Home Buying in Detroit>Question Details

Ownlee1mac, Home Buyer in Detroit, MI

I'm a out of state investor looking to buy an income generating property. Should I look for foreclosed property or tenant occupied already?

Asked by Ownlee1mac, Detroit, MI Sun May 27, 2012

I'm in California and I'd like to buy a duplex in Detroit. I'm trying to figure out the most efficient way to buy property out there. Its a lot cheaper. I looked at some property managers on the BBB website so I think I can get good management in place. I'd just like to know if I should get a cheap foreclosed home or look for a tenant occupied home already.

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10
Good Morning,

I have a company I just started and we are looking for investors to purchase properties that we have under contract for 50/60 percent below market value. We will obtain properties all over the United State. If you are interested please contact me Rande Smith Via e-mail at (infoallcityhome@gmail.com) or directly contact me at 323 283-1395
0 votes Thank Flag Link Tue Apr 1, 2014
My name is Janine Randolph and I am licensed property agent in Detroit. I work exclusively with international investors who want to buy investment rental properties in Detroit and its surrounding suburbs.

There are two strategies to acquire investment properties in Detroit:
First strategy is to buy a property that is already remodeled, has a certificate of occupancy and has tenants in it – either under the Section 8 Rent Benefits program or just screened qualified tenants. One of my biggest clients provides these kinds of properties to international investors from all over the world. They do everything in-house and end-to-end, meaning that they use their own funds to buy properties, remodel them, tenant them out and then deliver them to international investors. They provide in-house full service property management - which means that they have an ongoing interest in making sure that your properties are being managed the right way so you will come back and buy more investment properties from them.

Second strategy is to buy directly from banks. I work as a property agent for many investors from Europe and Asia. I will find properties for you. You will buy them directly from the bank and I will connect you with a company that will provide repairs / remodeling services, tenant placement and ongoing property management services. The upside is that you drastically lower your acquisition costs this way. The downside is that since you are starting from scratch instead of buying a property that is already tenanted and producing rental income, you have to add a realistic 60 days to the whole process: 15 - 21 days to close on the property and then 2 weeks for rehab and tenant placement. The first months rent check will go to the property management company for tenant placement and then you get the rent checks going forward.

Give me a call or email me and I will be happy to answer any questions that you might have.

Email: Janine@MotorcityForeclosures.com
Direct mobile: 734-217-7486
0 votes Thank Flag Link Fri Aug 3, 2012
Good Morning,

I have a company I just started and we are looking for investors to purchase properties that we have under contract for 50/60 percent below market value. We will obtain properties all over the United State. If you are interested please contact me Rande Smith Via e-mail at
(infoallcityhome@gmail.com) or directly contact me at 323 283-1395
Flag Tue Apr 1, 2014
Hi Ownlee1mac,

There are two types of investors; The investor that wants to generate monthly residual through tenant placements and the investor that wants to purchase real estate and sell it.

You sound like the first investor, and I would be more than happy to assist you with this process. I am a licensed realtor with The Conquest Real Estate Group but we also have a property management company, Metro Detroit Rental Experts.

Outside of being experienced for 8 years in real estate, I am an expert in tenant placement and propety management. I have worked with investors globally and have a solid referral list of clients from Australia, Dubai, Israel and in the states as well.

If you would like my assistance or if you have any additional questions, please feel free to email or call me.

Charlene Johnson
The Conquest Real Estate Group
Metro Detroit Rental Experts
16250 Northland Drive
Suite 202
Southfield, MI 48075
(248) 499-2187
cjohn3615@gmail.com
0 votes Thank Flag Link Wed Jun 6, 2012
We rehab houses in Washington Dc
and are looking for a investor
will make big profit phone 202 754-1659
Flag Tue Jan 27, 2015
Good Morning,

We are Detroit Global Investments, LLC, a real estate acquisition company based in metro Detroit. Along with our tenant placement company, Metro Detroit Rental Experts and Detroit Global Property Management, we would like to give you the opportunity to take advantage of our specially selected investment properties and services.

