Lee Morof's Real Estate Blog

Are you unsure about buying Southeast Michigan real estate in Oakland County? Warren Buffet was recently quoted as saying, “If I had a way of buying a couple hundred thousand single-family homes…I would load up on them and… take mortgages out at very, very low rates…it’s a leveraged way of owning a very cheap asset now, and I think that’s probably as attractive an investment as you can make now.”

Homeownership in the United States is dropping and we are becoming a society of renters, according to a Morgan Stanley Housing Market Insights report.  Why is this happening?

• It’s harder to get mortgages: Banks have made it more difficult for people to become homeowners. If they have marginal credit or small down payments, they won’t get approved.
• Some have a fear of buying: The economic and real estate market collapse caused many people to fear buying a home. Many who could buy Southeast Michigan real estate right now are sitting on the sidelines waiting for the market to recover. If your credit is good and you have the money for a down payment, all reports are saying, do not wait!

Here are a few tips to help you make the most of this real estate market:

• Act now: Savvy investors know the market has started to recover. If you wait for the media to say it’s ok to start investing in Southeast Michigan real estate again, it’ll be too late.
• Earn rental income: If you buy a second (or third or fourth) home or a home you don’t want to live in, rent it and generate income. Large investors are saying single-family real estate is the way to go right now.
• Take advantage of low prices: Prices have fallen dramatically in a lot of markets, while rental rates are increasing.

To find single-family investment properties or your own new home, call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com. I’ll help you find the property that meets your investment goals.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
www.NorthWoodwardHomes.com

You’ve decided to hire a property management company to handle your Southeast Michigan real estate rental property in Oakland County.  Choosing a well-respected and well-run company is crucial to your success.  Here are seven tips to help you make a wise selection:

1. Phone then visit in person.  Make a list of all the companies you’re considering.  Phone them to ask a series of elimination questions such as how long they’ve been in business and if they are knowledgeable about the Southeast Michigan real estate rental market.  If you’re still interested, make an appointment to visit in person. A personal visit gives you a better idea of how they conduct their business, and you can meet the people who will represent your interests.
2. Determine whether the company offers a comprehensive property management service or if the service is just a sideline for a Southeast Michigan real estate office. Find out exactly who will manage your property and how long that person has been a property manager in this area.  Ask how many people are on the staff and what happens when someone is out sick.  Determine what services they offer and exactly how your property will be managed.
3. Clarify the tenant screening process.  You want a company that does thorough research to determine the applicant’s credit and rental history as well as his or her criminal background and past and present employment situations.  You also want a company that sends you a written report that backs up their reasons for recommending a prospective renter so you can make a well-informed final decision.
4. Pick a company that uses current technology.  From maintenance requests to online rent payment services, there are many online tools available for property management companies.  Hiring a company that offers services through their website is important in attracting and retaining the best tenants.
5. Ask for three client references.  Get names and contact information of current or recently past clients, preferably clients who had property similar to yours.  Talk with them to find out what they liked and disliked about working with the property management company.
6. Hire a company that has good relationships with tenants.  It’s important that the company managing your property gets along well with renters.  If renters like the company, it means they’re getting good service and are being treated well.  This reduces problems and renter turnover.
7. Select a company that gets your money into your account quickly.  Your rental money should be in your account as quickly as possible, and typically no later than the ninth day of each month.  That’s your money and should be in your bank account earning interest not in the property manager’s bank account.

Thinking of investing in Southeast Michigan real estate for rental income?  I can help.  Give me a call today at 248-514-2640 or email me today at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

Low home prices combined with low interest rates makes this a great time to purchase southeast Michigan real estate investment property.  One of the most popular real estate investments is rental property.  Investing in rental property can be profitable, if you pick properties that meet the following criteria:

1. Require minimal maintenance.  Southeast Michigan real estate with newer appliances, smaller yards and that have been well-maintained, are typically easier and less expensive to continue to maintain.
2. Attract long-term, well-paying renters.  Your goal is to get renters who will take good care of your southeast Michigan real estate, stay a long time and pay on time.  While lower-priced properties near colleges may be easy to rent, they typically attract students who tend to be loud, messy and short term renters.   On the other hand, rental properties that are in the highest price range may attract renters who are in jobs that require them to move frequently or who will quickly purchase homes of their own.
3. Located in highly-populated, low-crime areas.  Steer away from rural areas where there are fewer potential renters.  Look for homes in neighborhoods that have low crime rates and good school districts.  Neighborhoods near public transportation, grocery stores and shopping malls attract renters.
4. Zoned for renting.  Always check to be sure the property you intend to lease is approved to be rented by local zoning or home owners’ associations.
5. Priced properly.  Your purchase price must be low enough to allow you to set the rent within a range the local market will bear and that will earn a profit for you.  Be sure to take into consideration every expense of owning, maintaining and renting this property, when considering if you can turn a profit and have a positive cash flow from the start.

Interested in buying a rental property?  I can help.  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Attorney  
Certified Distressed Property Expert
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com