MICHIGAN
WHERE LANDLORDS GO FOR SUCCESS
LANDLORD
May 2018
www.rpoaonline.org
FINDING M O T I VAT E D SELLERS ALSO IN THIS ISSUE: • Have a Judgement? Need the Money? • National Partner Programs May Be the Solution • Kidde Recalls 500k Smoke Detectors
WHERE REAL ESTATE INVESTORS GO FOR SUCCESS
A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION
May 2018 MICHIGAN LANDLORD 1
RENTAL PROPERTY OWNERS ASSOCIATION
Haven’t signed up yet? The Home Depot 2% RPOA Rebate Program Sign Up for The Home Depot Rebate Now! The RPOA membership in the National Real Estate Investors Association makes RPOA members eligible to receive this extremely valuable rebate. Sign up for The Home Depot rebate program through the RPOA and receive 2% back on all your purchases*— no matter how small or big. This rebate is on top of any other discount or sale price, including contractor rates! Call the RPOA today and start saving! 616-454-3385 * For semi-annual purchases over $5,000. Rebate checks are sent out semi-annually, usually in March and August.
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WHERE LANDLORDS GO FOR SUCCESS
IN THIS EDITION
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FEATURES 4
FROM THE DESK OF THE DIRECTOR
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NEW MEMBERS
11
MEMBER-TO-MEMBER DISCOUNT PROGRAM
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UPCOMING SEMINARS & EVENTS
29 AD-O-GRAMS 30
CREDIT & DECISION REPORTING PROCEDURES
ARTICLES
VOLUME 54, NUMBER 2
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www.rpoaonline.org
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NEWLY ELECTED BOARD MEMBERS READY TO SERVE GRAND RAPIDS IN THE TOP 10 MOST POPULAR CITIES FOR MILLENNIAL HOME BUYERS
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HAVE A JUDGEMENT? NEED THE MONEY?
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FINDING MOTIVATED SELLERS
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NATIONAL PARTNER PROGRAMS MAY BE THE SOLUTION
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THE NEXT HOUSING CRISIS: A HISTORIC SHORTAGE OF NEW HOMES
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SOMEONE OFFER YOU A RETURN ON A REAL ESTATE INVESTMENT?
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KIDDE RECALLS 500K SMOKE DETECTORS
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RECORD FUNDRAISING CAMPAIGN FOR RPOA PAC
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AFFORDABLE HOUSING PLANS HIT A BUMP IN THE ROAD
MICHIGAN LANDLORD editorial goal is to provide a forum for real estate investment and rental property ownership and management ideas and news. Our articles, columns, and other features should not be construed as investment advice, nor does their appearance imply an endorsement by the Rental Property Owners Association of Kent County or the Real Estate Investors of Michigan of any specific real estate investment or management strategy. An investor’s and manager’s best course of action must be based on individual circumstances.
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RENTAL PROPERTY OWNERS ASSOCIATION
From the Desk of the Director
Thanks to everyone that contributed to the RPOA Political Action Committee fund. Your contributions will help us support candidates that support our industry in the upcoming election for state offices. We raised a record amount this year. Candidate interviews are scheduled for June 4th. As for other legislative activities, things are calm in Lansing regarding any policy legislation related to real estate. Legislators seeking office are reluctant to take on any type of legislation that might ruffle feathers one way or the other before an election. However, the post-election lame duck session should be interesting as there a several legislators term limited out—opening the door for votes on controversial legislation. The RPOA is still working on legislation regarding LLC’s in District Court, service and support animals and tweaks to the Housing Law of Michigan regarding inspections. And, of course, we are prepared to fight any crazy legislation that might rear its ugly head. If you’re interested in governmental affairs and would like to participate in those efforts, shoot me an email and let me know, clayp@rpoaonline.org.
Advertise in
MICHIGAN
LANDLORD Contact Kathy Bartnick, RPOA Ad Salesperson, at 616-318-3503 to reserve your ad space today!
