MICHIGAN
LANDLORD January/february 2015
www.rpoaonline.org
SPECIAL EDITION: ANNUAL RESOURCE GUIDE & CONFERENCE PROGRAM SPONSORED BY: United Properties of West Michigan, LLC
Multifamily Dwelling Program
Compass Realty, LLC Compass Property Management Culver CPA Group
Columbo’s Floors to Go
Noel Selewski Agency, Inc.
2015 FREE FEATURING: Robyn Thompson
Annual Conference & Event February 26-28, 2015 DeVos Place
Downtown Grand Rapids, MI - River Overlook Rooms A-F
Rehabbing & Flipping for Wealth
Mike Butler
Alan Cowgill
Landlording On Autopilot Private Lending for Real Estate
Cynthia Schmidt
Collecting Back Rent
Nick Sidoti
Dr. Cash Flow
WHERE LANDLORDS GO FOR HELP
A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION
RPOA Member Advertisement
How Rental Property
Saved Our Lives My personal experience with rental property is a little unusual. When my wife and I first became engaged, we chose to buy and live in a house that was converted into a two-family rental. At the time, we didn’t really think we could afford to buy a home. I only had a few thousand dollars for a small down payment and--for a 20 year old—just an OK job. So, why did I buy? Upon some advice from my mother, we started to look at income property as a way to start off as homeowners; the idea being we’d get a boost from the tenant helping to pay the mortgage! Purchasing my first house is a story all its own. Since we were looking at two-family houses, viewing them was slightly different as the actual occupants had no interest in making an impression on us. My future bride and I quickly toured a house and then went outside to talk about it. She needed to get to work, so our conversation was brief. I asked her what she thought and she responded, “I like it!” So I bought it... She didn’t like it. She was only being polite and thought we would be discussing it later. I guess I learned that I need to take clues, and she learned that I don’t perceive hints very well. Yes, I still have that house; we just live down the street now. That was back in ‘87 and was the start of an investment strategy of slowly buying rentals with as little down as I could. Every time I had a few extra nickels to rub together I’d buy up another property. However, I would never buy without having a little cash reserve--just in case something went wrong. It was and is work, and don’t let anyone tell you that all you have to do is sit by the pool and collect a check. If you are managing your own property, it just doesn’t work that way! However, it has its residual income and benefits. In 2005 my son was in an accident which resulted in everything from helicopter rides to brain surgery (ask me about it sometime and I’ll tell you how God can manipulate events-—right down to being airlifted back to GR without them knowing that’s where we lived!). The entire summer of that year was spent focusing on our medical situation—
ICU at DeVos for a month and Mary Free Bed for the rest of the summer. When I say focused, I mean “we lived there!” We took shifts. We stayed the night. We met everyone and attended everything. How could we afford to take all that time off? Rental property. Despite whatever was going on in our life, time marches on. Rents are still due and so are payments. Sure, we needed to hire some help to do some of the different tasks that either my wife or I could no longer do, but the income still flowed in. We just needed to stay focused on what was important. What other job could I have had and got away with that? Before I bought rental property I worked in a factory and the Family and Medical Leave Act (FMLA) would have preserved my job, but I wouldn’t have been paid! Despite the freedom to take the time off, if I were a self-employed contractor, I would only be paid for the work I actually did. Rental property was the only venue available to me that would have allowed me to take care of my family the way I did, and I so greatly appreciate it. If you’re reading this magazine, you either own rental property already or are thinking about it. If you don’t yet, I would implore you to seriously consider it. It’s never too late and more important—it’s NEVER too early! For nearly 30 years, my wife and I have owned and operated a management company here in Grand Rapids, managing properties for owners that range from RPOA members that started in the ‘70’s to investors who live overseas. We don’t advertise, but I wanted to take this opportunity in this special “Resource Guide” issue of the Michigan Landlord magazine to express my gratitude to the industry--those that have helped me along the way (particularly those that have extended me credit) and especially the Rental Property Owners Association. They have been invaluable with their resources, continuing education, political action and camaraderie. Let’s all have a wonderful future... Phil Mol (616) 458-8200
WHERE LANDLORDS GO FOR HELP
In this Edition
18
34
21
FEATURES 4 From the Director 5 New Members 7
annual resource & vendor guide
21 2015 annual conference program guide 30 Member-to-Member Discount Program 35 Upcoming Seminars & Events 47
Credit Reporting Procedures
49 Ad-o-Grams
ARTICLES
Volume 51, number 1
4
rpoa partners with new attorney for free limited legal advice
www.rpoaonline.org
6
build a network to support your real estate investment business
for real estate investment and rental property ownership
MICHIGAN LANDLORD editorial goal is to provide a forum and management ideas and news. Our articles,
15 holland’s new “excessive complaint” regulations
columns, and other features should not be construed as
18 the 10 commandments of property management
endorsement by the Rental Property Owners Association
31 don’t take home your tenants’ pests 34 how to prescreen contractors to build a dream team to get the job done
investment advice, nor does their appearance imply an 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.
January/February 2015 MICHIGAN LANDLORD 3
RENTAL PROPERTY OWNERS ASSOCIATION
From the desk of the Director Clay Powell
Welcome to the first Annual Resource Guide version of the Michigan Landlord magazine! Members have been asking for a resource that they can use throughout the year to find services, contractors, vendors and the like, and we’ve responded with this new publication. This issue not only includes information on valuable resources but a complete program guide for the 2015 FREE Annual Conference & Expo. You’ll find an entire schedule for the event and detailed information on each of the presentations. The event encompasses three days, five national renowned real estate investment and landlord speakers and many valuable breakout sessions, including more than six hours of CE credit for real estate professionals. Each and every course provides strategies, techniques, ideas and motivation to help you succeed and achieve great things in the New Year. We’ve also included typical content from our award winning Michigan Landlord magazine. So, this issue isn’t a trimmed down version of the normal magazine but an expanded edition. We’ve even added color to enhance the pleasure of spending time with the magazine. Don’t miss all the great information on many of the exclusive discounts provided to RPOA members for national and local companies. If you need help at any time signing up for a specific discount or rebate program, make sure you call the RPOA office. We make it our priority to assist members with obtaining the benefits they deserve. See you at the conference!
RPOA Partners with New Attorney for Free Limited Legal Advice The RPOA has selected a new attorney to offer RPOA members free limited legal advice. Attorney David Hill with the firm of Kreis Enderle began providing the service as November 21, 2014. David’s practice is primarily involved with real estate, including landlord-tenant issues. We are pleased to have David on board. After many years of service, the firm of Pawlowski & Reens decided to bow out of providing free limited legal advice and enable the RPOA to pass the baton to a new firm to carry on the tradition and services RPOA members have enjoyed. Bill Reens will still take calls from RPOA members answering short questions for a reduced or no fee. Members should always call the RPOA office first for answers to their questions. Many answers to typical member questions do not involve providing legal advice. If the staff cannot answer the question due to the complexity of the question or situation or they believe that doing so would be offering legal advice, members will then be referred to the attorney or another appropriate professional.
4
WHERE LANDLORDS GO FOR HELP
Welcome, New Members Achterhoff, Shirlee Against the Wind Vacation Rental Alexander, Jack Balsitis, Michael Becker, Aurelia Belden, Todd Bertram, Barbara Bonarski, Yili K Burket, Ron Carroll, Elvin Columbo’s Floors To Go Cottonwood Associates LLC Curtiss, Craig Diaz, Paul Francisco, Valentina Glatz, Russell E Griffin, Abigail Grizzel & Associates Inc
Home Savers Horizon Development Kitchka, Elizabeth Kochans, John & Vickie Komejan, Mike & Bonnie Koppe, Steve Korhorn, Don Lake Michigan Property Management Lange, Diane V Lee, Jeff Lemmen, Tim & Tenneil Lopez, Leslene K McAlpine, Ross Noel Selewski Agency Inc Occupied Incorporated PNP Properties Point Six Properties Saucedo’s
Saulter, Gary Shape Your Life Studios Shay Properties LLC Spitsbergen, Daniel & Elizabeth Spitzley Group LLC The Property Solution Team LLC Third Coast Development LLC Todd, Timothy & Michelle Townsend, Jeffrey II Trumble Agency Inc Tweed & Lee LLC Van Loon & Heckman Vander Vennen, Jeremy VW Acquisitions LLC Walsh, Jilliane A Wilcox Home LLC Williams Auto Salvage
January/February 2015 MICHIGAN LANDLORD 5
RENTAL PROPERTY OWNERS ASSOCIATION
Build a Network
To Support Your Real Estate Investment Business A network can provide important support and create opportunities to a new or experienced real estate investor. This group of associates can be comprised of a well-chosen mentor, business partners, clients or a non-profit organization whose interest is in real estate. A network allows investors to challenge and support one another, and can aid significantly in advancing one’s career through shared knowledge and new opportunities. Because much of real estate investing relies on experiential-based learning and learning from others, rather than on reading a book, savvy real estate investors understand the importance of building a network and being involved in an association of real estate investors and landlords. Investors that try to build a successful real estate business by only following the advice and materials provided through a late-night infomercial package are often doomed to failure. While there is nothing wrong with learning the ins and outs of new investment ideas and practices from various outlets, nothing beats localized experienced support and guidance. How does one build this network? The RPOA offers several different opportunities to engage with other investors and vendors in the business of supporting investors. Here are just a few:
Real Estate Investor Breakfast Each Friday morning the RPOA hosts a meeting of local investors and landlords from 8:00 a.m. until approximately 9:30 a.m. Typically 25-40 investors are in attendance. A 10-minute presentation on an important and relevant topic is provided and all attendees are given a chance to share their “haves and wants.” Extra time is provided to network and build relationships with other attendees.The event is free except for the cost of breakfast. Location: Cheshire Grill, 2162 Plainfield Ave NE, Grand Rapids, MI 49505. (The group meets in the rear dining area for privacy.)
West Michigan REI Club Partnership The RPOA partners with a group of volunteers that provides an evening forum for investors to network. Forty plus investors are typically in attendance. A brief education program is provided along with an opportunity to network. The event is free except for the cost of any food or beverages.The group meets once each month on the second Monday at 6:00 p.m. at Buffalo Wild Wings, 2720 44th St SW, Wyoming, MI 49519. Continued on p. 16
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WHERE LANDLORDS GO FOR HELP
RPOA ANNUAL RESOURCE & VENDOR GUIDE IT’S HERE! The first ever RPOA Annual Resource Guide. This issue is packed full of useful resources, pages of discounts for members and a long list of vendor members offering services to our members, categorized by business type. We hope you’ll find this issue helpful and something to keep at your fingertips throughout the year.
