Archive for category Investing In Rental Property

AASEW Meeting: Learn the Ins & Outs of Low Income Tax Credit Financing on July 15th.

You look at conversions such as the knitting factory being turned into loft apartments on the near Southside and you wonder ‘How could they afford to do this, in this market?’

The answer is Low Income Tax Credit Financing.  A brief overview is you design a project, go to the state (WHEDA) and apply for tax credits.  If all goes well and you are approved, you receive federal income tax credits.  There is a formula based on the amount you spend, the number of units that are reserved for occupants below the county median income and a bunch of other factors.

These credits will be far in excess of what a normal investor/developer can personally use.  So they “syndicate” the tax credits to an investment group.  The investors get income tax saving in exchange for the money you need to put the project together.

It is a very competitive application process.  It is a very intense process. It is a fairly expensive process.  If you are looking for an easy dollar, you are looking the wrong way.  I speak from the experience of having tried and failed at obtaining tax credit financing to create accessible infill housing on the near north and near south sides of Milwaukee a bit over a decade ago.

But if you can break into this market you can do well, while doing good.

So it was a decade ago and I haven’t tried since, so why bring it up today?  The July Apartment Association meeting features Keith Broadnax of Great Lakes Capital Fund, one of the tax credit financing investment groups.  Years later I still find this was an intriguing opportunity.

- Tim Ballering, AASEW Board member & Owner of Affordable Rentals

You do not want to miss this meeting!

When: Monday, July 15, 2013 at 7:00 p.m.

Where: The Best Western, 1005 S. Moorland Road, Brookfield 53005

Who:  Keith Broadnax of the Cap Fund

Cost:  Free for current AASEW members, $25 for guests and expired members.

 

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AASEW Meeting: Financing Real Estate In Today’s Market —- May 20, 2013

Please join me at the AASEW‘s next monthly membership meeting where we will discuss Financing Real Estate in Today’s Market.

When: Monday May 20th, 2013 at 7:00 p.m.

Where: The Best Western, 1005 S. Moorland Road, Brookfield 53005

Who: Panel of local lending experts. Details below.

Cost: This meeting is free for current AASEW members, $25 for guests or expired members

Good deals are more abundant today than ever in the past.  But we all know low prices at the same time as low interest will not last forever.  The deal killer for most is funding those great projects you find.  Come to this meeting and get a pulse on the current lending environment from big bank lending to smaller community banks. From hard money lending to the credit union perspective, our panel discussion is sure to have something for you! And speaking of perspective, some of our experts are landlords too!

Knowledge is power! The AASEW is proud to present yet another forum on information you need to succeed in today’s economy.

Monday, May 20th at 7 PM is just Around the corner! See you then!”

 

Our panelists will include:

Rob Seetan – Brewery Credit Union

Rob has lived and worked in Milwaukee for 15 years.  His first job in the mortgage industry with Pinnacle Bancorp (no longer exists) as an Account Executive.  He started loan originating in Milwaukee 2000.  He joined Brewery Credit Union in 2009 and holds the position of originator, underwriter and administrator for Brewery Credit Union founded as Brewery Workers Credit Union in 1934.  Brewery CU maintains about 15% of its portfolio with small investment properties (no commercial lending).  The majority of their investment units are within the City of Milwaukee.  Brewery Credit Union was granted special privileges by US Treasury Dept. through our Community Development Financial Institution (CDFI) designation.
Luke Hagel – Commerce State Bank

Luke has been working in the banking industry for about 9.5 years.  He began my career with Wisconsin Business Development as a credit analyst in 2003.  While at the WBD he learned a lot about SBA lending, specifically relating to the SBA 504 and 7a programs.  Hejoined Commerce State Bank in January of 2008 and has worked as part of the commercial lending team there since that time.  Luke grew his own portfolio which is currently about $50MM in loans comprised mostly of C&I loans (Real estate, LOC’s, equipment, etc.).  Luke assists in nearly all SBA lending done at the bank.  Luke graduated magna cum laude from Ripon College with a B.A. in Business Management in 2003 where he also served as a Student Mentor, Resident Assistant (R.A.) and member of both the college Baseball and Football teams.  Luke also graduated magna cum laude from UW-Milwaukee with a Masters of Business Admin in 2006.  He currently resides in West Bend with his wife and 3 kids.