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WHERE LANDLORDS GO FOR SUCCESS
WELCOME NEW MEMBERS ABNP Properties L.L.C Baker, Aaron Berry, Joel Bolhouse Hofstee & McLean PC Bracey & Dueker Brenden Stark, LLC Campbell, Kevin Castlebrook Properties CBB Investment Group Inc. Chlebana, Roy P Clarus Home Solutions College Hunks Hauling Junk & Moving Cutter, Sheri DiGiovanni, Michael D Domani Passa Icca, LLC Eleesee Solutions, LLC Foundation Specialist Fresh Coast Group LLC Gandolfo, Christina Gress, Josh & Kelli
Hennessey, Jan & Ben Jackson, David Johnson's Appliance Repair K & P Properties Kauffman, Mike Martin, Alan & Claire Minch, Joseph Palmer, Larry Parks, William Phelan, Mary-Frances Prime East Properties, LLC Qualified Maintenance & Home Improvement, LLC Rhinoski LLC Siudyla, Leonard Spartan Real Estate LLC Tetradox LLC Thompson, Sean Titan Lawn & Home LLC Varnado, Jr., Jeffery Verboncouer, James Villas of Cascade Association
Villegas Group Westdale, Fred and Cheryl Woldring, Christine
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RENTAL PROPERTY OWNERS ASSOCIATION
SHIELD INSURANCE AGENCY Your Protection is Our Profession Joe Peiffer 616-378-6131 joep@shieldagency.com 2405 Porter St SW Suite B-3 Wyoming, MI 49519
Established in 2006, Shield Insurance Agency is a full service, one-stop-shop, insurance agency. From auto to home to health insurance to Workers Comp to Commercial General Liability, we do it all! My particular areas of focus are providing insurance solutions for Real Estate and Habitational Risks including: ● Condo & Homeowners Associations ● Lessors Risk (commercial and residential) ● Assisted Living & Group homes ● Apartment buildings ● Property Managers ● Real Estate Agents and Managers ● Builders Risk ● Hotels & Motels ● Rooming and Boarding homes ● Bed & Breakfast ● Mobile Home Parks ● Farms ● Vacant Dwellings ● and of course LANDLORDS and Rental Properties
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We work with many great companies including: ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
AAA Aegis American Modern American Strategic Insurance (ASI) Capital Indemnity Foremost Fremont Grange JM Wilson Liberty Mutual Philadelphia Progressive Safeco State Auto Wolverine Mutual
WHERE LANDLORDS GO FOR SUCCESS
Looking to connect with like-minded investors? Want to meet others in the business? Just looking for a good time? Then…join us every 4th Monday of the month from 5:00 p.m. to 7:00 p.m. for our monthly social networking. Whether you’re looking to invest, already own, buy and hold investments, wholesale, flip or doing some other type of investment, it’s always worthwhile to interact with others in the business. See you there! Join our meetup group at https://www.meetup.com/Real-Estate-InvestorHappy-Hour-Grand-Rapids/
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Rockfinch is a full service property management and real estate brokerage. Our experience can guide your next transaction as a first time home buyer or a seasonal investor.
Chelsea M. Roelofs Broker, Rockfinch Realty 616.446.0041 C 616.265.5284 O hello@rockfinch.forsale 925 Bridge Street NW Grand Rapids, MI 49504
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www.rockfinch.forsale
WHERE LANDLORDS GO FOR SUCCESS
www.westshorepropertymanagement.com
WE ARE CPA’S WHO OWN REAL ESTATE
SAVING YOU TIME & MONEY
Do you know where your money is going, or how to stop the leaks? We let you focus on running your business, and we handle the numbers . . . saving you time and money.
culver | group CPAs & Business Advisors
616.456.6464 . culvercpagroup.com . 1419 Coit . Grand Rapids
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RENTAL PROPERTY OWNERS ASSOCIATION
Newly Elected Board Members Ready to Serve The results are in! The newly elected RPOA Board members include: KEITH LITTLEPAGE ROB MINCH SHARON OLSON KIM POST RUSS VANDENTOORN The new members start their three-year term April 10 at the regular RPOA board meeting. For a list of all the current board members, go here.
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RPOA Member-to-Member Discounts:
WHERE LANDLORDS GO FOR SUCCESS
Members offering members BIG savings. Check out the discounts being made to RPOA members only: Patronize one of our Associate members participating in the Member-to-Member Discount Program! ANDERSON BROS STEAMATIC Carpet cleaning – 3 Rooms for $119 | furniture cleaning – $15 off of $75 or more | 10% discount on area rug cleaning (in shop only and free pick up and delivery). Call for a free quote 616-949-2453. www.absteamatic.com
BENDER MAINTENANCE & HOME IMPROVEMENT 10% off hourly rate for RPOA members. Property maintenance, general repairs; prepare property to rent at acquisition; inspection compliance for Section 8, City of Grand Rapids. General Contractor, Cer tified Lead Renovator, RPOA Member. 616885-0132.
COMPASS REALTY R P OA exc l u s i ve d i s c o u n t ! 1 free hour of consultation. Call Tom at 616-550-4447 or www.teamkoetsier.com.
DISCOUNT HOME IMPROVEMENT RPOA members: receive 6% off your order. 616-451-3600.
FARM BUREAU INSURANCE Jeff Lamborne Farm Bureau Insurance Agency offers group discounts. Call Jeff for details. 616-447-0274.
GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA Members receive 4th room free! Call Dave, 616-453-5368.
HOME DEPOT
JR MORTGAGE SERVICES
RMS LLC
Sign up for the Home Depot rebate program through the RPOA and receive 2%* rebate on all your purchases—no matter how small or big. Call the RPOA office to get your rebate program started now! 616-454-3385.
Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Jim Riley, 616-292-4491.
*2% OF TOTAL PURCHASES OVER $1,249
Protect your investment! RPOA members, call for special pricing. Need something other than carpet cleaning? We provide FREE ESTIMATES on all of our services: air duct and dryer vent cleaning, tile and grout cleaning, and flood/fire/mold restoration. Call the Simple & Quick cleaning and restoration experts! 616531-1666
Towing of abandoned and improperly parked cars on your property. Offering to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616-475-9836 for impound or email impounds@rmsonline.us.
SEMI-ANNUALLY.
INDOOR CLIMATE SOLUTIONS Offering all RPOA members Grand Rapids heating inspection stickers for $50.00 each and 5% discount on repair or replacement of any HVAC equipment. Over 40 years experience servicing and installing furnaces, boilers, air conditioning. 616 - 8 91 - H E AT (4328) www.indoorclimatesolutions.net.
