Recently I’ve been looking for a new place for my family to settle down. We have been in the Las Vegas area for about 4 years and we all know how much I love Vegas… Anyhow, the search was on! It is my goal to own a home free and clear so when I heard about what was happening in Michigan with home prices, I got excited. Because in Michigan they are almost giving homes away!
It all started about 2 years ago, one of my ex-business partners calls me up one day, “hey whats going on?” an he proceeds tells me that he has been buying up homes in the Metro Detroit and Southern Michigan areas, for cheap. When I say cheap, I mean as low as $200.00 bucks, in some cases even less! Well it’s not everyday that someone calls you up and tells you that they are buying homes for few hundred bucks right and left, so this really piqued my interest. I mean how often to do you find homes in any kind of shape for under thousand dollars for that matter. So this had been sitting in the back of my mind for about a year till I decided to check it out… See what I was thinking is “I make most my money on the web, so what does it matter where I live?” and looking at the photo $200.00 I think I would buy it, I think most people would to be honest! In Las Vegas I pay about $1500.00 a month for rent, for 2 months rent I could own a nice home paid with cash.
Think about this – what is the number one expense a person has? Typically, it’s rent. Rent, mortgage payment, whatever, this is usually a family’s single largest expense. Imagine a moment in your life without that expense hanging over your head. It’s something I’m striving for and read on for what I’ve discovered in the process.
Some side notes of my findings:
I found some houses listed cheap on Craigslist, but after poking around I found listings be mostly from bottom feeder investors looking to move homes that are distressed and quickly double or triple their money or make contract for deed sales with people living in Michigan. There are many horror stories out there in contract for deed sales so you have to be extremely careful. There should be an escrow company handling the paper and if the seller has a mortgage on the house, you have to make sure the escrow is instructed to pay. The standard fraud is that the seller takes your payment, doesn’t pay his mortgage and a year later or so, you’re being locked out and everything you paid to the seller was spent on hookers and blow. If you are looking to do a contract for deed or take over payments, work directly with homeowners, have the contract reviewed by a local attorney so you know you’re getting what you are paying for, it is a buyer beware market in Michigan, things are cheap and people are very desperate and cash is at a premium. If you are looking to invest in a home on your own, buy from the auction directly. Of course, this requires cash. In bank foreclosures auctions the taxes in most cases will be up to date and you will get the best deals. It’s not just Michigan that is experiencing this type of housing situation. Basically, it is occurring in places where massive amounts of people have been laid off and the economy has brutalized them. It’s happening in parts of the upper Midwest, Ohio and Indiana for instance. Hey, I even heard of a $200,000 house in Las Vegas selling at auction for $45,000. so there is something for everyone.
Related news stories about foreclosures in the Metro Detroit area:
Other places to buy houses that are cheap:
Indiana, Ohio, Florida, Las Vegas