Tag Archives: michigan

Why is It Important that REIA of Oakland is Not for Profit?

15 Aug

There are new real estate investing groups popping up like weeds lately.  Unfortunately, many of them are FOR PROFIT, and have arrived on the scene to take advantage of the rocky real estate market that Michigan is navigating right now.  These new, FOR PROFIT groups have one goal in mind, to make a profit.  Now, there’s nothing wrong with making a profit.  However, when it’s the group that is supposed to be looking out for your best interests and educating you on how to maximize your investment strategies, it creates a conflict of interests.  If the group is for profit, they are going to be selling you Kits, DVD’s, Books, Seminars, Classes, Bootcamps, and anything else that they can think of, for hundreds and even thousands of dollars, whether it’s in your best interest or not.

Why?  Because if they don’t, they’re not making a profit. REIA of Oakland, on the other hand, is run by unpaid volunteers.  We have only one paid, part-time employee.  All the money that we bring in is used to run the group and bring you the best services possible.  This is why at REIA of Oakland, you will see more unpaid, local experts bringing you relevant, timely information at our monthly meetings.  REIA of Oakland purposefully limits speakers selling products to 4 times per year or less, and we screen them to try and bring you only the very best.  REIA of Oakland’s goal is to make its members the most educated and professional real estate investors in the country.  Not to sell you products.

 

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Event: Orlans Associates Share Inside Information On Michigan Foreclosures & Short Sales

3 Aug

Through over a year’s persistency we’ve finally been able to arrange for personnel from Orlans Associates, one of Michigan’s top foreclosure companies, to share their knowledge & experience on the latest regarding foreclosures and short sales.

This is all specifically about what’s happening with Michigan properties, not useless internet information about California, Arizona, Florida, etc.
Some of the topics & information that will be covered:

Tips on buying property at Sheriff Sale or at the end of Redemption. Which is better?

  • The number of foreclosures Orlans processes that are upside down.
  • Inside statistics on the percentage of foreclosures where lenders are bidding less than their mortgage debt owed.
  • Details on the short sale process, what lenders will settle for and success rates.
  • Angles on buying properties using short sales and how to avoid the hurdles.
  • The types of fraud Orlans and eTitle personnel see with sales of REO & short sale properties.
  • Their opinions on how real estate investors can best profit from foreclosures & short sales.

You won’t find this information anywhere online, so attendance is a must!
Orlans Associates & eTitle were both started by Linda Orlans and are now one of the largest foreclosure and short sale companies in Michigan.
Be sure to mark your calendars for this event.

 

Real Estate Lessons Learned: Borders

22 Jul

As many of you may have heard Michigan-born business Borders is slated to liquidate many of their stores after years of fighting fiscal turbulence. This announcement may be a surprise to some but a predictable outcome for many who have been watching the once booming giant over the past few years.


Many experts have suggested that the number of physical stores and lease durations have had a profound impact on Borders demise. With over $1 billion in lease obligations the company has simply expanded too soon. But what is left of the 500 plus stores that are slated to be chopped?

I am particularly interested in how this will impact job lost here in Michigan, and especially the implications it has for real estate values in locations it exists. The physical store has truly been a critical element in the survival of company and serves as a lifeline for the future yet also proposes challenges for the company’s sustainability. According to AnnArbor.com the most concrete example of this is when “the company admitted in late January that it had stopped making rental payments on some of its stores.” Nationally, a little over 10 Borders stores are listed for sale, most of which 20,000 square feet or more in size having a profound effect investor risk and consumer outlook.

Other factors to consider include the time and expense to the owner if a store like Borders leaves. Most owners have a level of uncertainty about their investment. Some experts believe that retailers are looking to expand their stores in soon-to-be empty spaces like Borders. The company has a reputation of being very disciplined about taking the best locations in the marketplace. That bodes well for landlords, and ultimately communities. It’s also part of the long history of the local company that became a national name.

This in my opinion has profound effects on in the residential real estate sector. Lost of jobs and the economic consequences of a huge company like Borders leaving, could have profound effect on former employees ability to live sustainable lives, which creates a unique challenge for many real estate professionals.

Many cite Circuit City as a case study. About 30,000 people lost their jobs as 567 stores closed. Many believe Borders can avoid creating economic unrest be revamping the company’s infrastructure.

What do you think? What will it take for Borders to survive?


What the New Michigan Tax Law Might Mean for the States Real Estate Market

16 Jun

Governor Snyder’s changes to Michigan’s tax system are now the law. Supporters of the new law like, Business Leaders of

Rick Snyder

Michigan President and CEO, Doug Rothwell, said in a news release that “with simpler, fairer tax structure, Michigan can be more competitive and, as a result grow jobs.” The Legislature passed the bills at the end of May this year. As first reported by Crain’s Business Detroit,  the legislation enacted a business-tax cut of about $1.7 billion, ending the Michigan Business Tax and replacing it with a 6 percent income tax on “C” corporations. All other business entities — such as sole proprietorships, limited-liability companies and other individually owned businesses — would pay only individual income tax. Those entities currently pay both MBT and individual income taxes.

So, what might this news also mean for the Real Estate market and property investors here in Michigan?

Building for lease on Washington St, Royal Oak, MI

As those in the Real Estate world know, when companies grow in employee size and increase their revenues through cost savings they often times grow into larger business spaces as well. So the Real Estate hopefuls in Michigan may benefit by keeping a close watch on the many existing, available commercial spaces that may start to fill over the course of the next year, as the new Michigan tax law begins paying off for business owners.

According to large real estate search sites like cityfeet.com, there are currently over 4,600 commercial properties for lease or sale in Oakland County, Michigan alone.

Sources:

http://www.crainsdetroit.com/article/20110525/FREE/110529937/snyders-changes-to-michigans-tax-system-now-are-the-law#

http://www.cityfeet.com/Commercial/Search/