We have investment programs for every investor, including our "GOLD MEMBER" and "ALL INCLUSIVE" packages. And for those looking for a "low entry point".

We offer fully renovated properties in family friendly neighborhoods that are priced below many of our competitors. We have pre-rehabbed properties as well. We have experienced contractors and maintenance workers available at costs that should fit your budget.

We are confident that you will be very pleased with the services we offer.

For more information or to make your reservation for purchase, please call Joe Williams at 248-346-6135 or contact him via email at joe@detroitglobalinvestments.com or thejwilliamsteam@gmail.com.

Kind Regards,

Joe Williams

THE J WILLIAMS TEAM
A I REALTY
DETROIT GLOBAL INVESTMENTS
DETROIT GLOBAL PROPERTY MANAGEMENT
METRO DETROIT RENTAL EXPERTS
16250 Northland Drive
Suite 202
Southfield, MI 48075
248-403-8313 Office
248-346-6135 Direct
thejwilliamsteam@gmail.com
detroitglobalinvestments@gmail.com
joe@detroitglobalinvestments.com
http://www.detroitglobalinvestments.com
"Houses are not our business, PEOPLE are."
0 votes Thank Flag Link Wed Jun 6, 2012
We work with Out of State and Foreign Investors Buying in Detroit on a daily basis. We are not Realtors, Property Managers or Contractors.

We provide Video Inspections of any Property and Neighborhood you like. Our services are flexible to the clients needs but we often do Pre-Purchase Video Inspections, Neighborhood Videos, Eviction or Post Tenant Video and Property Condition Reports to name a few.

If you'd like to see a sample of our work please visit our website at http://www.VideoInspectors.com and send me an email.

Best of Luck!
0 votes Thank Flag Link Sun Jun 3, 2012
Whoops, sorry, I used single family in my example.

Here are some multi-family numbers:

Average multi-family fixer upper in a NICE neighborhood (Nice means very little vacancies, safe, easy to rent quickly) is between: $14-25k.

Here are some fixer upper and a few short sale examples:

http://pub.realcomponline.com/publist.aspx?a=854717B7C643A38…



Average multi-family turnkey in a nice neighborhood is between $25-45k.

Here are some turnkey examples:

http://pub.realcomponline.com/publist.aspx?a=4506D7778603634…
0 votes Thank Flag Link Tue May 29, 2012
Always do the numbers!

It doesn't matter where you're looking, what type of property, etc., look at the numbers first.

A typical foreclosure in a great neighborhood (i.e. brick, well-kept properties) costs about $10k.

A typical turnkey property in a great neighborhood (i.e. rehabbed, with tenant) costs about $25k.

In the Metro Detroit Market, a typical foreclosure purchase scenario may look like this:

Purchase Price: $10,000
Repairs: $8,500- 10,500
Construction time: 30-45 days
Marketing time: 30-45 days
** A huge danger to be aware of is when the property is vacant, there is still a chance of break-in or theft.**

So, if your rents are $800/mo, then add in about $1600-3200 in lost rent waiting on rehab and a tenant.

If you get a management firm or realtor to lease the property for you, then calculate about $800 to pay them (typical commission is about 1 month's rent).


So, if the purchase price + repairs + marketing costs + lost rent may equal about $20-24k- roughly the same cost to just buy a mini-business unit and start collecting rents right away.


Now wait a minute, surely there are exceptions?!

Yep, there are. They can be obtained, however, if you have a large number of units you're looking to buy, or you want to buy something right away, consider turnkey.


****ALERTS*****

Be on the lookout for any companies that want to sell you their inventory. They purchased it for very little and will attempt to sell properties to you at a premium. This is the same as buying turnkey- but unfortunately the properties may not be in the best areas for great long-term rental income.


If you are not in the market that you're looking to invest in, you may want to seriously consider buying only turnkey to start. Unless you're super-skilled at managing contractors, resources, etc from afar (and remember these companies all have fees), stick with the simplest route possible.


I know it's tempting because you want to save money, but do the math CAREFULLY first before choosing either type of investment.


