All Forum Posts by: Mitch Ferraro

@Kyle Olsen. BRRR definitely works in Kenosh & Racine. It all comes down when you buy the property. If you buy correctly you will be able to have multiple exit strategies. A few things to make sure when executing this strategy. First, as I just mentioned you have to buy correctly. If you don't purchase the property at the correct price you are just setting yourself up for failure.

Second, when analyzing the property before you buy be sure the property can bring in enough cash flow after you account for mortgage, taxes, insurance, reserves for repairs, vacancies, utilities (if tenant is not paying), & property management (if you choose to have a PM but I highly recommend it).

Third, when you rehab be sure you are building in enough equity into the property so that it appraises out correctly when you refinance. Don't over do the rehab but you still want to take care of larger ticket items while some cosmetic changes will help bring in good value. The goal should be to get 70% LTV so you have to bring very little cash of your own to closing. For example, it would be your goal for a property to appraise out at $100,000 and you are all-in on the property for $70,000. This way you'd basically be bringing almost no money down to closing. This is the fun part of the process! When you go to closing with almost no money down and you know have a cash producing asset. :)

As for DM campaigns, I highly recommend it. But, I totally agree with Brock in the sense you have to be consistent. You just can't send out a batch of mailers one time to a list and expect to get deals. It's takes hitting that list 4-5 times to really see if the marketing campaign works. I see investors say direct mail doesn't work but they don't put the time & money into a campaign. We hit our lists at least 3 types with a specific peace of mail to see if it works. If we some some initial return we stick with the mailer. If not, we typically will discontinue that piece and start another one. It's trial and error when it comes to direct mail. It also can be costly to be consistent but DM does work so I would recommend it. 

Hope this all helped. When COVID is done I'd love to connect and meet. Let's get something on the calendar. We can even do a zoom call in the meantime. Best way to reach me is via email.

Talk soon!

Hey @Kyle Olsen! I'm a local investor in Kenosha & Racine and have done many BRRR projects in in both counties. We are actually in the middle of 3 of them (2 in Kenosha & 1 in Racine). We are currently in the refinance stage on all 3. 2 have renters already and the other is currently on the market for rent. I've been investing in real estate full time for the past 5 years and also hold my WI real estate license. Brock Mogensen is another great resource as well. Please let me know if I can help in any way.

Good luck! 

@Nick Larson Hey Nick! I'm a local investor in the Kenosha/Racine area. Born and raised in Kenosha. I've been RE investing, full time, for over 5 years. Also, hold my WI RE license. I'd love to learn about your SFH and see if it's something we can help with. I sent you a message on BP. Look forward to hearing back. Have a great day!

@Jason Krivickas, no worries! :) Welcome to our side of the boarder. Yes, the first Wednesday of month meetup is open to anyone and is free. Also, if you go onto SEWI Real Estate Investor Group on Facebook you can see all the meetups and events there. Let me know if you have any other questions...happy to help. :)

Hey @Joe Marshall! Welcome to the area. You've picked a great spot to move to. I'm a full time investor in the Kenosha/Racine market and born and raised in Kenosha. There is so much growth happening in our area and it's really exciting to see. Right now I mainly focus on building our rental portfolio (SFH and multi-unit) along with renovating and also wholesaling. I'm also a licensed agent in WI.

There are a few networking events/meetups that happen here in the Kenosha/Racine area. There is a free meetup ever first Wednesday of the month. The next one is March 4th at 7PM and located at Kenosha Brewing Co. There is a paid membership REIA called the WiscoREIA and that's every third Monday and that's held at 1175 Sports Park & Eatery in Kansasville (unincorporated community in Racine county). There's also the Kenosha Landlord Association that has a membership meeting every third Wednesday of the month @ the Fireside Lounge in Kenosha. Finally, there is the Southern Wisconsin Landlord Association that holds a membership meeting every third Monday @ Harbor Lite Yacht Club in Racine.

Also, as Corina mentioned, there is a facebook group that has a lot of Kenosha/Racine investors/contractors/agents/etc. on it called the Southeastern Wisconsin Real Estate Investor Group. Great spot to ask questions, see what's developing in this area, and network. Let me know if you'd ever like to chat. Look forward to meeting you soon. :) 

@Philip Doetsch there are some great local networking events that happen here in Kenosha and Racine that you should check out. First there is a free SE WI Real Estate Investing Meetup that happens every first Wednesday of every month and it's either in Kenosha or Racine (it switches off each month). The next one is Wednesday, Feb. 5th and will be held at Paul's Pub Racine @ 7PM. There is also a local REIA that is held in Kenosha every month called the WiscoREIA. This is the third Monday of every month @6PM and is held at 1175 Sports Park & Eatery in Kansasville. First time is free and if you want to join after that there is a yearly membership cost. Both are great local networking events and you should definitely come out if you are in the area.

As for lenders, Christine Clark with INmortgage Co. is a great place to start. She's super creative and has some good programs for investors that are looking to start investing.

Also, you should join our Facebook group which is Southeastern Wisconsin Real Estate Investor Group. This is a great group with over 700 members. It's the perferct spot to ask questions, learn about different investment strategies, see what other investors are doing in the local market, ask for referrals/references, and it's a super positive community. I also can connect you with a couple of local RE agents in Kenosha that are great to work with as an investor. One is Steve Robe with Real Estate Elite. Another is Aaron Kohlmeier with Welcome Home Real Estate Group. Aaron and Welcome Home is actually the brokerage that I hold my license under. Just PM me and I can give you their direct contact info for both the lenders and realtors. I'm born and raised in Kenosha and know the Kenosha/Racine markets very well. We've been investing in this area since 2014. There are definitely deals to be had in both these markets and the growth happening in these areas is exponential, right now. If you ever have any questions please feel free to reach out. Happy to help.  

Durante & Rich Property Management (D&R Property Management) - Rich Durante. This forum would not allow me to post contact details so PM if you'd like their info. 

They focus mainly on 4 units or less. We highly recommend and we use them ourselves. 

@Nathan Grubb, @Kevin M Finley is the man! I too do a lot of investing and rehabbing in Kenosha. I've never really used a range for price per sq/ft for our rehabs. I know if I'm doing just basic cosmetic updates and nothing major (i.e. roof, basement, windows, HVAC, electrical, plumbing, etc.) I'm around $30-$50 sq/ft. But, again that's very a preliminary number that I can use if I haven't even seen the home and I know it's in good shape. I never use that number to go make an offer. 

There's also a great great Facebook page for Kenosha investors that you can ask this very same question. Search Southeastern Wisconsin Real Estate Investor Group and join. It's for real estate investing professionals all throughout Kenosha, Racine, Milwaukee, and Waukesha. Hope that helps and hope to see you around sometime in the area.

@Ross Morgan go on Facebook and join SEWI Real Estate Investment Group and ask this same question. Lots of local investors with resources in that area. Best group to ask that questions to.

That's excellent! Be sure to let us know you coming on our Facebook event! We always like to know who will be there. Thanks @Jeremy Trad.

https://www.facebook.com/events/305525096993133/