The 1859 House: First Steps
After finalizing the auction payment & paperwork there's a lot of waiting.
I can't technically do anything beyond 'securing the property' until I receive the deed in the mail. This can take anywhere from 2-6 weeks. A crazy thing to keep in mind when buying at auction, you typically do not get keys to the property. Getting in is something you have to figure out on your own.
If I thought the property was vacant I would be sending my boots on the ground over to drill the lock, change it, leave a lock box, take pictures & let me know what everything looks like. But since I think it is occupied, I will make first contact through the mail.
But first, that deed....
That's another big thing I will mention, the only way I am able to do everything I do in Michigan is I have amazing boots on the ground who I've been working with for years now. We connected through Twitter & Anthony has been an absolute gem to work with - I tried working with a few others before him that did not meet my standards, so to finally having someone I trust has allowed me to take my investing to the next level & I am truly appreciative.
Anyway, one thing I have learned from buying at these auctions many times before is that the faster you submit your Property Transfer Affidavit form to the city, the faster you will get your deed. So that was the first thing I did, filled it out & sent it to the city assessor right away. This is specific to Michigan, buying in other states & from other auctions will require different paperwork & steps after the auction & it's important to follow them all very specifically.
The other thing I can do while I wait, is insure the property. This is an important step to protecting my newly acquired asset!
I have had trouble in the past finding insurance companies that are willing to insure out of state investment properties. They often only want to offer insurance if you insure your primary residence with them & if your primary is not in the same state then you're basically out of luck. Such a headache.
I decided to try out a landlord friendly insurance that I have been seeing called Steadily. It was a truly quick and easy experience & they got me coverage that day, even with my limited knowledge about the property. I recommend Steadily if you're ever looking for insurance on an investment property (I am not an affiliate of this company).
Cost for full year of insurance: $647
After that was done, it was time to wait a little longer for that deed....