All Forum Posts by: Conrad Scoville

Hi All, 

I am looking to outsource some of my book keeping so that I can continue to grow and I am looking for a real estate minded accountant/CPA in the southeastern Wisconsin Area. I live near and do most of my investing in Milwaukee. If any one has any recommendations let me know. I have looked in to the Neil Group prior but wanted to window shop before I settle on a firm. 

Thanks, 

Conrad

@Marcus Auerbach your right being a small fish isn't all bad! I am at that spot between 3-5 and I am hitting that DTI issue, I have talked with landmark because they have a program set up for this type of property, but they requested I come back after I have my 2021 tax returns exactly for that purpose and they would reevaluate the loan. I came to them originally to fund the loan but only half the property was rented, and I knew they couldn't get it through but they tried for me anyways. So I will probably just bite the bullet, extend my hard money and work towards getting my taxes done asap. I just closed two loans with a business partner so I am up to 5 properties including my personal home so I feel like I am hitting that resistance ceiling now. Good to know that it is 10 in my name and 10 in my wife's name that opens the door a bit and never would have though about it. I appreciate hearing about the progression, I feel like the doors are all the sudden opening up to grow and its just trying to put those pieces of the puzzle in place

@Bob E. Thanks for the follow up, sharing some of your challenges and advice. Its good to know that I'm not the only one dealing with these types of issues. Hopefully your Multi-family deal went through! I feel and what I have been hearing is the commercial side seems so much smoother, that is what Marcus was echoing too. Our family business is General Contracting but we focus on commercial interiors so we work with a lot of commercial brokers and talking with them and commercial bankers at a lot of mixers is just seems like everything is smoother at those levels including the contracting! Hoping I can get to that monopoly level of trading in my houses for hotels but getting through these few hurdles are a big test for me. I really like the seller financing option and I will make a note of the the terms, do you have a sample term sheet you could send me? It would help me to read through one to understand the ins and outs a little better. Yup I have heard of IRA lending and I have a stock account that has a margin set up, unfortunately that account has taken some hits recently so ill need to build that margin back up again, but That concept is really smart, when that account was rocking I had a huge margin available to me and that would have been a smart move. Ill also check out roofstock and see what they have to offer. Thanks again for taking the time to provide me with advice!

Hi @Marcus Auerbach,

Thanks for your reply. Good to hear from you again! Yeah I am just a small fish at this point! I have them in my name and with good insurance, so I have that all dialed in, made sure I had that going in. The LLC's really haven't provided much help other than being able to get some business credit and book keeping purposes, hopefully ill grow to use them. I have noticed that with lower priced properties in the city using brokers is nearly impossible due to rule differences on what I believe they label "high cost mortgages". So that could be some of the issues I am seeing and need to find a bank that can work around that. I have also noticed my broker having trouble using my rental income against the properties which is what drew me towards commercial loans. Not sure that is normal but it seems to be coming up. I have only quit claimed once that that was to get the property into my LLC name because my Offer to purchase was in my name and I used hard money to get the loan which used my LLC. Ill have to quit claim it out now to get a conventional refi in my name, but that's not a big deal. I'm a pretty by the rule type of guy so I'm not trying to jeopardize anything that can compromise my mortgage and I know its low acuity thing, but don't see a need. I am trying to use my LLC when its appropriate and if it helps me ill use it, but Ill take any refi at this point with this property to get it off my plate.

 @Melanie Eden Thanks for your reply. I have done the quit claim before and I was actually working on that right now, I have a mortgage broker who I have worked with for several properties, including a past property and my personal home, we typically have everything pretty dialed. Right now he is trying to refinance out of that loan and I would quit claim it back in. Couple issues, as I understand it you can only have 10 properties financed under your personal name, this would put me at 3, plus I just went through a hybrid loan with equitable with a partner to purchase two more properties so that is 5. I have room but I am trying to get everything into my LLC so I can get a way from this, but clearly I am having trouble. Second thing is he's says he's running into a debt to income issue, which is also why I am trying to get things under the LLC and away from my personal finances. Even though everything is rented and cash flowing, refinancing my personal property and buying the others were no issue but this one seems to be an issue.