WHERE LANDLORDS GO FOR HELP
January/February 2015 MICHIGAN LANDLORD 7
RPOA BENEFITS AND SERVICES The RPOA offers over a dozen services and benefits to assist members with the profitable operation of their rental property and real estate investment business. Technical Assistance Our full-time office staff is available Monday through Thursday from 9:00 a.m. to 5:30 p.m. and Friday from 9:00 a.m. to 5:00 p.m. to assist you. Members may call with questions concerning court eviction procedures, tenant problems, and a wide variety of questions regarding any issue involving rental property or real estate investment. And, if we can’t answer your question, we’ll find someone that can.
Free Limited Legal Advice Free limited legal advice is offered for members to answer all your legal questions. (Be specific with your question, and please plan to limit your call to 10 minutes or less.) Call the RPOA office before calling the legal firm.
Credit Reports & Tenant History In-office credit reporting services can be obtained through the RPOA. Decision report tenant screening services are also available to all members through the RPOA office to assist with screening prospective tenants. Most reports can be run within three hours or less. More tenant screening services are provided through the tenant history website, www.tenanthistorywebsite.org. The Tenant History Website has a complete list of past landlord-tenant eviction cases (money judgments and most possession judgments) within Kent, Ottawa, Muskegon and Kalamazoo Counties. The site also enables searches of information provided by RPOA members of previous tenants. Using the site is free to RPOA members.
Forms & Templates The rental property and real estate investment business requires lots of forms. We carry most of the rental forms and related real estate investor forms you may ever need—each reviewed by our attorney. We also carry sample letters that you can use as templates for your own letters. Most forms are available at no charge online at the RPOA website or for a small fee. Forms can also be purchased and ordered online.
Member Exclusive Discounts Want to save more from The Home Depot? Get huge savings from Sherwin Williams paints? Would you like a $11 per month 96 gallon trash service? As a member of the RPOA, you have access to dozens of member only discounts. Check out the pages within this Resource Guide for the current list and check online for the updated list in the future.
Michigan Landlord© Bi-Monthly Magazine Michigan Landlord is a bi-monthly publication filled with the latest news in the rental property business, real estate investment business, advice, tips, and articles on the best standards of practice in the industry. Up to date information on the latest regulations, court decisions and other news items are also provided.
Weekly E-Newsletter A weekly e-newsletter is sent to all members with the latest information and news important to decision making in the industry. The newsletter also keeps members informed of upcoming board and committee meetings and educational events. If you’re not receiving our weekly e-newsletter or other email communications, be sure to contact the RPOA office and make sure we have your current and correct email address!
Notary Public Our office has notaries available to notarize your important documents. This is a free service to members.
RPOA Annual Conference & Expo The RPOA holds an annual conference & expo that attracts hundreds of rental property owners, investors and other real estate professionals. The event is held in downtown Grand Rapids. For more information on this year’s conference, check out the Annual Conference & Expo Program Guide within this issue.
MIRentalGuide.com Advertise your available units on RPOA exclusive website for rental listings, www.mirentalguide.com. Join over hundreds of other members that rely on the great returns from posting their properties through the website. The site is powered by Rentlinx.com. Ad placement is free to members.
Governmental Affairs & Lobbying In addition to many of the tangible benefits of being a member, RPOA strives to address local and state issues that directly impact the rental property industry. RPOA is also a member of the Rental Property Owners Association of Michigan, a lobbying group representing its members at the State level.
Professional Home Provider (PHP) Certification & CE Hours RPOA sponsors in-depth seminars on property management, rental property ownership, and other related topics. The PHP program consists of several core courses and readings in the rental property industry and is an excellent way to gain an in depth understanding of the business and build credibility in the community. Most of the courses also offer Continuing Education (CE) hours for licensed real estate professionals in Michigan.
Weekly Breakfast Networking Forum & Monthly Meetup Group With more than 1,400 members, there simply isn’t a better opportunity to meet other people in the same business. Sharing ideas and concerns is the foundation of RPOA’s mission. The meetings are held each Friday morning at 8:00 a.m. at a local restaurant. Monthly meetings are held in partnership with the West Michigan Real Estate Investors Club. For more information and current times, dates and locations of meetings, check out more and sign up at Meetup.com at http://www.meetup.com/WestMichiganREIClub/ Both events are currently free to attend.
RPOA Website Landlord and real estate forms and answers to your most frequently asked questions are just some of the things you’ll find at RPOA’s exclusive members only website. You’ll also find the latest information on events, industry news and links to other helpful information. You can access dozens of forms for free or order hardcopies for a small fee all from the comfort of your office chair. Simply fill out the PDF’s and print them off. Online versions of the Michigan Landlord are also available to peruse. The site includes a complete list of vendors by category too. (Check out the current list in this Resource Guide or go online for the newest and latest list.) Discounts for members are often updated—so check back frequently to make sure you’re getting all the discounts you deserve.
Facebook & Twitter Joining the RPOA Facebook page is a great way to stay connected with other members between events! You can also stay informed of important happenings at the RPOA as they happen on Facebook and Twitter. Both online social utilities are used for urgent need-to-know messages concerning government action and more.
Credit Card Services Does a tenant or past tenant owe you money? The RPOA can facilitate the collection of that debt through its credit card services. Contact the office for more information.
Copy Machine RPOA’s copy machine is available for your use during normal office hours.
Appliance Dolly Members may rent an appliance dolly for a small fee.
EXCLUSIVE MEMBERSHIP DISCOUNTS 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! Republic Waste Services offers exclusive deep discounts for RPOA members. 96 gallon carts are only $11 per month (curbside only). Call 616-6626862 to start your service. Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today
Compass Realty Services, RPOA exclusive discount! Up to $500 of listing services. Call Tom at 616-550-4447. MLive $35 for 30 days print and online! Grand Rapids Press, Kalamazoo Gazette, Muskegon Chronicle. Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com. Call the Classified Sales Supervisor at The Grand Rapids Press at 616-222-5527.
Rylee’s Ace Hardware offers a 10% discount for all RPOA members with every cash purchase.
OfficeMax 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.
Amera Mortgage Corporation offers free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Call Jim Riley, at 616-292-4491.
Pawlowski & Reens, PLC. Free limited legal advice & discounts. Discounted fees and free limited phone consultation on any legal issue. Call Bill Reens at 616-458-7800.
Bender Maintenance and Home Improvement offers 10% off hourly rate. Property maintenance, general repairs, property prep for rental, inspection compliance. General Contractor, Certified Lead Renovator, RPOA Member. 616-975-0126.
ProSource. 50% off carpet, pad and sheet vinyl and 30% off all hard surface. Call Peggy, 616-257-3200.
Cash Flow Solutions special rates. Collect Bad Checks with Bounce Back Check Recovery! To access this discount, contact the RPOA office. Jeff Lamborne Farm Bureau Insurance Agency offers group discounts. Call Jeff for details. 616447-0274.
Rentals.com Save 20% on standard listings. An online business tool designed to rent your property faster & maximize your investment. To access this discount contact the RPOA office. RMS Free towing! Towing of abandoned and improperly parked cars on your property. Offered to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616–475-9836.
Grizzel & Associates. Save Up to 50% Off $25.00 flat fee per defendant (non-money judgment) No mileage fee! $26.50 flat fee per defendant* (money judgment) No mileage fee! $39.00, plus mileage, for ALL defendants (order of eviction). $40/hour, $20 per 1/2 hour (eviction standby). $2.00 per (tax garnishment). Call Shannon Cadieux at 616-293-8933 www.dg-assoc.com
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.
Hungerford Nichols CPA Advisors. Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Sam DeMarco at 616-949-3200.
Trumble Agency Insurance offers an exclusive discount for members of RPOA. Call Zach Santmier today at 616-401-6575 for a FREE risk analysis and to see if your properties qualify for up to a 10% exclusive discount!
Indoor Climate Solutions. Offering all RPOA members Grand Rapids heating inspection stickers for $40.00 each and 5% discount on repair or replacement of any HVAC equipment. 616-8914328. J.B. Harrison Insurance group discounts! AutoOwners, AAA, Citizens, Hastings, Hartford, Pioneer State Mutual, Progressive. Call Mike Murphy at 616-868-0050. * Minimum aggregate purchases of more than $1,249 in a six month period. Rebates are paid semi-annually.
Sun Rentals 15% off any rental. Pay cash and receive 15% off any rental, any time. Call 616-454-7982.
USA MLS NET Listings $30 per month. RPOA Members $30 per month, unlimited listings. Free custom website with listings displayed, plus many more benefits. USA-mls.com. Call 1-800-206-0080. West Michigan Pro Clean 20% discount. RPOA members receive a 20% discount on their first cleaning. Call 616-299-1757.
RPOA CONTRACTOR AND VENDOR LIST Accounting & Bookkeeping Culver CPA Group
Duane Culver Grand Rapids, MI 616-456-6464 culvercpagroup.com
Hungerford Nichols CPAs & Advisors Heather Halligan Grand Rapids, MI 616-949-3200 hungerfordnichols.com
Sischo, Kyle Kyle Sischo 616-916-4014
Grand Rapids, MI
Air & Environmental Services BioSweep of West Michigan Thomas McNally Ada, MI 616-614-2531 BioSweepwestmi.com
Appliance Dealers Great Lakes Commercial Sales Inc Jon Gerard Wyoming, MI 616-531-8810 greatlakeslaundry.com
Gerrit’s Appliance, Inc.
Brian Hooyer Wyoming, MI 616-532-3626 gerritsappliances.com
Werdon, Bruce K
Bruce Werdon Grand Rapids, MI 616-456-7039 modernappliancegrandrapids.com
Appraisals Post & Associates Kim Post 616-891-0500
Caledonia, MI
Michelle Todd 616-291-1848
Grand Rapids, MI
Architects Todd, Timothy & Michelle
ASSOCIATIONS Heritage Hill Association (Neighborhood) Jan Earl Grand Rapids, MI 616-459-8950 heritagehillweb.org/
Midtown Neighborhood Association Kelly Otto, Community Organizer Grand Rapids, MI 616-732-9191
ASSOCIATIONS (CONT.) Neighbors of Belknap Lookout
Kristi DeKraker, Executive Director Grand Rapids, MI 616-454-8413
Property Management Association of West Michigan Nori Goodhue 616-531-5243 pmawm.com
Wyoming, MI
Roosevelt Park Neighborhood Association Julie Niemchick Community Organizer/Crime Prevention Grand Rapids, MI 616-243-2489 rooseveltparkneighborhood.com
RPOA of Greater Battle Creek
Beth Dunlap Battle Creek, MI 269-965-8075 rpoa-bc.org/v002/Contact.html
South East Community Neighborhood Association Sarah Smith 616-245-4398
Grand Rapids, MI
South East End Neighborhood Association Sandra Latham, Community Organizer Grand Rapids, MI 616-247-0900
South West Area Neighbors
Lori Stanton, Community Organizer Grand Rapids, MI 616-456-9190
ATTORNEYS/LEGAL SERVICES Pawlowski & Reens PLC William Reens 616-458-7800 pfrlaw.com
De Hoek, William William De Hoek 616-954-2018
Grand Rapids, MI
Grand Rapids, MI
Kreis, Enderle, Hudgins & Borsos, PC David Hill 616-254-8400 kreisenderle.com
Grand Rapids, MI
Trowbridge Law Firm PC Charles Baker 313-259-6900
Varnum
Detroit, MI
Randall Groendyk Grand Rapids, MI 616-336-6000
BANKS First National Bank of America Ken Bylsma 616-538-6016
Grand Rapids, MI
CARPET CLEANING Grand Rapids Carpet Cleaning David Bigelow 616-453-5368
Grand Rapids, MI
CLEANING Complete Restoration & Cleaning Services
Jon P Honore Muskegon, MI 231-638-2360
Cook’s Clean Up Burt Cook 616-540-5679
Grand Rapids, MI
Meyers Cleaning Service Inc Elaine Meyers 616-662-5035
Jenison, MI
CLEANING & RESTORATION Home Savers Jon Bartnick 616-534-2388
SWAT 247
Paul Hoogterp 616-329-5440
Kentwood, MI
Hudsonville, MI
concrete
De Hoek, William William De Hoek 616-954-2018
Grand Rapids, MI
DEBT COLLECTION Repossession Management Services, LLC Michael Myers 616-475-9836 rmsonline.us
Grand Rapids, MI
Grizzel & Associates Inc
Shannon Cadieux Grand Rapids, MI 616-451-0293
DOOR SUPPLIER Rodenhouse Door & Windows
Steve Bykerk Comstock Park, MI 616-784-3365 rodenhouse-door-window.com
ENERGY CONSULTANTS DTE Energy Multifamily Program/SEEL, LLC Scott Davis 313-297-2339
Grand Rapids, MI
Referred RPOA Member Vendor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.
