WHO WE ARE
5 Star Investment & Realty is a fully-integrated residential real estate investment company specializing in the “bulk” purchase of Non-Performing Residential Loans (“NPL’s”) and Distressed REO’s in the State of Michigan. Our organization has purchased numerous NPL packages from such financial institutions as Ocwen, GMAC and other private investment firms.
We have the ability to not only acquire and sell properties on a large scale, but we are vertically integrated to perform minor to major renovation(s) on these assets as well as providing property management services.
One of our goals is to acquire assets from local municipalities and work together toward a mutually agreed-upon business plan for bringing stability to residential communities through renovation and placement.
Our group was the successful bidder at the 2013 and 2014 Macomb County Tax Reverted property auction where we acquired over 700 assets during that time period. The 2013 purchase price was $2,600,000 and because we were able to expedite the sale of the assets acquired, we were able to purchase two (2) smaller packages in 2014 as well as utilizing the same debt to purchase the 2014 Macomb County auction properties at $1,375,000. The entire amount of the original investment of $2,600,000 was repaid in December of 2014 at above-market returns to investors.
Our goal was simple. First, sell the higher-end houses, which required little or no renovation work, in order to raise working capital and pay-down the Investor(s) principal as quickly as possible. Secondly, we proceeded to identify houses that met our “cost-benefit” parameters and began to immediately renovate those assets in order to obtain the highest price point available. Third, we renovated houses that we identified as “rental properties” and upon completion, marketed the property for lease.
In addition, we sold assets to individual investors as well as bulk buyer(s).
Based upon the business model we’ve established and the accounting controls we implemented, we were able to bring scalability to every venture we have entered into. Our logistics, combined with our methods of communication make us a highly efficient operation with only a few individuals working on the day-to-day activities. We are vertically integrated with very reputable and licensed companies in the real estate business and they are the reason for our success today.
We know most of the key governmental employees in the local municipalities and we’ve established goals that meet everyone’s expectations.
Michael D. Smith
Michael D. Smith is the Owner of 5 Star Investments & Realty, LLC, a privately-held fully integrated real estate company that specializes in the acquisition of non-performing notes (NPN’s) and distressed assets. Mr. Smith is experienced in the mortgage banking, real estate investment, distressed asset purchase and property management. He works closely with financial institutions, mortgage servicers, attorneys and real estate agents to facilitate large bulk acquisitions. Mr. Smith specializes in converting non-performing distressed assets to cash flowing assets properties with equity.
Mr. Smith began his real estate career in 1996 while working as a loan officer with one of the largest residential mortgage brokers in the Metropolitan Detroit area. Mr. Smith a licensed real estate agent with the State of Michigan and is actively involved with a number of committees. He is a member of the Wayne County Board of Realtors and the Grosse Pointe Board of Realtors.
From 2000 to 2009, he was President, CEO of Universal Home Lending, LLC, a local Mortgage Broker company that originated residential loans in the Metropolitan Detroit area. Universal Home Lending generated over $500,000,000 in residential loans during their tenure.
Prior to 5 Star Properties and Universal Home Lending, Mike was a Tax Account at Coopers & Lybrand where he specialized in that area of Banking and Real Estate.
Mike attended Ferris State University on a football scholarship where he earned a Bachelor of Science degree in Accountancy. He went on to earn his Master of Science in Finance (MSF) from Walsh College while working at Coopers & Lybrand.