing, or buying other things not related to business. The facts are that “the swamp” (as you refer to it) and the wealth of the wealthiest in the US has been fueled dramatically by the tax cuts of the first attempts at trickle down economics because those would be tax dollars were retained, not invested. Wealth is more and more concentrated, to a point now greater than much of the history of the US. The higher GDP rates of the last 20 years of the 1900s was due to huge productivity gains due to computers, and very little of it was due to tax policy. I hope you are right and these tax changes help the economy. However, with businesses already holding above $4 TRILLION at this time that they are not investing in more jobs, I have no idea why another $1T or $2T would suddenly result in job creation or investment in businesses.

(@Jeff Rabinowitz - Sorry if this question takes your post in a different direction - had a question to Clay re:new law.) 

@Account Closed - I saw this law passed and had a couple questions I hoped you could answer:

1) The law (as it appeared to me) said the landlord cannot discourage the tenant from allowing the inspection, the landlord has to, as you put it, give a good faith effort. What exactly does that mean? Can I, as the landlord, tell my tenants I would prefer they not have the inspection? Do I have to limit my comments? Am I only allowed to say they do not have to allow an inspection? 

2) What about the cost of the inspection? Do we have to pay for the inspection ahead of knowing whether or not the inspector can enter? If they cannot, is the inspection fee refunded? Or is it retained by the municipality until they can complete the inspection? Or is the fee associated with the inspection used to cover the cost of the inspector attempting to gain access? 

3) The law says the municipality has to be notified once it is vacant. What is the penalty for not notifying them, per the law? What if I notify them and then a new tenant moves in before they can inspect? What if a tenant moves out one day and a new tenant moves in the next day? 

I know you said you are not a lawyer, but I thought since you work on this type of thing regularly you might have some more insight into the law and how it structured, what the possible details are for implementing, etc. 

Thanks for any help!

Tri-County Title in Plymouth on Sheldon is good to work with. They complete the needed work quickly, prices are good, and you get personal attention. I cannot tell you how many times I have worked directly with Bob Gillikin (one of the owners) directly on title work. Very straight forward guy and company, and after working with a lot of title companies in the Detroit area, I cannot tell you how much we appreciate working with Bob and Tri-County Title. 

Have you checked RPOA? They are mainly out of GR and have listings on their site for attorneys that presumably would be real estate focused. 

Those are difficult terms - costs just as much to do a $40,000 loan as it does to do a $200,000+ loan for certain fixed costs. 

I think the best advice I saw here was to get involved with local REI groups and let people know you are looking for funding. It would seem those lower dollar level loans would be tailor made for a small time private lender. I would think private lending would be the best option in this case.

Shutting down medical marijuana by the Feds would not be that difficult. All they need to do is make a few high profile examples and people are going to bail. They do not need to go to every single operation. They only need to make the risk too large for people to continue. 

Also, isn't there something about the Feds clawing back assets that were purchased with funds from drug money? Is that a risk? Could you end up being owned by the Feds if your property was purchased even only in part with med marijuana money? 

Personally, until it is sorted out at the federal level (and it took a big step backwards with Jeff Sessions as the AG - look up his opinion on marijuana), I wouldn't risk getting involved at any level. 

@Ray Harrell - The problem is when the tenant you approved decides to move out and leave the other person not on the lease in the property. The las then considers them as a tenant once they are living there (even though they didn't sign a lease) and you have to go through the eviction process with them if they do not pay rent, etc. As @P.J. Bremner said, the best thing you can do as a landlord for yourself is to put good tenants in your properties. That starts with good screening. If someone just moves in, then you haven't screened them at all. Maybe they don't have the income to afford the place. Maybe they will just hang out for a while and destroy the place - if you didn't get to talk to their previous landlord(s), how would you know? Too many unknowns and things that we would not accept in applicants that you have no control over when a random person starts living at your property. 

I haven't purchased from this company yet but they have given me quotes that are reasonable. Noel is often at local REIA meetings. Message me for contact info.

Noel Selewski Agency

15206 Mack Ave

Grosse Pointe MI 48230

Four Condominiums in Van Buren Township (Belleville), MI

2 Bedroom / 2 Bathroom, 1050 sq ft, Class B Neighborhood, $320,000

For sale are four (4) condominiums in Van Buren Township, MI, with long term tenants in place for three of the four. These are Class B condos with rising property values. They are close to local shopping (Meijer, Walmart), 5 minute access to I-94 and I-275, 15 min to Detroit Metro airport, and continuing development in the area with an Aldi’s opening and Menard’s being built nearby.

No outside maintenance or outside CapEx required as all exterior (including roofs, landscaping, snow removal, etc.) are included in monthly HOA fees. Biggest potential costs are the furnace/AC unit ($3,200 installed) and appliances (stove, refrigerator, dishwasher, washer and dryer included in unit and sale). All hot water heaters replaced in last 12-24 months. HOA is investor friendly with no limits on investor owners or tenants, and over 50% of the condos are owner occupied. HOA fees also include water.

Rents range from $935 to $1005 per month. Recent rents in the neighborhood have been as high as $1,050 per month, so there is the potential for increasing income to over $50K/year. One unit will be vacant (tenant moving end of March after three years) and all other leases have from 1 to 6 months remaining until they are dues for renewal. All tenants have occupied the condos for between 18 months and 4 years. Cash flow of $500+ per door per month before management, repairs (minimal), and vacancies (two 1-2 month vacancies in last 4 years)

Annual Rents                             $46,380
Annual HOA Fees $12,740
Annual Taxes                               $4,391
Annual Insurance                           $880
Annual Income                          $28,369 (all numbers actuals)

These condos represent an excellent opportunity for an absentee landlord with local management company or a local landlord that wants to self-manage. The condos need a low level of involvement as the HOA covers many areas of concern such as the grass being cut and snow shoveled.

Please contact me directly if interested. Two years of financials available to qualified buyers. Brokers welcome.

Joe Semifero
[email protected]
734-604-5871

@Christopher Alley Does this mean you cannot find 2 or 3 unit properties without separately metered utilities? Is it possible to retrofit with separate meters? This seems like strategy I have heard on BP as a way to improve properties. 

(I just cannot understand why properties are not made this way to start. We have some condos where some units do not have their own water shut off, or where the entire building needs to be shut off for one unit to be worked on. I mean, even if there is a shared utility, there should be a shut off for each individual unit. Maybe there was some big saving at construction? Sorry - rant over...)

Joe