RPOA CONTRACTOR AND VENDOR LIST EQUIPMENT RENTAL Sun Rentals Inc Greg Sharphorn 616-454-7982 sunrentalinc.net
Grand Rapids, MI
FINANCING Benchmark Capital Management LLC Matthew Fox 616-735-9800
VerifyValid LLC Tom Reuter 616-272-4960
Grand Rapids, MI
Grand Rapids, MI
FLOORING SUPPLIES Columbo’s Floors To Go
Scott Ehrhardt Jenison, MI 616-669-6222 columbosfloorstogo.com
Landlord’s Supply LLC
Phillip Mol Grand Rapids, MI 616-292-2810 landlords-supply.com/
GENERAL CONTRACTOR Block, Ron & Rochelle Ron Block 616-361-8701
Brown, Dale H
Dale Brown 616-669-3294
SOS Home Rehab Shane Sarver 616-446-4899
Grand Rapids, MI
Hudsonville, MI
Caledonia, MI
Grand Rapids, MI
Grand Rapids, MI
HANDYMAN Bender Maintenance & Home Improvement Tim Bender 616-975-0126 benderfm.com
Grand Rapids, MI
Grand Rapids, MI
Rylee’s Ace Hardware Lori Terpstra 616-451-0724 ryleesace.com
Grand Rapids, MI
Kathy Vallie Bartnick 616-318-3503
Wyoming, MI
HOME IMPROVEMENT SERVICES Abiathar Management LLC Jon Timmer 616-581-6727
Grand Rapids, MI
Williams Distributing Co
Roger Pedersen Grand Rapids, MI 616-456-1613 http://www.wmsdist.com/
HVAC CONTRACTOR A-1 Heating & Air Conditioning Robert Enocks 616-243-1914 a1service.neT
Grand Rapids, MI
Alto, MI
Jeff Lamborne Grand Rapids, MI 616-447-0274 farmbureauinsurance-mi.com
Byron Center, MI
Mapes Insurance Agency Inc.
Grand Rapids, MI
Noel Selewski Agency Inc Noel Selewski 313-886-6857
Grosse Point Park, MI
Trumble Agency Inc Zach Santmier 517-852-9680
Caledonia, MI
INVESTMENT SERVICES VanderPol, Mark
Ada, MI
JUNK & TRASH HAULING Bin There Dump That
Ben Bosch Ada, MI 616-977-1777 dumpsterrentalsgrandrapids.com
LANDSCAPING SERVICES
Efficient Lawn Maintenance LLC Marvin Heyboer Grandville, MI 616-443-0723 efficientlawns.com
LICENSED REAL ESTATE SALESPERSON/BROKER Koetsier Properties LLC
Tom Koetsier Grand Rapids, MI 616-459-9775 compass-koetsier.com
Ann Finkler Rockford, MI 616-437-2164 leonard@logan.com
Life Cycle Property Management
Farm Bureau Insurance
Robert Kazma 616-726-6551
Stacie Knowles 616- 956-2451
Finkler, Ann Siebelink
INSURANCE J B Harrison Insurance
Jerry A Antvelink 616-698-6239
INSURANCE (CONT.) Western Star Insurance Services
Mark VanderPol 616-723-2637
Health & exerciSe Shape Your Life Studios
JA Antvelink Co
GOVERNMENT AGENCY Grand Rapids Housing Commission Holly Sturges 616-235-2600 grhousing.org
Greg Schierbeek 616-459-4523
Dan Urich 616-868-0050 jbhins.com
Discount Home Improvement Karen Ralston 616-451-3600 discountmi.com
hardware stores & building supplies Eikenhout Inc
Nashville, MI
Peter Bruinsma 616-293-5731 petebr.com
MLM Realty LLC Mary Mishler 616-942-9298
Ortiz, Robert
Robert Ortiz 616-447-9903
Grand Rapids, MI
Grand Rapids, MI
Grand Rapids, MI
Sherwood Realty
Paul Sherwood Grand Rapids, MI 616-241-0554 sherwoodrealty1.com
MISCELLANEOUS M&K Truck Centers
Amey Smith Byron Center, MI 616-277-0019 http://www.mktruck.com
Referred RPOA Member Vendor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.
MORTGAGE BROKERS United Bank Of Michigan
PROPERTY MANAGEMENT (CONT.) Compass Property Management LLC
PAINT SUPPLIERS Re-Coat Recycled Paint
Palmer, Larry
Alice Doherty 616-559-4511
Dave Williams 616-335-0640
Grand Rapids, MI
Holland, MI
Sherwin Williams Paint Co
John Brown Wyoming, MI 616-531-3350 sherwin-williams.com
PAINTING CONTRACTORS Priority Painting LLC David Buckley 616-893-7932
Byron Center, MI
Mark Troy 616-452-7080 compas101.com
Larry Palmer 616-901-8582 palmerpm.com
Wyoming, MI
Ada, MI
Grand Rapids, MI
Kentwood, MI
PLUMBERS Magnum Plumbing & Heating Inc
A1 Property Management Roger Hintz Grand Rapids, MI 616-942-1855
Dale Bonnema Wayland, MI 616-477-2525 magnumplumbingheating.com
Best Plumbing & Drain Cleaning Nicholas Gawel 616-212-7907
Grand Rapids, MI
Russ VandenToorn Grand Rapids, MI 616-965-2300 rentup.com
Acc-Sell Property Management LLC Phil Mol 616-458-8200
Wyoming, MI
Lorraine Swainston Wyoming, MI 616-243-7511
Jon Smith 616-329-6318
Hudsonville, MI
Vander Vennen, Jeremy Jeremy Vander Vennen 616-698-8616
United Properties of West MI
Wyoming, MI
Kathy Dennison 616-257-9577
Simple Home Management
PEST CONTROL & EXTERMINATORS Westmark Exterminating Co Henry Benedict 616-532-2189
Jenison, MI
Precision Property Management
Rental Property Consultants Inc Melissa Knorr 616-257-3997 leasegr.com
Ben Hoffman 616-951-4687
Lighthouse Property Management LLC
Qwest Property Management LLC Kevin Wright 616-954-5900 qwestpm.com
PROPERTY MANAGEMENT (CONT.) Lake Michigan Property Management
Grand Rapids, MI gr4rent.com
AM Realty Co LLC
Byron Center, MI
Wilcox Home LLC
Arija Wilcox Ada, MI 616-293-9261 http://downtowngrrealtor.com
Wisinski Properties LLC
W Daniel Wisinski Greenville, MI 616-460-0628 bizapedia.com/mi/WISINSKI-PROPERTIES-LLC.html
REAL ESTATE SERVICES Compass Realty Services
Linda Gary Grant, MI 616-678-7000 amrealtyhome.com
Mark Troy Grand Rapids, MI 616-452-4200 Compass-Koetsier.com
Anders Properties LLC
Bajric & Teunis Real Estate LLC
Annen Property Management LLC
Balsitis, Michael
Echelon Property Management LLC
Community Rebuilders
John McCloud Grandville, MI 616-669-8586 echelonpropertymanagement.com
Vera Beech Grand Rapids, MI 616-458-5102 communityrebuilders.org
Justin Bajema Allendale, MI 616-301-9450 accesspmgroup.com
G R Metro Services
Eastown Realty
City Wide Real Estate Services LLC
Green Property Management/Office
H2 Real Estate LLC
GR Metro Plumbing
Mark J VanderHyde Belmont, MI 616-301-0999
Wasko & Christensen Mike Wasko 616-453-4211
Grand Rapids, MI
PROPERTY MAINTENANCE SERVICES Lighthouse Property Solutions Heather Berghorst Hamilton, MI 616-836-4965
PROPERTY MANAGEMENT Access Property Management Group LLC
Tina Emert Grandville, MI 616-530-7920
Tim Anders 616-291-1467
Jeremy Annen 616-204-3710
Joanna Schlientz 616-430-9007
Martin Green 1-866-954-7336
Grand Rapids, MI
Lamont, MI
Grand Rapids, MI
Grand Rapids, MI
Jasmin Bajric 616-528-2540
Mike Balsitis 616-813-5522
Stanley Spungen 616-942-7004
Caledonia, MI
Caledonia, MI
Grand Rapids, MI
Corby Horlings Grand Rapids, MI 616-432-2097 coho.valuedagent.com
Referred RPOA Member Vendor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.
RPOA CONTRACTOR AND VENDOR LIST REAL ESTATE SERVICES (CONT.) New Dimension Properties LLC Kenneth Jansen 616-913-2211
Grand Rapids, MI
Spitzley Group LLC Patrick Spitzley 616-893-5602
Tweed & Lee LLC William Templin 616-334-9537
TOWING SERVICES Vegter, Sandi Sandi Vegter 616-293-1335
Marne, MI
Grand Rapids, MI
WASTE DUMPERS & ROLL OFFS Republic Services Inc Jeff Nienhuis Jenison, MI 616-308-5760 republicservices.com
WATER TREATMENT/WATER SOFTENERS Besco Water Treatment Connie Isler 616-954-7873 bescowater.com
Grand Rapids, MI
WINDOW SUPPLIER Window World of West MI Grandville, MI
Aileen VanHouten Kentwood, MI 616-988-9996 WindowWorldGrandRapids.com
Williams Auto Salvage William Williams 616-437-7252
Wyoming, MI
Referred RPOA Member Vendor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.
