Farmington, MI · Member since 2012 · 8 posts · 1 vote
Every day on my way to and from work I drive by a beautiful home that I've always admired. For about the past year I've thought to myself that this home must be vacant. It's on the corner of two fairly busy streets and there isn't one window treatment in any of the windows. There is some kind of note on the front door and I've never seen a light on or a car in the driveway.
I did some research online and found that the home was purchased as a foreclosure in 2010 for about 30% of what I think today's ARV is. I have no idea what the condition of the home is but if there is a motivated seller and the numbers make sense, I would love to fix and flip this house.
My question is, would it be wise to go to the county building and see if I can find out who purchased the home, then try to send that person a letter explaining my interest in it?
If so, what information should I be asking for and to whom should I ask it?
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
10y
@Jennifer Martin, your first step should be to stop and read the note on the front door. That may tell you everything you need to know. It would be quite a coincidence if it is my house you are speaking of. My tenant hasn't been living in my house for three months or so (they have been paying rent until this month). Mine is the first residential building off a busy corner in Farm Hills. If this house is actually in Farm Hills the city website offers very detailed maps that will usually identify ownership. I haven't checked the website for the city of Farmington lately but I wouldn't be surprised if they have similar information on their city website.
Farmington, MI · Member since 2012 · 8 posts · 1 vote
10y
@Jeff Rabinowitz, this house is actually is Southfield! I didn't think to look at the City's website so thank you for pointing me in that direction. I found out who the owner is along with the fact that the house is indeed vacant with over $38,000 owed in taxes and over $22,000 owed for special assessments!
@Jeff Rabinowitz, this house is actually is Southfield! I didn't think to look at the City's website so thank you for pointing me in that direction. I found out who the owner is along with the fact that the house is indeed vacant with over $38,000 owed in taxes and over $22,000 owed for special assessments!
you can also check the oakland county website. Taxes can't be negotiated but try to find out what th 22,000 is, a lot of times you can negotiate those when you show how you want to turn the house around and make it better for the neighborhood
Farmington, MI · Member since 2012 · 8 posts · 1 vote
10y
@Josh Smith one of the special assessments is for the sewer the other says for a contractor. I'm thinking that the sewer contractor may also have a lien on the property but I will have to find out more.
Investor · Troy, MI · Member since 2016 · 77 posts · 45 votes
10y
Yeah if it is actual liens from contractors then there is going to be no negotiating that down. It just makes it numbers you have to put into your personal formula when it comes time to make the offer.
Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
10y
Have a friendly title company do a quick search for you also to make sure the city doesn't have multiple liens on it. I know that they will negotiate or remove them if you rehab the property with receipts for more than the liens are. Good luck if all the numbers add up right it could be a great deal. Also sometimes a contractor will release his lien for less since its better than nothing. Worth asking. If it goes into bankruptcy many of the claims go away.
Farmington, MI · Member since 2012 · 8 posts · 1 vote
10y
Thanks for the advice @Charlie DiLisio. I looked on the county's website and there are several more liens from contractors and the city that were not on the city's website. This may be a bit over my head for my first deal. I will still contact a title company though. Even if I don't pursue this property I would still like to learn how all of this works.