All Forum Posts by: Steve Balinski

@Steve Balinski While it might cash flow, it negatively affects your returns. What is the minimum return you're targeting? Have you run a proforma on this?

@Steve Balinski For what it's worth, a Section 8 tenant would pay $1,460 a month for a 2 BR unit in that zip code. Also, 30% down seems a little high - most lenders I work with would look at 20% to 25%, assuming no rehab.

Several red flags, the first one is asking price - anything under 300k in 2025 in the Milwaukee area is either distressed or in a bad area or both. As far as optimistic until you get an inspection, you need to have a good idea about your total rehab budget before you make an offer. Inspection should only confirm what you and your agent had already found, at least the big stuff. 

Most duplxes require 25k per unit and up to 50k for roof, siding, windows if necessary. You can't do anything with 2-3k in a bathroom. It's either under 1k or over 6k - there is concrete with chicken wire under the penny tile. Renting the garage will maybe get you $50 per bay. I just refinanced a commercial loan at 6.25% as a 10/10yrs.

The size will limut rents. Square footage is more important than number of (tiny) bedrooms. I bought my first duplex in 2009 and made that mistake to buy the smaller of the two a 2/1 with 1600 sqft total, could have bought a 2400 sqft for just a little more. Was never able to get rents up, even after full rehab. Better to buy a property with more square footage, the financial model works better, as the tiny one has the same expenses, but lower rents - for example: water heater costs the same regardless if your rent is 800 or 1600.

 @Steve Balinski what's the zip code for the duplex?

@Steve Balinski as your finding there is a big difference between perception of how things are, and the reality of how they actually are. 

When dealing with R.E. Agents in general, yes, most often there sphere of commanding knowledge is limited to "A" city or the immediate circle there of. And as move from that center, knowledge insight drops rapidly. Buuttttt there all the happy to help you sell/buy wherever and there in lies the crux of things, how honest and upfront are they going to be about there level of knowledge and insight in that area. 

Look, the general agent, there whole thing is to help people buy & sell properties, so can you blame them for putting foot forward to achieve this end. 

The problem is what your describing in wanting is a very specialized, and with that rare and unique kind of agent. One who is specialized for investment real estate. 

With PMC's, often there a closer match because at least they live FT in the sphere of property monetization. PMC's generally know this 100X better than 99% of the agents in those areas. 

Ah but where PMC's fall short.... PMC's are often so in-the-now focused and centric that they fall short on the analysis side of things, predicting and projecting out accurately not just what areas and assets are good today but for the next coming years. Or better yet, what area is a rising star. 

And then the obvious area of how to best navigate and negotiate a buy. Many PMC's have f-all for service on this side of things. 

So your looking for an agent with all the knowledge and power of a best in class PMC AND best in class buy/sell agent...... That is a mighty rare and special "tool" my friend. I know, because I just so happen to be that exact person and service. 

Now let's jump to compensation and time. 

No, I do not and will not give it away for free on the hopeum of a transaction eventually coming that covers all those costs. I have no way of knowing if your just a perpetual tire kicker looking to suck hours a day just to talkie-talk, or action centric and were actually getting something done. 

And remember how rare and unique I am, what I do, at the level of precision, knowledge and success record I do it. I am in high demand. If I gave it away for free, I'd need 120 hours in each day.     

Each analysis takes time, time costs $. My time is limited. The demand for my time seems to be unlimited. 

So in the end doesn't it jump-out as more fair and transparent that one like myself, the ultra rare and specialized "Special Forces of R.E. Agents" has a compensation for that time? You know exactly what your going to get and what it's gonna cost. You can budget for this, it's reasonable, just like when scheduling to sit down with any high-powered rock-star attorney to review a situation and get similar action centric analysis. 

And you can take that knowledge and use it any which way you want from there. 

Although I can assure you, if your going to keep searching for such fantastic service from a "free" whoever..... well get ready to search without end because as the age old adage goes; You Get What You Pay For...... 

@Steve Balinski I have seen this as well & am following on here to see what others think.

I definitely recommend the infinite banking concept, although I went with Paradigm Life for it & have been very happy. I am sure him & his company would also be very good to go through as well. I have seen a lot & heard a lot of his content & really like how well they compose it.

I'd still recommend getting involved with your local community as well at the local REIA's or other investor meetups. Usually there are a ton of people that are looking to lend their private money. Although it may be a little more expensive, there's always a possibility for bringing on any of your friends/family on to it as well that may have money tied up in IRA's. They can always swap to a self directed custodian in order to have more stable returns as long as you keep on getting good deals.

@Steve Balinski your best bet is to get friendly with a local PMC.

Most agents do NOT know rental amounts - they're too busy doing sales, so they do know sales prices.

One of your big challenges will be your expectation that everyone should help you for free. You will expect that you can call an agent or PMC and they will have a 15+ minute conversation with you and share all their hard-earned knowledge - when you may decide not to buy a rental in that area.

Why should they do this for free?

Attorneys, doctors, CPAs, etc. don't really do this, but consumers think so little of real estate professionals that they use & abuse their time without a second thought:(

Why don't you instead, invest some time in learning to use Rentometer, Redfin & Zillow data to analyze rents?

We have about 400 agents at my office in Milwaukee and I know maybe 10 who personally own real estate (okay, fair to assume that I miss a few). I have been an investor first and agent later, given classes on investing for agents - for some reason they don't get it. They like the idea for retirement, but at the end of the day 99% of them never buy one. And too many don't even own their own home. 

As an agent, if you don't own rental properties, you don't know what market rents are - and anything else that comes with being a landlord.