Archive for category Investing In Rental Property

Proposed Bill To Require Landlords To Disclose If Their Rental Property Was A “Meth Lab”

Apr 19

Posted by Tristan R. Pettit, Esq. in Investing In Rental Property, Legislation | 7 Comments

On March 26, 2010, Senators Lena Taylor and Spencer Coggs along with Senator Lehman sponsored 2009 Senate Bill 650.  SB 650 will affect both landlords and sellers of real estate in which the drug methamphetamine has been manufactured.

The bill requires both owners wishing to sell and landlords wishing to rent property that was used as a “meth lab” in the past to disclose in writing this fact to potential renters and purchasors.

If methamphetamine was manufactured on the property the seller of the property must disclose this in the real estate condition report.  If a landlord is renting a property that was previously used as a “meth lab” then the landlord must disclose this in writing to any potential renters.

The production of “crystal meth” has become an increasing problem, one that does not just affect city properties.  In fact more and more meth labs are being discovered in rural areas where the illegal activity is far less likely to be noticed.

Studies have shown that the hazardous chemicals that are used to make meth and the chemicals which are a produced during the manufacture of  the drug can seep into floors, ceilings, walls, duct work etc. and can remain for years.  I believe that this discovery is the prime impetus for the creation of this bill.

While I think this is a good bill, it goes without saying that any landlord or seller of real estate in which meth has been manufactured will have a very difficult time renting or selling this property if the bill is passed.  As a result it is more important than ever for landlords to visit and inspect their rental properties.  To be a good landlord you need to know what is going on in your units.  Wisconsin law allows landlords to make periodic inspections of their rental property with at least 12 hours notice (ATCP 134.09 (2).  Landlords should take advantage of this opportunity to inspect their rental units —- especially if they suspect illegal activity.

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AASEW Trader’s Corner To Be Held Prior to Monthly Meeting on Monday, March 15th

Mar 13

Posted by Tristan R. Pettit, Esq. in AASEW, Investing In Rental Property | 1 Comment

Are you thinking about buying or selling or trading? Or, maybe you’re just wondering where the RE market is currently at. Or, maybe you know a non-member (future member?) who is. No matter, because all are welcome to join us at the new AASEW Traders’ Corner.

If that isn’t enough, check this out. The Traders’ Corner is also a great place to find a buyer for that truck you no longer need or someone selling their over-supply of rehab materials. Whatever it is that you are looking to find or trying to sell that is related to our business, this is the place to be.

If all of that still isn’t enough, consider the networking possibilities.

When? Monday, March 15th, 6:30 – 7:00 PM
(One half hour before the AASEW General Meeting)

Where? Best Western Motel, 1005 S. Moorland Rd.
(I-94 to Exit 301A, then south 1/4 mile)

We look forward to seeing you there.

Is This The End of Seller Financing For Rental Properties?

Feb 16

Posted by Tristan R. Pettit, Esq. in Investing In Rental Property | 1 Comment

I have received this same information from my contacts at the Apartment Association of Southeastern Wisconsin, Inc. (AASEW) and Milwaukee Real Estate Investors Networking Group (RING).  If you would ever like to be able to obtain seller financing for your next rental property or if you would like to be the seller that finances the sale of your rental property to some young landlord in the future then you must act now.

TODAY – Feb. 16th – IS THE LAST DAY TO SEND COMMENTS! 

DEADLINE FOR COMMENTS HAS BEEN EXTENDED TO MARCH 5th

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I received this Info from 4 different REIA’s – Deadline 2/16 to respond  DEADLINE FOR COMMENTS HAS BEEN EXTENDED TO MARCH 5th

HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT

HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. 

The proposed HUD Rules interpreting the federal SAFE mortgage act can be viewed at www.regulations.gov. 

Use the search parameter “HUD” and the keyword “safe”. 

Please review and comment regarding the impact of this broad interpretation of the law.   “In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified.”
History: 
As you may recall, we lobbied hard last year to maintain the right for individuals to make up to five seller financed transactions per year before being subject to mortgage originator licensing, etc… However, that law was passed subject to the Department of Housing and Urban Development’s (HUD) approval of the law as “compliant” with the intention of the federal law.  If any state does not have a compliant law, the SAFE act allows HUD to implement licensing for the state.  HUD has since issued proposed rules. 

In a nutshell, seller financing would no longer be allowed for non-owner occupied homes.

How YOU can help: 
We learned about the publishing of the rules very late in the process… and the deadline for comment is upon us on February 16.  However, we desperately need for thousands of REIA members across the country to go on record with HUD on this issue.  We will be working to try to affect this law in other legislative ways, but cannot hope to gain traction unless our members have clearly communicated that they are opposed to this portion of the rules.  This is your chance to be counted on this issue. 

PLEASE SUBMIT YOUR COMMENTS TO HUD!  We have less than one week to flood this system with comments. 

Follow these simple steps:
1.  Logon to www.regulations.gov. You will see two white boxes for searching 
2.  On the left box labeled “Document Type”, pull the menu down and select “proposed rules” 
3.  On the right box labeled “Enter keyword or ID”, enter “safe mortgage”. Then, press search 
4.  Locate the blue search result “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ….” To read the rules, click on this title. You will be taken to another page. You will see “views”. You can click on PDF file or another symbol which will show you the rule document online. 
5.  On the right of the screen, click on “submit comment” 
6.  Complete the form providing required information and your comments and then submit

What do you say? 
Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own.