Want to Get Your Business in Front of the Hundreds of Conference Attendees? Call Kathy Bartnick at 616-318-3503 to reserve your exhibitor space.
WHERE LANDLORDS GO FOR HELP
Holland’s New “Excessive Complaint” Regulations
UNITED PROPERTIES OF WEST MICHIGAN The Property Management Leader A Full Leasing, and Management company
“Managed like we own it Big enough to serve Small enough to care”
Included in the recent ordinance changes in Holland is a limit on the number of “excessive crime calls” that can be filed against a property. If your property is the source of
We take this very seriously to earn and keep your business.
more than four (4) complaints in a 12 month period, the City of Holland will access a fine and administrative fees and could do any or all of the following: • • • • •
re-inspection fees; a hearing before the 58th district court; suspension of your rental permit; placarding the property; or other legal action.
Crime calls/complaints include: • public safety visits which result in a citation, arrest or other criminal activity; • local ordinance violations which result in enforcement activity; • violation of the long grass/weed ordinance; • violations of the State of Michigan Tenant Law.
In addition to being a REALTOR®, we have over 40 years of experience buying, remodeling, and managing investment properties.
What makes United Properties the Leader and unique to the business? •
The only management company with on staff collection attorney
•
The only management company with a licensed collection company specializing in collecting on your money judgments
•
12 month guaranteed placement fee
In reality, this isn’t a change to address crime or deal with college student parties as alleged by the city staffers but a change to hammer landlords even harder—especially landlords they have issues with. Holland landlords will have to pay for fines and fees if they have ordinance violations and more fines and fees if they become “excessive.”
Ask about :
The RPOA and local landlords fought hard to limit new ordinances’ impact on the industry. Two successes included the elimination of a proposal to license landlords and relief for those that own units that were built to accommodate up to six tenants. Any unit currently housing six tenants before December 31, 2014 will be grandfathered in under the new ordinance that limits occupancy to no more than four unrelated persons.
Email: info@rentupm.com
•
Eviction Shield so you never pay eviction cost again
•
Rent Shield Program to guarantee your income in the event of an evictions
•
Free analysis of any home you are looking to buy in Kent County - No Obligations - No Pressure
CALL TODAY! 616-965-2300
Don’t trust your investment with just any property management company . . . trust UNITED PROPERTIES
January/February 2015 MICHIGAN LANDLORD 15
RENTAL PROPERTY OWNERS ASSOCIATION
Build a Network
To Support Your Real Estate Investment Business Continued from p. 6
RPOA Free Annual Conference & Expo
RPOA Professional Home Provider Training Courses
The RPOA conducts a large regional event for investors and landlords each year where over 400 landlords and investors are in attendance. The date for this year’s event will be three full days, February 26-28, 2015 and includes a power house of national real estate investor presenters, including Robyn Thompson, Alan Cowgill, Cynthia Schmidt, Nick Sidoti and Mike Butler. This is THE motivational, educational and networking event of the year. Register Now! (http:// rpoaonline.org/events/rpoa-free-annual-conferene-expo/)
The RPOA conducts in-depth training throughout the year on various topics. These courses are not only valuable for their content and up-to-date information, they are also great opportunities to connect with other investors and landlords. Check out the current schedule of all RPOA events. (http:// rpoaonline.org/training-events/events-other-training/)
[As always, keep your eyes open for the latest events and news from the RPOA at www.rpoaonline.org.]
16
RPOA Facebook Group The RPOA hosts a Facebook page where over 500 users share their thoughts, deals, and ideas. Check it out! (https://www. facebook.com/groups/34303550975/)
WHERE LANDLORDS GO FOR HELP
January/February 2015 MICHIGAN LANDLORD 17
RENTAL PROPERTY OWNERS ASSOCIATION
The 10 Commandments of Property Management By Phil Pustejovsky 18
WHERE LANDLORDS GO FOR HELP
You’re about to discover the 10 commandments of property management. Every landlord should apply these simple principles. And although I read books and attended trainings on property management when I first got started, the bulk of these commandments came from over a decade in The School of Hard Knocks. Here are your 10 property management commandments:
1
Choose Your Tenants Wisely
Ninety percent of property management is choice of tenant. When you choose the right tenant, property management is very straight forward. Choose your tenants wisely. To choose wisely, you must advertise extremely aggressively, so that the entire pool of potential tenants in a given market knows your property is available. You must offer the right rental rate because good tenants are very sensitive to higher-than-market lease amounts. Then, you must be very selective and choose the one that has the best overall application. Most important is how they produce income. Nurses are fantastic because nurses always have employment opportunities, and if they ever fall behind on payments (which many tenants do), they can pick up extra shifts to catch up. Self-employed people are the highest risk. They are the most likely to give you the sob story about why they can’t pay rent this month. Sifting through and deciding on which tenant to select is extremely important and requires patience. You’re better off with a vacant property than one that is filled with a bad tenant. Choose your tenants wisely.
2
Your Properties Must Cash Flow Well
Too many investors buy properties that have very little cash flow. If the property doesn’t cash flow extremely well, it’s not worth the headaches and hassles of owning it because all kinds of things can go wrong. The most common problem is that the tenant stops paying you—but doesn’t move out. Then you have to make empty mortgage payments and cover the costs to evict and the expenses to renovate what the tenant destroyed. All kinds of things can go wrong and having the cushion of good cash flow can help offset the hazards.
It’s far better to have fewer properties that all individually cash flow well than a huge portfolio of deals that barely break even.
3
Establish Reserves Up front
In addition to cash flow, you should have reserves socked away for each property for when the inevitable storm comes your way. You can certainly save all your cash flow until you build up a reserve, but it’s even better to establish reserves up front, before the tenants move in. If you are renting a single family home, consider offering the property as a rent-to-own because the tenant creates a reserve for you.
4
Master Your Local Laws
The devil is in the details when it comes to landlord and tenant laws. It’s the little things that can really trip you up and, if you don’t bulletproof yourself, a professional tenant can wreck havoc. He could live for free for several months or take you to court and win some frivolous lawsuit because of some technicality you weren’t aware of. Landlord and tenant laws can vary tremendously from county to county—not just state to state—so you want to study the local landlord and tenant act for the county where your property is located. Take a marker and highlight anything you don’t fully understand. Then pay a local eviction attorney for a few hours of their time and sit in their office and have them educate you on everything you don’t understand. To find the best eviction attorney, head down to the eviction court for your county and note the attorneys whose names appear the most on the docket. In most counties, 80% of the eviction cases are handled by a handful of eviction attorneys. Work with the one that does a tremendous amount of eviction cases. Continued on p. 20 January/February 2015 MICHIGAN LANDLORD 19
RENTAL PROPERTY OWNERS ASSOCIATION
The 10 Commandments of Property Management
5
Prepare for Eviction Before a Tenant Moves In
You should prepare for the day of eviction before the tenant ever moves in. That includes having your eviction attorney review and make necessary changes to your lease agreement. During the “honeymoon phase” (before the tenant has moved in) is the time to get all the information an eviction attorney would need in the event you have to file for eviction. Ask the eviction attorney what the perfect eviction file looks like. It may include a copy of the tenant’s driver’s license, a picture of their license plates, a very thorough rental application, and more.
6 Evict Tenants That Don’t Pay
Be very strict about following the payment terms and conditions in the lease. If the tenant doesn’t pay on time, you charge a late fee. If they don’t pay prior to the late fee period, start the eviction.
If you give a tenant an inch, they will take a mile. And if you can’t stomach the idea of evicting someone for not paying their rent, it’s best that you not own rental property. A tenant needs to be held accountable for not following the terms of the lease. Evict tenants when they don’t pay the rent or don’t own rental property if you don’t feel comfortable evicting.
7
Auto Collect Rent Payments
Waiting for checks in the mail is not efficient and breeds excuses from tenants. Instead, set up a merchant account and process the tenant’s payments as an ACH directly from their checking account. As a back up, if the money is not available in the bank account, get their credit card information and process the rental payment on their credit card. You’ll have to get the proper authorizations in writing from the tenant prior to do this, but you can do that before they move in. And it’s better to process the payments yourself 20
(continued from p. 20)
rather than use an outside company. Those outside companies sometimes allow the tenants to call them and request the payment not be processed that month. That defeats the purpose altogether! The power in direct drafting rent payments from a tenant’s bank account is that they are forced to have the money in their account or they will get hit with insufficient funds fees. So they hustle to make sure that at least there is enough money in their bank account for the rent payment to go through.
8
Periodically Inspect Your Properties
Keep a close eye on your rental portfolio. Periodically, inspect each of your properties to view the condition and how well the tenant is maintaining the property and if the tenant is breaking the lease in any way. Something as simple as not changing the A/C air filter can ruin an air conditioning system and although you can hire someone else to do periodic property inspections, nothing replaces you as the owner having your eyeballs on the property itself.
9 Own Close to Home
Owning close to home is helpful for productive landlording. You know your own backyard better than anywhere else, so you know where the best employers are (and therefore you know where to advertise your vacant rental units). Your mastery of local laws can take years to fine tune, and it’s far easier to learn in just one area rather than several. You can cultivate a relationship with a local eviction attorney, since the best ones usually specialize in just one county. You can easily keep an eye on your properties and your contractors. Investors higher priced areas complain that the cost of a property in their area is twice or three times that of other areas, and they’re tempted to buy long distance rather than close to home. Either own close to home or don’t buy rental property. Continued on p. 29
WHERE LANDLORDS GO FOR HELP
2015 ANNUAL CONFERENCE PROGRAM GUIDE SPONSORED BY: United Properties of West Michigan, LLC Compass Realty, LLC Compass Property Management Culver CPA Group
Columbo’s Floors to Go
Multifamily Dwelling Program
Noel Selewski Agency, Inc.
2015 FREE Annual Conference & Event FEATURING: Robyn Thompson
February 26-28, 2015 DeVos Place
Downtown Grand Rapids, MI - River Overlook Rooms A-F
Rehabbing & Flipping for Wealth
Mike Butler
Alan Cowgill
Landlording On Autopilot Private Lending for Real Estate
Cynthia Schmidt
Collecting Back Rent
Nick Sidoti
Dr. Cash Flow
Register at www.rpoaonline.org
2015 ANNUAL CONFERENCE PROGRAM GUIDE
ROBYN THOMPSON REHABBING & FLIPPING FOR WEALTH
Spend 5 Hours with Robyn!
