All Forum Posts by: Chad Lamb

Sorry I wasn't clear. The lot number and subdivision have been verified. 1/3 of someone else's house sits on my property. The survey says it's 18 feet over the line. GPS coordinates were used prior to the tax sale so potential buyers could find the properties. Less than $1000.00 is invested. We we're bottom feeding at the end of an auction so due diligence wasn't high on the priority list. Lots go for $20,000.00 in the area so the potential is pretty large.

I purchased a DEED at a tax sale. The lot description and GPS coordinates were wrong. Unfortunately, the lot I bought has someone else's house on 1/3 of my property. My question is what are my legal rights with the property? Can I make the owners of the house trailer move their house? Can I charge them lot rent for the months they have dodged my phone calls, previously and going forward? Who technically owns the land under the house, them or me? How do I profit from this headache? the address is located in Michigan

We are looking into this market currently also. There is a Facebook page for this area which seems pretty active, however, I’m not sure of the quality of tenants out there. We have some properties in Bronson that rent relatively quickly considering how rural it is. One problem I’m finding in St Joseph county is they charge you $2 a search with the county assessors office which is ridiculous (it’s free in branch county) and you have to get your properties rent certified (next door in branch county you don’t) and I’m not sure how difficult that is. I’m definitely following this thread in hopes of someone smarter has more answers. 

Great information, thanks!!! 

So I have my new fancy post cards, stamps, and the tax delinquent list (this is in Michigan). But the list is 22 pages long... How do you guys vette the list? The list is a mix of vacant plots, farm land, SFR, etc. I'm considering targeting properties with a particular SEV and above... How do you guys do it???

Thanks! 

Chad  

Originally posted by @Jason Schwerin:

I had the same issue. My Michigan State Farm agent told me all I needed to do was tell them a family member was staying there short term and they could write me a policy based on that. Then once I get a tenant, send the new lease over to them. They said if it’s a family member they don’t need any documentation proving it, just my verbal affirmation. 

 Wow! I'll have to try that out!  Thanks Jason!!!

Great information everyone!! Thank you so much!! 

Pm me please!

So we have been having interest with one of our properties but we are having problems with potential tenants not completing the application process. We are emailing them the application packet which is only two pages. I’m thinking we need to make the application fillable on their computer. I think people don’t have printer/scanners readily available. Any one experience this?

Originally posted by @Joshua B.:

Originally posted by @Chad Lamb:

Hey all!!! Thanks for your help ahead of time! So my question is about the benefits of using a commercial loan for a SFR. Here is some information on my situation.

We are nearing the end of the rehab on a SFR with the ARV of 50-55K and are looking to refinance. This property is in Michigan, all banks in this area do 15 year mortgages around 5% interest rate for rental homes with traditional mortgages. When speaking with the banks they are pushing us to explore commercial loans. Their terms, depending on negotiation, range from 5 to 10 year balloons (possible renegotiations of terms after this timeframe) and 15 to 20 year amortization schedules with 75% LTV.

Okay so now that I'm done blabbing, do you see benefits to using commercial loans on individual residences? Building rapport with the lender?   Positioning us to move on bigger deals more quickly since we have a track record? Am I missing something important? 

Thanks for your help!!! 

 I have a 4-unit under contract in Ann Arbor with a locked-in rate of 4.625% for a 30 yr conventional. Could've probably gotten it down to close to 4% for a 15 yr. If you can go conventional, you should absolutely do it. 

Honestly, i'd be surprised if a bank was even willing to do a commercial loan on a property with a $55k ARV since that's end up being such a small loan assuming a 75% LTV.

 I would definitely do conventional if they offered a 30 year mortgage. Our cashflow would be amazing! I'll push for it more. We are in rural Michigan, 60K houses all day. With that, the banks are used to it out there. Who does your financing out there??? We plan on checking out Ann Arbor soon! Good luck with your 4-plex!