Chris Wilz – Senior Lender US Bank

Chris is Vice President & Relationship Manager for US Bank, Business Banking division.  He has over 11 years of experience with commercial lending and in the financial services industry.  He earned his bachelor’s degree from the University of Wisconsin – Madison Business School majoring in Finance, Investments & Banking.  Chris works with commercial real estate investors and business owners to provide financing for real estate loans, equipment loans or leases, and lines of credit, in addition to the full breath of banking products and services the bank has to offer.  For three consecutive years, Chris has received an Annual Pinnacle award for being one of the top producers at US Bank.
Scott Lurie – F Street Investments, Jomela Properties

Scott, a local Milwaukee businessman earned his B.A. in Finance from The George Washington University.  After college, Scott spent 2 years in the M&A industry serving as an analyst for Kaulkin Ginsberg Company.  After moving back to the Midwest, Scott worked for his family heading a division of Lurie Glass.  In August of 2004, Scott let his entrepreneurial spirit get the better of him and began investing in real estate.  After purchasing a Homevestors of America franchise, Scott got involved in real estate acquisitions, financing, and property management.  His relationship with Homevestors ended in February 2009.  Scott continues to be involved in real estate and finance.  To date, Scott has bought and sold over 125 houses in addition to building a rental portfolio of 1400 units which are self managed.  In addition to the multiple real estate acquisitions Scott has been involved in, he also specializes in “hard money” financing.  With over $12 Millions in deals financed to date Scott gets it done!  Scott’s interest outside of the office are his family, golf, tennis, and travel.

 

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AASEW’s Next Meeting: How To Buy Rental Property In The New Economy Featuring Joe Dahl – Monday, August 20th

I hope that you all can make it to the next AASEW membership meeting on Monday, August 20th, 2012 starting at 7 PM.  Joe Dahl, a young and dynamic local landlord and property manager (and the newest member of the AASEW Board of Directors) will discuss how to successfully invest in real estate in this new economy.

Joe has successfully bought rental property using his own money, bank money, and the city’s money under the Neighborhood Stabilization Program.  Joe will discuss all of these options and explain how he has been able to successfully own and manage rentals in Milwaukee.  Many of Joe’s rental properties are located in the Lindsey Heights area of Milwaukee.  Lindsey Heights is one of two target areas currently required by the City of Milwaukee’s  Residential Rental Inspection “pilot” Program requiring landlords to voluntarily submit their rental properties to city inspection and requires them to obtain “landlord licences” in order to continue to rent out their properties.  I look forward to hearing Joe’s experience with this controversial city program.

Joe’s story of investing in local real estate while at the same time assisting in the preservation of Milwaukee’s neighborhoods has been covered in local media outlets as well as National Public Radio.

Please join us for Joe’s presentation, along with free food and my “educational moment” (a teaser for the AASEW’s upcoming Landlord Boot Camp) at 7 pm at the  Best Western Midway Hotel which is located at 1005 S. Moorland road in Brookfield.  Attendance is free to AASEW members and $25 to any non-member who has previously attended a meeting.  Come early and enjoy the free food and network with other landlords and vendors that cater to landlords!!

 

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Don’t Miss AASEW’s Next Meeting Featuring Steve Smullin on Real Estate Trading

Come join us at the next AASEW monthly membership meeting next week.

When:   Monday May 21st at 7 PM

Where:  The Best Western, 1005 S. Moorland Road, in Brookfield

Who: Steven J. Smullin – Real Estate Problem Solving Since 1988.

Topic:  Real Estate Trading – It’s All About the Benes . . .  That’s the Benefits, not the Benjamins.

Cost:  Free to current AASEW members, $25 to others.

 

NoteStarting at our May meeting we will be introducing a landlord/tenant law education component to each of our meetings that will last approximately 10-15 minutes. In anticipation of the next Landlord Boot Camp in October, Attorney Tristan Pettit will be taking a single issue from his Landlord Boot Camp materials and teaching it at each meeting.  This month Tristan will talk about LATE FEES.

 

About our Speaker:

Steve is a commercial investment real estate broker, counselor, exchangor, investor, educator, and long time practitioner using creative solutions to real estate related problems.  Steve has closed transactions involving the FDIC, RTC, US Marshall, US Bankruptcy Court, Banks and numerous others since the mid 1980′s … following hundreds of cases, attending dozens of sheriff and judicial sales and assisting clients in the acquisition and disposition of properties.
Steve is a member of the National, Illinois and Chicago Associations of Realtors and a Charter Member of the Northern Illinois Commercial Association of Realtors where he has served on the Board of Directors. He adheres strictly to the Code of Ethics of these organizations and applies their principles in everyday life. In addition he has served on the Board of Directors of the Chicago Area Real Estate Exchangors in numerous capacities including serving as President.

