All Forum Posts by: Paul Leason

I would agree with @Logan Laperriere and say that you should look for a Multi family home to start with. I have a SFHs, duplexes and a 4-plex and would like to eventually sell the SFHs and 1031 exchange them into MFs. Cashflow is tough on SFHs and better on duplexes/MFs imo. There's a lot of competition for both SFHs and MFs in GR, but SFH owners NEED a place to live and I find I cannot and don't want to compete with them in a bidding war, as I simply can't make my numbers work.

Buy a duplex and Owner Occupy the one side.  Buy for as little as 5% down on a duplex, owner occupied, yes - you read that right - 5% down!

Live it in for a year and repeat the process, buy another duplex, hopefully with the same program if it still exists a year down the line.  Then you'll have 3 units occupied and you're be living in 1.  Rinse and repeat!

Natham, sounds like your realtor is a good one.  Many would have taken your decision to sell and pocketed the commission!  I too, would have questioned why you wanted to sell!  I also question why you chose to rent a townhouse, with interest rates at an all time low?  Were you not in a position to buy another home?  Rents are not cheap and buying, with interest rates around 3%, can often be as cheap as renting - or at least the break-even point is about 5 years, whilst building equity!  Get hunting for the next deal and get it under contract.  Publish that and people will come running to partner up!

Happy to chat John. Thanks for reaching out.  I’ll connect via DM

Multi-family if the commercial brews are scarce but they do come up every now and again.  Most trade off market  between the PM company and their investors, which I why I meet and network weekly with a group of Property Managers and Realtors who operate in those fields.  

The MLS is very competitive at this point in time and hasn't been for some while. MF and SFH homes typically have multiple bids with various clauses to enhance the bids: Escalation clauses, waiving inspections, high EMD, free possession after close, faster inspections etc.

Crime and growth are area dependent, crime especially.  Got to know the areas to work in and thOse to stay away from (fewer now).  Growth on a whole though is pretty good for GR and Kentwood and numerous time GR is in the press for things like hottest ZIP in the nation (49505) and best place to start a business, Learn medical .....

Hope that answers your questions. 

So are you selling just a list of blighted properties or have you gone through that list and found people that actually want to sell or that you have under contract?   

Sounds like you’re possibly just selling a list of blighted properties.  

Bob, I would ensure you take your favorite realtor with you wherever you go, so it can be classed as a business trip!!

From your profile picture it seems that you don’t mind the snow, so Grand Rapids is a good choice for a 4 season City with a booming economy which is always ranking in the top 10 of the countries best for this and that!  Diversified industry here so we are not reliant on 1.  We have automotive, medical, furniture (city was built on this industry), Amazon, Switch (tech) and we have rich families that ploughing $$ back into developing the City. (Meijer, DeVos, VanAndel, Secchia).  

I’m not familiar with the other markets but know that Grand Rapids is a good place to be and is still growing. We are also known as Beer City USA if that sways you at all!!

Title ReSource is through BHHS typically, Which is who I work for. Who is your realtor?  

Also in regards to this statement:

From what I've gathered summer taxes cover you from July 1st (current year) - June 30th (upcoming year) and winter taxes cover you from December 1st (current year) - November 31st (upcoming year).

I’m honestly not sure if that’s true, since what I do know is that the prorations for a tax year are based on  Jan 1st through Dec 31st of that year. So if you close April 1st 2018 and the tax bill for that year is $2000, you will be credited $500 (3/12 x $2000) by seller and you will pay the entire tax bill of $2000 in July. 

Other things to watch for on taxes is that when you buy, taxable value is uncapped. So many people miss this and then get shocked the following year when their lender calls for more escrow for Property taxes as they have just jumped. Make sure you figure the increased taxes into your calculations.  

As Dan states above; check the PA to see which box is checked. Typically it is calendar year proration. Also you can ask your realtor, as he would have completed this for you. 

If it does state a slender Year Proration, check your settlement statement and see if there are any proration in there.  They should have been a credit to you but for 2018.  

If, as you’re saying, the taxes were prior to that, then Title has missed them in their search and they should cover them. That’s also what title insurance is for. 

Speak to your Realtor and speak to the Title Company as they seem to be ultimately responsible. 

Who did you use for Title?