Michigan Real Estate Investor Directory

Two Michigan rules decide more deals than anything about condition. Foreclosure runs by advertisement and is followed by a six-month redemption period, and property taxes uncap on transfer — which means the tax bill you inherit is often nothing like the one the seller was paying. Both are covered below.

Michigan licenses residential builders — and the alteration trades

Michigan licenses construction through the Department of Licensing and Regulatory Affairs (LARA). The two credentials that matter to a rehab investor are the Residential Builder licence and the Maintenance and Alteration Contractor licence, the latter issued by specific trade categories such as carpentry, roofing, siding and concrete.

That second category is where investors get caught: a contractor licensed for siding is not thereby licensed for a structural alteration. Ask which categories their licence actually lists, and look it up with LARA. Electrical, plumbing and mechanical are licensed separately again. Verify current requirements directly with LARA.

Tax uncapping: the bill resets when you buy

Michigan caps annual growth in a property's taxable value while ownership stays the same. On a transfer of ownership that cap comes off and taxable value resets to state equalised value — roughly half of market value — in the following year.

For an investor this is the single most commonly missed line in Michigan underwriting. A long-held rental may be taxed on a figure set years ago; after you buy, the bill can rise substantially. Never underwrite a Michigan hold using the seller's current tax figure. Pull the assessor's SEV and model the uncapped number instead. Certain transfers are exempt, so confirm a specific situation with the local assessor or Michigan counsel.

Foreclosure by advertisement, then six months

Most Michigan foreclosures are non-judicial, by advertisement: the notice is published for four consecutive weeks and posted on the property, then a sheriff's sale is held. It is a reasonably fast process.

What follows is the important part. A six-month redemption period generally runs after the sheriff's sale on residential property, extending to twelve months for larger parcels, during which the borrower may redeem and continues to have possession rights. So the sale does not give you a usable asset on day one. Budget the carry, and do not schedule a rehab start inside the redemption window. Pre-foreclosure data and the sale notices both matter here; so does patience. Confirm with Michigan counsel.

Vetting a Michigan contractor or agent: a short checklist

• Check the LARA licence and read its trade categories. Siding does not cover structural work.
• Pull the assessor's SEV and model the uncapped tax bill before you underwrite a hold.
• On a sheriff's sale purchase, diary the six-month redemption and do not start work inside it.
• For Detroit and Wayne County, check the tax foreclosure history on the parcel.
• Get a certificate of insurance naming you and confirm it covers the scope.
• Use a written draw schedule. Never fund ahead of completed work.

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Michigan directory FAQs

What is Michigan property tax uncapping?

Michigan limits annual growth in taxable value while ownership is unchanged. On a transfer of ownership the cap is removed and taxable value resets to state equalised value the following year, so the tax bill after purchase can be considerably higher than the seller's.

How long is the redemption period after a Michigan sheriff's sale?

Generally six months on residential property, extending to twelve months for larger parcels. The borrower may redeem during that period and retains possession rights, so the property is not immediately usable.

Which Michigan counties have the most investor activity?

Wayne (Detroit) dominates, followed by Oakland, Macomb, Kent (Grand Rapids) and Genesee (Flint).

Browsing another market? See the Ohio investor directory or Indiana investor directory, or return to the full investor directory.