All Forum Posts by: Annette Hibbler

The following points are based on personal experiences whenever I deal with foreclosed property for a client/investor or for my own purchase. Being a licensed Realtor affords me little advantages when dealing with listing agents of foreclosed properties or the banks. The one thing I do have in my favor is the fact that I am relatively familiar with Fannie Mae and HUD purchase procedures and am registered buying agent with them. Persistence that never dies is the key when dealing with these people. Sounding super nice over the phone while gritting your teeth is a must have skill. :P

1. 1. Competition. It's the most popular place that newbie investors and not so new investors will go to. The key to any investment is to secure property at a discount. Many investors would rather avoid tracking down a property owner and calling him/her. What's easier to find than a bank REO property?
2. 2. Too easy to overpay. More often than not, your bidding against a lot of other investors. The listing agent working directly with the bank, may be motivated to raise your offer and look like a rock star to the bank (and their broker) so the bank will send them more listings. It’s not unheard of for listing agents to submit a bid in order to get you into a “multiple offer” situation and encourage you to raise your offer at least once or twice. I’m not saying this happens frequently, quite frankly I don’t know if it does. I am just pointing out that the motive and opportunity does exist.
3. 3. Long cumbersome closings! More often than not, when it comes to banks, the right hand has no clue what the left hand is doing. By the time they wade through the mountain of paperwork they’ve accumulated your looking at six months to nine months.
4. 4. Too much red tape and too many hoops to jump through. It’s not uncommon for buyers to submit multiple copies of bank statements and other “required” information to the banks. Many of them are highly disorganized.
5. If the bank takes a second look at your deal and determines that actually you’re getting too good a deal, they will try repeatedly to cancel the closing using as many excuses as possible. I've actually had this happen to me.
6. 5. Unfamiliarity with state laws. Not all foreclosing banks are in the USA. This just complicates matter ten times over because they are unfamiliar with your states particular closing practices. Even when banks are located in California, as is often the case, they don’t take the time to investigate the closing process in say, New Jersey or New York. Things that should have been done are neglected because they assume all states have the same procedures.
7. 6. Deed Restrictions. Foreclosed properties often come with deed restrictions that will prevent an investor from flipping the property quickly. On the east coast, deed restrictions usually restrict buyers for a period of three months.
8. 7. Foreign Outsourcing. Many banks use off-shore title companies that haven’t a clue what their doing and do not speak english fluently. Information often gets misdirected or lost and these title agencies are completely unfamiliar with the closing process of your particular state.
9. 8. Lack of Communication. Many agents assigned by the bank have become complacent and often uncooperative. When and if you actually do get them on the phone, they tend to be very “mouthy” and slow to respond.

Looking for anyone having any dealings with Alicia Spencer and her husband Allen Spencer.  Please contact me.

2.38 Acres raw land. No well, wooded lot in the Java Lakes subdivision located in Brighton township.  Very nice area.  Existing custom homes built on either side of lot. Very quiet neighborhood, no traffic noise. Large empty lot directly across the street, possibly farmland.

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SELLER IS WILLING TO CONSIDER A SHORT TERM LAND CONTRACT (6 MONTHS WITH 30% DOWN AND 6% INTEREST) OK to perk as condition of sale.

Contact for more info.

Cleared land with wooded area in rear of lot. Lovely location has existing custom homes built on same street an in the area. Lots of space from neighbors on all sides.  Property has existing test well. Ask for a Property Report Today! 

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Current Estimated Value $69,550
Last RVM

Gorgeous rolling 2 acre site for your dream home. Minutes from US-23 and M-36. Test well onsite with 50 GPM capacity can easily accommodate one horse pump or greater. Typical home uses 7 GPM Capacity well. 

My husband and I began investing in Detroit in 2013.  We have half a dozen rentals there.  The hard part is finding a management company that's legitimate, licensed and not out to rip you off.  

My property manager told me that they've just passed a law to crack down on the bogus scammers operating as "property managers".  It's long overdue.  One such couple ripped us off big time, Alicia and Allen Spencer.  They've got investors after them, including us. But that's just one of many out there. Detroit is no different from any major city.

We went through three different companies and now have found THE ONE which is NOT located in the city at all. However, they have something like 20 years of experience working there. We just drove through parts of the city this past Friday. The closer you get to the city center, the bigger and better the improvements all around.  

LOOK OUTSIDE OF THE CITY

There's far more to Michigan than Detroit.  It's such a beautiful state, lots of gorgeous lakes everywhere, nature centers and parks a plenty and very nice subdivisions and neighborhoods with little to no crime that anyone would be proud to live in. I know, because I live in one.

I'm a KW realtor 40 minutes outside of the city, southeast portion of the state, and come across investment deals outside of the city, often.  Selling vacant land in upper middle class areas is really big around here. People who bought loads back in 08 and held on to it are now beginning to list these properties.  For instance, a 2.38 acre undeveloped lot in suburbs of Brighton township is going for $29K, owner bought it at auction for $14K.  Or the little house in Whitmore Lake listed at $33K, currently uninhabitable but has potential for investors willing to do the work themselves.

The competition is fierce for "fix and flips" that's for sure. As an investor myself, it's tough. My husband and I are constantly submitting offers. Out of 15 offers, we've secured two (one short sale and one HUD), still waiting to hear word on two others (foreclosures). Within hours of listing, you can pretty much guarantee there will be 20+ offers on the table. Low balling doesn't work with that kind of competition. We've noticed that some banks are now playing the HUD game in that they are refusing to take any offers from investors for the first 10-15 days.

First, get yourself and your son out there today!  Save all bills related to having to evacuate the premises. 

Second, you may have a better chance at getting your deposit returned if you state in writing that the reason for breaking the lease is "constructive eviction".  I am a landlord and I can tell you that I am obligated to maintain "health and safety" standards that meet state requirements.  I would imagine this is the case in most states. There are many laws in place to protect tenants.  I would recommend you consult al real estate attorney. 

1. Constructive eviction is a term used in the law of real property to describe a circumstance in which a landlord either does something or fails to do something that he has a legal duty to provide (e.g. the landlord refuses to provide heat or water to the apartment), rendering the property uninhabitable.

Sewage in shower and in main living areas renders the property "uninhabitable". I hope this is helpful to you.

I personally would not go into a flip unless I was POSITIVE I would sell it.  Worth case scenario (highest price & repair estimate) you still have a decent fusion of $40K.  Price it competitively and you'll sell it.  How much have similar houses SOLD for in the neighborhood? That will tell you what you can expect.

I keep hearing how our government leaders are seriously discussing the possibility of forcing all IRA owners to invest in government bonds. I've decided the best investment for my retirement is one that I will always maintain 100% control of. Therefore, I am seriously considering converting it all into cash flowing real estate investments. Yeah, I'll take a one time hit but when my husband and I sat down and looked at the numbers, we decided the reward was well worth it.

What would I do if I was 18 again?  Well, that's a loaded question.  I would absolutely EVERYTHING differently!  I would find the highest producing real estate office, complete the training (which you can do part-time btw) and obtain my license.  Heck, it's a whole lot cheaper than college!  But more than anything, the wealth of knowledge you obtain in this endeavor will blow your mind and launch you forward and give you a good head start in investing.

That's my advice.  :-)