All Forum Posts by: Dennis McNeely

Our lease requires the tenant to carry renter's insurance with a minimum of $300,000 liability coverage naming us as additional insureds, as well as covering their personal property. In addition, we ask that their coverage includes payment for alternate lodging in the event of fire, flood, or wind damage causing their unit to be uninhabitable.

On the flip side, we insure ourselves for liability, real and personal property we own at the property, and loss of rental income if the unit becomes uninhabitable.

They insure themselves, we insure ourselves. Done deal.

I send the tenant a letter when we're 60 days out from the end of the lease asking them if they intend to renew. If not (or if they fail to respond), I send them a 30 day notice to quit when I'm 30 days out from the end of the lease - in accordance with the Michigan eviction process. That way I've already gotten a 30 day jump on an eviction - if it's necessary.

Good luck sorting it out in your area.

Hi @Steven Jaszcz -

I'm in the downriver area, but work throughout southeast Michigan. I tried memberships in the Monroe County REIA, in the Wayne County REIA, and in the Toledo REIA - but the best I've found to date is the Michigan REIA out of Troy, MI. Even then, most of the investors seem to be focused on SFR, fix and flip, wholesaling, etc.

There are some members that are interested in multi family however, myself included. I haven't heard much from those interested in syndicating, although there are hard money lenders among the members, as well as members who would qualify as accredited investors.

One other note Ashley. Buyer's Broker agreements are much like a listing agreements - they can be exclusive or not, as follows:
  - They can be an entirely exclusive agreement, as you've indicated in your initial post.
  - They can be exclusive with named exceptions (e.g. "... pay you a commission for any purchase I make unless the property is one of these specific properties I'm already aware of or for properties brought to me my someone on a specific list of other agents I'm already working with).
  - They can be non-exclusive, meaning you'll only pay them for deals they bring to your attention. If you find the deal yourself or if another broker finds one, they won't be paid.
  - They can be an agreement for a single property. This type of agreement results in a payment to the broker only if you sign a purchase agreement on that specific property.

Lastly, it's common for the Buyer's Broker agreement to have a clause that stipulates the client will owe a commission for property which is covered by your Buyer's Broker agreement if you agree to a purchase agreement within 60 or 90 days of the expiration of the agreement. This clause is also very similar to that found in a conventional listing agreement.

In Michigan, there are several flavors of eviction. If the tenant violates the term of the lease, you'd file a 30 day notice to quit. I also file a 30 day notice if they don't commit to renewing their lease between 30 and 60 days from the lease's termination date. Doing so ensures they've had notice sooner rather than later, and also so they know I'm running a business and not simply enjoying a hobby in real estate.

On the other hand, if the tenant doesn't pay the rent when due, the law in Michigan only requires a 3 day notice. Once again, sooner is better.

Either way, I'd start the process now.

Set a deadline Christian. Determine that you'll conclude your analysis by (some date), giving yourself time to get any estimates you need from contractors or suppliers for the rehab. That should take the most time - determining a realistic ARV and market rent should be the work of just a day or two.

If the numbers all work and you've satisfied yourself with the neighborhood, it's time to put one foot in front of the other by making an offer. Take another step, then another - always setting a deadline for yourself. If the deal blows up, find another and start the process again.

Keep in mind that a goal without a deadline is just a dream.

Light the wick!

Land development is my home turf @John William Kuhfahl.

The bad news is that there is no part of the game that's inexpensive, and much of it involves fair chunks of time for approvals. 

The good news? I'd suggest you go through the preliminary site plan approval process and get a site plan approved. That will greatly improve your property's value if you intend to sell it. Alternately, it will greatly improve your negotiating position if you elect to partner with a builder / developer in the area to  actually bring the project out of the ground together.

Good luck!

In our application, I ask for the employers name and number as well as the prospective tenant's boss's contact information. The prospect signs an authorization allowing us to contact the employer to confirm their rate of pay and the duration of their employment. Generally there's no problem if we have the the signed authorization and email / fax it to them.

We also ask the employer if we can talk to the boss regarding their employment - although that request meets with mixed results.

There's a service called Moosend that I use. Odd name, but it does offer email marketing and automation type services. It has a free plan, although I opted to go for the long dollar and spend $7 a month so I can make use of its automated workflows :)

Do a quick search and check it out; perhaps it'll serve your needs.

That's exactly what I do here in Michigan. When we're 60 days out from the lease termination date, I send the tenant an email / letter asking if they intend to renew. If I don't hear from them (or if I intend to non-renew their lease) I send them a 30 day notice to quit when we're 30 days out from the lease termination date.

I state in the lease that I'm allowed to post "For Rent" or "For Sale" signs on the property and / or post "For Rent" signs in the window of the unit which is to be vacated, and further state that the tenant agrees to showings of the property with a 24 hour notice.

I then start advertising the unit with signs and on online venues, showing it to qualified prospects during those last 30 days. I try to be respectful of the tenant's schedule, but I also try to minimize the unit's downtime.