Frequently Asked Questions
Transparency is the cornerstone of our business!
Short answer: There isn't one.
Long answer: There isn't one. We buy properties. We rehab them to rent or rent to own. You invest in them. We both expect to make money.
Contact us by the method of your choice, telling us the type of property you want to consider, and we will send you a selection of properties presently held within our portfolio which meet your preferences.
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.
A property free from liens and back taxes with a marketable title
Rental agreements and paying renter
A final water bill readout
A secured property
A completed City of Detroit ACR
Title Agency representation
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.
Yes, we buy our houses from banks, investors, and homeowners to resell. We obtain a clear title for each property we are selling.
Yes, you can.
Request an Assignment Form from us, have your buyer sign it, then forward it to us.
We accept wire transfers and certified checks.
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. We focus on the best areas in Detroit and buy at prices that create the greatest rental cash flow to our investors makes these the best deals available.
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.
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.
Absolutely! Cash Flow Detroit has its own property management division. We just don't sell you properties and leave others to manage them. We take pride in maintaining the relationship with our clients throughout the duration of ownership.
The property management company collects the rent each month and remits your 100% share.
No, Cash Flow Detroit owns all of the properties that we sell. Many Detroit foreclosure lists that we see sent around contain sub-par houses and usually have many people in between you and the seller.
In the state of Michigan, the conveyance of property occurs via state licensed title insurance agencies. These title agencies 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".
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.
In the state of Michigan it is customary for the seller of the property to pay for title insurance.
In the state of Michigan with the aid of state licensed title agencies, the conveyance of property via a property closing generally takes 7-10 days
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 agency who is handling the conveyance/closing as it is considered unprofessional for the seller to hold the EMD.
For all property conveyance/closings for non US citizens below $500,000, there are no significant restrictions. Most banks and title agencies do require your full name, current home address, and date of birth.
You can purchase a 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 agency conveying/closing the property, and the licensed title agency will prepare all of the necessary documents and properly disperses all money involved in the transaction.
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.
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 U.S. It is then sent to the chosen licensed title company to coordinate the conveyance/closing on the property.
A Proof off 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 U.S.
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.