Armchair developers, Here's your chance.

**Richard** · April-20-19, 09:54 AM

Interesting information in the first lot link from the OP.

Vacant Lots - Mixed Use/Multi Family New Build Opportunity. Development proposal must include at least 3 housing units and must include a development plan that includes scope of development [[number of units and total square footage), development cost estimates, proof of funds, and architectural drawings or precedent architecture images. Only complete proposals will be considered. Located in a NEZ [[Neighborhood Enterprise Zone) and qualified Opportunity Zone. Please note that the Detroit Land Bank Authority is entitled to a tax capture for the 5 tax years subsequent to transferring ownership of the property. The tax capture may be incompatible with tax abatements that are otherwise available to the selected purchaser. DLBA will to waive its right to the tax capture for purchasers seeking such tax abatements for a payment of $15, 000 in addition to the purchase price. The waiver may be granted at closing or any time thereafter upon payment by purchaser.

So in that case one can not buy that lot for a single family residence.

To make it even more risky

The Land Bank will issue a Quit Claim Deed as evidence of title at closing, and does not guarantee clear title to the property all properties are sold “AS IS, WHERE IS, WITH ALL FAULTS”. The Detroit Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including, but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property.

https://buildingdetroit.org/Faq/?SID...7bjehb3u33cei4

**ndavies** · April-23-19, 11:20 AM

Originally Posted by Corktown Mark

How is it possible to put a house on a 30 * 115 foot lot while following code for set backs?

We'll start with the easy one. The code has a formula for historic narrow platted land. Basically you can put a 20Ft wide house on a 31 ft wide lot.

You couldn't currently plat a 31 foot wide lot. But you can build on one already in place.

**ndavies** · April-23-19, 12:03 PM

Richard you know as well as I do you can't build in Detroit for $139 a sq ft. Building costs are at least $200 a sqft.

Houses within 1/4 mile of this are being built at $300 a sq ft.
https://www.realtor.com/realestatean...-57389?view=qv

The NEZ is only available on your primary residence. This will be the third property I've owned with an NEZ. The NEZ on the first property I owned has expired, but people are still paying over $250 a sq ft for properties in that development.
https://www.realtor.com/realestatean...-93980?view=qv

A developer can apply for an NEZ, get it approved and then have it held in abeince until it's sold to an owner/occupier. They have 3 years automatically before the transfer has to occur. They can go in and apply to have that time extended. The NEZ expires if it doesn't get a primary resident in that time. The NEZ has to be applied for before they pull the building permits.

Iheartthed specifically asked about wether the mortgage had to be primary residence. I don't know all the bank rules. This home will be my primary residence.

The land bank delivers the property with a quick claim if it is sold. They do a title search after you put in your deposit.

The two biggest liens, taxes and DWSD water bills, are automatically expunged by the land bank. If the title comes back with any other liens on it, You can go through the quiet title process for a very small fee to the land bank. With this being legal process, they can not guaranty that the quiet title will be successful. If they cannot quiet the title, you can stop the deal at this point. You would be out the small amount of deposit money you gave the landbank for the lot.

My property was delivered to me by quit claim with Title insurance acceptable to the bank.

No bank in any world is going to finance a construction loan without a clean title for the property.

The land bank will be trickling out lots for some time. Some will be single parcels, some will be multi lot parcels. I assume people will pick what's appropriate for them.

The land bank understands that they will lose money on the lots if they release them too fast. The lot prices are going up. I bought mine before the Ford MCS deal was announced. The price the land bank is charging for those lots has already tripled since I bought mine.

**ndavies** · April-23-19, 12:38 PM

So why am I building in North Corktown. Detroit will never come back unless individuals take a risk. I realize this is a risk. It would scare off many people.

Better returns usually involve more risk.

North Corktown seems to be in a sweet spot. Tucked between the full residential enclaves of Woodbridge and Corktown. Both neighborhoods have very robust pricing for existing homes. North Corktown should bridge the gap between the two. It should see similar residential demand in the near future.

My house is exactly 1 mile from LCA arena. It is within waking distance of Corktowns michigan avenue.

It's less than a Mile away from the Ford MCS. Which is about to be come a huge employer with over 5000 people working in the building. I'm sure some of them would love to walk/bike to work. Ford is talking about greatly improving the neighborhood infrastructure to support the development of self-driving cars.

1.5 miles from my house they are about to build a $50 million park on the waterfront. The neighborhood already has bike lanes to connect to the park.

https://detroit.curbed.com/2018/10/1...-jr-foundation

Wouldn't you love to have a facility like that within a couple of miles of your house.

North Corktown doesn't have a historic commission. I could build a contemporary house without having to add on all the fake historic crap. While I like historic homes, I hate new fake ones.

