All Forum Posts by: Geof Greeneisen

Lately I've been frustrated with the market as Rob K indicated. 2010 & 2011 were great years for us, we loaded up on rental properties, buying on the courthouse steps and had no competition, plenty to go around. The past 6 months have been dry. No bargains at the courthouse, inventories down across the board and the tax sales are getting above market bids. Since last year, prices in the neighborhoods I buy in have literally doubled but still represent great deals, I just can't get anything under contract.

I'm having a hard time adjusting my business model to justify these higher prices. All of the homes I bought were under $25k (acquisition + improvements) and have rented for $750 - $800. I only buy in Oakland County in the first tier suburbs outside of the City of Detroit itself. Last year at this time I closed on two houses just before year end. This year I've got about 10 low-ball offers out right now and at this point I think I got too aggressive on all of them, so I'm not optimistic on getting any of them.

It's tough chasing a rising market, better than the alternative I guess.

John Winston the last HUD house I picked up went through the same process you're describing. The house went under contract within 10 days and before investors could put in offers. Ultimately the property came back on the market after the owner occupant deadline had expired and I was able to get in a full price offer to win the bid.

I've seen a lot of HUD deals in our area come back on the market after they've gone under contract. Treat is as a numbers game and you'll be able to get a couple.

Rob K what area?

Theodore Lehmann it's a really good time to be getting into the Ferndale market if that is what you are considering. I've been buying in Ferndale, S Royal Oak and N Hazel Park for the last couple of years. I'd be more than happy to meet sometime and share with you the business model I've been using. Let me know if I can help.

Good luck!

In our county the same people go to the sales each week, everyone knows everyone else. When we make a purchase, a cashiers check is handed over to the sheriff at the conclusion of the bidding and we fill out an information form which states the name of the entity we would like to take title in. It takes the sheriff's office one week to prepare the sheriff's deed and we pick it up at their office the following week to have recorded.

I would go to the sheriff sale next week and ask who bought the note, odds are they will be there picking up their deed.

Hi Derek,

Congratulations jumping into the mix. There is lots of information and support here. The search feature is helpful for any question you may have. I invest just to the north of you in south Oakland Cty. Let me know if there is anything I can do for you.

Good luck!

Rob K I have 2 S8 and I too recently saw streamlining to the system. I'm now working through one office, previously there were two offices overlapping in my area of town. Both houses had to re-qualify under new code criteria and now all monies received from HUD through the local housing commission is direct deposit.

When asked about the changes the lady I was working with was quite candid saying these efforts are being implemented to reduce fraud in the system.

I just closed on a HUD deal last month. I had to use their closing agent, but like others have said, they don't provide title insurance. When making the offer HUD will allocate up to 3% of the sales price toward title insurance expenses so long as you stipulate that in the offer.

When I closed we used my title company's conference room but the HUD agent closed the transaction and filed the deed.

Eric Roseman What areas are you considering?

Hi Michael H., Michigan requires a Property Transfer Affidavit to be filed with every real estate transaction. As buyer you are responsible for filing this with the assessor within 45 days of your purchase. On that form you will declare whether or not you will be taking your homestead exemption on the property. I don't think a foreclosure has anything to do with whether inspections will/will not be necessary, one of the questions on the affidavit however is if the property was acquired from a financial institution.

When I've checked the box declaring my homestead exemption (owner occupant) I've never been required by the municipality to reapply for a Certificate of Occupancy.

When I leave the homestead box blank I usually get contacted by the municipality notifying me that I am required to obtain a Landlord License Inspection. I checked Utica's website and they do require a landlord inspection every two years. Most municipality landlord licenses are valid for two years regardless of the number of times you turnover the unit to tenants.

Typically the landlord inspection is less burdensome than obtaining a C of O because only one inspector is needed and they are mainly focused on safety and welfare issues, i.e. smoke detectors are working, no peeling paint, grounded electrical system if 3-prong plugs are present, furnace has been inspected by a licensed contractor etc.