Has anyone rehabbed a Detroit property under the supervision of the Detroit Land Bank Authority. I am considering a property but do not know about all of the hoops that you need to jump through in order to keep the DLBA from taking the property back. Has anyone had any experience with this?
I talked to a lawyer that gave back 2 out of 3 she had bought in order to get an extension on the one she wanted to keep. She indicated that they were picky but she wasn't sure if they had it out for her only. She made a big stink when they put in the policy of giving a 50% discount on their bids to their friends.
You are bidding against someone that is only paying with Monopoly money. (One half of their actual bid)
@Richard Dunlop I am looking at a house that was purchased from DLBA and they went with the secure the building in 30 days option. They are now selling and the sale comes with the addendum that goes to the DLBA. You either start fixing it up or secure it. Either way you have to provide proof. I want to rehab but dont know the additional cost of going from needing a full rehab to getting the CofO from the city. Sounds like they want to be involved every step of the way. Hoping I could find someone who has done it.
Either way I guess it sounds a bit rigged.
I'm in the process of acquiring a home through my city's land bank (2 bedroom, 1 bath).
The process for me was looking through their available homes list, which is not a list, it is a map. Then visiting the property to see how bad it is. I found several houses that don't require thousands to rehab. Just for whatever reason the owner left it and stop paying taxes. The home I applied for was bought by an investment company and they pretty much completed the rehab process (including new electrical!!!) but did not finish the kitchen.
Properties that have not had taxes paid within 5 years are available through the land bank. This home has not had taxes paid in 9 years. If I were to go directly to my state's revenue department and purchase the tax deed the payoff quote as of 8/31 would be $6, 754.42. They city is selling this property to me for $3500 (only $500 down required) and that includes the quite title action. Once I pay the other 3K and complete the "rehab" the deed will be transferred to me. You don't have to bid against anyone if no one else applies for the same property.
Will you buy properties on DLBA or the City? Any pros and cons you may advice?
I wanted to see if anyone has any other thoughts on this topic....
@Jon W. Beware of the land bank! So you have to have it up to code in 4 months or they will take it back, fine you and won't return investment. I know the property is cheap but MLS has the same for cheap as well or off the market deals, my name is Larry I fix and flip properties in Detroit and am a general contractor. Hope this helped
@Jon W. I can give you all the steps and procedures from start to finish PM me and we can discuss
@Isaac Agbolosoo always buy from MLS or city auction you will save tons!!
@Larry Shirley I have found that as long as you are making progress, the land bank is pretty easy to work with. But, yes, the auction or mls is easier. I buy most of my property off market anyway.
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@Larry Shirley Working on anything currently? what neighborhoods do you prefer?
@Jon W. I prefer Boston-Edison area, Sherwood Forest area, Indian village, west village for high end renovations. Lower end quick flips: inkster, Redford, Dearborn heights, warren etc.... we are currently in inkster now rehabbing quick flips
Hey @Jon W. ,
I am working with an out of state investor on this and my partner worked for the Landbank before becoming an agent/real estate investor. The biggest things my partner let the investor know is to show the effort by sending them pictures of the progress, they want to see pictures. They also are big into the electrical and plumbing aspect so good to work on those first. Then follow it with getting the right inspections, a licensed contractor, and weekly updates. They are willing to work with you if you are doing the right thing.
Cakewalk as long as you are diligent at sending them email updates, they will gladly extend you if you communicate well enough. Much easier than I was led to believe
So, will they allow you to put tenants in the properties or do you have to live in the properties??
You just need to be diligent about repairing your property so that the land bank releases it. You can use it as a rental or personal residence.
I'm working on 2 at the moment, it's been smooth, what hasn't been smooth are the contractors, I'm behind schedule because of a horrible GC that set me back big time but still no problems with the land bank as long as you keep them updated on what's going on.
Is there anyone who has purchased but not been a resident of MI?
Purchased under an llc that can do business in MI or had someone in MI purchase it for them?
I would like to know this as well.
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