**masterblaster** · April-23-19, 04:04 PM

Originally Posted by ndavies

So why am I building in North Corktown. Detroit will never come back unless individuals take a risk. I realize this is a risk. It would scare off many people.

I commend you! Over the years, you have been very critical of the city of Detroit and rightly so. To build a new home in the city, and move to the city, is a truly getting out of the comfort zone and actively, in your own way, contributing to the re-birth of the city.

I wish you all the best, and I hope everything goes well with the construction and that the neighborhood continues to blossom. Already, a new bakery has opened in the northern part of that neighborhood!

Speaking of the neighborhood, people are calling it North Corktown. The name is generic. The original name for the neighborhood was Briggs, [[after the person who owned the Tigers and expanded Tiger Stadium). I wish that name would make a comeback as well.

**mwilbert** · April-23-19, 05:28 PM

Good luck with this. As you are clearly aware, there is some risk involved, but that area seems like a pretty reasonable choice for future improvement, and it's a pretty convenient location regardless.

I have to agree with you about the historic district thing. I'm not against historic districts, but forcing people to build houses in a fake historic style seems generally to produce bad buildings. Detroit could use more contemporary single-family houses, although there are plenty of bad contemporary houses too.

**Richard** · April-23-19, 05:35 PM

Originally Posted by ndavies

Richard you know as well as I do you can't build in Detroit for $139 a sq ft. Building costs are at least $200 a sqft.

Houses within 1/4 mile of this are being built at $300 a sq ft.
https://www.realtor.com/realestatean...-57389?view=qv

The NEZ is only available on your primary residence. This will be the third property I've owned with an NEZ. The NEZ on the first property I owned has expired, but people are still paying over $250 a sq ft for properties in that development.
https://www.realtor.com/realestatean...-93980?view=qv

A developer can apply for an NEZ, get it approved and then have it held in abeince until it's sold to an owner/occupier. They have 3 years automatically before the transfer has to occur. They can go in and apply to have that time extended. The NEZ expires if it doesn't get a primary resident in that time. The NEZ has to be applied for before they pull the building permits.

Iheartthed specifically asked about wether the mortgage had to be primary residence. I don't know all the bank rules. This home will be my primary residence.

The land bank delivers the property with a quick claim if it is sold. They do a title search after you put in your deposit.

The two biggest liens, taxes and DWSD water bills, are automatically expunged by the land bank. If the title comes back with any other liens on it, You can go through the quiet title process for a very small fee to the land bank. With this being legal process, they can not guaranty that the quiet title will be successful. If they cannot quiet the title, you can stop the deal at this point. You would be out the small amount of deposit money you gave the landbank for the lot.

My property was delivered to me by quit claim with Title insurance acceptable to the bank.

No bank in any world is going to finance a construction loan without a clean title for the property.

The land bank will be trickling out lots for some time. Some will be single parcels, some will be multi lot parcels. I assume people will pick what's appropriate for them.

The land bank understands that they will lose money on the lots if they release them too fast. The lot prices are going up. I bought mine before the Ford MCS deal was announced. The price the land bank is charging for those lots has already tripled since I bought mine.

My costs estimate was based on this.

48233, Detroit, Michigan - March 21, 2018

Custom Home Building

$98.42 - $146.13 per square foot [[basic construction)
Labor for custom home construction is included in estimate. Cost accounts for mid-grade building materials, basic finishes, pulling permits, and site cleanup. Items not included: land, building plans, high-end finishes, complex foundations, soil improvement services, appliances, landscaping, furniture, patio or porch construction, and complex architectural designs.

https://home-builders.promatcher.com...ts-prices.aspx

If you are saying it is $200 SFT it stands to reason why your developers are down here in Florida throwing up sub divisions and condos Willy Nilly.

You took a risk which is what it takes but where would you be if Ford had not bought MTS ?

I have always said,it does not matter where you buy in Detroit as in the city,anything sold today odds are it will never sell at that price again.

But you started out with a put up or shut up line,which is not really fair to others.

Not everybody is in a position to be a developer nor are they in a position to take that risk,if they were not there in the first place,you would not be able to do what you are doing.

A person looking to buy a home to live in should never be considered a developer or an investor,they are looking at a 30 year commitment verses you are looking at rolling over every 7 years.

Which is fine if that works for you just as in my opinion it is faster money with a higher return currently to purchase and rehab in existing neighborhoods.Based on the numbers and research that I find.

You are new building based on speculation,the worse case scenario is you will end up living in the new house for ten years or have to prepare mentally,because all it would take would be a slight downturn and you will be stuck.

Now that it is coming to the end of a political 4 year term the uncertainty will set in as it does every 4 years,if that window becomes protracted then it would be best to act at that time.

Where as those looking to sell will hope the time flys.

Its just not for everybody to go down that path or they will get eaten alive really fast,but not going down that path does not meen that they care any less about thier city,it’s not a rule of measure.