Detroit Frequently Asked Questions (FAQ)
How do I buy one of your properties?
Browse to the property you would like to purchase on our Detroit Investment Properties page. Click on the "Buy Now" button to fill out the Buyer Form for use in populating the Purchase Agreement. Print the Purchase Agreement, sign it, then fax it along with your proof of funds to: (313) 447-2608
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What do I get when I buy one of your properties?
When you buy from Urban Detroit Wholesalers you not only get a great Detroit Cash Flow Property in an excellent neighborhood, you also receive:
- A final water bill readout
- A secured property
- A completed City of Detroit ACR
- A completed rehab estimate with a contractor ready to start
- A property free from liens and back taxes with a marketable title
- Access to our exclusive contacts including contractors, property managers, mortgage brokers, insurance agents, and other professionals considered the best in the business
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What is a City of Detroit ACR?
ACR stands for Affidavit of Compliance Responsibility. It is a mandatory City of Detroit house inspection that must be completed every time a house is sold. The city inspects the property to determine what repairs need to be completed to make sure the property is rehabbed correctly and safely. The buyer has six months from the purchase date to complete the repairs and get the house reinspected.
Unfortunately, this list is far from comprehensive, which is why we include our own rehab checklist and contractor estimate. This will ensure that you are certain about what repairs need to occur. We coordinate all of the inspections and leg work for getting the ACR from the City at the Coleman A. Young building in Detroit.
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When and where do I need to submit my Earnest Money Deposit?
When we accept your Purchase and Sale agreement you will overnight your certified funds to our title company. We will contact you with the address information.
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Do you own these Detroit properties?
Yes, we buy our houses from banks, investors, and homeowners to resell. We obtain a clear title for each property we are selling.
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Can I assign your properties?
Yes, you can.
Take our Detroit Foreclosures list and find a buyer willing to pay more than what our price is for the property. Once you get a commitment from your buyer, browse to the property on our Detroit Wholesale Properties page, click on the Buy Now button, fill out the buyer form, print it off and fax it along with your buyer's proof of funds to (313) 447-2608.
Request an Assignment Form from us, have your buyer sign it, then fax it back to us at (313) 447-2608.
Please note: After the 5th day of the inspection, your earnest money deposit becomes non-refundable.
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What payment methods do you accept?
We Accept:
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How are you providing such great deals?
We provide such great deals on Detroit Investment Properties because we have such great contacts with Foreclosure Realtors, asset managers, and other sources not available to the average investor. Our focus on the best areas in Northwest Detroit and Warrendale at prices that create the greatest rental cash flow to our investors makes these the best deals available.
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What can you tell me about City of Detroit property taxes?
City of Detroit property taxes are inherently high and will make the difference between you having a cash flow investment property and an alligator that you have to pay money on each month. All of the properties that we purchase are pre-screened for taxes to make sure your investment will cash flow. Property taxes are calculated on the SEV (State Equalized Value), which is approximately half of the assessed value. These SEV values can vary greatly from house to house even in the same neighborhood so make sure you do your homework. You can view the Detroit online tax calculator to verify tax amounts.
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Where can I get Detroit property records (public records) for your properties?
A very important part of your due diligence is to check the public records for the SEV (State Equalized Value) of your property and more importantly the Taxable Value. You can also view information like the legal description. Public records documents be viewed on the property details page of our website for each of our listed Detroit foreclosures
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Do you offer Detroit property management?
We work with the best Detroit property management company around. We have filtered through hundreds of property management companies and have experienced the best in our current property manager. We provide full contact details and manage the process of getting the property management company involved for each of our clients.
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Do you just offer another company's Detroit foreclosure list?
No, we own all of the properties that we list on our website. Many Detroit foreclosure lists that we see sent around contain sub-par houses and usually have many people in between you and the seller.
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Where can I conduct a Detroit property search?
You can search for Detroit properties on our foreclosure homes in Detroit page. Unlike many other Detroit property searches, we provide all of the required due diligence on each of our properties so you can be certain that you know what you're buying.
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How is property ownership transferred in the state of Michigan?
In the state of Michigan, the conveyance of property occurs via state licensed Title Insurance Companies. These Title companies handle both the buyer and seller side of the transaction, all of the paperwork, and the money transaction. They also insure the property transfer with title insurance. The process of transferring the deed from the seller to the buyer is generally referred to as “the closing”.
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What is title insurance?
Title insurance insures the deed transfer of a property guaranteeing that the deed is transferred free and clear of any liens and encumbrances and that all money associated with the transaction is dispersed according to the closing instructions.
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Who pays for title insurance?
In the state of Michigan it is customary for the seller of the property to pay for title insurance.
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How long does it take to convey or close on a property?
In the state of Michigan with the aid of state licensed title companies, the conveyance of property via a property closing generally takes 7-10 days.
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What is an earnest money deposit (EMD)?
An EMD is a good faith deposit by the buyer to the seller to show that they will follow through with the conveyance/closing. It is similar to a reservation fee. The Earnest Money Deposit should always be held by the licensed title company who is handling the conveyance/closing as it is considered unprofessional for the seller to hold the EMD. Generally, EMD’s are nonrefundable just like most reservation fees.
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Are there any restrictions on non US citizens buying property in America and specifically Detroit, Michigan?
For all property conveyance/closings for non US citizens below $500,000, there are no significant restrictions. Most banks and title companies do require your full name, current home address, and date of birth.
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How do I buy a Detroit property as a non US Citizen?
You can purchase a Detroit property the same way as an US Citizen. You will complete a purchase and sale agreement with the seller, deposit an earnest money deposit (EMD)/reservation fee with the licensed title company conveying/closing the property, and the licensed title company will prepare all of the necessary documents and properly disperses all money involved in the transaction.
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What is a HUD-1 statement?
A HUD-1, sometimes referred to as a Closing Settlement Statement, is a closing statement that most licensed title companies use for a conveyance/closing. The HUD-1 has two columns that show all of the fees and money that is transferred between the seller and the buyer. All monies being conveyed/transferred for the property are accounted for on the HUD-1.
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What is a purchase and sale agreement?
A purchase and sale agreement (often referred to as a PA) is an agreement between a seller and buyer for the sale of a property. It includes information including the address of the property for sale, price of the property, future date of the transfer of the property, and how that property is going to be transferred. Signing a purchase and sale agreement (PA) is the first step of buying a property in the state of Michigan, Detroit, and all other states in the U.S. The PA is then sent to the chosen licensed title company to coordinate the conveyance/closing on the property.
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What is a “proof of funds”?
A proof of funds is a copy of a bank statement, retirement account statement, or any statement proving to the seller that you have enough money to complete the purchase of the property, which is submitted with the purchase and sale agreement. This is customary and necessary for all real estate transactions in the state of Michigan, Detroit, and all other U.S. states.
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What are closing costs?
Closing costs is a general term for all fees associated with conveying/transferring/closing on the property. These fees for Detroit, Michigan properties are generally about $2,000 and it is customary for the seller to pay for 2/3’s of the fees.
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What are prorated property taxes?
In the state of Michigan, property taxes are paid in advance of year they are due. For example, if the buyer had purchased the property when the taxes were due, all of the year’s taxes would have to be paid at the conveyance/closing. When the buyer sells the property 30 days later, the prorated amount minus the 30 days the buyer owned it would be collected from the new buyer at the conveyance/closing.
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