Affectionately called the “Queen of Rehab,” Robyn brings a wealth of know-how on how to create a large amount of wealth rehabbing and flipping properties. Robyn’s approach works with quality housing—not just foreclosed properties needing significant repair. She’ll show you how to think about selling the property even before you buy it! Some of the biggest names in flipping give credit to Robyn for teaching them the ropes, including Than Merrill of A&E’s Flip This House. The current real estate market is perfect for what Robyn has to teach. You’ll get a chance to spend most of the day with Robyn on Thursday, February 26. WIN UP TO $450 IN CASH! Sign up and complete your registration at The Home Depot booth for the RPOA Home Depot Pro Rebate program and be entered into a drawing for $300, $150 and $50 in cash! All registrations must be completed on-site during the conference. Join the RPOA during the conference and be entered a second time in the drawing! No purchase is necessary. The drawing will take place on Saturday, February 28.
While at the conference, look for over 30 exhibitors and their product and service offerings! WHERE LANDLORDS GO FOR HELP
Cynthia Schmidt, Collecting Back Rent Tired of being left holding the bag—an empty rent collection bag? Fed up with not getting paid for damages? Cynthia is a nationally acclaimed expert at collecting rent. She’ll show you how to start the process before you even begin the marketing process and start taking applications. As a landlord, Cynthia was fed up with tenants who wouldn’t pay their rent and damages, and with not being able to collect monies past due. She took it upon herself to change that for good and created a process to ensure she has a chance to collect every dime.
Alan Cowgill, Private Lending Looking for more money to do more deals? Alan is the guru on finding cash from private sources to expand your real estate empire. Learn how to negotiate the best terms and conditions to make more deals happen. If you have cash to loan, you might even find out new ways to make even more money through real estate investors.
Mike Butler, Landlording on Autopilot When Mike first became a successful landlord in Louisville, Kentucky, he thought to himself, “It can’t be this hard and this much work, can it?” After coming to the conclusion that being a landlord didn’t have to be as difficult as he was making it, he decided to create an approach that made landlording a breeze. Mike will share his Landlording on Autopilot system and various approaches to tenant management and bookkeeping that will save you hours and headaches.
NICK SIDOTI, DR. CASH FLOW Want to know how to increase cash flow from your existing rentals or how to implement new rental strategies to increase profits? Nick is your man. Featured in Kiplinger’s Personal Finance magazine, Nick has been investing in real estate since 1979. He has continued to buy real estate each and every year since. He specializes in residential rental properties, including single family homes, special needs housing and multifamily dwelling. His presentation will include various strategies, secrets and techniques for explosive rental growth, including renting to special populations.
2015 ANNUAL CONFERENCE EVENT SCHEDULE Thursday, February 26, 2015 8:30 a.m. – Registration Opens (Registration Near Escalator in River Overlook area.) Even though the event is FREE don’t forget to check in at the registration desk to pick up your name badge. Without the badge, we can’t let you in! 8:00 a.m. – 5:30 p.m. Exposition Open, River Overlook Area Over 30 exhibitors are on hand to display and explain their valuable services and products for landlords and real estate investors. Make sure to make time to visit each of the exhibitors and thank a sponsor for helping make this event possible and FREE! 8:00 a.m. – 5:30 p.m. RPOA PAC Silent Auction, River Overlook North End A critical part of obtaining and maintaining a voice in politics is making contributions to candidates who are friendly to your cause. Help the RPOA raise funds for the RPOA Political Action Committee Fund by bidding on valuable products and services at the PAC Silent Auction table. Most likely you’ll find services and products you’ll need throughout the year. Why not make the purchase a contribution to the PAC? Breakout Sessions: 8:00 a.m. – 9:50 a.m. How to Evict Troublesome Tenants, River Overlook A/B, 2 Hrs. Legal CE Learn how to deal with the number one problem facing landlords: how to evict a non-paying or otherwise problem tenant. Knowing how to do an eviction before you ever have to do one is critical to understanding when and how to begin one and why you should. There are several steps necessary to carry out an eviction and, if skipped, can result in lost money and lost time. During this course you will learn: • What and eviction is—and isn’t. • Different types of evictions. • The legal eviction process. • The forms needed to complete an eviction. • What constitutes an illegal eviction. • What to expect in court. • How to physically put the tenant out. Presented by Clay Powell, licensed real estate sales person, Director of the RPOA. 9:00 a.m. –9:50 a.m. Home Depot Exclusive Pro Discount Program, River Overlook C (Vendor Presentation) Learn straight from the source all the available rebates, discounts and more through the RPOA Home Depot Pro program. Members of the RPOA receive extra benefits above and beyond normal contractor rates. Don’t Do What I Did! River Overlook D Back by popular demand! Ever wonder if and how the successful investor screwed up? Learning through others’ mistakes is much better than making your own. This is an open session where any investor can share their costly mistakes for the benefits of others. Experienced investors will be on hand to kick things off. Internet & Computer Device Security for the Novice, River Overlook E Every day, someone encounters a computer crash or other strange behavior caused by malicious software, viruses and hacks. Learn how to protect your computer from hackers, malicious software and more. If you’re running or keeping important information about your tenants or clients on your computer, including but not limited to social security numbers, it is imperative to have your computer protected from attacks. 10 Steps to Get Started in Landlording, River Overlook F Kick the year off on the right track. Learn from those who have been there about the 10 most important steps to getting started in landlording. 9:45 a.m. – 12:00 p.m. National Speaker, Robyn Thompson, Rehabbing for Profits (Part 1) River Overlook A/B Robyn is a tremendously successful rehabber and flipper who has trained thousands of investors how to make huge profits, if not millions, in real estate. One of her most successful protégés is Than Merrill of “Flip This House.” You won’t want to miss this nearly all-day, two-part training course on how to make your real estate investment strategy a success.
WHERE LANDLORDS GO FOR HELP
12:00 p.m. – 1:30 p.m. Lunch On Your Own (Lunch Vendor On-site, 2nd Floor, Near Escalator, Available from 11:30 a.m. – 1:30 p.m.) Lunch is available on-site near the escalators or you have time to venture around downtown to one of the local restaurants. Ask the RPOA staff for recommendations. 1:30 p.m. – 4:30 p.m. National Speaker, Robyn Thompson, Rehabbing for Profits (Part 2) River Overlook A/B Part 2 of building and managing a successful, money-making, rehab and flipping real estate business. 5:30 p.m. Explore Grand Rapids Dining with a Local Real Estate Investor and/or RPOA Board (Sign-up at Registration by 2:00 p.m. to ensure a seat.) New to the event this year, the RPOA will organize small groups to dine together at one of the local Grand Rapids downtown restaurants. This is another great opportunity to network with other investors. Make sure to sign up for one of the restaurants on the list by no later than 3:00 p.m. today! The number of seats and restaurants is limited.
Friday, February 28, 2014 7:30 a.m. – 5:00 p.m. Registration, North End of River Overlook Area Even though the event is FREE don’t forget to check in at the registration desk to pick up your name badge. Without the badge, we can’t let you in! 8:00 a.m. – 5:30 p.m. Exposition Open, River Overlook Area Over 30 exhibitors are on hand to display and explain their valuable services and products for landlords and real estate investors. Make sure to make time to visit each of the exhibitors and thank a sponsor for helping make this event possible and FREE! 8:00 a.m. – 5:30 p.m. RPOA PAC Silent Auction, River Overlook North End A critical part of obtaining and maintaining a voice in politics is making contributions to candidates who are friendly to your cause. Help the RPOA raise funds for the RPOA Political Action Committee Fund by bidding on valuable products and services at the PAC Silent Auction table. Most likely you’ll find services and products you’ll need throughout the year. Why not make the purchase a contribution to the PAC? Breakout Sessions: 8:00 a.m. – 8:50 a.m. DTE Energy Savings Program, River Overlook C (Vendor Presentation) 8:00 a.m. – 9:50 a.m. Real Estate Investment Analysis, River Overlook A/B, 2 Hrs. CE This course is a must for all real estate investors and licensed agents. Not sure how much to offer? Not sure the deal will cash flow? Do you know all the different kinds of returns from investment in real estate and how they are calculated? This course will help landlords, real estate investors and licensed real estate professionals understand and analyze the intricate numbers that make a deal cash flow and return a profit. The course will also help sellers or their agents establish a realistic selling price. The course includes real world examples from Michigan! Presented by Russ VandenToorn, real estate broker, property manager and successful investor. 9:00 a.m. –9:50 a.m. Ins and Outs of Insurance for Real Estate Investment & Rental Properties, Room River Overlook C (Vendor Presentation) Ask the Experts: Real Estate & Landlording, River Overlook D This is it—the opportunity to ask successful real estate investors and landlords how they do it and what works for them. This is an open facilitated Q&A session. The panel will kick things off with some current thoughts on best practices. Finding Great Tenants: Effective Screening Techniques, River Overlook E, 2 Hrs. CE 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. The presentation includes: • setting screening criteria • screening for tenants using free online resources • screening out criminals • using decision reports and credit reports • how to use the Tenant History Website to screen for tenants • reasons you can refuse a tenant And More! Presented by Clay Powell, licensed real estate sales person, Director of the RPOA.
2015 ANNUAL CONFERENCE EVENT SCHEDULE 10:15 a.m. – 12:30 p.m. National Speaker, Cynthia Schmidt, Collecting Back Rent – River Overlook Meeting Room A/B Getting a judgment for past due rent is just the first step to effective collections. Learn from a landlord and successful expert on how to collect back rent and other monies for damages. Cynthia has received accolades from throughout the country for her creative and effective collection techniques. You won’t want to miss this one! 12:30 p.m. - 2:00 p.m. Lunch with Exhibitors, Exhibitor Area (Lunch Vendor On-site, 2nd Floor Near, Escalator) Lunch is available on-site near the escalators. This is a great time to visit with exhibitors! 1:30 p.m. – 2:00 p.m. RPOA Annual Membership Meeting, River Overlook A/B Find out what has happened at the RPOA during 2014 and what you can look forward to for 2015. All members are welcome to attend. 2:00 p.m. – 4:30 p.m. National Speaker, Nick Sidoti, Increasing Rental Cash Flow, River Overlook Meeting Room A/B Pow! That’s what people say after they’ve heard Nick Sidoti. Known nationally as Dr. Cash Flow, Nick powers up his audience with energy, strategies and techniques for generating additional cash income from existing and new rentals. His creative techniques have proven successful to students in Michigan and nationwide. 4:30 pm - 6:00 p.m. Cocktail Party Join us before heading out to dinner for a cash bar cocktail reception in the River Overlook area. It’s another great opportunity to network with other investors from throughout the state and talk with RPOA Board members and board candidates.