Some ideas from others:
• Bank loans are not available on some types of properties 
• The tight lending climate has made bank financing “out of reach” for many 
• Seller financing is an “age old” tradition based on private property rights 
• These rules would prohibit even partial seller financing – i.e. a “seller second” 
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear 
• An estimated 6 million Americans own a property other than their own primary residence 
• An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties 
• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing 
• Approximately 5% of homes in US are for sale or for lease… seller financing may be key to liquidating this inventory 

Post comments to: http://bit.ly/b0NyKx

DEADLINE FOR COMMENTS HAS BEEN EXTENDED TO MARCH 5th

Compliments of BILL Kiefer 
ACT TODAY !!!!!!!!!!!!!!!!!

AASEW’s Traders’ Corner To Be Introduced on Feb. 15th, Prior to Monthly Membership Meeting.

Feb 9

Posted by Tristan R. Pettit, Esq. in AASEW, Investing In Rental Property | No Comments

The AASEW is constantly striving to make our monthly membership meetings more interactive, informative, and fun for our members.  Toward that end, we have formed a committee comprised of 3 board members (Alan Rusk, Kim Queen & John Coons) to explore and suggest ideas to improve the AASEW’s monthly meetings.  Our attendence has been up over the past year and we want to maintain (and even increase) this trend.

The first of the ideas to be implemented will be the Traders’ Corner.   The Traders’ Corner will meet from 6:30 pm – 7 pm on Monday, February 15, 2010 (and will continue to meet 1/2 hour before the start of the AASEW’s regular monthly meetings) at the Best Wester Hotel located at 1005 S. Moorland Road in Brookfield.

The goal of the Corner is to allow for members to meet and discuss their real estate ”deals.”  If you have a rental property that you are looking to sell or if you would like to purchase additional rental properties – the Traders’ Corner is where you want to be.  Come and tell us about how you found your most recent “deal” and how you analyzed it and determined that it was something that you should go forward with. 

The meeting will be very informal and we will let those in attendence dictate what we talk about.  Ideally we hope this new event will allow members to meet and interact with one another more and allow for all of us to learn from one another.  Our members possess a wealth of real estate knowledge and experience and that is something that the AASEW is hoping will be shared.

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City of Milwaukee’s Rental Rehab Program Offers Investors Funds to Rehabilitate Foreclosed Properties

Jan 20

Posted by Tristan R. Pettit, Esq. in City of Milwaukee, Investing In Rental Property | 6 Comments

In an effort to rid itself of the many abandoned and foreclosed properties throughout the city, Milwaukee’s Neighborhood Stabilization Program (NSP) Rental Rehab Program will provide investors and landlords with financial assistance to rehabilitate foreclosed homes.

According to the flyer that I was given, responsible investor owners and landlords who purchase foreclosed homes in the city of Milwaukee may be eligible for forgivable loans of up to $17,500 per unit (or $35,00 for a duplex) to assist them with repairs to the property.  The funds are made available on a matching funds basis.

The city will be holding an informational seminar on Wednesday, January 27, 2010 from 3:30 – 4:30 pm at the Department of City Development located at 809 N. Broadway in the 1st floor boardroom.

The seminar will provide attendees with additional details as to the program requirements and rehabilitation specifications.

It is requested that all attendees pre-register by sending an email to NSPinfo@Milwaukee.gov. 

Additional information on the program can be found at the www.MilwaukeeHousingHelp.org

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LLC’s – PART 1: Why You Should Consider Using Them To Hold Your Rental Property

Oct 28

Posted by Tristan R. Pettit, Esq. in AASEW, Investing In Rental Property, LLC's | 1 Comment

 
The AASEW’s October monthly membership meeting focused on the issue of LLC’s and why you should consider using this business entity to hold your rental properties.   Attorney Lydia Chartre of Petrie and Stocking S.C. spoke to the membership about several issues related to LLC’s including:
 
-  Why create an LLC?
 
-  Steps to create an LLC
 
-  Information that an attorney will need to assist you in creating an LLC
 
This meeting had the largest turnout of any AASEW membership meeting in the last 2 years — we had more than 70 people.  Both prior to the meeting and afterwords I received several telephone calls from people that wanted to attend the meeting but were unable to do so.  Because of this I have decided to post Atty. Chartre’s outline that was distributed to everyone in attendance at the meeting.  While you missed a great presentation from my law partner, Lydia, at least you will have the “nuts and bolts” of her presentation. Read the rest of this entry »

“Landlords Feel The Loathing” – Accurate Article On Landlords’ Plight Published in Milwaukee Journal-Sentinel Today

Sep 17

Posted by Tristan R. Pettit, Esq. in CCAP, DNS, Investing In Rental Property, Legislation, Mandatory Rental Inspections / Landlord Licensing, Rep. Marlin Schneider, Screening Tenants | 2 Comments

Several weeks ago I received a telephone call from Journal Sentinel reporter Patrick McIlheran.  Mr. McIlheran told me that someone had referred him to my blog and after reading some of the posts that he wanted to speak with me as he was in the process of putting together a piece about how the state and the city seem to make the business of landlording more and more difficult.  I was more than happy to assist Mr. McIlheran as this topic comes up regularly during my interactions with clients, and at the the Apartment Association of Southeastern Wisconsin meeting.  Truth be told, most business – not just rental property owners – wonder why the city makes doing business here so difficult and unappealing. Read the rest of this entry »

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