JACK’S LAWN SERVICE Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today. 616698-8616.
JB HARRISON INSURANCE AGENCY Independent agents repre senting several companies (Auto-Owners, AAA, Citizens, Hastings, Hartford, Pioneer State Mutual, Progressive). We do the shopping for you. Group discounts available for RPOA members. Call Mike Murphy at 616-868-0050 for details.
MODERNISTIC CLEANING & RESTORATION
OFFICE MAX/ OFFICE DEPOT O f f i c e M a x o f fe r s s p e c i a l discounts on expensive supplies like ink cartridges. More than a vendor or a supplier…they’re your strategic partner, your ally, your advocate. To access this discount, contact the RPOA office. 616-454-3385.
REPUBLIC WASTE REMOVAL SERVICES Exclusive RPOA New Members and Existing Members discount $12.13 rate per month is good for one year. Republic reserves the right to increase rates at any time. Call Roy James at 616662-6862.
RYLEE’S ACE HARDWARE 10% discount on all purchases. S o m e r e s t r i c t i o n s a p p l y. Offer valid at our two Grand Rapids stores, 1234 Michigan St. NE and 1205 Fulton St. West and our Walker store, 4300 Remembrance Rd. www.ryleesace.com.
SHERWIN WILLIAMS Sherwin Williams offers a 30% discount on paint products and also offers a 30% discount on paint sundries. Applicators are discounted 35%. Other pricing is very competitive within the local market. A special discount card must be obtained from the RPOA. 616-454-3385.
SOS HOME REHAB $10 off the first work order perfomed for RPOA Members only. Call Shane Sarver at 616-446-4899 or email at ssarver@soshomerehab.com
Associate members who would like to participate in the discount program should call 616-454-3385.
"The promotion of offers, including discounts, rebates and other such benefits, goods, and services provided by the Rental Property Owners Association of Kent County (“RPOA”) members and advertisers within the Michigan Landlord magazine (collectively, the “Offers”), are for informational purposes only and are not an endorsement or recommendation. The Offers are not made by the RPOA or the Michigan Landlord magazine and the advertiser/member is solely responsible to you for the delivery of any goods or services. Your correspondence or business dealings with, or participation in the Offers or promotions of, advertisers/members found in the Michigan Landlord magazine, including payment and delivery of related goods or services, and any other terms, conditions, warranties or representations associated with such dealings, are solely between you and such advertiser/member. Neither the RPOA nor the Michigan Landlord magazine guarantees the existence or continued existence of any Offers, which may change from time to time. You agree to waive and release the RPOA and the Michigan Landlord magazine from and against any and all liability, loss or damage of any sort, incurred as the result of any such dealings with, or as the result of the presence of, any advertisement or promotion within the Michigan Landlord magazine.”
May May2018 2018 MICHIGAN MICHIGANLANDLORD LANDLORD 11 11
RENTAL PROPERTY OWNERS ASSOCIATION
Rental property financing solutions from United Bank. Here at United Bank, we do more than write mortgages; we create, customize and innovate to provide a loan that fits your unique situation. Whatever it takes, we’re here for you. Now that’s a real mortgage solution. UnitedBank4U.com | 616.559.7000
Member FDIC
616-885-0132 David H. Bigelow RPOA Member
Bus: 616-453-5368 Cell: 616-822-4710
Grand Rapids Carpet & Furniture Cleaners since 1944 We use
RPOA members receive a 25% Discount
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WHERE LANDLORDS GO FOR SUCCESS
SELEWSKI SPECIALTY UNDERWRITING, LLC For All Your Landlord REO Insurance Needs Program Highlights: 1. 2. 3. 4. 5. 6. 7. 8.
Insure unlimited properties on one policy Easy online access to your policy to add/change/remove properties Insure vacant/rehab/new builds/tenant occupied homes on the same policy One easy monthly bill for all properties insured Insure multiple entities on one policy Replacement cost or Actual Cash value available Simple Property Reporting form Insure Property in any of the 48 continental states
Call today for your free quote, whether you have one property or one hundred, we can help. 855-50-INSURE (855-50-467873) Email: nselewski@yahoo.com www.noelselewskiagency.com
Important information for: Farm Bureau Great Lakes Mutual Insurance customers As of 10/01/2014 Farm Bureau Insurance will no longer be associated with Great Lakes Mutual Insurance. This change in carrier may result in a premium change. If you are currently insured with Great Lakes Mutual and you would like to keep your policy where it is, you will need to switch to a licensed agent. Our agency has been writing with Great Lakes Mutual for the past 6 years and we have an outstanding record with the carrier and our customers. Please contact our office today if you would like to keep your policy with Great Lakes Mutual Insurance. We can write in any area of Michigan, West, East, North, South. Noel Selewski Agency Inc. Ph: 855-50-INSURE (855-50-467873) Email: nselewski@yahoo.com www.noelselewskiagency.com
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RENTAL PROPERTY OWNERS ASSOCIATION
Grand Rapids in the Top 10 Most Popular Cities for Millennial Home Buyers What are the most popular cities for millennial home buyers? Consumer financial matchmaking site LendingTree recently analyzed mortgage requests and offers for borrowers ages 35 years and under (between 2/1/17 and 2/1/18) along with requests from the total population of mortgage-seekers based on the location of the property to be mortgaged. They then came up with a set of rankings generated from the percentage of total purchase mortgage requests received by LendingTree from millennial buyers. “From a housing market perspective, tight inventory is boosting prices in many markets and millennial home buyers must now contend with rising mortgage interest rates reducing their buying power.” Interesting to note was that the least popular cities out of 100 all fell within warm winter climates, Florida, Hawaii, Arizona and New Mexico…so much for the sunshine states!