Saturday, FEBRUARY 28, 2015 7:30 a.m. – 1:30 p.m. Registration, North End of River Overlook Area Even though the event is FREE don’t forget to check in at the registration desk to pick up your name badge. Without the badge, we can’t let you in! 8:00 a.m. – 3:30 p.m. Exposition Open, Grand Gallery Exhibitor Hall Over 30 exhibitors are on hand to display and explain their valuable services and products for landlords and real estate investors. Make sure to make time to visit each of the exhibitors and thank a sponsor for helping make this event possible and FREE! 8:00 a.m. – 1:30 p.m. RPOA PAC Silent Auction, River Overlook North End A critical part of obtaining and maintaining a voice in politics is making contributions to candidates who are friendly to your cause. Help the RPOA raise funds for the RPOA Political Action Committee Fund by bidding on valuable products and services at the PAC Silent Auction table. Most likely you’ll find services and products you’ll need throughout the year. Why not make the purchase a contribution to the PAC? Breakout Sessions: 8:00 a.m. – 8:50 a.m. Ask a Property Manager Anything You Want to Know Q & A, United Properties of West Michigan, River Overlook C (Vendor Presentation) 8:00 a.m. – 9:50 a.m. Self-Directed IRA’s, River Overlook A/B, 2 Hrs. Legal CE All real estate investors and landlords should take this course to understand this important wealth building tool. Learn how to use selfdirected IRA’s to finance real estate deals while increasing profits and avoiding taxes. Did you know you can transfer money from your Traditional IRA into a Roth IRA? And use the money in your ROTH IRA to buy real estate and flip it or rent it—all without paying taxes on the profit? Investors have been using self-directed IRA’s to build huge real estate portfolios that enable them to retire in style and/or leave substantial cash for their family. Presented by Joedy Patrick, a licensed real estate broker, real estate investor and midwest Executive Vice President, Quest I.R.A., Inc. 8:00 a.m. – 9:50 a.m. Idea-a-Minute: Landlording Success, River Overlook D This is what networking is all about! Extremely popular the past two years, we’re bringing this unique networking opportunity back. Investors and landlords have one minute to share their biggest and greatest ideas and success stories. This is a great occasion for investors at all levels to learn unique and creative ideas.
WHERE LANDLORDS GO FOR HELP
Develop Your Own Website in an Hour, River Overlook E Building useful websites gets easier and easier. If you don’t have a website for your investment or your rental property business, this is the perfect venue to learn how to get started. Ask the Attorney, River Overlook F Have a burning question you’ve wanted to ask an attorney but didn’t want to pay for the call? This is the perfect time! We’ll have one of our newest referral attorneys on hand to answer your questions. 9:00 a.m. – 9:50 a.m. Western Star Insurance, River Overlook D (Vendor Presentation) There’s more to insurance than just casualty insurance for your rentals. Learn from the experts about the various important coverages you may want to consider adding to your portfolio. 10:10 a.m. – 12:30 p.m. National Speaker, Alan Cowgill, Private Lending, River Overlook Meeting Rooms A/B Looking for more money to do more deals? Alan is the guru on finding cash from private sources to expand your real estate empire. Learn how to negotiate the best terms and conditions to make more deals happen. If you have cash to loan, you might even find out new ways to make even more money through real estate investors. 12:30 p.m. – 1:30 p.m. Lunch with the Exhibitors, Exhibitor Area (Lunch Vendor On-site, 2nd Floor, Near Escalator Lunch is available on-site near the escalators. This is a great time to visit with exhibitors! 1:30 p.m. – 2:00 pm. Exhibitor Prize Give-a-Ways (Exhibitors should be in room if they have a prize to give away.) This is it! Don’t miss your opportunity to win many of the great prizes offered by our exhibitors. We’ll be doing the drawing for The Home Depot cash prizes at this time. (To be in the drawing, you must either: sign up for the RPOA Home Depot Pro Rebate program or join the RPOA. Receive two entries for doing both during the conference!) 1:30 p.m. RPOA PAC Silent Auction Closes 2:00 p.m. – 4:00 p.m. National Speaker, Mike Butler, Landlording on Autopilot, River Overlook Meeting Rooms A/B This is definitely one of those last but certainly not least kind of things! Did we save the best for last?! Every landlord wants to know how to make their job easier and how to increase their ability to buy and manage more rental properties. Mike has the strategies and techniques nailed down to do just that. Mike wasn’t a polished real estate professional out of the gate—he started his career as, and retired as, a police officer. He then built a fortune in rental real estate. Learn how he did it and continues to do more and more with less time.
GET YOUR REBATE AND WIN UP TO $300 JUST BY SIGNING UP WITH THE RPOA HOME DEPOT PRO REBATE PROGRAM. Stop in at The Home Depot exhibit and sign up and register either a credit or debit card that you’ll use to make purchases. RPOA members receive a 2% rebate back on all purchases* in addition to the other great Pro savings and exclusive discounts. You must sign up on-site and receive your entry ticket to have a chance to win. 2nd prize is $150, 3rd prize $50. (Psst…if you also join as a new member during the conference, you’ll receive another entry into the drawing.) * 2% rebate is paid after total purchases exceed $1,249 during the semi-annual rebate period. Rebates are paid twice per year on total qualifying purchases.
Register at www.rpoaonline.org or call 616-454-3385. PLATINUM SPONSORS Multifamily Dwelling Program
Noel Selewski Agency, Inc.
GOLD SPONSORS
SILVER SPONSORS
EXHIBITORS
United Properties of West Michigan, LLC Compass Realty, LLC Compass Property Management Culver CPA Group
The Home Depot VanderBilt CPA Group Western Star Insurance Services Inc. GR Metro Plumbing, LLC A-1 Heating & Air Conditioning Quest IRA, Inc. Indoor Climate Solutions
Williams Distributing Mal’s Repairs Best Plumbing Cook’s Cleaning Home Savers Conquest Flooring Priority Painting,LLC Bath Savers
Columbo’s Floors to Go
Sherwin-Williams
WHERE LANDLORDS GO FOR HELP
The 10 Commandments of Property Management continued from p. 20
the Costs of Hiring a 10 Weigh Property Manager Carefully Many investors are quick to outsource their landlording duties to a property manager. But consider the costs of a property manager because it may be more cost effective to manage the property yourself. Many property management firms charge 10% of gross rent, which can be a significant amount of money. Ten percent of a $1,000 rental is $100. If the total cash flow is $200 per month, that property manager is getting 50% of net cash flow! You may want to keep that money for yourself in exchange for managing the property. You can collect the payments on autopilot. If you don’t get the rent money, you can call the attorney and start the eviction. You can forward maintenance calls to a 24/7 handyman service. It may be worth 10% of gross to do those few tasks yourself. Although re-renting the property is a bit more hands on, it may be worth it to keep the first month’s rent in exchange for that money. Plus, you’ll advertise harder for the best tenant, whereas most property management companies do just enough to get it rented rather than spend a little extra to get the best tenant. Everyone’s situation is different, and you may discover that hiring a property manager is more cost effective than doing it yourself. Phil Pustejovsky is a real estate investor, mentor and coach that has been a part of over 1,000 real estate investing deals over the past decade. He has also trained investors from all over the US and Canada to new levels of financial freedom through his innovative and real world investing techniques and strategies. Reprinted from AOA News and Buyers Guide, December 2014 issue.
January/February 2015 MICHIGAN LANDLORD 29
Member-to-Member Discounts: $$$aving you dollars!
Check out the discounts being made to RPOA members only:
Amera Mortgage
Home Savers
Jeff Lamborne Agency
Rylee’s Ace Hardware
Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Jim Riley, 616-292-4491.
Homesavers exclusive offer for RPOA members! 50% off your first time using our carpet cleaning services for a studio, 1, 2, or 3 bedroom apar tment. Our other services include water damage clean up, mold removal and deodorization. See a full life of our services online at www.homesavers.com or call 616-534-2388. We have convenient online scheduling for apartment cleaning as well!
We represent several companies. We shop them for you. Group discounts available. Call Jeff Lamborne for details. 616-447-0274.
10% discount on cash purchases. Some restrictions apply. 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.
Bender Maintenance & Home Improvement 10% of f 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, Certified Lead Renovator, RPOA Member. 616-975-0126.
CASH FLOW SOLUTIONS INC Cash Flow Solutions special rates. Collect Bad Checks with Bounce Back Check Recovery! To access this discount, contact the RPOA office. 616-454-3385.
Compass Realty Services RPOA exclusive discount! Up to $500 off listing services. Call Tom at 616550-4447.
Farm Bureau J e f f L a m b o r n e Fa r m B u r e a u Insurance Agency offers group discounts. Call Jeff for details. 616447-0274.
Grand Rapids Carpet & Furniture Cleaners RPOA Member s rec ei ve 2 5 % discount! Call Dave, 616-453-5368.
Home Depot 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! 616454-3385.
Hungerford Nichols CPA’s & advisors Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Sam DeMarco at 616949-3200. Indoor Climate Solutions Offering all RPOA members Grand Rapids heating inspection stickers for $40.00 each and 5% discount on repair or replacement of any HVAC equipment. Over 40 years experience servicing and installing furnaces, boilers, air conditioning. 616-891HEAT (4328)
Jack’s Lawn Service Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today. 616-698-8616.
JB Harrison Insurance Agency Independent agents representing 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 616868-0050 for details.
Associate members who would like to participate in the discount program should call Kathy Rozenek at 616-454-3385. Patronize one of our Associate members participating in the Member-to-Member Discount Program!
MLive Media Group A special exclusive offer just for RPOA members. $35 for 30 days print and online! Grand Rapids Press, Kalamazoo Gazette, Muskegon Chronicle. Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com. Call the Classified Sales Supervisor at the Grand Rapids Press. 616-254-0612.
Office Max OfficeMax offers special 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.
Pawlowski & Reens, PLC, Attorneys at Law Discounted fees and free limited phone consultation on any legal issue. 616-458-7800.
republic Waste removal services Exclusive RPOA discount! $11/month for 96 gal. cart. Call Roy James at 616-662-6862.
RMS LLC Towing of abandoned and improperly parked cars on your proper ty. Offering to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616--475-9836 or email impounds@rmsonline.us.
RPOA is now a member of Prosource Wholesale Floorcovering! Come to Prosource at 1575 Gezon Parkway, Suite A in Wyoming, and receive 50% off carpet, pad and sheet vinyl and 30% off all hard surface. Show us your membership card! Call Peggy, 616-257-3200.
Shape Your Life Studios Our Studio would like to offer RPOA members a chance to get healthy and fit! We have spinning classes (indoor cycling) and group personal training classes for everyone at a reasonable price—$10 an hour! We are offering 50% off your first 30 days with us! There are no contracts or extra fees at all EVER. Call 616-3183503; check out our website, www. shapeyourlifestudios.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.
Sun Rentals Pay cash and receive 15% off any rental, any time. 616-454-7982.
USA-mls Advertise your properties on over 40 of the most popular Real Estate sites. RPOA Members $30 per month, unlimited listings. Free custom website with listings displayed, plus many more benefits. USA-mls.com. Call 1-800-206-0080.
West Michigan Pro Clean WMPC is ready to handle your cleaning needs by offering move-in/ move-out, carpet, post-construction, and general commercial cleaning. RPOA members receive a 20% discount on their first cleaning. C a l l 616 - 2 9 9 - 17 57 o r e m a i l wmproclean@yahoo.com for FREE estimate.
