All Forum Posts by: Parker Ihrie

@Andreas W. I am also a real estate attorney.  The following is not legal advice.  The corporate veil is not lost simply by one negative factor.  There are several factors that courts look at and one or two negative factors will not necessarily cause a court to pierce the veil.  If I keep my records/paper trail organized, my bank accounts separate, my letterhead separate, hold my company out to be a separate and distinct entity (not an exhaustive list), I will still likely be able to maintain asset protection.  You are correct, though, that this factor does not necessarily help my case.  In order to keep my money trail intact, cash went from the title company to my personal bank account, then my business bank account and then it will go to my lender, since my original lender wrote a check to my business bank.  That way at least I've treated the finances fairly separate and distinct from my own personal finances.  I'll let my accountant deal with the rest.

I did not have a problem completing a cash out refi with my investment property in my LLC's name. We used a credit union and the mortgage/note are in my personal name. We bought, rehabbed, refinanced and then rented (I know that's a tiny bit backwards). No problems with the refi.

Is this still available?

Is this property still available?

Hello, is this property still available?

Growing up in Grosse Pointe Woods, right outside of the city, I know that Detroit can be a very fragmented market.  I would make sure you either visit a few times to get a good idea for the neighborhoods or work with someone who is an expert in the area.  As far as property management goes, I would recommend Castle.  They are expanding very quickly in southeast Michigan and they charge only a flat fee of $79 - no tenant placement fees!  So far, my experience with them has been smooth.

@Thomas I. is a wholesaler/agent in Michigan and would be able to help!

@Saul L. What neighborhoods in NW Detroit did you invest in?  I see you are from Israel, so are you familiar with Detroit?

@Christopher Oliver I'd absolutely recommend visiting a few times and making contacts before you invest.  Detroit is very fragmented and you risk buying in a neighborhood that will only cause headaches, like Saul mentioned.  

I grew up here (in Grosse Pointe Woods) and I am a commercial real estate attorney here.  I would be happy to share any knowledge I have about the markets.  I currently live in Corktown (immediately west of the Detroit CBD), so I'm pretty familiar with the actual city (although not so much the NW neighborhoods that Saul mentioned).  

I'm just getting started in my investing career and I have only purchased in the suburbs so far, but I hope to enter the Detroit market soon.  I do, however, own my condo in Corktown which I purchased in 2014.  I'm EXTREMELY happy with my decision to buy in Detroit, especially when my parents and friends told me I was crazy.  

@Hannah Williams, I am an attorney so I have to say that whatever I say is not legal advice and you are not my client.  

1. The terms are broadly negotiable. You can treat it as a conventional loan with 20% down or you can ask for a larger sum such as 50%. Interest on land contracts is generally much higher than with conventional/FHA financing. Payments are negotiable, too. You could ask for a down payment with the remaining balance paid in equal monthly installments over a term of years. On the other hand, you could ask for no down payment, payments of X for one year and then a balloon payment for the remaining balance at the end of year X. I am not recommending either - just illustrating.

2.  Generally, purchaser obtains insurance.  You can request to be named an additional insured.

3.  Yes, there are.  You should consult an attorney when entering into a land contract.  I wouldn't simply rely on the title company's form because they do not represent your interest.   

@Andrew Halbert Why don't you just take a mortgage and note?