Introduction to Midwest Equity Partner v.5 (PDF)

FU L L -SERV I CE
I N V EST M EN T
REA L ESTAT E.
W E H A N DL E
EV ERYT H I N G .

F U L L -SE RV I C E R E A L E STAT E
idw est Equit y
Par t ner is a
full-ser vice
w holesaler : w e
pr ovide a com plet e,
hands off appr oach t o
r eal est at e invest m ent for
people w ho haven't got
t he exper ience, t im e,
pat ience, or pr oxim it y t o
go about t he endeavor as
w ell as w e can.

M

H eaded by exper ienced
r eal est at e pr ofessionals
and m anaged by a
dedicat ed and
specialized t eam ,
M idw est Equit y Par t ner
has done over 3,500
deals in t he past decade.
Our client s include
doct or s, dent ist s,
engineer s, I T
pr ofessionals, r et ir ees,
hedge funds, and ot her s
w ho appr eciat e our
syst em at ic and
m et iculous appr oach t o
pr oducing r ent al houses.
I nvest ing in houses is
bot h r ew ar ding and
daunt ing. H ouses
pr ovide r egular cash flow
and m ay appr eciat e in
value over t im e. But
befor e you invest in r eal
est at e you m ust consider :
w hat neighbor hood, or
cit y for t hat m at t er,
should you buy in? H ow
do you find a dist r essed
but pr om ising house t o
w or k w it h? H ow do you

find a r eliable cont r act or,
and w hat k ind of
r enovat ion should you
or der ? Finally, and m ost
im por t ant ly, how w ill you
m anage your house, and
how w ill you find a good
t enant ?
We at M idw est Equit y
Par t ner k now t he
answ er s t o t hese
quest ions and enjoy
em ploying our subst ant ial
exper ience for our
client s' benefit . By dint
of our har d w or k our
client s' involvem ent w it h
t heir t ur nk ey houses m ay
be as lim it ed as r eceiving
t heir r ent al incom e in
t heir bank account s ever y
m ont h.
We find t he house. We
hir e and m anage t he
cont r act or s, and m ak e
cer t ain t hey pr oduce
pr ecisely t he w or k w e
expect . We m anage t he
house, and w e place a
gr eat t enant . We
m aint ain ongoing
r elat ionships w it h our
client s -- even aft er our
client s buy houses fr om
us, t hey m ay r ely on our
subst ant ial m ar k et
pr esence t o get t he best
available deals on
m anagem ent and
m aint enance.
We r ely on long-t er m
r elat ionships w it h our

client s. We per for m best
w hen w e pr oduce in
volum e. By k eeping t heir
cost s low, and by k eeping
t heir invest m ent s
pr ofit able, w e k eep our
client s sat isfied. For
m ost of our client s, t heir
fir st deal is t he fir st of
m any.
M idw est Equit y Par t ner
select s m ar k et s w it h good
invent or y, good

Accou n t abi l i t y,
Tr an spar en cy,
an d Good Fai t h

cont r act or s, good
pr oper t y m anager s, and
advant ageous econom ies.
We ar e cur r ent ly act ive in
M ilw auk ee, Chicago,
Davenpor t , M inneapolis,
St L ouis, and Kansas Cit y.
Our houses r eliably
pr oduce double digit
per cent age r et ur ns for
our client s because w e
pay gr eat at t ent ion t o
w her e, in addit ion t o how,
w e oper at e.
I f you w ant t o invest in
gold, you hesit at e at
buying a pick axe and a
plane t ick et t o Alask a --

r at her, you w or k w it h a
gold br ok er. I f you w ant
t o invest in r ock et s, you
don't st udy engineer ing
and build your ow n -- you
buy st ock in a r ock et
com pany. Sim ilar ly, if
you w ant t o invest in
houses, you could st udy
all t he m yr iad ins and of
t he business, but w hy not
inst ead w or k w it h t he
m ost account able and
har dest w or k ing t ur nk ey
pr ovider in t he M idw est ?
We under st and t he
im por t ance of your
invest m ent and pledge
our com m it m ent t o
get t ing t he m ost fr om it .
When you w or k w it h us,
you'll find you have m or e
t han a seller --you'll see
t hat you've got a par t ner.

-T h e M i dwest Team

SO U R C I N G & R E N O VAT I O N
gr eat r ent al house st ar t s w it h a gr eat deal. At
M idw est Equit y Par t ner w e ut ilize ever y
sour ce of dist r essed houses available t o
invest or buyer s. We r elent lessly bid on bank
ow ned pr oper t ies. We m aint ain net w or k s of seller s and
w holesaler s in ever y m ar k et in w hich w e'r e act ive. We
air t elevision com m er cials so w e m ay connect w it h
pr ivat e ow ner s w ho appr eciat e our com pet it ive offer s
in consider at ion of t heir im m ediacy. By bidding on
hundr eds of houses per w eek w e ensur e t he best pr ices
for our client s.