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WHERE LANDLORDS GO FOR SUCCESS
According to the latest Zillow Rent Forecast (covering August 2016 through August 2017) rents will rise in 34 of the 35 largest U.S. metros. Overall, rents are forecasted to rise 1.7% over the next year, the same rate of increase as the past 12 months. Interestingly, the northwest cities of Seattle & Portland are projected to rise 7.2% and 6% respectively-which will outpace San Francisco's projected increase of 4.9%. Go here for more. http://realestateinvestingtoday. com/zillow-forecasts-rising-rent-large-u-s-metros/
Is it time to check your
Install a smoke detector in every bedroom of your home and in the hall that leads to one or two bedrooms, and make sure there is at least one on each floor of your home, even in your basement.
Smoke Detectors?
Test your smoke detector each month and replace it if it doesn't work or if it is already 8 to 10 years old.
Smoke alarm safety is very important. Having enough smoke alarms and keeping them in working condition are important fire safety steps you can take to save lives in your home and in the homes of your renters.
Replace your smoke detector batteries at least once a year and especially when you hear the warning signal that the battery is low.
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Walker - 4300 Remembrance Rd. 616.453.7741
WE’RE HERE TO HELP: MONDAY - SATURDAY 8AM - 8PM, SUNDAY 10AM - 5PM
May 2018 MICHIGAN LANDLORD 15
RENTAL PROPERTY OWNERS ASSOCIATION
Work With Realtors Who Actually Own Rental Properties.
Multi-Family and Commercial Specialist
+ Heating & Cooling 24/7 Emergency Repair Furnace, Rooftop & A/C Systems Repair & Replacement Municipal Housing Inspections
+ Boiler Systems 24/7 Boiler Repair Installation & Replacement Preventative Maintenance State of Michigan CSD-1 Boiler Inspections
+ Plumbing 24/7 Plumbing Repair Water Heater Replacement
#1 Seller of Multi-Family Properties in West Michigan 2 Years in a Row! • Do you need help defining your investment goals? • Do you want to improve your cash flow? • Is now the best time to buy or sell for you?
Tom Koetsier 616-550-4447 tkoetsier@grar.com
Allison Koetsier 616-633-9445 akoetsier@compass101.com
www.teamkoetsier.com
Free 1 hour of Real Estate Consultation
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WHERE
HAVE A JUDGEMENT ? Need the Money ? Getting a money judgment against a previous tenant or someone else that owes you money is relatively easy compared to actually collecting the money. Money judgments can be sought through landlord-tenant court or small claims court. Money judgments are often sought for past due rent, unpaid damages to a rental unit, or unpaid utility bills. (Note: Once you have a money judgment from landlord-tenant court, you do not need another judgment from small claims for the same amount—you need one or the other but not both.) Various legal tools are made available to help with the collection process after receiving a money judgment. These tools are known as garnishments. Garnishment is a means of collecting a monetary judgment against a defendant (the previous tenant) by ordering a third party (the garnishee—typically the defendant’s employer) to pay money out of a previous tenant’s/defendant’s pay check, bank account, etc., directly to the plaintiff. A garnishee might be the previous tenant’s employer, their bank, or the State Treasury. A landlord/plaintiff who receives a money judgment from the court as a result of an eviction or small claims case may, after 21 days, garnish the tenant’s/defendant’s wages, bank checking/savings account, Michigan state income tax refund, or other personal items of value (e.g. car, boats, motorcycle, etc.). Why the 21 day waiting period? The waiting period gives the defendant time to pay on the money judgment. (One way to avoid going through the court and/or the garnishment process is to utilize the RPOA’s credit card service. If a tenant owes a member past due rent or other monies for damages, etc., the member can offer the tenant the opportunity to pay by credit card. If the tenant agrees, the RPOA will process the credit card on behalf of the landlord and pay the landlord the amount owed minus a 10% processing fee. Check with the RPOA office for more details at 1-800-701-7762.) There are several types of garnishments: (For the rest of this article, click here to go to the RPOA website knowledge base. You’ll find the full article there and lots of other articles on various topics on real estate investing, landlord-tenant laws, property management and more.)
