All Forum Posts by: Darren Budahn

@Jaime Mack

Man who is worried about having his $500,000 tax free gift from the government reduced has the nerve to call other people who presumably don’t have to worry about $500,000 profits in real estate “takers.” I should send this to The Onion

I feel your pain on Bay View. I’ve lived in the neighborhood for 15 years but I remember passing on rentals  in like 2012/2013 in Bay View thinking they were priced too high. Oh well.....

Bay View, Riverwest, and the East side will all have older duplexes and the hipster clientele. 

I'm guessing it's possible to invest in low income areas from far away, but I haven't seen it done successfully. In fact, you can look at literally dozens of properties on the MLS that have traded numerous times over a short period of time and invariably when you look at the history many of the owners are out of state. In fact, the rate of failure for many local owners in certain areas is also very high. Biggest point that was made by Marcus is that cap ex truly will doom you in 100 year old buildings in these areas meaning you have to buy at the right price. Also many of the successful locals either do a lot of the work themselves or are at a scale where they can hire legit people and make it work.

It’s a very working class, diverse, dense urban neighborhood with older housing stock. Yes there will be crime in the area. Yes there is the potential for good cash flow if you can get good tenants and don’t get eaten up by maintenance costs. I think it would be a significant challenge making this work from long distance but the returns can be high if you are successful 

Mike Shadid Foundation Consulting is good if you want to pay someone not affiliated with a foundation company to tell you what exactly is wrong and how you can fix it.  Will probably cost you $300-$400.  But then you know you won't be getting ripped off by one of the foundation companies

@Jorge Rubio

I've used my HELOC many times to pay cash for a property and then refinanced the property (which hopefully has some equity) to pay back the line of credit.

@Xela Batchelder

Just look for a local lender and make sure you aren’t overpaying. All these banks that keep the loans in house will have different requirements. You may have to do some searching but these lenders do exist. Don’t try and take a deal like this to a big national bank.

@Nathan Belete

Do not touch these properties if you aren’t local or don’t have a trusted team in place. There is no way you will ever manage a major rehab from across the country in these areas while trying to deal with the city of Milwaukee. The property on Clark you listed costs 2K. Rehab is 75K. You know how much equity you’d have if you spent 75K on this house? The answer is less than zero. And the property on Richards you referenced would never rent for $1,000 a month

@Shawn McLellandJeff Bezos makes a $150,000 per minute and Amazon pays nothing in federal taxes.  Republicans gave a 1.7 trillion dollar tax cut to upper income earners and corporations in 2017.  I wouldn't make people feel guilty for applying for an available "loan" with good terms from the federal government.