A

t hor oughly. Our scope of w or k dict at es how ever y
squar e inch of a house is t o be t r eat ed, and fur t her
defines ever y device and accent t hat w e w ish t o have
inst alled in our houses. By avoiding having t o
deliber at e over w hat color paint , w hat br and of st ove,
and w hat t hick ness of car pet padding t o put in our
houses, w e save t im e and m oney. Fur t her m or e,
because w e k now exact ly w hat k ind of r enovat ion m ost
appeals t o r ent er s, w e syst em at ically pr oduce houses
t hat have t he best chance of being t enant ed quick ly,
r educing vacancy cost s.

Once w e have a gr eat house t o w or k on w e
im m ediat ely set about r enovat ing it . We only w or k w it h
licensed cont r act or s w ho w ill low er t heir r at es in
consider at ion of t he full-t im e w or k w e pr om ise. Our
cont r act or s fur t her r educe t heir pr ices by bidding
against one anot her for our pr oject s. Also, because our
scope of w or k doubles as a cont r act and because w e
pay in dr aw s, w e do not pay our cont r act or s in full unt il
t hey have finished t he w or k t hat w e and our client s
expect . Our field coor dinat or s on t he gr ound in each of
our m ar k et s car efully m onit or our cont r act or s'
pr ogr ess.

We em ploy a host of ot her m et hods t o k eep our
r enovat ions high qualit y and cost effect ive. Rat her
t han unifor m ly r eplacing ever y big t ick et it em , such as
fur naces, w at er heat er s, and r oofs, w e only r eplace
t hings t hat haven't got at least five year s of life left in
t hem . Rat her t han t r ust cont r act or s w it h m oney t o buy
needed m at er ials, w e or der m at er ials fr om our
supplier s dir ect ly, t hus pr event ing m isallocat ed
r esour ces. Also, w e don't assign m ult iple jobs t o a
cont r act or unt il t hey have pr oven t hat t hey can m or e
t han adequat ely per for m on one.

We pay bulk pr ices for our const r uct ion m at er ials as
w ell. Because w e buy so m any m at er ials lik e floor ing,
appliances, car pet ing, and m or e, local supplier s give us
t he low est available pr ices for all of t he t hings older
houses need t o feel r ight again. Addit ionally, w e ow n a
H eil dealer ship and buy and inst all new fur naces at
cost .
St andar dizat ion is one of t he m ost effect ive w ays t o
k eep cost s dow n, and w e em ploy t he t echnique

We ar e alw ays lear ning and adapt ing t o an indust r y
char act er ized by const ant pr act ical and t echnological
advances M anaging a r enovat ion t ak es significant t im e
and scr ut iny. Our client s appr eciat e t hat w e t end so
car efully t o such a cr it ical st age in t heir invest m ent . A
t ur nk ey house can ver y quick ly t ur n unpr ofit able if
cost s ar en't k ept dow n at ever y st age, and r enovat ion
pr ovides am ple oppor t unit y for ever yt hing t o go w r ong
-- w e st ay on our t oes!

Tenant Placement
Midwest Equity Partner
would rather leave a
property vacant than burden
it with a poor tenant. A bad
tenant means property
destruction, non-payment,
eviction, abandoned animals
-- you name it, we?ve seen it.
The following is our exacting
tenant placement criteria:
- Income must be at least
three times greater than
rent.
- Employment must be
verified, income must be
proven.
- Credit score must be 550
or greater.
- Debt payments must be
less than 35% of income.
- All other bills must be paid
(an applicant who doesn?t
pay phone bills isn?t going to
pay rent).
- No felonies, period. A
moving or parking violation
is OK, but an applicant who
did time for armed robbery
is never going to set foot in
a Midwest Equity Partner
house.
- As of 4/ 1/ 2015 we won?t
accept applicants who?ve
had prior evictions.
- The applicant?s past two
landlords must give a
positive referral (their
current landlord may give
the applicant a glowing
review because they want to
get rid of a deadbeat -- the
prior landlord has no such
incentive, and will be
honest).

