All Forum Posts by: Jeremy Trad

@Garrett Jennings
@Marcus Auerbach correctly pointed out the issues with Land Contracts and Strict Foreclosure, however, I prefer to do a Seller Held Mortgage rather than a Lease Option. Strict foreclosure is terrible and there is a zero chance I would ever personally sign a document like that. As for Lease Options, the issue I have with that strategy applies to land contracts as well, which is that the seller retains the Title in both instances. Probably doesn't make a huge difference, but I want the Title in my name when I close.

I can give you the name of the attorney that drafted my Seller held mortgages if you would like. Shoot me a DM if interested.

Riverwest has an interesting history, so it's tough to give an exact percentage since different buildings have different levels of repairs/upgrades throughout the years. For your typical 1910-1915 Riverwest property with the usual amount of neglected maintenance(which tends to be higher in RW vs Shorewood/Tosa), I can say for certain that 5% CapX is on the lower side of things. I always encourage people to run a few different calculations where the CapX percentage is the only changed variable so that you gain a thorough understanding of what will happen under a wider range of circumstances. Lastly, keep in mind that the IRS allows 27.5-year depreciation, which serves as a useful checkpoint. Your expected CapX doesn't need to perfectly match your depreciation, but it shouldn't be too far off.

Treasuries offer zero protection against currency debasement. So when you say they get 4.7% and "the risk is either zero or extremely low", sure the risk of outright default is near zero but you're guaranteed to lose purchasing power over time. If you think the United States government is going to pay you back with interest in real terms, you're delusional. After adjusting for the fact that hard assets float against inflation, Real Estate destroys US Treasuries by a mile. Additionally, good luck getting 3:1 or 4:1 leverage on US Treasuries.

There are a few that I know of that typically work in that area. Feel free to shoot me a PM if you'd like an introduction

@Rebecca Knox, can you PM me your POCs for those 2! Please and thank you :)

Hey @Francisco Solano,

I've done a few creative deals here in Milwaukee and can get you connected with the Attorney that drafts my mortgage notes.

@Chris Diaz, I'd rather not speak on either company's behalf since I don't work for them and it's a policy that could change with time. What I can say for certain is that I've had positive user experiences at both Landmark & Summit, both as the client and as an agent assisting a client. Just give them a quick call to verify before spending too much time doing online research.

Just a heads up, many of the local CU's only work with in-state investors. I've had a number of OOS clients have to pivot back to traditional banks because the CU's weren't super friendly. I second the Landmark and Summit recommendations. UW-CU and Educator's-CU are other good options. Marine-CU tends to have higher rates, but more flexible lending standards.

Great meeting. Thanks Dawn!

 Hey Ryan,

Milwaukee is a great spot to invest. The local REIA and Brew City meet ups are always a good place to start learning and networking! AASEW is a great resource once you're jumping up to the bigger buildings. Feel free to reach out directly if you have more questions. Good luck and happy investing!

~Jeremy