2. I have called several referrals from the MKE hard money page, I saw peoples bank on there but haven't contacted them yet, called a few others. Landmark has a program that literally is designed for this and even though it meets all the qualifications, I tried to get it refinance through them but I didn't have one of the units rented so they declined and said to come back when it was rented because that was the issue, I did that and got it rented, would have great cash flow with the rates they provided initially, a 5 year convertible or a 15 year and even then it still has the cashflow. I sent them the details and they declined it with out me even applying. You really start to feel deflated when that happens. 

I would take the numbers for Waterstone, Sunset, and Peoples. I really would like to establish a relationship with someone that I can work with on a consistent basis and we both know what to expect from each other. Thanks again for talking about it with me. 

@Henry Clark Thanks for your reply as well. 

1. I guess I don't have rich investors haha. I have investors that can supply very healthy down payments via promissory notes. We purchase the properties, I rehab, refinance, and pay them out with interest and we do it all over again. Least that was my understanding of how to you use other peoples money to invest, I know several successful investors who have done this. 

2. piggy backing off the top, Investors supply money to purchase properties through the LLC. basically I have investors that want to get into real estate and provide funds to do so. I would use those funds to buy properties using traditional loans because I don't have hundreds of thousands of dollars nor do I know anyone who has the money to buy properties straight cash. If I had that I wouldn't need to write anything here.

3. That is my goal. I cant seem to find that company. I have an established relationship with Gomortgage a broker and Milwaukee hard money, I what I need the lender that can refi me out of hard money not using my personal name but keeping it all in the LLC. MKE hard money approved me for a loan on a city owned vacant property selling for $2,900 and 70k in rehab money probably because I have established a relationship with them, but If I cant find the finance company to take these properties over, I cant move forward. Your right, that's how I feel right now, collateral scatted all over that I cant use, I need my team member that's why I am here because I'm not finding them, I came to the forums to seek help in that. I don't want to shop, but I feel I need to shop to find my team member that will help me, how do I find them otherwise?

4/5. Will make sure I do both of those things. I thought cashflow would cover my refi, but I feel like I am out of collateral and will need to sell to get an influx of capital, still capital isn't really my issue. Like I said I have multiple investors ready to give me 25%+ down payment money no problem, So it sucks that I have the investment money to buy properties I just have no way to finance them, which means I am going to need to come up with a new finance model I guess, maybe a pool or syndicate. Again it seems I am going to need to sell this property because I don't see anyway around it right now. Your right, I am not solving my finance problem right now and its killing any progress I have had. Selling might solve that but I'll just lose most of my profit in short term cap gains and be right back where I was before buying the property. I always thought that if I buy properties, rehab them, rent them that I could refi them and keep moving but I cant keep moving if no one will refi a cash flowing property. No one on any podcast mentioned that issue haha I appreciate all your response and I will take what you said and work on it diligently and come back with a true assessment of what you said, beyond this reply. I really needed to get some frustrations out and I sincerely appreciate you taking the time to read and provide me with advice. Thank you! 

Alright Group need some help.

