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Stymie1
Posted: 04 December 2013 10:57:41(UTC)
#31

Joined: 01/12/2013(UTC)
Posts: 4

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Hello BM,

Your property was viewed yesterday by a member of our team in Detroit, A couple of general observations were made.

1 - The property was not boarded up and had broken windows
2 - The "Block" on which the property sits has 7 other houses (all in a row) which would be considered uninhabitable.

I'm afraid to say, to spend anymore money on this property would not be wise. It is likely that if you refurbished the property to a living standard - to then find a tenant who would want to live there and pay you rent each month is very slim.

It's worth pointing out also:

You could be fined for not having your property boarded up,
You can be fined if the grass is not cut
You can be fined if snow is not cleared from the front of the property,
Your property will be accumulating taxes which are expensive in Detroit

Further to this:

I am not convinced setting up setting up an LLC will help you
However, I would strongly recommend you get the property out of your name ASAP, you are in danger of accumulating taxes and fines.
You could try contacting local realtor's / selling the property via Zillow
You could donate the property to a local organization in Detroit such as Blight-Busters.

http://blightbustersdetroit.com/contact-us/

I wish I could bring you better news but it appears that on this occasion it may be "time to cut your losses".





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steve jones on 04/12/2013(UTC)
Stymie1
Posted: 04 December 2013 11:12:23(UTC)
#32

Joined: 01/12/2013(UTC)
Posts: 4

Thanks: 1 times
Was thanked: 4 time(s) in 4 post(s)
BM's current situation is evident - it is a nightmare.
However, it is clear he is part of a growing number of people who are purchasing properties "blind".

The market is littered of unscrupulous agents who make fat commissions for peddling properties what are worthless. Doing your own due-diligence is key to purchasing property and never believe the selling agents out of courtesy.

Detroit does have good properties, good streets and good blocks. there are nice neighborhoods where all properties are occupied - so before you buy;

Go and look for yourself
Walk the streets - talk to the neighbors
Check the local schools are open - always a good indicator
Is there a local church - local shopping - local amenities
Use online tools to ascertain property values in the same street - historical buying and selling of property. Check the growth curve is trending upwards,

This all seems like common sense but I am amazed how many people do not carry out simple checks before purchasing.

I am genuinely saddened by BM's situation - but there is a strong lesson for others.
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steve jones on 04/12/2013(UTC)
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