ALWAYS get an INDEPENDENT 3rd party assessment of anything someone is trying to sell you in a market:


**Appraised value is $1million dollars? Get your OWN appraisal
**Rental comps? Get your own verified comps
**Property condition? Get a LICENSED inspector to verify that is the case.


This is what we help our investors do on a daily basis. Please call us if you need assistance:


Thank you,

Letitia N. Patterson
(la-tee-sha)

Community Choice Realty
261 E. Maple Rd
Birmingham, MI

Office: 248-905-1531
Cell: 248 506-9426
Fax: 248 504-5656
Email: myrealestateteam1@gmail.com
0 votes Thank Flag Link Sun May 27, 2012
Good Afternoon,

Actually you can do both. But, It will be a lot easier to locate a bank owned property, than to locate a tenant occupied home, because there are other investors looking to do the same thing. Also, It is not always a good idea to inherit someone else's tenant. In my opinion it is always best to start with a "fresh" tenant. However, the tenant placement and management is easier than you think.

We are Detroit Global Investments, LLC, a real estate acquisition company based in metro Detroit. Along with our tenant placement company, Metro Detroit Rental Experts and Detroit Global Property Management, we would like to give you the opportunity to take advantage of our specially selected investment properties and services.

We have client from the U.K., Australia, Singapore, Canada, Florida and California just to name a few.

We offer fully renovated properties in family friendly neighborhoods that are priced below many of our competitors. We have pre-rehabbed properties as well. We have experienced contractors and maintenance workers available at costs that should fit your budget.

We are confident that you will be very pleased with the services we offer.

For more information or to make your reservation for purchase, please call Joe Williams at 248-346-6135 or contact him via email at joe@detroitglobalinvestments.com or thejwilliamsteam@gmail.com. Please visit our website at: http://www.detroitglobalinvestments.com.

Have A Great Holiday!!


Joe Williams-Licensed Realtor
THE J WILLIAMS TEAM
A I REALTY
DETROIT GLOBAL INVESTMENTS
DETROIT GLOBAL PROPERTY MANAGEMENT
METRO DETROIT RENTAL EXPERTS
16250 Northland Drive
Suite 202
Southfield, MI 48075
248-569-1486 Office
248-403-8313 Office
248-346-6135 Direct
thejwilliamsteam@gmail.com
detroitglobalinvestments@gmail.com
joe@detroitglobalinvestments.com
http://www.detroitglobalinvestments.com
"Houses are not our business, PEOPLE are."
0 votes Thank Flag Link Sun May 27, 2012
Out here we sell 70-80% investment properties so we get this type of question often. One thing that amazes me is that many investors focus, or fixate, on bank owned homes that have gone through the foreclosure process. These homes are usually empty, in need of repairs and have often been used and abused. Homes for sale by other investors or what I would call a regular sale are what you should be looking for too, look at both. Each must compete with the others so they are all priced at or near the market values. The regular homes have sellers that have equity in them so they will be more apt to fix things found in an inspection where a bank owned is usually as-is and don't ask for nothing. Here the regular homes are often sold furnished too which is because they are investment weekly rental summer vacation homes, the bank owned ones and short sales are picked clean and often even the faucets are missing.
0 votes Thank Flag Link Sun May 27, 2012
That is an interesting question. I have had similar discussions here - obviously you are talking about holding the investment and not flipping if i understand correctly. I'm a realtor but also an investor in San Antonio. I work with another investor also. Both he and I are in agreement that we prefer vacant homes/duplexes.

Many investors like occupied properties so there are no real holding costs and the income is immediate. That is a good rationale, but I argue differently. Just because the home is occupied doesn't mean the tenants are current on their rent or pay timely....I know you can get rent rolls disclosed in the contract and all, but I honestly don't like to mess with it. Also, if the home/duplex/4-plex needs repairs or updates, it's 10 times easier to accomplish while vacant than it is working around a tenant.

Of course a vacant property means you must have funds to not only cover repairs but also carrying costs. Typically most foreclosures will be vacant though you may find exceptions under the newer laws to protect tenants, but that is still very, very rare.

Hope this helps.


Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Sun May 27, 2012
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