I own several properties now in the city. My last purchase I used a hard money lender, did my rehab, got it rented, all set to go except....I can't refi...I am not sure what my move is now, my hard money loan is about to get extended but the payments are killing me since I cant get out of it. The kicker is I have deals and investors lined up to go for new properties just waiting but for the life of me I cant get the financing to work out. I used to think finding the investors or the money was the hard part but that is honestly the easy part, finding lenders is a thorn in my side that is just getting twisted. I have gone to several banks, credit unions, my go-to mortgage broker but all I am finding is that this BRRRR strategy seems like total BS!! Really frustrated at this point, but I would love some lenders that work with LLC's. I have summited with lenders that partner with hard money and one said that I need year leases, but almost all the leases that I have run into in the city are month to month! I have 4 properties and I have one house on a year lease. I have leases in place for all my properties, I have renters in place, one who has been in the property for 30 years, yet I can't find the lenders. I want to go through my LLC because I set everything up that way very methodically, but all the sudden that seems like its harder too, they want more personal information or they are suggesting hybrid loans instead of ones that are just with the LLC, seems like it should be simple, but I am finding this step more complicated than anyone ever says it is. This is the last piece of the puzzle, I got bomber real estate agents, I got all the contractors, I have hard money ready to go on new properties, I have investors ready with money, I have my LLC, I got the deals, if I get my lender issues solved I can scale quickly and get my plane off the runway. Yet here I am stuck, I feel like I have done every step right, every thing is in place yet all I am finding is lenders are getting pickier and pickier, like it used to be get it rented, now its get it rented with a year lease I really need some help on this one. I have been trying to get through this on my own and learn from the process, but at this stage of the game I need some guidance, any specific lenders or advice would be amazing. I would even take stories or encouragement at this point!

Thanks in Advance!

HI Cam, I am a project manager for Interspace LLC, we specialize in commercial interiors but we also do residential projects. I also own several rental properties in the city and continue to invest so I have knowledge of that side of the game too. Majority of our subs work commercial but they also do residential which I think gives us an advantage because they are no non-sense. You can run into a lot of non-sense guys on the residential side, but that doesn't fly on the commercial side of things. Look us up at interspaceconstruction.com or send me a message if you still need someone or keep us in mind if you need someone in the future. Cheers!

Hi @Amanda Turner, 

Welcome to Southeastern Wisconsin! I am a young investor here, definite echo the sentiment already mentioned in the thread, the brew city REI group on facebook is super active and a great place to check in. I have one property here in Milwaukee and actively pursuing my second. I am also a general contractor and our company Interspace LLC does primarily commercial properties however we have been doing a lot of residential remodeling lately because of the market trends. So if you need someone to do some free estimates on work let me know. We try not to stray too far from Milwaukee, but we have done work as far away as Madison. I am also actively looking for partners to do residential deals with because im trying to scale my business quickly as I am hoping to have several large scale developments on the horizon. I recently started a company that focuses on sustainable development and redevelopment. Beyond all that I also just genuinely enjoy connecting with people and talking about real estate especially in the Milwaukee area so feel free to connect or reach out.

Cheers,

Conrad

All,

I am looking to connect with people who have had experience finding lead investors for larger scale developments. I am a young developer and my company Nu Range Development seeks to redevelop existing properties into sustainable structures as well as build from the ground up some of the most healthy eco-conscious forward thinking structures on the planet. I have almost everything in place except a lead investor. I have presented my business plan to banks and have received a positive response. I even reached out to a local venture capitalist group but they are only a co-investor group and don't lead rounds, they asked If I a lead investor. So how is the best way to meet, network, or find lead investors that could help lead rounds to get my real estate development business off the ground and changing the world? Any and all responses welcome, even if you just want to talk about sustainability or sustainable development!

Thanks,

Conrad

@Linda Thomas the easiest way around it would be to wear an N95 masks yourselves. Unfortunately it's hard to make others do what we want even if it's in our property. Wearing an N95 would protect you from them since that is the concern and would not require the tenant to do anything. You can ask them to wear masks but if they still refuse It's probably not worth rocking the boat when you can fully protect yourself. I know its not ideal but it would be the easiest solution, and keep the peace.

A fellow BP member and I connected for the first time serendipitously, but unplanned on Earth Day to talk about the opportunities of real estate and the ability to leverage it to create change, particular in the field of sustainability and sustainable development. Although we were across the country from each other we held many of the same views and decided that we wanted to try to create a community that also held these values. We believe networking, collaborating, and supporting each other will help bring awareness to sustainability in a new way and hopefully help us all move forward in this field. This forum is an opportunity to connect and talk about how we can combine, real estate, financial freedom and environmental stewardship. Look forward to chatting and connecting with all of you!