All Forum Posts by: Scott Schultz

David, 

welcome back to winter in WI, I am in Rhinelander, and invest in Oneida, Vilas, Langlade, Lincoln, Shawano, and Price Counties, I currently have a rental in Birnamwood, as well as Lily, and am waiting for a sale to confirm in Antigo next month (as well as others around the area) . Properties in Antigo are Cheap, but so is rent, so its relative, not sure how demand is going forward, considering all the Multi's being built, but if you can carve out a niche, you will do fine. we will need to meet up, and come up with a plan to not step on each others toes, I am also a Broker that belongs to the local MLS, and have a NAID # for HUD, o maybe we can work together on your deals. dont hesitate to reach out to me.

Eric, 

   When I get a new to me property i will generally do the work myself, everyone is afraid of it, but its really quite simple if you have experience with advanced home projects, I just applied to be an HVAC Contractor in WI so i can pull the permits and sign the yellow cards,  crazy part is in WI there is no experience or education requirement to be a Heating contractor, Just pay the state for a credential.  

  Otherwise you can find a person on Craigslist looking for side work, or ask other landlords who they use. 

electric is fine for Multi family, But in an SFR if you want your rent paid in winter put in a gas furnace, cost of electric heat is double $450/mo for electric vs $225/mo for gas for example, as far as water heaters, the annual cost is about 1/3 more, but not a significant amount of money, as an annual cost to operate is around $350/year. I install electric water heaters in my units because they are cheap and easy to replace, Ace Hardware sells 40 gallon units for $299, vs a power vent Gas one is $749, and life span is about the same. (no labor cost in the figures) when I rehab a new property i buy we generally put in a new water heater, if the furnace is 20 years old it gets a new one, (order from e-barnett.com) you would need about a 70,000 BTU furnace, they run about $550 for a 92% high efficiency shipped to your door, (plus install)

good luck getting anything from the MTG Co. you need to sue the tenant for sure. though.

Tami,  there are several types that can stick that are not in the ROD office, it is possible for a non recorded lien to exist, just difficult to enforce, but some taxing authorities, and municipal liens may exist but not be yet included on a property tax bill,  i saw one once with a $3,000 outstanding water bill from when the plumbing froze and filled the basement.   as well as child support,  and if they have a business, they can have sales tax, unpaid Unemployment, or Comp, Withholdings, Federal Tax, ect.  many wont stick, but some will, you will also need to understand lone position, 1st, 2nd, maybe 3rd. and if its a reverse mortgage, also some federal programs ave a right of redemption that can succeed your Sheriff Deed for a time period.  there is a lot to know.  

Take a class on Abstracting, and either go to the Register of Deeds office and do your own search, or do like I do and put money at the ROD office in each county and get online access and pay per page.  the key is learning how to abstract title. and all the other things to look for that is not in the ROD office, Like tax liens Child Support, assistance programs ect, and understanding the law to know what sticks, and what gets wiped out. every one is different. 

Wisconsin is a Marital Property State, All Assets and Debts are both spouses, regardless of the name they are in, for example, I have Sole Member LLC's but my wife has 50% ownership even though she is not named anywhere, likewise her 401k is half mine as well, the little debt we have is also the responsibility of both parties. as a mater of fact, if you apply for credit in WI, there is a Required authorization of the spouse.

My concern with wholesaling as an agent, i dont know about Nebraska, but in Wisconsin, it could be construed as a "net listing" an illegal activity even though an agent is not listing the property, but selling their contract, given that its potentially a significant spread, the state could see it that way.  The other part of wholesaling that is a possible red flag is Equity Stripping, AKA Illegal Flipping, this was heavily regulated till a few years ago by lenders, especially M.I. companies, they have relaxed the rules, but was a problem pre and post crash. seeing the increase in this activity seems eerily familiar,  like 2007 all over again. just be careful especially with your license, Disclose Early, Often, and in Writing, My license is too valuable to me to be involved in this type of transaction, so i steer clear. if my entity is on the contract, I am the one closing. period. 

@James Danchus I gota say when you ask for advice on a Forum your gona get an answer, although it may not be what you want to hear, I think @Jason V. is being constructively critical.  a situation where you cannot close is a disservice to a seller that is on market, and may harm them, all im saying is be carefull with the properties you are trying to wholesale, nothing against it, you just need a better strategy.  My recommendation would be to steer away from listed properties. 

  I would like to hear what the Value add is, what are you bringing to the table? I am genuinely trying to help your situation, just trying to get the whole picture, and come up with a reasonable solution.  

No, but if you say you are a cash buyer, Prove it! I have dealt with plenty of buyers that say they have cash, and cant close If you dont have cash to close dont say you do. I would never advise a seller, or consider an offer myself without either a POF or a solid verifiable pre approval from a reputable lending institution, I have been party to 600+ transactions, Ive seen just about everything, and know what closes and what doesnt.