Anyone investing in Wisconsin

18 Replies

Yeah for sure - I estimate we have about 1,200 mom and pop investors in Milwaukee, plus instituatutionals and commercial. Set up Milwaukee and Wisconsin as a key word alert on BP and you will get the notifications!

@Hector Aguilar , are you interested in buying rehabs or rentals or both? 

Are you ready to buy right now and if not, where are you in the process---what steps, education or team members do you need to be ready to buy? 

 

 

@Rebecca Knox

I am interesting in buying rehabs

Im new in the buying part but in the rehab part i worked as a carpenter for a remodeling company in Madison area for a couple years, after that I work as a subcontractor. Im ready to start this new aventure.

Originally posted by @Connor Stark :

@Marcus Auerbach  @Jeff Cichocki I'm interested in Wisconsin markets surrounding Milwaukee. What are your opinions on pockets that are up and coming? 

 Up and coming is a tricky concept - they are by definition volatile areas, often driven by speculation or the anticipation of a major investment or new business. Who would not want to make a quick buck and look like a genius rockstar by buying before the neighborhood turned? 

The whole idea of real estate investing is rooted in protecting your principal and lowering risk as close to zero as possible. Looking back the last ten years - where should I have invested? It's mostly expensive neighborhoods that come to mind - these areas did the best. The best examples are probably Bayview and Riverwest, both have seen a big change in price levels, but both have still not fully arrived on the "great neighborhood" list; people will argue that Riverwest has been up and coming for 20 years and while prices have gone up a lot, it still feels a little sctechy and residents still don't like leaving their car on the street.

Milwaukee as a whole has seen 5 to 7% appreciation during the last years, but individual areas have performed very differently. The city is fully built out: between the lake and the surrounding suburbs with their large lot subdivisions and mansions there are is no room left for growth, new construction in the suburbs is expensive 450-650k usually for a single family - too expensive for most. Closer to the median price point 200k-ish we are limited to existing housing stock, and there is no new supply. This will further drive prices, especially in desireable areas with better/good schools. So this is where we continue to grow our portfolio.

Originally posted by @Michael Weber :

@Marcus Auerbach @Rebecca Knox @Hector Aguilar

I'm a new/future investor in the Milwaukee area, interested in renting and/or Brrrring small multi-family homes. I haven't pursued any deals as of this moment, but rather currently educating myself in REI and looking to make moves soon to invest.

You can read a book about learning how to swim, but at some point you just have to get in the pool and do it. Most people will start by looking for a "good neighborhood to invest" and skip two important steps that come first: what is your financial model and who is your tenant avatar? Answering these two questions, will give clarity to the rest of the process. If you start with a property, you have completley lost control over those two aspects as the building will decide that for you.

 

@Hector Aguilar I would humbly suggest that you work on the financing piece. It's definitely a bonus that you have contractor skills and can put in sweat equity where others cannot but if you find a deal or are presented with one, it's good to have multiple avenues of funding lined up so you can react. People with access to off market deals remember the serious buyers and they often get the best deals because of that. Connect with hard money lenders, mortgage brokers and banks to find out what your purchasing options are and what the numbers will be--you need to know that anyway in order to strategize and run your numbers on any deal because the cost of money should be a factor in your analysis.

@Michael Weber feel free to join Brew City REI Club where you can continue to learn but also network with local active investors. You too Hector :)

The only "up and coming" areas in MKE are most likely near downtown.  That is were the majority of Big $/development funds has gone for years.  Those near downtown areas can be OK/Marginal or War zones.  You really have to know the city/those areas inside and out.

@Marcus Auerbach I’m the baby bird on the edge of the nest; I appreciate those kind words of encouragement!! I’ve just begun making some connections and I know I’ll continue reaching out to BP for solid references for a team!

@Rebecca Knox Thank you for the invite! Will join right away!! Looking to paying it forward within BP and the Brew City group!

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