All Forum Posts by: Michael Kretch

I've made several offers in the area but nothing accepted as of yet.  Definitely an area that I'm focusing on currently due to incoming jobs and proximity to Chicago and Milwaukee.  Generally a tax break from Illinois but with somewhat lower rental rates so there's a tradeoff.  

Hello,

I'm currently in the process of applying for a PAL.  Basically, it is a revolving line of credit secured by cash and securities in a brokerage account.  The line can be used for non-securities purchases, such as real estate.  I like the added flexibility that the line could provide while maintaining positions within a brokerage account.

I was wondering, what could the downside of an open PAL be?  I were to apply for a more conventional loan in the future, would a lender look at the PAL as a problem?

I drove up to the Kenosha/Racine area this weekend to continue getting a feel for the area and to take a look at a couple properties.  Echoing @Cody Barrett @Jason V. and an investor I spoke with in the area, Kenosha county seems to have decent momentum at the moment.  There are nice pockets in Racine but it doesn't seem to have rebounded at the same pace and the taxes can be steep.  

Large companies moving into the region, the location between Chicago and Milwaukee as well as bordering Illinois seem like nice tailwinds to me.  

Hi Melissa, welcome.

Having a good understanding of the neighborhood will help, especially if you will be managing the property yourself.  Properties can require more maintenance depending on quality of tenants or more capex due to their age/condition.  So, although the cashflow could be nice, you should be prepared with reserves besides the down payment when an issue arises.  

Is it a bigger headache than it's worth?  One $30k investment property likely will not have a huge financial impact. But you'll learn a lot of valuable lessons from the process, gain momentum and be able decide if you want to purchase the next one or maybe the next ten.  Run the numbers and good luck.      

@Brett Britten Thank you for the recommendation and links, coincidentally I spoke with her for the first time last week regarding a HUD property. Will follow up.

Hi all,

I've been looking at the Kenosha and Racine areas and I'm looking for an agent with experience working with investors.  I'm primarily interested in buy and hold but would consider most opportunities.  Also, just looking to learn more about the region and which sub-areas investors are focusing on.

If anyone has an agent they'd recommend nearby, please let me know.

Thanks!

@Don Konipol Thanks Don.  So while a person gains the separation they should consider that the new entity may have to start at square one.  

When a Series LLC creates a new series within the parent LLC, how does a lender view the new series from a lending standpoint? From my understanding, some lenders will offer financing directly to an LLC once it has established a track record. A new series is considered to have it's own separate assets and liabilities. So, if the original Series LLC had financing but a new series was created in order to separate new holdings, would the newly created series have to establish it's own track record?

@Edgar Perez That's great, I think the area has a number of positives. For investments, ideally buy and hold for smaller multi-family properties, possibly single family if the numbers make sense using BRRRR. Not opposed to flips but would need boots on the ground or to drive up frequently.

Have you done any investing in your town or are there any areas that interest you in particular?  

Amazon is certainly important but yes, there are others.  http://www.kaba.org/community/work/business_community.asp