All Forum Posts by: Saravanan Saravanan

@Ander Lantigua

If you are doing under 5 transactions per year; then can do a buy-sell as a wholesaler without a license in Michigan.  You have to be transparent with seller that you are going to assign the contract to another buyer; if that is what your intention is.

PS: This is NOT legal advice.

@Chris Seveney

You are correct about Michigan.  Currently, the foreclosures are on hold in most counties of Michigan for investment properties as well.

@Jacek Blaszczyk You can get documents prepared for loan payments with legal counsel.  Ensure there are no liens other than the mortgage.  Have a title company review your documents, so that when you decide to sell; you have the authority to do.

You can sell to the end buyer right away if you like.  Maybe in the goodwill, you can even give a portion of profit to the person who gave you property as a Christmas gift or something pricey and nice item too.

@Andrew Weckerle You have to work with the right title company that understands the assignment of the contract.  

Also, if the profit margin is higher, then it is good to go with double closing by using transactional funding. This way your end buyer and original seller are not backing out at the last minute.

Best wishes on your wholesaling.

@Adam Cole Like others mentioned; Pontiac is Class C market.  It is still important to get rental certificates and keep the property up to code. This ensures that you are a good landlord in the eyes of law; when there is a rough patch with tenants.

Had a handful of properties as a JV partner in Pontiac before both for rentals and flips.

@Jonathan Mason Royal Oak prices have gone more than double in the last 5 years or so.  There are lots of demo-rebuilds in the city.
The market is more tuned for FLIPS due to the price point OR people do short-term rentals where the rentals can be higher.

Not sure if your purchase price is higher and not factored in the cost for rehabs to support after market value?

Good luck.

@Tom West When you purchased; I am assuming you get seller disclosure.  Check the items in that seller disclosure that you received.  Ensure that issues in that list are addressed.  

Check with the city, for any outstanding issues in terms of building violations; if there are any in their records.

Get all the permits from the city.

For known issues like mold in the basement; have a company to do mold analysis before and after. Disclose that in time of sale with the data.

Good luck

@Danna Millar Use various tools that work based on your time and costs.  

1. Paper mail marketing.
2. Bench board ads.
3. Billboard ads.
4. Word of mouth and referrals.
5. Putting online ads on many websites.  
6. Getting leads from people who put their properties for sale by the owner. 
7. Marketing in street corners over weekends and please follow city ordinances as appropriate.
   

There are few REIA groups that cover various topics including interviews with wholesalers

Good luck.

@Karl Kuczmera 

If there are valid reasons like a new born baby, high-risk COVID-19 patient etc; there may be some things to be considered.

Talk with the city and ask for their feedback in these situations.  Also, speak with an attorney who specializes in Wayne County Evictions.

Good luck with getting this resolved.

@Rebecca Bailey Welcome to the wonderful world for opportunities.

Generally, when the profit is over the $7,500 range OR over 8% of property purchase; then double closing would be recommended.  This way both the seller and your end buyer would not see your profit margin; in this deal.

When the profits are under the above range; then straight assignments are fine.  Hopefully, the seller and end buyer understand that you fairly compensated for your efforts.

Occasionally the seller OR title companies do not allow assignments; this may be due to the seller being bank or short-sale or probate sale or property was on MLS; then you have to do double closings only.

Usually for double closings; try to get full costs from lenders; including wire fees; docs fee; transaction fees; so you can see what works best for your situations.