All Forum Posts by: Jeff Weaver

Selling small MF on a 1031, my question is on the security deposits. In the past when I’ve purchased property the security deposit came out of the seller proceeds, does that work the same when I’m the seller and the proceeds are going to a 1031 exchanger ? Or do I need to bring a check to closing for the security deposits ( $7,000) Thanks for your help Jeff

@Jody Schnurrenberger Just a note on having a property free and Clear. In the event of a mortgage default and an eventual bankruptcy. The bankruptcy trustees will make you sell ALL your property to pay any debts. Even free and clear property. I believe you are only allowed to keep $30k in equity in your residency only. The rest gets sold off. I only know this because I purchased a portfolio from a bankruptcy trustee more then 18 of the 25 properties were free and clear but the debt was still much higher.

I own a window company in Michigan. Your problem is the fact that your doing 1 window at the busiest time of year. If you do more windows your cost per window will go down and you will get more competitive quotes. It takes just as much time to sell 1 Window as it does 10. Same amount of paperwork. Installer has to come out unpack / repack his tools. So there needs to be a minimum labor cost to cover it. Usually it’s around 5 windows or more. In my market the larger companies won’t even come out unless your doing over 5 units. You could also wait until February when Window company’s are hungry. Or just buy product only and have a handyman install it. Make him responsible for the sizes if you go this route. Jeff

Yes I have a portfolio loan with a few multi family in it and some single family. It’s with Main Street bank in Michigan Send a note to : James Brudzinski , jbrudzinski at msbmi.com

I had a property that had a similar issue, turns out it was the dryer vent that was not properly vented to the outside. We fixed the issue cleaned the area of concern. Never had an issue again. However the tenants did not understand what had happened. ( it was there dryer that they hooked up) and moved away. I let them out of there lease full refund security deposit without a 2nd thought. I was afraid that they in some way could come after me.

The village of Holly is located in northern oakland county,  Michigan. Oakland county is the  wealthiest in the state.  These 3 properties are all located with in +\-100 yards of each other and also both the police and fire stations. Short walk ( +\- 400 yards) to the historic downtown area.

401 s. Saginaw st, Holly, MI 48442

Contact: 

Jeff Weaver 

248-496-0026

[email protected]

Seller doing a 1031 buyer must be willing to work with buyer on timing for sale / and new purchase. 

all figures are estimated and up to the buyer to verify. 

I have 3 properties in Holly Michigan I'm thinking of selling . Not sure what to ask for them..? 401 s. Saginaw st, Holly, MI 48442 ( purchased 1994) A 5 unit building ( 4-1 bed room units, 1-3 bedroom unit, a large garage and a coin laundry, some units tenants pay gas and/ or elect ) I currently trade use of the garage for lawn service at all 3 properties. 12 Mo Rent income $ 34,680. 12 mo Avg water $ 3680 12 months taxes $ 4520 12 mo Avg Consumers gas $ 2240 314, 316,314-1/2,316-1/2 broad st, Holly, MI 48442 ( purchased 2000) ( 4-2 bedroom units and a coin laundry, tenants pay gas and elect) 12 Mo. rent income$ 32,400.. 12 mo Avg water $3315 12 months taxes $5082 And 314 s. Saginaw st, Holly, MI 48442 ( purchased 1994, sold and got back) ( 1-1 bedroom unit and 1-3 bedroom unit, tenants pay gas and elect) 12 Mo. rent income $ 22,164. 12 mo Avg Water $ 1425 12 months taxes $3044 Total of the 3 rent income $ 89,244 Total 1 yr tax $ 12,646 12 mo Utilities$ 10,660. + Coin laundry income at broad st and 401 s Saginaw apx $ 1,200 ( needs new machines at 401 s Saginaw so should be more) Over all Holly has been a good place to invest. its a well run town. The rental inspector is easy to work with. and the units are easy to rent. I keep a sign out all the time and try to keep a list of potential tenants. and I call them when something opens up. All my leases are 1-2 years then month to month. I have Many Long term tenants who pay on-time and will be there for years to come. Having multiple properties has allowed me to keep good tenants and move them to a larger or smaller unit as there needs change. The reason for selling : Deprecation, I've owned these for so long that i would be better off to buy more expensive properties. When i sell i would need you to work with me as i do a 1031. I will not do a land contract. ( I need to buy something else on a 1031) may consider a trade. I've been buying in Madison heights, Pontiac, Keego Harbor . May look at other areas ( Ferndale, Royal oak ect ) These are more convenient for me and my property manager. May also consider a large multi family. Let me know what you have or if you know someone who has something they want to sell. Thank you Jeff Weaver

Seasonal purchasing power Many MF and SF projects don't take full advantage of seasonal providers of goods and services. Are you aware that providers of windows, and doors are seasonal business. That gives you the opportunity in negotiating those items to be purchased in off peak times at discounted prices. What other seasonal provides have you had luck in negotiating discounts. For windows and doors in Michigan try Clarkston Window and door in Pontiac. 248-338-678

I have purchased 3 with Auction.com in Michigan. All were easy. All were viewed only from the outside and 1 was occupied. 2 of the 3 were great deals I could have flipped but I typically buy and hold so I kept them. When they called and asked for a higher bid I held firm. I had no agent and all cash. Closing was by email and wire. Had the originals notarized and FedEx back. Never got keys so just drilled out the locks. The occupied home I left a note on the door left for Belize came back and they were gone. I made $70 k in 2 years on that one. I'll do it again. Jeff

I own a window company in Michigan ( my other job ) some of my products come from midway windows in Chicago. They do a nice job and offer faux wood interiors and custom colors