All Forum Posts by: Dan Farkas

Yes. 

@Alex Varner $2,515.38 past due? You sure that was not prorated on the Settlement statement? There is a box on the West Michigan Regional Purchase agreement ( maybe paragraph 13 I think) that states how the current year taxes are to be split. It's very common and customary to use the calendar year proration way which means that all the taxes in the current year (both Winter and Summer) are to be added up and prorated on a per diem basis to the day of close. 

Since it appears that you took ownership ( if I am looking at the correct property) at the end of June 2018 and the summer tax bill is not paid for almost a month later, it would be my thought that the title company would have made a significant credit on your side of the settlement statement ( and debit on the seller side) which would pay you in advance for the upcoming 2018 Summer bill. I would look there or ask my agent for help to explain it by looking at the Settlement statement and purchase agreement. 

Hope this helps. 

Hello. I am Dan. Let me know if I can help. 😀 I have lived in Grand Rapids for decades. Been selling real estate here for 15 years to residental clients. Yes. Investors also. 

@Yusuf Abdi my opinion is that the first step you could be working on is to continue saving money and building your credit to obtain a conventional mortgage.

The market for duplexes in the area is a tight one for both homeowners and investors alike. You will most likely be comepeting with a few offers in 2019 in the Greater Grand Rapids area on a rental unit. One way to have a higher probability of acceptance is to have a conventional offer instead of FHA mortgage.

The second step IMO is to partner with a real estate agent who helps you strategize your purchase in ways like the above. Reach out if you want more help. Best of luck. 

@Alex Varner A title company collects taxes for the current year as stipulated and agreed upon on the purchase agreement at the time of close. This can be set up a number of different ways and realistically I can not answer your question without seeing your paperwork. Like @Saravanan Saravanan stated above our local custom is to prorate all the current year taxes to the day of close and that would be indicated on your purchase agreement and shown as so on the closing disclosure.

Did you have an agent representing you in the transaction? These are the things that quality agents are looking for in their representation of their clients.  If so, have that agent explain it to you  

Subsequent years of taxes and the escrowing of future taxes are the responsibility of the new owner. 

What does you PA say? Was there a calandar year proration? Did you contact the title conpany to ask about it? 

@Charles Kao Thank you for your thoughtful reply and time you put into my questions. Very appreciated.

@Tim Johnson New Era-ish. It's on the Water. Private frontage. 

@Matt Groth I agree with much of what you are saying. I agree that the place will need a ton of long term maintenance and I am understanding of that. I just want to understand the market. What the draw is and how they are valued. For instance; Having a 12 week Summer rental for $500 per night at 90% occupancy with a four weeks outside the prime time at $300 per night is completely different from $12 weeks @ $200 per night and 90% occupancy. One is worth it. The other isn't. 

@Luke Carl Hahah! I voted! In this case it is a fixer upper that could be a really nice place. I mean it already is nice. but it could be Fabulous! Honestly, I want to buy this property and hold it long term. I am just looking for what the whole picture looks like as it is a completely different market than my long term rentals. I also own several Rv's also HAHAhaha.