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RENTAL PROPERTY OWNERS ASSOCIATION
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WHERE LANDLORDS GO FOR SUCCESS
Finding Motivated Sellers Real estate investing is exciting stuff—especially when you can actually find a property to invest in. How do you make that happen in a tight real estate market where everyone is bidding up the price? Fact: There isn’t one perfect way to find deals. Most likely, you’ll find properties to buy and motivated sellers from various sources. So, what are those possible sources? Here’s a list to get you started…not in any particular order: • Out of State Owners • Abandoned Properties • Condemned Properties (building code or health code) • Tax Foreclosures • Mortgage Foreclosures • Over Extended Investors • FSBO’s (aka inexperienced sellers) • Divorcees • People Needing Cash Now • Job Transferees • Downsizing Families • Elderly • Retiring Investors • Desperate Investors • Properties on the Market Longer than Average • Landlords Facing Problems (Those evicting tenants, those with lots of properties with violations, etc.) • Burned Out Investors • Pre-Foreclosures • Estate Sales • Fire Damaged Properties • Established Networks, e.g. Wholesalers
Birddogs Real Estate Salespeople Service Providers (carpet cleaners, mold remediation, plumbers…just about anyone that might come across a property that needs a new owner.) Church Leaders & Volunteers Co-Workers Friends & Relatives Other Investors Professionals (accountants, tax preparers, bankers, etc.) New and Inexperienced Flippers. (You know the ones—the ones that watched all the TV shows and decided to do a flip—all on their own without any actual training or experience doing a rehab.) And, sometimes the deals just come to you. Yep…once lots of people know you’re in the business of real estate investing and have the cash to close a deal, you just might start getting unsolicited referrals. There are always deals to be had in every market. Some will fall in your lap while others might take some good old fashioned boots on the ground work. You might have to spend some money—perhaps a lot of money--to find the deals. How much will likely depend on how many deals you want to do and how often. One thing is for sure—if no one knows you’re looking or you aren’t digging deep to find the deals yourself, things are going to go slow.
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RENTAL PROPERTY OWNERS ASSOCIATION
NATIONAL PARTNER PROGRAMS MAY BE THE SOLUTION As a member of the RPOA, you can take advantage of several partner programs that offer special benefits and/ or discounts for RPOA members through its affiliation with the National Real Estate Investor Association. Here are some vendors worthy of checking out:
RENT PERFECT (an Investigative Screening Company) is the tenant screening solution rental property owners and managers have been crying out for. We’ve combined the hands-on human element of investigative techniques we’ve always been known for with the speed, convenience, and cost-cutting power of the digital age to provide you with an all-in-one, mobile web-enabled screening process. RPOA members receive a discounted $0.95 set up fee. REAL PROTECT real estate investor insurance program with Norton Insurance was built specifically to address the unique needs of the independent real estate investor. Norton helps us to provide a wide array of products including coverage for properties being rehabbed, vacant and occupied rental properties, retail or office spaces and even those you just bought at the court house steps! RPOA members get FREE QUOTES and an advisor to help you find the best insurance solutions for all your real estate needs. Visit realprotect.com for more information. EQUITY TRUST is the leading custodian of truly Self-Directed IRAs. RPOA Members receive a free account for one full year (no annual maintenance fee), National REIA Gold Level Service and several complimentary educational products. Equity Trust is the leading custodian of truly Self-Directed IRAs. With over 30 years’ experience in the self-directed IRA industry, they have over 400 fully trained self-directed IRA specialists to help you along the way. Equity Trust has recently rolled out a new program exclusively for members of the RPOA via National REIA Chapter benefits. Benefits included a free account for one full year (no annual maintenance fee), National REIA Gold Level Service and several complementary educational products. To ensure that your members get signed up under this program, we created a dedicated phone line, please have your members call: 844-732-9404. Your members simply need to provide the name of their chapter [Rental Property Owners Association (RPOA)] and once we verify their active membership, their fees will be waived. To fill out an application, click here to download the pdf (you must be logged in to download the pdf). If any member has opened a new account with Equity Trust since January 3, 2017, and is not receiving the new program benefits, please contact the RPOA and we will direct you to the right person. OFFICE DEPOT/ OFFICE MAX offers special discounts on expensive supplies like ink cartridges. More than a vendor or supplier…they’re your strategic partner, your ally, your advocate. To access this discount, contact the RPOA office
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It’s true. Your source for paint is also your source for flooring. Count on Sherwin-Williams Floorcovering Centers for leading brands, 24-hour turn and reliable installation. And, of course, know that our Paint Stores are right around the corner with the coatings, tools and expert advice you need to complete the job. You see, for quality, competitive prices, and expert service, we’ve covered it all. To find the nearest Sherwin-Williams Paint Store or Floorcovering Center visit sherwin-williams.com/store-locator ©2015 The Sherwin-Williams Company
May 2018 MICHIGAN LANDLORD 21
RENTAL PROPERTY OWNERS ASSOCIATION
CHECK OUT THE RPOA MEETUP GROUPS! For more information go here: www.meetup.com
“
Over 100,000 listeners in Michigan, all 50 States and throughout the world.
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Each week we discuss topics, tips and techniques designed to make you a more confident and successful rental property owner and real estate investor. Interviewees include buy and hold investors, flippers, wholesalers, property managers, brokers, legal advisors, insurance providers, mortgage brokers— you name it; we’re talking to some of the top names in the real estate investing business in Michigan. Our host is Brian Hamrick from Hamrick Investment Group. Brian is a successful multi-unit and apartment investor with over 450 units in Grand Rapids, Wyoming and Lansing, Michigan.
