All Forum Posts by: Mitch Ferraro

Hey @Corbin Jones! Start researching smaller local banks and credit unions. Find out what type of real estate investment loan products they have. Get an appointment with their highest level executive if you can and if anything one of their residential or commercial loan officers. With what you are trying to do you are going have to start building a relationship with the lender. Each lender is going to have different requirements. If you build a strong enough relationship with these lenders you could see their requirements lessen based on the deals/properties you are asking them to finance. This is because the decision makers may be a small board of directors that make the call if they will loan to you on certain deals. 

I would also suggest that when you set up these appointments you be prepared with your Lawn Service business plan to start gaining trust from the lender. Also, put together a detailed proforma of your Milwaukee property so you can show them you have a solid cash flowing asset already underneath your belt. Almost like you are putting together a real estate business model together. Again, these types of deals with smaller more local banks all come down to relationships. We have work with a few local banks in our area that we've developed great relationships with over the years. They know exactly the type of deal they are getting into with us when we come to them to lend. 

Any other questions just let me know. Hope this helped and good luck!

So, what the heck is a "Subject to" deal? Well, on July 13th, you're about to learn about an under-utilized strategy used by experienced investors to take down deals others pass up. Get ready to see a quick-flip home that's already sold! You'll learn about the approach and process involved to go about a "Subject to" deal as well as the analyses, calculations and decision making that makeup a successful renovation. Join us for our next FREE house flip tour on Saturday, July 13th at 1pm as we walk you through a full renovation in South Milwaukee, WI. Get ready for a wealth of information and insight into our thorough process and systems. Look forward to learning about:

- How to Structure a Subject To Deal
- Property Analyzation & Comps
- Process and Documentation
- Project Timelines and Management
- What to Look for and Common Pitfalls
- Finish Selections & How to Determine

We look forward to seeing you all! Come ready to learn, take notes and ask questions! You really don't want to miss this first-hand opportunity to learn!

That's awesome to hear @Sam Gellman. Michael Henry is a good guy. Congrats on your duplex! Love the options...continue to rent for cash flow or sell for profit and roll into another investment. To continued success! :) 

Hey @Lee Stephens! For our single family rentals we like to purchase in better neighborhoods which can demand for more rent. We typically like to buy these homes that may need a little bit of work so we can build some really good equity into the property. It also allows us to put nicer amenities into the properties (i.e. update kitchen, update appliances, update bathroom, etc.). This again allows us to demand higher rents and also allows us to bring in a more quality tenant. 

With all our single families the tenants are responsible for utilities (water, electric/gas), snow removal, grass cutting, and yard care (i.e. maintaining landscaping along with grass cutting). This actually gives our tenants a sense of ownership over the property which can really keep your rentals in great shape. It can also lead to your tenant wanting to purchase the property at some point in time if they decide they want to buy and you want to sell (at the right price of course :)).

When looking at expenses try to remember these major things and these are generalities:

Mortgage

Taxes

Insurance

Repairs (typically 1 month's rent for a 1 year lease.)

Vacancy (typically 1 month's rent for a 1 year lease)

Property Management Costs (typically 1 month's rent of a year lease)

If you can produce a solid cash flow for your rental after these expenses are paid then you could be on your way to a nice cash flowing single family rental. 

@Lassy Gnini here is the website I was talking about. Forgot to attach. Some good information here. https://www.avail.co/education/laws/wisconsin-landlord-tenant-law

@Lassy G., no problem! You can check with World Property Management to see if they will manage in the area that you are looking. I'm not sure if they do but you can surely check. Property Manager name is Joe Mundo. 

Hi @Lassy G.! We have rentals in Milwaukee and do not hold any license to rent them out. We do use a property management company to manage our properties, though. The property management company does need to have a brokers license to legitimately be a property management company in Wisconsin. If you are renting them out yourself you do not need a license. Here is a good website to check out that talks about Wisconsin Landlord - Tenant Law and can probably answer any other questions you may have. Good luck! :) 

Hey @Jeff Wujek! You are not alone with finding the deals. A lot of consensus, myself included, is that the deals are getting harder to find in SE Wisconsin. That does not mean they are not out there but getting creative is now more important than ever. Not only in your marketing but also in your purchasing. We focus a few different marketing strategies at a time and push those strategies for 3-6 months to see if they work. I know many people will try things one time and give up because they are not seeing leads or, even more important, converting those leads. You have to be marketing consistently to get "good" off market deals.

Is there any opportunity for you to raise private money rather than using hard money? Rates can be much lower using private money along with fees and points being very minimal, if any, with a private lender. This could really help you purchase your next BRRR property. You literally could be saving thousands of dollars using a private lender vs. a hard lender. With you already having some experience flipping a duplex you definitely have some experience to lean on when talking with a private lender about using their capital for your next investment.

Hey @Cameron Davis! I'm a local Milwaukee investor and totally understand what you are going through. We often have basement issues here in Wisconsin. With the warm summers and cold winters it just does havoc on basements. We typically have to brace and add interior drain tile to fix most basement problems and rarely have to excavate on the outside. If you'd like, shoot me a PM and I can give you some good recommendations for an engineer and basement specialist that we use who are located in Milwaukee. 

Just an FYI as well, a lot of these guys are crazy busy right now and it may take a few attempts to get a hold of them. 

Hey @Justin Pease! I’ll just shot you a message. I’m interested in these. Look forward to connecting.