Steve routinely studies formulas, exchanging, financial analysis, and property management and has studied creative real estate techniques and strategies with
some of the most brilliant minds throughout the country. He is a long time member of the Chicago Creative Investors Association and active participant at the National Council of Exchangors, The Society of Exchange Counselors and numerous other marketing and educational organizations.

Steve has presented programs and workshops for Chicago Creative Investors Association, Lake County Property Investors Association, West Suburban Landlords Association, Milwaukee Real Estate Investors Association, and for the ValueHoundAcademy.

Steve’s presentations and workshops have included:

Formulas, Brainstorming & Problem Solving - The days of throwing money at real estate are over.  It’s no longer possible to solve today’s problems with yesterday’s solutions.  Identify the real problem, use effective ideation and brainstorming to identify possible solutions and then, take appropriate action.

Assessing the Situation - The facts and information needed for a successful and profitable deal.  Income and Expense analysis;  The Documents and Information YOU NEED to evaluate the offering;  The Documents YOU NEED to Close the Deal; Sources and Resources.

Real Estate, It’s About The Benes … That’s The Benefits!  Not The Benjamins - The Pros and Cons of Cash and Alternative Currencies; How Benefits oriented real estate transactions create a WIN for all involved.

How To Get What You Want … When You Can’t Sell What You’ve Got – Create benefits oriented real estate transactions that provide WINNING solutions for all involved.  “Selling the Sizzle” and “Buying the Benefits”;  Takers vs. Buyers; The Benefits of Barter; “Packaging” a Property for Disposition.

 

It should be a great meeting.  Hope to see all of you there.

T

AASEW Offers Realtors & Brokers The Perfect Closing Gift for Their Clients – A Reduced Rate AASEW Membership

For those Realtors and Brokers out there, the AASEW has a perfect closing gift for you to give your clients who just purchased a rental property.

Realtors and/or Brokers can purchase an AASEW membership for only $29 through the end of the 2011 membership year for their clients.  Your client will appreciate receiving such a gift as it will put them in touch with other landlords and educational opportunities.

The AASEW offers its members educational seminars, legislative activity, fun filled-events, mentoring, vendor discounts, and much more.  Membership also includes a monthly newsletter and monthly meetings.  Being a member is the perfect way to stay in touch with what is going on in the world of rental property.

Click here to see a copy of the promotional PDF.

Please contact Paulette at 414-276-7378 or paulette@apartmentassoc.org for any questions.

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New Report States What Landlords Already Know – That Milwaukee’s Regulations Hurt Businesses

This past weekend I read a very interesting report which was drafted by the Institute for Justice as part of its City Study Series entitled Unhappy Days for Milwaukee Entrepeneurs: Brew City Regulations Make It Hard For Businesses To Achieve the High Life.

The report is 40 pages long (excluding footnotes) but I encourage everyone to read it.  The report touches on the following issues:

- How the city rigidly restricts the ability of entrepeneurs to operate businesses from their homes

- How the city abuses the custom of aldermanic privilege in order to deny businesses licenses and permits thus preventing businesses from opening and operating

-  How the city imposes restrictions on food-related businesses that make it next to impossible to get a business started

- How the city overburdens successful businesses with so many rules and fees that many businesspersons are contemplating moving out of the city

- How the city arbitrarily enforces building codes and historic preservation provisions making it too costly to rehabilitate old buildings

- How the city severely limits a businesses ability to place signage on its storefront

- How the city requires an expensive license in order to go out of business.

While landlording is not specifically discussed in the report several of the topics addressed clearly affect landlords.  One that comes to mind is the arbitrary enforcement of certain building code provisions – what landlord has not dealt with that?  Additionally I believe many landlords would agree that the city overburdens them with so many rules and fees that many are contemplating leaving the city.  I know of several landlords that have sold off all of their Milwaukee rental properties and now only own and manage rental units outside of the city.  I know of even more landlords that would love to do that very same thing if only they wouldn’t lose their shirt (and their pants, belt, socks and underwear) by selling their rentals in this poor climate.

Landlording is one of the most regulated areas that I am aware of, if you don’t believe me just take a look at this memo that was published by the AASEW board of directors on the topic.

The city’s new Residential Rental Inspection ordinance is another example of the city making it difficult for landlords to survive.

The Journal Sentinel’s Patrick McIlheran wrote about how difficult the environment in Milwaukee is for landlords not too long ago, which I blogged about.

According to the Institute for Justice’s report, landlords are not the only businesses that Milwaukee is making life, success, and survival, difficult for.

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

On March 26, 2010, Senators Lena Taylor and Spencer Coggs along with Senator Lehman sponsored 2009 Senate Bill 650SB 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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