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WHERE LANDLORDS GO FOR SUCCESS
The Next Housing Crisis:
A Historic Shortage of New Homes The Wall Street Journal headlines Grand Rapids as part of a story discussing the national housing shortage and the struggles around building new single family dwellings amidst a contractor shortage. “America is facing a new housing crisis. A decade after an epic construction binge, fewer homes are being built per household than at almost any time in U.S. history.” “Fewer new houses are being built in America than at almost any time before; ‘It’s a good time to be here in Grand Rapids, if you can get a house’” Go here for the rest of the story.
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Upcoming Seminars & Events
RENTAL PROPERTY OWNERS ASSOCIATION
CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT
HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL tenants
May 10 @ 6:00 pm - 8:00 pm
PROPERTY MAINTENANCE AND HOUSING CODES
•
Setting rent
2 Hours CE Credit for Licensed Real Estate Professionals 2 Hours Credit for RPOA PHP Frustrated with rental housing inspections? Not sure what is required of you? Need to know how to appeal something you believe is wrong? Experienced landlord, James Loftus, will provide in-depth training on:
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Where to advertise
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Incentive programs
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Setting screening criteria
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Screening for tenants using free online resources
• • •
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Using decision reports
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How to use the Tenant History Website to screen for tenants
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Reasons you can refuse a tenant
• • • •
State laws regarding rental housing maintenance Local codes affecting rental housing International Property Maintenance Code (most locals use this code) Local rental inspection programs & how they work Complying with the code and getting the maximum cert length for the least cost Appeal process Tips on dealing with inspectors
May 14 @ 6:00 pm - 8:00 pm
FOUNDATIONS OF BUYING, LEASING & SELLING RENTAL PROPERTY 3 Hours CE Credit for Licensed Real Estate Professionals 3 Hours Credit for RPOA PHP
WEST MICHIGAN REI CLUB NETWORKING
May 15 @ 10:00 am - 12:00 pm
This course covers a complete overview of the entire rental business–from buying a property through management and selling. If you’re a beginner, this course is a MUST! As the saying goes, you don’t know what you don’t know. Not knowing can leave you in the crosshairs of a government agency or, worse yet, an ambulance chasing attorney. Even if you’re not new to the rental business, there are lots of things to learn, including updates on local and state laws. It never hurts to take a refresher course as good insurance against future mishaps. Presented by Clay Powell, RPOA Director, and Licensed Real Estate Salesperson. Some of the points covered in the course include:
MARKETING & SCREENING FOR PAYING TENANTS
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2 Hours CE Credit for Licensed Real Estate Professionals 2 Hours Credit for RPOA PHP
Proper due diligence before buying or turning your existing home into a rental property.
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Federal, State, and local regulations regarding rental property ownership and management.
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Methods for effective management, including tenant screening, dealing with problem tenants, evictions, and more.
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Setting rental rates and effectively advertising rental property.
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Proper forms to use for leasing.
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What to do before selling a rental property.
No Registration Required! Just sign up on MeetUp.com. Join over 80 real estate investors through MeetUp.com, West Michigan REI Club. RPOA has partnered with the Club and is sponsoring the event to offer more networking opportunities for investors and landlords. Once signed up, check the MeetUp West Michigan REI Club page for changes in location, dates and times. The RPOA office does not take registrations for this event.
Learn effective and proven ways to fill your apartments using different marketing tactics. And, learn how to effectively screen for good paying tenants that will take care of your rentals and stay out of trouble with the law. This course covers the essentials needed to find and attract the best possible tenants and help you increase your rental profits. Emma Persons, Property Manager, will present the course, which includes: A primer on federal, state and local fair housing laws •
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May 17 @ 10:00 am - 1:00 pm
Preparing your property for showing to attract quality
REI Happy Hour Meetup
RPOA Women's REI Meetup
4nd Monday of the Month at 5 p.m. Harmony Hall 401 Stocking Ave NW, Grand Rapids, MI
Once a month at 5:30 p.m. See our meetup group on www.meetup.com for updated information
! s u n i Jo
! s u n i o J
REAL ESTATE INVESTORS (REI) FRIDAY MORNING BREAKFAST ROUNDTABLE Held every Friday, 8–9 a.m. Cheshire Grill / 2162 Plainfield NE, Grand Rapids, MI
West Michigan REI Club Meetup WHERE LANDLORDS GO FOR SUCCESS 2nd Monday of the Month at 6 p.m. Buffalo Wild Wings Grill and Bar 2720 44th St. SW, Wyoming, MI
REGISTER BY CALLING 800.701.7762 OR EMAIL CONTACTRPOA@RPOAONLINE.ORG May 22 @ 10:00 am - 12:00 pm
FORECLOSURES & HUD BUYING & SELLING 2 Hours CE Credit for Licensed Real Estate Professionals 2 Hours Credit for RPOA PHP (Professional Home Provider) Class includes current HUD changes and updates as well as:
Upcoming EPA RRP Courses
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About HUD homes—FAQs
May 30 @ 8:00 am - 5:00 pm
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Bidding and submitting offers
EPA RRP CERTIFICATION TRAINING
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Sales contracts
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Special programs & incentives
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Broker registration process
8 Hours CE Credit for MI Licensed Real Estate Professionals & Builders Earn EPA RRP Renovator Certifications
