Is the Detroit land bank any good

Detroit, Michigan
Buying & Selling Real Estate
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Is the Detroit land bank any good

Cameron Porter
Real Estate Agent · Detroit · Member since 2024 · 73 posts · 24 votes

I want to buy properties in Detroit and I was considering using the Detroit land bank for there low value distressed properties. Depending on the zip code I was wondering could I gamble with them on a fix and flip or brrr. Would you buy with detroit land bank

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    I don't have experience with the Detroit Land Bank, but generally land banks are pretty reliable, but...they are low money buys (from $1 to $1,000) that require you to show proof of funds for the rehab. They also tend to stick with locals to create more affordable housing by locals for locals. They prefer owner-occupants, but like local investors. @Drew Sygit may know more about the land bank in Detroit though.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Cameron Porter +95% of the land bank inventory is already picked over by the time it hits the public.

    The only people we know that have bought ALL went over budget and only the increasing market covered what would have been losses.

    So, proceed VERY carefully!

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  • Cameron Porter
    OP
    Real Estate Agent · Detroit · Member since 2024 · 73 posts · 24 votes
    1y

    Thank you. I’ll have to look into it more

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  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    Generally, no.

    I've done one myself so I know the process and ins-and-outs pretty well. 

    There are some exceptions, but I tell most people to avoid it. I've got a great article about the pros/cons if you want to DM me I can send you the link.

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  • Natalie AlliePro Member
    Member since 2024 · 24 posts · 17 votes
    1y

    If you are still considering the Land Bank in Detroit listings, just be careful to check with the city on whether or not the water needs to be reconnected. This can end up costing thousands more dollars, which can obviously affect your margins. 

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  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    1y
    Quote from @Natalie Allie:

    If you are still considering the Land Bank in Detroit listings, just be careful to check with the city on whether or not the water needs to be reconnected. This can end up costing thousands more dollars, which can obviously affect your margins. 


    I don't believe you can check this beforehand. Some lines they will say have been "cut" but they put in a disclaimer on all sales that they don't know if a line might be cut.

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