City worker who can purchase properties for half off on land bank

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City worker who can purchase properties for half off on land bank

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

Hey guys if a city worker who can buy properties for half off on the land bank as part of there benefits would it be worth it. A city worker who's also a real estate agent

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
1y
Quote from @Cameron Porter:

Hey guys if a city worker who can buy properties for half off on the land bank as part of there benefits would it be worth it. A city worker who's also a real estate agent

Hey @Cameron Porter! An important question to ask is, "Half off of what price"? In my experience in MO, land bank properties are very low priced (these are generally properties/parcels that weren't sold at the tax auction), but they often have significant tax liens on them that must be cleared in addition to the "sale price" AND they require a significant amount of rehab in order for the properties to be inhabitable. 

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
    1y
    Quote from @Cameron Porter:

    Hey guys if a city worker who can buy properties for half off on the land bank as part of there benefits would it be worth it. A city worker who's also a real estate agent

    Hey @Cameron Porter! An important question to ask is, "Half off of what price"? In my experience in MO, land bank properties are very low priced (these are generally properties/parcels that weren't sold at the tax auction), but they often have significant tax liens on them that must be cleared in addition to the "sale price" AND they require a significant amount of rehab in order for the properties to be inhabitable. 

    [email protected]
    2Reply
    • Cameron Porter
      OP
      Real Estate Agent · Detroit · Member since 2024 · 73 posts · 24 votes
      1y

      @Jaycee Greene half off the sales price. Even if it's a total rehab if the land bank has a property in an area where the arv's are substantially high wouldn't that be a good deal or a promising neighborhood for buy and hold. I don't think our detroit land bank sale properties with tax liens I would have to look into that. 

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
    1y
    Quote from @Cameron Porter:

    @Jaycee Greene half off the sales price. Even if it's a total rehab if the land bank has a property in an area where the arv's are substantially high wouldn't that be a good deal or a promising neighborhood for buy and hold. I don't think our detroit land bank sale properties with tax liens I would have to look into that. 

    @Cameron Porter ultimately the most important part is the ARV, inclusive of the expected rehab costs. From there, you can back into the needed purchase price to make the deal work. There's a local PM that I believe knows a lot of the ins and outs of this, @Drew Sygit

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    @Cameron Porter half off of a $30-40K price may not be enough to make a purchase work.

    We've seen clients quickly get upside down with Land Bank purchases:(

    So, proceed with caution and hire a great inspector and contractor to go thru the property before you agree to buy it. Be sure to have the gas, water and sewer lines inspected as these may be dug up or collapsed - and very expensive to replace/repair.

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
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    • Cameron Porter
      OP
      Real Estate Agent · Detroit · Member since 2024 · 73 posts · 24 votes
      1y

      @Drew Sygit wow I was considering the 30 to 40k price range but I'm seeing there may be multiple problems to be weary of from Leins to gas and water lines. Thanks for the info. Where can I find the info on how you group the different neighborhoods into classes? 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    @Cameron Porter should be available on our website end of next week:)

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
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