Farmington Hills Real Estate and Events talk Michigan

There are many investors that have gotten in the business of flipping Michigan homes.  Last year when prices were cheap many Michigan investors starting buying Westland homes, Livonia real estate, and many other cities homes.  Where ever they think they can make a buck flipping a home they are doing it.

I am seeing it in Redford, Eastpointe, and Allen Park.  Whereever there is a deal they are doing that.  So how do you get involved?  Are you qualified to do it?  Do you have the cash to do it?

You see you have to have cash or be able to get a 203K loan to do it.  Being a Michigan cash investor will get you into the business easily.  You have to remember that banks will accept a cash offer over a person that needs a mortgage.  Nothing can go wrong with a cash investor because there are no appraisals, no credit check, no debt ratios.  So banks will even accept a little lower cash offer  over a mortgage offer.

So in order of how the banks accept the offer:

1. cash offers
2. Mortgage offers in this order  (most money down because it says the borrower has a good income and is a saver which means most likey they have great credit)
3. FHA is next because they require repairs
4. VA is after FHA because they require repairs and the appraisal is tougher and there is no money down
5. 203k is usually last because there is not only the mortgage process but the borrower has to get a contractor estimates and some of the money has to be escrowed for the repairs. 

So the bottom line is if you want to win the Michigan foreclosure you need to pay cash.  Cash wins the deal.  So the first thing you should plan on is to pay cash if you can.