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Questions & answers
Not knowing how to work in a lead-safe manner can expose your rental business to liability. The EPA now requires all landlords to use lead-safe work practices and be certified under the new RRP rules. Ed Wenz, Certified Lead Safe Work Practices Trainer, licensed contractor and Landlord, will teach lead-safe work practices in a comprehensive session. Seating limited to only 12 participants! Don’t wait to register. $215 Members/ $235 Non-members
May 31 @ 8:00 am - 12:00 pm
EPA RRP REFRESHER COURSE This course teaches rental property owners, contractors and other paid professionals how to work safely in housing with lead-based paint and comply with EPA’s Renovation, Repair, and Painting (RRP) Rule, and HUD’s Lead Safe Housing Rule. If you have a current RRP Certification, look at your expiration date. If you took the RRP class 5 years ago, you are due for recertification. Sign up before your expiration date to maintain your eligibility for this class. Those who wait until or after the expiration date will be required to take the 8 hour class instead of the 4 hour class. $168 Members/ $188 Non-members
All events are held at the RPOA office unless otherwise noted. Cost: $35 Gold/Silver/Affiliate members, $45 non-members unless otherwise noted. May 2018 MICHIGAN LANDLORD 25
RENTAL PROPERTY OWNERS ASSOCIATION
Someone Offer You a Return on a Real Estate Investment? As investors, we are likely to see lots of “I’ll make you rich doing real estate” posts through social media, websites, and emails. We may even attend an event whereby the presenter (or another attendee) says they are offering a such and such return on your money by investing in real estate with them. Beware: The United States Supreme Court has ruled that an offering of an interest in real estate is an offering of a security. Thus, real estate offerings fall within the purview of the Securities and Exchange Act of 1933 (“1933 Act”) and are regulated by the Securities and Exchange Commission (“SEC”). In other words, if someone is offering a return on investment for partial ownership/interest in real estate, the deal is regulated by the SEC and the persons involved have to be properly licensed, etc. It’s different if the person is simply saying, if you loan me money, I’ll pay you interest. This type of person is seeking a private or hard money lender. In this case, the lender would likely ask for a note secured by a mortgage on the property (or other assets of the real estate investor they are loaning the money to). The lender isn’t participating in the deal. If the deal goes south or loses money, the person doing the real estate deal would still owe the lender the money, plus interest. Bottom line: Be cautious. If you start hearing the phrase “guaranteed return on your investment” or the like, start asking a lot of questions about licensing, etc. Better yet: If it sounds like a great deal and you’re still interested, consult an attorney familiar with real estate law and SEC requirements.
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WHERE LANDLORDS GO FOR SUCCESS
Kidde Recalls 500k Smoke Detectors Major smoke alarm maker Kidde has issued a recall for nearly 500k dual-sensor smoke detectors in the U.S. and Canada because a manufacturing malfunction can compromise the devices' ability to detect smoke. The recalled detectors, the PI2010 and PI9010, are dual-sensor that use photoelectric & ionization technology. smoldering and fast-moving fires. Kidde has established a toll-free number (833-551-7739) which is available from 8:30 a.m. to 5 p.m. Eastern Time, Monday through Friday, and from 9 a.m.to 3 p.m. on Saturday & Sunday. More information can also be found at www.kidde.com, then click on “Product Safety Recall” for more information.
Record Fundraising Campaign for RPOA PAC A huge thank you goes out to all the members and others who contributed during the 2018 RPOA Political Action Committee fund drive. We raised over $6,000 during the campaign! This fundraiser was a record for the RPOA and will enable us to support multiple candidates in the upcoming state elections that support our industry. Haven’t contributed yet? You still can by going here.
May 2018 MICHIGAN LANDLORD 27
RENTAL PROPERTY OWNERS ASSOCIATION
Affordable Housing Plans Hit a Bump in the Road After being deluged with negative feedback from neighbors in Grand Rapids about proposed zoning changes to address affordable housing, the City Commission chose to table the topic for the foreseeable future. Neighborhood associations were asking that a new citywide plan be developed before any drastic changes are made to the zoning law. The proposed changes would have allowed development “by right” in many areas enabling the building of new housing units or adding units to existing structures--all “by right,” circumnavigating the usual neighborhood approval process. The neighbors feared that developers would simply buy existing housing, raze them and then rebuild residential structures not in keeping with the character of the neighborhood and requiring more parking than an area can handle. Some commissioners expressed frustration over the decision. They feel that something has to be done to address the availability of affordable housing in Grand Rapids. It goes without saying that the city is landlocked. The City is also looking at disposing of city owned property that remains vacant. The RPOA is still in discussions with the City on how application fees might be handled differently to remove barriers to low and moderate income applicants. Part of the proposal is to provide training and assistance for applicants with removing barriers from their tenant and credit histories.
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WHERE LANDLORDS GO FOR SUCCESS
Procedures & Prices RPOA & REI DECISION REPORT REQUEST
PLEASE FOLLOW THE PROCEDURES BELOW WHEN REQUESTING DECISION REPORTS FROM THE RPOA: • When possible, please use the RPOA Decision Report Request
Form and fax it to the RPOA office at 616-454-6163 OR send us an e-mail with the same information to: contactrpoa@rpoaonline.org. (DO NOT fax applications to us.) • You must have the following minimum information to run a report: • First and last name of prospective tenant(s). • Current address of the prospective tenant, including street with number, city, state and zip code.
