All Forum Posts by: Janell E.

I found one through Shinners & Cook PC, not just for eviction purposes, but other real estate related services. They are in Saginaw, MI.

We found a home we love and see as the ideal place to raise our growing family. The property needs significant work. The current owner bought it for $420K via tax lien, and we’ve verbally agreed on a $470K purchase price.

Renovation costs are estimated at $180K–$220K (based on two contractor quotes, plus a 25% buffer), with an ARV of $800K–$900K.

The challenge is financing. We're low on liquid cash, with funds tied up in other investments (we own 24 units), and I prefer not to dip into retirement savings. I also want to avoid FHA or conventional rehab loans due to negative experiences I've heard.

I’m considering two options and would appreciate input:

1) Physician Mortgage Loan

• No down payment or PMI
• Requires AC and flooring to be installed before closing ($44K)
• Would ask the seller to cover these costs and adjust the price
• Drawback: flooring will likely need to be redone during renovation, creating inefficiencies
• Plan: fund the rest through personal loans and cash over 2–3 years

2) Hard Money Loan

• Finance both purchase and renovations up front
• Complete renovation in 6 months and enjoy the home fully
• Option to buy AS-IS with no additional work needed before closing
• Plan: refinance after renovations to pay off the HML

Let me know your thoughts or if there's a better route I’m overlooking.

Hi Kim,

I came across your post because I'm looking for the same. Just wondering if you went ahead with Matt Hewitt? We own our property in an LLC and apparently we can't file without an attorney because of that.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $850,000

12 units (two 6 unit buildings) bought with a combination of bank and seller financing. We only had to bring $40k to closing on this one. We brought on another partner who was instrumental in working with the seller regarding the seller financing portion of this deal. 2 units are vacant that need some moderate tlc that should be able to be tackled in a weeks time.

What made you interested in investing in this type of deal?

We've been looking for larger multi-family in the area for the past 8 months. We had 2 deals under contract that had fallen through during this time. It's in a good area of town and seemed like a great price.

How did you find this deal and how did you negotiate it?

We have a mutual CPA that knew we were looking and he committed to finding us a deal before the year ended... he found one within 2 months!

How did you finance this deal?

Combination of bank financing and seller financing. We brought $40k to closing.

How did you add value to the deal?

Planning to do some light rehab to units as they become vacant and increase the below market rents over time.

What was the outcome?

The appraisal came in at $25k over the purchase price. We closed only a few days ago, so still getting our bearings. One of the partners is going to air bnb arbitrage from the company, so we're eager to see how that goes. If it does well, we might consider short term/medium term rentals for the other units.

Lessons learned? Challenges?

Don't pick a closing company based on the fees they charge. Our closing was delayed a good 2 weeks due to mis-communications with the bank and people going on vacation.. that was thousands of dollars in rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Thanks @Chris Seveney, but an attorney would cost us more than if we just paid for the hotel.

A drain pipe disconnected in the crawlspace of a small apartment building. I noticed a musty smell upon doing my routine hallway cleaning (no tenants had complained of smell). Found water in the crawlspace that had resulted in mold that now needs remediation. 2 units need to vacate for 4 days during the remediation per the remediation company (to avoid cross contamination, vapors, and so they can air scrub the 2 lower units). Tenant has renter's insurance, but says it doesn't cover them staying in a hotel for 4 days. Tenant also says they wouldn't file a claim even if it did. We offered to deduct 4 days of prorated rent for the next month to help with hotel cost. Tenant says they don't have the money to stay in a hotel (nor family/friends in the area to stay with) and are not leaving unless we pay for them to stay in a hotel. 

Our lease states tenant agrees to allow us to take appropriate corrective action in regards to mold/mildew/moisture conditions. It also states we will not be liable to Tenant for any disruptions or inconvenience to Tenant as a result of damages or repairs.

I believe these are our options:

1) Pay for the hotel (caveat here is that one other unit has to leave during this time and is being very cooperative). I think if we go this route, we should also offer to pay for the other unit, so this option is a double cost.

2) Deduct the cost of the hotel from their security deposit and pay for the hotel (this avoids having to also pay for the other cooperative tenant's hotel too)

3) Tell them they are in default of their lease if we are unable to start the remediation as scheduled and file for eviction. I know this allows more time for the problem to worsen in the crawlspace, so I'm not sure this allows us to preserve the property well. 

Any other thoughts or comments are appreciated.

Thanks

I'd be happy to chat about it. I sent you a request to connect.

Yes, thank you! Exactly what I was looking for.

Hello, I'm about to get my first wholesale deal under contract. I have called all the local title companies and none of them will perform this type of closing. Does anyone have a closing attorney in the Saginaw, MI, Bay City, MI, or Midland, MI area that would assist in the closing process? Thanks in advance!

I messaged them about my frustration with the lack of notice and they gave me 30 days of pro for free. At least now I can get my tax info and see if pro is worth the cost.