First time invester looking to learn about a new market for out of state investing

[Josh Scroggins]

I live in a place where the rent to mortgage ratio just doesn't work.  I'm heavily leaning towards investing in Milwaukee.  I've already found a great real estate guy and lender who are both investors and renters.  What I'm missing are a couple of other key people for my team there.  I need to find a contractor and a property manager I can trust.  Given that this is an out of state investment strategy, the property manager is likely the most important person for my team.  I'm about 5-6 months out from having enough for the 25% down payment I'll need for an investment loan on a duplex there to get started.  Any tips from out of state investors or people who invest in Milwaukee that might know some trustworthy property managers and/or contractors?  Thank you!

[Rebecca Knox]

Landmark CU has a special program going on for duplexes where the down payment is lower--reach out to Patrick Martin. 

1. A 5 year fixed loan, with up to a 30 year amortization option for up to $250,000. This option is a 5 year loan but allows for payments based over 30 years and requires a loan renewal after 5 years.
   1. Our rates are based on the Five year Treasury +2.60%, but we are holding rates today at 6.95%. Our rates are updated weekly on Mondays and when we quote rates, they are good for one week unless we start a new loan request and are subject to change at any time. Once we lock our rate, we do require a closing within 90 days (also subject to change at any time).
   2. Loan renewal fees after the 5 year term would be $500.00.
2. A 15 year fixed loan, fully amortized, for up to $250,000.

1. For this option, our rates are based on the Seven year Treasury +3.00%, but we are holding rates today at 7.10%.

• Loan closing costs are a total of $1,500 for loans up to $150,000 and $2,500 for loans from $150,001 up to $250,000, which covers all costs associated with these loans (for example - appraisal evaluations, all title work, flood determination, credit report, tax service fees, etc.).
  1. Closings costs will vary only if two or more properties are included in one loan.
• The maximum Loan to Value (LTV) will need to be 80% maximum for purchases and 75% maximum for cash out refinance and are based upon the purchase price or the appraisal value, using the lesser of the two values.

1. If the property is newly purchased, we will go off the purchase price plus repair/update costs with a max of 90% of this value, but still use a max LTV of 75%.

• Should you wish to refinance your Landmark loan with another lender in the future or pay off the loan early, there will be a $500 pre-payment fee. This fee is generally waived if Landmark finances a replacement property. Landmark does allow paying up to 20% of the loan amount per year without penalty.
• Requires 2 years of existing business experience for Commercial Owner-Occupied properties. There is no time in business requirements for new real estate investors.

I use Citywide Rentals as do many other investors, especially out of state, and I am very grateful for them. I've used them the past 2 years, previously self-managing. I run Wisconsin Contractor & Handyman Club and my PM still gets work done lower than I can. Even on my last roof, I got 3 quotes from the best of the best and my PM came in $1k lower. If I didn't use Citywide, I'd use Alyssa Hygert at MKE Leasing or Ed Riggenbach at Welcome Home Milwaukee--both also handle the maintenance and getting properties rent ready.