Pr oper t y M anagem ent
M idw est Equit y Par t ner has t r adit ionally hir ed t hir d par t y pr oper t y m anager s
t o over see t he t ur nk ey houses w e pr oduce for our client s, and w e st ill do in som e
m ar k et s. Som e of t he pr oper t y m anagem ent com panies w e've hir ed spr ead t heir
t eam s over t housands of pr oper t ies -- ot her s ar e com pr ised of a single busy
individual w it h a few door s t o look aft er.
Alt hough w e've closely m onit or ed t he w or k of t he pr oper t y m anager s w e
em ploy, appr oving t he t enant s and m aint enance or der s t hey've br ought us, w e
quick ly saw t hat in or der t o best ser ve our client s w e w ould do bet t er t o br ing
pr oper t y m anagem ent in-house.
Rent Pr o Team w as founded in 2014 as our pr ivat e solut ion t o our client s'
pr oper t y m anagem ent needs. Rent Pr o m anages our client s? houses -- it s r ole is
not t o t ur n a pr ofit , but r at her t o k eep our client s happy so t hey?ll k eep invest ing
in our m ar k et s. Because of t his, Rent Pr o is t he m ost account able and
cost -effect ive pr oper t y m anagem ent solut ion for our client s.
We ar e ver y select ive of w ho can live in our client s' houses. Please see t he
sidebar for m or e on our t enant select ion cr it er ia. Once t enant s ar e placed, it is
Rent Pr o?s job t o k eep t hem happy. Cont act w it h t he t eam is alw ays available.
M aint enance calls ar e pr ocessed quick ly and t hor oughly. We lik e t he sm all
t ouches, t oo: at Chr ist m as t im e w e br ing t oys t o our t enant s? childr en, just t o
show t hem t hat t hey m ean m or e t o us t han a paycheck .
M aint enance is t he ot her gr eat value Rent Pr o br ings t o M idw est Equit y
Par t ner ?s client s. Because w e r eceive bulk pr ices on t he labor and const r uct ion
m at er ials w e use in our r enovat ions, w e can also pr ovide t he m ost cost -effect ive
m aint enance for our client s? houses.
Wher eas your t ypical pr oper t y m anager m ay pick an H VAC specialist or
plum ber out of t he yellow pages, M idw est Equit y Par t ner k now s a t r ust ed cadr e
of pr ofessionals w ho low er t heir r at es in consider at ion of t he gr eat num ber of
hour s w e offer t hem . Window s, gas lines, w ashing m achines -- anyt hing t hat can
br eak in a house, w e get for less because w e buy so m any of t hem .
Addit ionally, Rent Pr o m ak es cer t ain t hat fr ivolous m aint enance calls ar e
pr event ed. Oft ent im es a t enant w ill call w it h a com plaint along t he lines of, ?I
plugged m y vacuum , space heat er, and hair dr yer int o one out let and all t he
light s w ent out . Send over an elect r ician! ? Befor e pr ospect ive t enant s can live
in a M idw est Equit y Par t ner house, Rent Pr o show s t hem a shor t video about all
t he t hings t hey can do t o m aint ain t heir house. Sim ple t hings lik e cir cuit
br eak er s, light bulbs, and t oilet s ar e all explained in t he video, w hich m eans no
fr ivolous m aint enance calls and plent y of m oney saved.

RECEN T D EAL S
M idw est Equit y Par t ner is pr oud of t he deals t hat w e have done. The above ar e only a sm all sam ple of our w or k ,
and r epr esent w hat w e do consist ent ly and r eliably t hr oughout all of our m ar k et s. Our houses ar e in good
neighbor hoods w her e cr im e and t ur nover don't have a m ar k ed effect on t heir pr ofit abilit y. We do not specialize in
neighbor hoods w her e w e our selves w ould be unhappy living w it hin!

M I LW A U K E E
Pr ice: $79,000
Rent : $1,150
M ilw auk ee is a gr eat m ar k et t o be in r ight now. I t s
unem ploym ent r at e has dr opped fr om 13% t o 5% fr om
2010 t o 2015. Big em ployer s lik e Am azon ar e m oving
in, and m any Chicagoan com panies ar e r elocat ing t o
M ilw auk ee t o t ak e advant age of t he cit y's business
clim at e. Ther e is an apar t m ent building const r uct ion
boom happening in M ilw auk ee r ight now, and t he
Buck s ar e building a new billion dollar st adium and
ent er t ainm ent dist r ict dow nt ow n.
M idw est Equit y Par t ner is t ak ing full advant age of
M ilw auk ee's r eal est at e m ar k et . By 2016 w e w ill have
pr oduced hundr eds of t ur nk ey houses in Br ew Cit y for
invest or s w hose ow n local m ar k et s can't pr oduce deals
t hat com e anyw her e close t o w hat w e'r e achieving
t her e.
And, because w e per sonally m anage our M ilw auk ee
t ur nk eys for our client s, t hey only need t o have one
point of cont act t o see how t heir houses ar e doing. I t 's
r eal one st op shopping!

C O N TA C T U S T O D AY SO
W E M AY TA L K A B O U T
W ORK I N G TOGE TH E R!
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