WHERE LANDLORDS GO FOR HELP
HOT Tip for SUCCESS Don’t Take Home Your Tenants’ Pests!
I know this topic will make some people squirm a little—but it must be said. Not all of our tenants are the best housekeepers in the world and some like to keep pets (cats, dogs, etc.). And, some tenants are just unfortunate, attracting pests or carrying them with them wherever they go. How’s does this impact you as the landlord beyond the obvious? Experienced landlords and maintenance staff understand all too well that by not properly preparing for buggy pests, we just might find ourselves with an infestation in our own home, office or in our personal vehicle—or in the next unit or two we visit. It’s not uncommon for pests such as fleas to jump onto any live body within close proximity—including the landlord or maintenance person just dropping by a unit to do usual stuff. A good sign is fleas pole vaulting onto your legs, shoes and pants. What should you do? Pack an extra set of clothes and shoes with you at all times and a large plastic bag into which you can place (or dispose of) the clothes you had on while visiting your units. Granted, you won’t need to avail yourself of this emergency pest kit all the time, but if you think there is any chance you should, don’t hesitate! Before going any further, find a public space where you can strip and change all your clothes, including your shoes. Tuck all the possibly tainted items into the plastic bag and throw them in the trunk. When you get home, take the proper steps to clean the tainted items or simply tie them up tight and dispose of them outside of the home, office, etc. It won’t hurt to spray your vehicle to kill any stray fleas or other such nasty critters that might have jumped on board without your knowledge too.
Indoor Climate Solutions making your home paradise
616-891-HEAT(4328)
M-F 8am-4pm, Sat. by appointment Mention this ad for a 5% Discount on any parts
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$40.00 heating inspection sticker per appliance Upfront pricing Service All Major Brands Quality Installation at an Affordable Rate Licensed & Insured Furnaces, Boilers, A/C, Water Heaters, In floor Radiant, Full line IAQ products
January/February 2015 MICHIGAN LANDLORD 31
RENTAL PROPERTY OWNERS ASSOCIATION
32
950 28TH ST. SE BUILDING 200B GRAND RAPIDS, MICHIGAN 49508 PHONE: (616) 257-9577 FAX: (616) 257-9578 LIGHTHOUSEPM.COM
Preferred Placement Service
Do you currently have a vacant rental home, apartment building or condominium? Lighthouse Property Management offers a streamlined, cost effective option to find and secure paying tenants for your vacant income property. Increase your cash flow and eliminate the headache of screening new tenants. Let Lighthouse Property Management complete the entire leasing process for you, including:
Rigorous Pre-Screening Recent Landlord Reference Checks Review of Eviction History Complete Credit Check Criminal Background Check Employment Verification
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Required Legal Documents/Notices
RENTAL PROPERTY OWNERS ASSOCIATION
How to Prescreen Contractors to Build a Dream Team to Get the Job Done! By Robyn Thompson
Many real estate investors shy away from the ugly house business because they fear hiring contractors. We have all heard the horror stories of rehabbers who lose their shirts because a contractor took them to the cleaners. I am here to tell you that contractors can be your worst enemy or your best friend, depending if you hire a good one or a bad one. So how can the beginning novice real estate investor make the correct choice, i.e. find a hard working team player that gets the job done on time, on budget and at a high standard of quality? The answer is by following all eight of these critical prescreening steps:
34
WHERE LANDLORDS GO FOR HELP
1.
5.
Ask the contractor you are interviewing how long they have been in the business. I prefer at least five years of experience in the trades. I want a contractor who has seen and repaired every strange, odd, and crazy thing that could be wrong with a house. Experienced contractors know how to estimate all tough projects, and experienced professionals can give an accurate price to fix any problem.
The real estate investor should make it mandatory for all contractors to buy all necessary materials to do the renovations. The investor should never waste their valuable time buying materials. If the investor buys the materials, the workers could be viewed as the homeowner’s employees per the IRS guidelines. You do not want this.
Inexperienced contractors, on the other hand, underestimate repairs to get the business and then they try to push their mistake on the home owner by upping the price half way through construction. The investor needs to say NO. NO is the most powerful word in the dictionary, and a rehabber needs to use this tool. If they did not have the knowledge to make a good estimate, it is their problem—not yours.
month to one year warranty of all parts, labor, workmanship, and materials provided by the contractor. This warranty should be in writing. WARNING: If a contractor will not provide a warranty and stand behind the quality of his or her workmanship- DO NOT hire them!
2.
Ask for three references from the last three major projects that the contractor has recently completed. Once you receive the reference letters, make sure you call to verify the references and the quality of the workmanship performed. The quality of work should be satisfactory to the homeowner and should have been completed in a timely manner. If any of the references don’t checkout, do not hire this contractor. If they gave you false information upfront, you know they cannot be trusted. Move on to the NEXT quote.
3.
Ask for a copy of the contractor’s license (if required in your state) and for a copy of their workman’s comp insurance. Once you receive a copy of their license, make sure to check that they are not suspended. Also check to see if any complaints have been filed against the contractor with the Better Business Bureau. It is absolutely mandatory that a contractor prove that he or she has Workers’ Compensation for all the employees that will be working on the job site before they start renovations. Why is this so important? Well, if one of the workers has an accident, you do not want to be sued as a potential employer.
4. Make the contractor pull all necessary permits required
6. The real estate investor should always demand a six
7.
Real estate investors should never agree to pay any contractor by the hour. You pay a fixed price for the complete job. Never pay the final payment in your independent contractor agreement until the project is 100% complete.
8. Ask for financial references (ex: where the contractor
purchases materials). I will contact the supply houses to make sure the contractor is not behind on paying for materials because I do not want to give the contractor a check to payoff an old bill and then have no money for the materials they need to buy for my job. The last words of advice that I can give to anyone beginning a renovation project is to make sure every agreement with a contractor is detailed in writing with an independent contractor agreement. A detailed list of materials required should be listed in comprehensive scope of work. The documents should have work completion time frames, penalty clauses for finishing late, require all permits be pulled and inspections completed before final payments are released. Robyn will be presenting at the 2015 RPOA FREE Annual Conference & Expo on Thursday, February 26, 2015 from 9:45 a.m. to 4:30 p.m. This nearly all-day presentation will provide an experienced in depth look at rehabbing for profit. If you haven’t registered already, do so soon and join hundreds of other investors! To register, call 1-800-701-7762 or go online at www.rpoaonline.org.
by your local building department. The homeowner should NEVER pull the permits. The contractor should also be responsible to pass all necessary inspections required throughout the construction process so a certificate of occupancy (CO) can be obtained when construction is complete.
January/February 2015 MICHIGAN LANDLORD 35
Upcoming Seminars and Events HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL Renovation, Repair & Painting Richard TenHoor, Certified Lead Safe Work Practices Trainer, Landlord and RPOA Member, will teach lead-safe work practices in a comprehensive session. Not knowing how to work in a leadsafe 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. 8 Hour Initial Classes Members: $130 / Non-Members: $150
challenging. Duane will teach the fundamentals of financial recordkeeping, cash vs. accrual, and a lot more.
Jan. 29, 2015 • 6:00 p.m. to 8:00 p.m.
Tax Strategies for Maximum Profit - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Duane Culver, CPA & Investor Duane discusses the insight and techniques needed to reduce and potentially eliminate real estate investment taxes.
Jan. 29, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 8 attendees. Feb. 11, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 8 attendees. Mar. 26, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 8 attendees.
Jan. 31, 2015 • 9:00 a.m. to 12:00 p.m. Feb. 3, 2015 • 6:00 p.m. to 9:00 p.m.
appealing property tax - CE, PHP
4 Hour Refresher Classes Members: $110 / Non-Members: $125 Jan. 14, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Jan. 28, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Feb. 12, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Feb. 17, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Mar. 5, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Mar. 12, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Mar. 25, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.
Jan. 16, 2015 • 10:00 a.m. to 12:00 p.m.
New Member Orientation Taught by Clay Powell. Class held in RPOA Training Room. The class will cover: • National & local discounts and rebates available to members. • Training on the use of the RPOA Website, including sign up, free form access, knowledge base and online videos. • How to sign up for and use the free Tenant History Website for tenant screening. • How to use Rentlinx.com and the free MIRentalGuide.com to list your rentals. • An update on current RPOA governmental affairs activities. • And more!
Jan. 15, 2015 • 6:00 p.m. to 8:00 p.m.
Managing Your Bottom Line - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours credit! Presented by Duane Culver, Certified Public Accountant Getting into real estate investment can be easy…keeping the financial records necessary to manage expenses, cash flow, rent collection and tax preparation for that investment can be
Con-Ed Approved Class for Realtors. Earn 3 hours! Presented by Tom Koetsier, Real Estate Investor, Landlord and Broker Tom Koetsier, real estate broker and investor, will share his extensive knowledge on the process of appealing tax assessments. His course will provide hands-on examples of how to complete the process successfully. Tom has successfully appealed dozens of property tax assessments. $49 Members / $69 Non-Members
Feb. 5, 2015 • 6:00 p.m. to 8:00 p.m.
Appraising: The Inside Scoop - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Kim Post, Licensed Appraiser & Investor Learn how the professionals like Appraiser and real estate investor, Kim Post, determine value. Knowing how a property is valued is important for buying and selling. Learning the process will make you a smarter buyer and seller.
2015 FREE Annual Conference & Event February 26-28, 2015 DeVos Place
Downtown Grand Rapids, MI - River Overlook Rooms A-F
Register at www.rpoaonline.org or call 616-454-3385.
All events are held at the RPOA office unless otherwise noted. Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted. 36
! s u n i Jo
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 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 Mar. 27, 2015 • 10:00 a.m. to 12:00 p.m.
May 19, 2015 • 10:00 a.m. to 12:00 p.m.
New Member Orientation (see Jan. 16 for description)
Marketing & Screening for Paying Tenants - CE, PHP
Taught by Clay Powell. Class held in RPOA Training Room.
Apr. 21, 2015 • 10:00 a.m. to 12:00 p.m.
Evictions Made Simple - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours legal! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director Ready to pull your hair out with a difficult or non-paying tenant? Clay will show you how to quickly (and legally) evict troublesome tenants.
Apr. 30, 2015 • 6:00 p.m. to 8:00 p.m.
Understanding Leases & Contract Law Con-Ed Approved Class for Realtors. Earn 2 Hours! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director Thinking of writing your own lease? Confused about the terminology used on a lease? Clay will provide a foundation of the requirements for leases in the State of Michigan. Participants learn about what can and can’t be in a lease, how tenants can walk away from a lease, and more.
Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director Clay presents a thorough look into getting your apartments rented by using different marketing strategies. This course covers the essentials needed to find and attract the best possible tenants. The participants will learn a wide variety of marketing strategies and methods for screening tenants to obtain the greatest profit.
May 28, 2015 • 6:00 p.m. to 8:00 p.m.
