All Forum Posts by: James Gefke

Hi Marcus,

If your plan is to fix and sell (sounds like that is the case) I would recommend paying for an engineering report from a reputable firm addressing any issues you have with the work that has been performed.  It is difficult to tell from the picture but if the wall is still fairly straight and the proper size beams and spacing were used you will most likely be okay.  Having a report is a fairly inexpensive way to help ease most concerns that potential buyers may have.  Foundation issues are fairly common in Milwaukee and the surrounding areas.  Often times realtors and buyers are aware they exist and should not be too scared if properly mitigated and documented.

As stated above, having proper pitch and drainage are the most simple and effective ways to help avoid foundation issues.

What type of property are you looking to buy and what city is it located in?

If it is a single family and you pay 25k over market value you will have limited exit opportunities available. Also I would think that it would be pretty difficult to earn reasonable return at that price level.

The other item that would concern me is the method you plan on using to purchase the property. A 5/1 arm at 4.75% could be much more expensive when looking to refinance when the term is up.

Property taxes are rather high here as well. Just make sure you work all the numbers out and if the deal makes sense you can move forward with it but if this your first deal and you haven't looked at numerous other opportunities I would hold off.

the 1031 should be no concern of yours and frankly I would be a bit skeptical if someone I knew was willing to sell me a property at 25k over appraisal and then manage it (presumably for $$$) I would definitely wonder if this is first out of area investment in real estate that I would like to make :)

Hi Chad,

Have a couple of questions regarding your post.

1. Is this 5k, 5.5% commission for each deal you do?

2. What is he providing with you during the rehab?

3. How is he getting deals with those margins?

If I were you I would like to talk with people who he has provided this service in the past and what their results were.

I would also like to see actual deals and numbers to verify he can produce the results he is presenting you with.

I'm trying to figure out what exactly you are paying for.

I am not sure of what your resources are but it sounds like you may have family that could possibly provide you with some very good insight. I would start there.

Most importantly, you really need to study and know your market. A hard money lender will want to qualify people they lend to but whether or not the deal makes sense will likely determine the likelihood of a deal getting funded.

FWIW, I would be very cautious allowing someone I just met to value a deal that I am using my money/credit. Especially when they get paid upfront:)

Good luck!

I should be able to make it

Great meeting today Nicole! Micah did a great job outlining some alternative financing methods and the importance of developing relationships with lenders that can objectively evaluate deals on a case by case basis.

Thanks again for organizing!

Hi Joshua,

You may want to give Heidi Zimmer-Koschnick a call over at 1st Service Title and Closing. I know she extensively networks with investors.

You could also contact Land Title over off 76th and Bluemound

Hey Vickie,

Here's a link that may help answer your question....

http://www.civilrights.org/fairhousing/laws/federal.html

Hi Kay,

It really depends on what you are looking to do. Most of the pricing in the city itself is fairly depressed. Most wholesalers operate in these areas and sell to landlords.

The majority of the housing stock is old (100 years+) in the central city. The "newer" areas on the northwest and southwest sides were developed in the 1950's for the most part. There is some more modern construction pockets (1990 and after) of course but they are few and far between.

With that being said, it can take a considerable amount of resources to renovate these buildings for resale and most areas of the city will not support sale prices following the necessary renovations that need to take place.

I am not suggesting there is no opportunity... Far from it. These are just some things to take into consideration moving forward.

Keep asking questions and good luck!

Hey John,

In Wisconsin you can check out ccap to look for any judgements.

Here is the link: wcca.wicourts.gov/

Also, you may want to stop by the applicants current residence (unscheduled) to check out the current condition of their home. It will be a good indicator of how they will treat your unit.

Hey David

Bandit signs are just like any other marketing. You need to be consistent with multiple campaigns and try and monitor your results. They are probably one of the most inexpensive ways to get your message out and get the phone ringing.

Can you get deals for them? Sure but they are illegal in most areas and I choose not to use them for that very reason. FWIW, most of the investors in my area have more luck finding buyers after they have a property under contract than finding motivated sellers.