Ad-o-Grams CARPET CLEANING RPOA members receive 25% discount. Premium carpet care at affordable prices. Call for free estimates! RPOA member Dave Bigelow at 616-822-4710 or Grand Rapids Carpet and Furniture Cleaners at 616-453-5368.
• Social Security Number. • Date of Birth • Your RPOA member #, name of membership, and an indication on how you would like the completed reports handled, i.e. faxed back to you (if so, provide the fax number), or you will call the office for the report, or you will pick up the report in person. • WAIT AT LEAST THREE (3) HOURS before contacting the RPOA office for your reports. Though we can sometimes get reports done quicker, there are many things out of our control that can interfere with this process, including but not limited to credit reporting agency computer problems. • Contact us for your decision report results promptly. For reasons of confidentiality we shred all reports after 3 days.
AAA
OTHER GUIDELINES FOR DECISION REPORTS: • You cannot run a decision report on yourself. • You can only run a decision report on another family member if you are doing a business transaction with that person that is related to real estate or rental property. • You cannot run a decision report for another business person, real estate agent or landlord. Your credit reporting privileges through RPOA extend only to your personal business. • You can only run a decision report for a legitimate business transaction where credit is required. These transactions include owner financed real estate, leasing, collections and land contracts.
High Efficient Heating & Cooling, LLC
616 -301- 4195
Discounts to RPOA Members! Ed Stawicki
Certified City Inspections
Commercial Residential Licensed & Insured
• You must follow all the rules and regulations of the Federal Fair Credit Reporting Act. A copy of this Act is available at the RPOA. • You must give a person denied housing or financing because of information contained in a credit report a notice to that effect. Examples of notices that you can use and what needs to be included in the notice can be found in the RPOA office; or log on to the RPOA website (www.rpoaonline.org) and go to Tenant Screening.
REPORT PRICES (AS OF JANUARY 2017) Single: $18.50 Double: $30.50 Criminal Background Report, additional charge.
(616) 532-3626 or (888) 821-8846 Gerritsappliances.com
May 2018 MICHIGAN LANDLORD 29
RENTAL PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS
1459 Michigan St. NE • Grand Rapids, MI 49503
President: Brian Hamrick (616) 975-9770 E-mail: brian@higinvestor.com President Elect: Kim Post (616) 648-9752 E-mail: kim@postandassociates.org Secretary: Keith Littlepage (616) 292-7964 E-mail: Keith@SuccessInvestS.com Treasurer: Justin Workman (616) 318-6400 E-mail: worknitproperties@gmail.com Tom Koetsier: Past President
Phone:
(616) 454-3385 • Fax: (616) 454-6163
(616) 550-4447
E-mail:
contactrpoa@rpoaonline.org
Web Sites:
www.rpoaonline.org
www.MIrentalguide.com
www.tenanthistorywebsite.org
Office Hours:
Monday - Friday 9:00 AM - 5:00 PM
The Rental Property Owners Association is a nonprofit business association whose mission is to support and facilitate its members’ success in real estate investment and management.
Steve DeKoster (616) 776-0572 Gary Hall (231) 798-6430 David Hill (616) 254-8417 Allison Koetsier (616) 633-9445 James Loftus (616) 889-0488 Rob Minch (616) 540-2270 Sharon Olson (616) 550-7181 John Potter (616) 318-1549 Mark Troy (616) 452-4200 Russ VandenToorn (616) 965-2300
Email: tkoetsier@grar.com
E-mail: sdeko@aol.com E-mail: rent@altpropertymanagement.com E-mail: dhill@kreisenderle.com E-mail: akoetsier@compass101.com E-mail: loftja@gmail.com E-mail: minch1973@hotmail.com E-mail: smolson4@live.com E-mail: jpotter@grar.com E-mail: mtroy@compass101.com E-mail: russ@rentupm.com
RPOA STAFF: (616) 454-3385 Clay Powell, Director E-mail: clayp@rpoaonline.org Kathy Bartnick
E-mail: rpoaoutreach@rpoaonline.org
Ava Grover
E-mail: avag@rpoaonline.org
Heather VandenBos E-mail: heatherv@rpoaonline.org Rachel Wood
E-mail: rachelw@rpoaonline.org
MAGAZINE EDITOR Clay Powell (616) 454-3385
E-mail: clayp@rpoaonline.org
MAGAZINE DESIGN & LAYOUT Rachel Wood
E-mail: rachelw@rpoaonline.org
AD SALES Kathy Bartnick (616) 318-3503
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E-mail: kvallie@aol.com
WHERE LANDLORDS GO FOR SUCCESS
May 2018 MICHIGAN LANDLORD 31
MICHIGAN
LANDLORD THE PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION 1459 MICHIGAN STREET NE, GRAND RAPIDS, MI 49503 PHONE: 616.454.3385 FAX: 616.454.6163 CHANGE SERVICE REQUESTED
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May 2018 MICHIGAN LANDLORD 32