208,078 New Listings - November 2009 - Last update November 20, 2009 12:30 PM EST 
Own Multiple Properties – Michigan Foreclosures Investing
Real estate values in Michigan have been skidding for the past 4 years now making this the perfect time to snatch up property. As the prices reach rock bottom, more and more investors are eyeing the scene waiting to pounce.
And yet, how come the reports paint another picture where property buying is also hitting a low?
One reason is that most financial institutions refrain from approving another loan if you already have four mortgages under your name. In other words, you are only allowed to have three mortgages on your credit report other than that of your primary residence. Combine that with your spouse’s report and you have a grand total of eight pieces of property on mortgage. You will get nothing more from the banks or other financial institutions.
So am I really only allowed to own four pieces of property under my name?
The answer is of course not. There are many strategies to go around this. Let’s discuss one of them which work especially well with foreclosures in Michigan.
Refinance your investment properties through commercial funding. If you bought and managed the properties well, they should have a strong positive cashflow enabling them to easily qualify for a commercial loan. Sometimes you may have to package three pieces for a single loan. By freeing up the funds used to acquire the property (either through loans, straight cash, or other means), you are able to re-invest them by purchasing an additional three properties.
Commercial loans differ from standard mortgages as they often include a 10 year amortization plan and have to be refinanced every five years. Thus it is important to select only properties with high cashflow rates to account for the loans. In other words, houses in which the total cost of buying and fixing them up are $30,000 or less and can be rented for $750 to $950 a month are suitable to be put under commercial loans.
This is the reason why foreclosures for sale and properties in Michigan have been the focus of investors. The prices are at record lows now and the financing is still available. Property in other markets on Florida and either coast are valued at an average of over $150,000 even after taking a hit from the credit crunch and the mortgage meltdown. It is simply not efficient to purchase such costly pieces of properly through commercial financing.
The unique advantage of Michigan foreclosures which sets it apart from other real estate markets is the ability to demand high rents despite their rock bottom prices. With methods of collecting rent automatically every month and great property managements to oversee them, investing in Michigan foreclosures has never been easier.
If you are looking to buy numerous pieces of property at bargain prices which offer a strong positive cashflow in a short amount of time, take some time to explore the market in Michigan. Do some research and see for yourself why Michigan foreclosures should not be overlooked. It may just be the alternative investment vehicle to help turn around your losses in the stock market and get back on track to achieving your retirement goals.
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As of early July, about 130,000 borrowers were enrolled in three-month trial modifications under the plan, and 25 mortgage companies have signed up to receive potential payments of up to $18.6 billion, according to the Treasury Department.