Protecting Your Assets - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by David Hill, Attorney at Law As a landlord, do you know if you’re protected from vandalism, damage from burst pipes, or injuries resulting from environmental sources such as mold? Will your personal assets be protected from claims and creditors in a financial crisis? If you would like to know the answers to these questions, or have other questions about your legal rights and responsibilities as a landlord, this course is for you! Join David as he explains how to best protect your valuable assets from claims, lawsuits, and other un-doings.
May 5, 2015 • 10:00 a.m. to 12:00 p.m.
Landlord-Tenant Law: Avoiding Fines & Penalties Con-Ed Approved Class for Realtors. Earn 2 Hours! Presented by David Hill, Attorney at Law There’s more to managing rental property than meets the eye. David Hill, Attorney at Law, will present Michigan landlord-tenant laws in an easy-to-understand session.
CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT
RENTAL PROPERTY OWNERS ASSOCIATION
Providing the Highest Levels of Professionalism, Performance and Results. PROPERTY/ASSET MANAGEMENT
• Residential • Multi-Family • Small Commercial/Office • Condominium Association • Homeowner Association • Portfolio Discount
NO OBLIGATION PROPERTY EVALUATIONS
SPECIALIZING IN UNDER-PERFORMING REAL ESTATE
• Serious/Thorough Approach to Property Performance • Creative Solutions to Owner Goals
• Marketing thru Exclusive Video Presentation/ Tracking Technology
• Asset Preservation
• Performance Based Fee Structure
• Value Enhancement
• Limited Portfolio Policy
• Buy/Fix/Hold Strategies thru Self-Directed IRA’s
KIM HAIN, CPM
33 years property/asset manager experience cell/text: 616.862.1736 office: 616.257.7800 email: kimhain3@yahoo.com
connect Managing For Success
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WHERE LANDLORDS GO FOR HELP
Expires 6/1/2015
January/February 2015 MICHIGAN LANDLORD 39
RENTAL PROPERTY OWNERS ASSOCIATION
A Special Offer for KARHA, MARA and RPOA MEMBERS
$35 for 30 days print and online!* Kalamazoo Gazette, Muskegon Chronicle and/or Grand Rapids Press.
Fill your vacancies with Mlive Media Group print and online solutions! *Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com Properties with more than 10 units are not eligible for this offer.
40
WHERE LANDLORDS GO FOR HELP
WE ARE LANDLORDS. WE ARE INVESTORS.
Looking for someone to manage your rentals or fill your vacant units? We can do that.
Let us free up your time and maximize your investment portfolio. Team Koetsier
Work with someone who does what you want to do. • Buyer representation
• Short sales and foreclosures
• Listing services • Property tax appeals
• Exit strategies and creative investing
• Free 1 hour consultation
• Rehabs and flips
• HUD registered broker
• Land contracts and lease options
• Mentoring and consulting programs
Tom Koetsier 616-550-4447 tkoetsier@grar.com
Call or email today! Emma Persons Director of Client Services 616-452-7078 epersons@compass101.com www.compass101.com 724 32nd St. SE
Wyoming, MI 49548
• Partnership opportunities
Allison Koetsier 616-633-9445 akoetsier@compass101.com
www.Compass-Koetsier.com RPOA MEMBERS RECEIVE UP TO $500 OFF LISTING COMMISSIONS
Serving the Greater Grand Rapids Area
January/February 2015 MICHIGAN LANDLORD 41
It PAYS to be a member of the RPOA
Member Discounts & Rebates
Cost of RPOA Membership
WHERE LANDLORDS GO FOR HELP
www.rpoaonline.org
WHERE LANDLORDS GO FOR HELP
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
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.
BUY MORE & SAVE! Buy 20 - SAVE 10% Buy 100 - SAVE 15% Buy 200 - SAVE 20%
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WE’RE HERE TO HELP: MONDAY - SATURDAY 8AM - 8PM, SUNDAY 10AM - 5PM
January/February 2015 MICHIGAN LANDLORD 43
Noel Selewski Agency, Inc.
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, weather you have one property or one hundred, we can help. 855-50-INSURE (855-50-467873) E-mail: 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) E-mail: nselewski@yahoo.com www.noelselewskiagency.com
WHERE LANDLORDS GO FOR HELP
Try Spinning for FREE!
HOMESAVERS Carpet Cleaning 534-2388
Why replace it when we can save it!
24 Hour Emergency Water Damage
Regardless of how fit, flexible, or coordinated you are, everyone can benefit from a spin class. No contracts or membership fees.
• •
Group Personal Training
Women only groups, couple groups and groups for moms & kids All $10 a class and include weigh in and support
Call today (616) 318-3503
Online Scheduling Available www.homesavers.co
1290 36th St. SW • Wyoming, 49509
www.shapeyourlifestudios.com
January/February 2015 MICHIGAN LANDLORD 45
RENTAL PROPERTY OWNERS ASSOCIATION
Advertise in Michigan Landlord! Contact RPOA Ad Salesperson, Kathy Bartnick, at 616-318-3503 to reserve your ad space today!
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WHERE LANDLORDS GO FOR HELP
FRUSTRATED
by High Proper t y Tax Assessments? Stop overpaying for property taxes. Let us act as your agent to appeal your property tax assessment. • Property taxes are your biggest expense. Don’t overpay.
• Keep more money in your pocket. • Free no obligation evaluation.
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. • Social Security Number.
Over the past 10 years, we have experienced an 85% success rate in achieving at least some relief from inflated assessed values. Call now to receive special RPOA discounted pricing.
• 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.
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.
Contact Tom at 616-550-4447 tkoetsier@grar.com or Allison at 616-633-9445 avkoetsier@sbcglobal.net Visit us at the Compass Property Management Booth at the RPOA Annual Conference. Attend Tom Koetsier’s Property Tax Assessment Appeals Class Saturday January 31, 2015 or Tuesday February 3, 2015
• 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. • 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 15, 2014) Single: $14.95 Double: $24.95 Criminal Report: $7.00 each
January/February 2015 MICHIGAN LANDLORD 47
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WHERE LANDLORDS GO FOR HELP
FOR SALE BY OWNER
Ad-o-Grams Appliance sale Refrigerators, ranges, washers & dryers. Nice selection, all guaranteed, and delivery service. Modern Appliance, 809 College NE, 616-4567039.
Carpet cleaning 31 rental properties (40 units) in Muskegon, all newly renovated have occupancy permits and are rented out. 21 units walking distance to Muskegon's booming downtown. Price discount for full package cash buyout.
E-mail me at wendellmay @frontier.com for further details.
RPOA members receive 25% discount. Premium carpet care at affordable prices. Call RPOA member Dave Bigelow at 616-822-4710 or Grand Rapids Carpet and Furniture Cleaners at 616-453-5368.
eviction clean-up and dumpster rentals Never have stolen tags again! Clean-ups starting at $35. Or rent one of our 10-, 15-, or 20-yard dumpsters for your remodel or clean-ups. Starting at $175 including dump fees! Call Executive containers at 616-862-5246.
For Sale by Owner: Rental Property near GVSU downtown. 214 Gold Ave, NW. 3 bdrm, 2 Story Front Apt and 1 bdrm Back Apt. Substantial improvements. For details, pictures and financial information go to: http:// andyatwood.com/214-gold.html. Phone 616-9019816. Price: $85,000.
SOS Home rehab llc
R.K. Mechanical Heating • Cooling • Gas Fireplaces Sales, Service, Installation Roy Kline Phone: (616) 677-3975 Cell: (616) 292-0462
Repair/remodeling for management companies/ homeowners. Inspections to evictions to move-in ready apartments. Certified in HVAC, lead and mold. Call Shane Sarver, 616-446-4899; email: ssarver@ soshomerehab.com. Licensed, insured, efficient.
0-1580 Fox Ct. Grand Rapids, MI 49534
Licensed Insured
January/February 2015 MICHIGAN LANDLORD 49
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BOARD OF DIRECTORS President: Bert Heyboer (616) 719-0819 E-mail: bertheyboer@gmail.com President Elect: Tom Koetsier (616) 550-4447 E-mail: tkoetsier@grar.com Secretary: Mark Troy (616) 452-4200 Email: mtroy@compass101.com
1459 Michigan St. NE / Grand Rapids, MI 49503 Phone:
(616) 454-3385 / Fax: (616) 454-6163
E-mail:
contactrpoa@rpoaonline.org
Web Sites:
http://www.rpoaonline.org
www.MIrentalguide.com
www.tenanthistorywebsite.org
Office Hours:
Mon 8:30 AM-5:30 PM
Tue–Thu 9:00 AM-5:30 PM
Fri 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.
Treasurer: Mark Andresky (616) 855-1979 E-mail: mark@performanceba.com
Other Board Members: Kathy Dennison Adrianse (616) 257-9577 E-mail: kdennison@grar.com Steve DeKoster (616) 776-0572
E-mail: sdeko@aol.com
Allison Koetsier (616) 633-9445
E-mail: akoetsier@compass101.com
Keith Littlepage (616) 669-8809
E-mail: successinvests@att.net
Phil Mol (616) 458-8200
E-mail: philmol@grar.com
David Phillips (616) 745-6683
E-mail: davidrphillips@charter.net
Kim Post (616) 891-0500
E-mail: kim@postandassociates.com
John Potter (616) 318-1549
E-mail: jpotter@grar.com
Russ VandenToorn (616) 965-2300
E-mail: russ@rentupm.com
Brian Zeemering (616) 608-0940
Email: bzeemering@gmail.com
Past President: Ann Siebelink-Finkler (616) 437-2164 E-mail: annfinkler@gmail.com
RPOA Staff: (616) 454-3385 RPOA Members Buy Over $36,000 in Paint & Supplies at 30% Discount Over the past six months, RPOA members have spent over $36,000 at Sherwin Williams buying paint and paint supplies—at 30% off! Members save 35% on applicators! Are you getting the savings you deserve as a member of the RPOA? Do you have your Sherwin Williams RPOA card? If you don’t have a card, please contact the RPOA office and we’ll get you one right away! Don’t miss out on this valuable RPOA benefit. Here’s a link to all the discounts RPOA members receive as a member of the RPOA. https://rpoaonline. org/contractors-vendors/exclusive-rpoa-memberdiscounts/discounts/
Clay Powell, Director Ava Grover E-mail: avag@rpoaonline.org Kathy Rozenek E-mail: kathyr1@rpoaonline.org Heather Vandenbos E-mail: heatherv@rpoaonline.org
RPOA Director & magazine Editor: Clay Powell (616) 454-3385
Ad Sales: Kathy Bartnick (616) 318-3503
RPOA Attorney: David Hill (616) 254-8417
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E-mail: clayp@rpoaonline.org
E-mail: kvallie@aol.com
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 $1,249. Rebate checks are sent out semi-annually, usually in March and August.
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
prsrt std U.S. Postage PAID
Grand Rapids, MI 49503
Permit No. 553