All Forum Posts by: Keyonte Summers

@Durrel Douglas I'm hoping you did some research before making the leap or faith or contacted local investors. I'm a product of Detroit and know the market well and will tell you from first hand experience 95% of those home and those area's on the land bank are worthless. I have walked plenty to know most are just tear-downs and you will be throwing your many in a black hole. Not trying to be mean but its the harsh truth. If you want to turn things around flip/buy and holds in Detroit look for good neighborhoods with eye-sores. The land-bank properties are in arms length of being demolished by the city.

1. The risk is that the lender calls yours note due. Be up-front from the beginning ask the lender is there any issues if you transfer the property to the LLC for protection purposes if they say yes get it in writing. If they say you cant make sure you have insurance and an umbrella policy.

2. You can do a cash purchase and delayed financing not sure if it applies to commercial loans but wth ask the lender. Or get it in your personal name. 

3. If you are starting out and this deal can be a home-run keep it and find a way to make it work. 

The only issue I see is that you don't want to carry the debt in your personal name. I would purchase it myself and maybe refi it in LLC when you partner is done searching for a primary. If you are sure that you two can support this short term hurdle isn't an issue.

Just to piggyback off of @Drew Sygit is saying, it's better if you spend a weekend to get familiar with the area. Link with a few successful investors, most OOS investors fail because they think they can delegate every task when investing in real-estate. In Michigan or the Detroit market it is very hard to do this and you will get taken advantage of. I can't name how many investors I've had to dig out of a hole because property managers/contractors had took thousands of dollars and lost communication.

If you have facebook join the metro detroit investors group. Join the virtual meet-ups. Read, read and read again you will find the great connections and individuals you need to stay away from. You will find your team there agent's, PM, GC's, and trades.

What area and whats the ARV? I'm sure the lender would want to make sure the numbers to work. Post all the numbers just incase any private lenders see it as a deal.

Delayed financing should work for you in this situation. Try a small local credit union to replenish your funds

I heard the same, I think this will hurt alot of investors and small-time landlords. This move definitely wouldnt stop renters but will give them overwhelming leverage in eviction cases. The lead-inspection 2 part test is already expensive and kills landlords motivation to get their properties in compliance. I

Next year if im not mistaken

If you can stay in the house and purchase a rental with the HELOC I would go that route. But you did say your family is growing so, I would look to rent out the current primary residence.If you havent had any rental income on your tax returns its best to get started sooner than later if you plan on continuing to purchase properties.

Send me the info on these