Michigan Landlord Magazine - March 2021

M A RCH 2021 | w ww. rp oaonl ine.org

Foreclosures Continue to Hit All-Time Lows Business Insurance is a Must

Emergency Rental Assistance Program Grantee List — page 8

S&P CoreLogic Case-Shiller Index Up 10.4% — page 19

“Cheap Old Houses” Attracts Millennials Escaping the Cities — page 28

A P UB L I CATI O N O F TH E RENTAL PRO PERT Y OWNERS AS S O CIATIO N

R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

Each week we discuss topics, tips and techniques designed to make you a more confident and successful rental property owner and real estate investor.

Our guests include buy and hold investors, flippers, wholesalers, property managers, brokers, legal advisors, insurance providers, mortgage brokers— you name it; we’re talking to some of the top names in the real estate investing business in Michigan.

“

Top 100 Business/ Investing Podcasts on iTunes.

Listen On

“ Our host, Brian Hamrick from Hamrick Investment Group, is a successful investor in apartments, self-storage, and non-performing notes. He has bought and sold over 450 units in West Michigan.

rpoaonline.org /podcasts AND :

REAL ESTATE INVESTOR & LANDLORD NETWORKING BREAKFAST Join us every Friday morning at 8 am!

The Friday Morning REI breakfast is an open, informal networking session for vendors, lenders, landlords and investors who are invited to share their haves and wants.

Where: Russ’ Restaurant 3966 Plainfield Ave NE Grand Rapids, MI 49525

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CO N TEN T S FEAT URE S 5

WELCOME NEW MEMBERS!

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MEMBER-TO-MEMBER DISCOUNTS

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UPCOMING COURSES & EVENTS

AR T I CLE S 7

EXISTING-HOME SALES UP 0.6% IN JANUARY

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PANDEMIC YEAR SEES SOARING HOME SELLER PROFITS AS PRICES SET NEW RECORDS

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FORECLOSURE & EVICTION MORATORIUMS EXTENDED THROUGH JUNE 30TH

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EMERGENCY RENTAL ASSISTANCE PROGRAM GRANTEE LIST

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BILL NOLL: ASSET PROTECTION FOR REAL ESTATE INVESTORS—2021 RPOA VIRTUAL CONFERENCE

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THANK YOU 2021 VIRTUAL CONFERENCE

VOLUME 57, ISSUE 3

SPONSORS!

www.rpoaonline.org

PAUL ISELY’S 2021 REAL ESTATE INVESTMENT AND RENTAL ECONOMIC UPDATE

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The MICHIGAN LANDLORD magazine's goal is to provide a forum for real estate investment and rental

S&P CORELOGIC CASE-SHILLER INDEX UP

property ownership and management ideas and news.

10.4%

Our articles, columns, and other features should not

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BUSINESS INSURANCE IS A MUST

be construed as investment advice, nor does their

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FORECLOSURES CONTINUE TO HIT ALL-TIME LOWS

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appearance imply an endorsement by the Rental Property Owners Association of Kent County or the Real Estate Investors of Michigan of any specific real estate

“CHEAP OLD HOUSES” ATTRACTS

investment or management strategy. An investor’s and

MILLENNIALS ESCAPING THE CITIES

manager’s best course of action must be based on individual circumstances.

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

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W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

WELCOME NEW MEMBERS!

RPOA MEMBERSHIP Can’t Afford it? Think Again.

A & M Properties All Day Renovations Allen Small Aspire Real Estate MI LLC Ballard BluePoint Investments LLC Brookeside Properties LLC Carrie Carr Dream Real Estate And Management LLC Finish Well Properties First National Bank of America Forest Properties GC Rueh's Properties LLC

$289.90

1-Year* Starbucks Tall Coffee

$219.00 1-Year RPOA Annual Dues

Which is Going to Make or Save You Money? * 26 Weeks, 5 Days per Week, Plus Tax

I Heart GR Real Estate Keara and Patrick Hilton Lance Griffin Linda Hyaduck Marcia Beck NAI Wisinski of West Michigan Princeton Leigh Properties Ryan Bergman Construction Schlotter LLC

1459 Michigan St. NE • Grand Rapids, MI 49503

Scott Boatman

Phone:

Sohr Properties

Email: contactrpoa@rpoaonline.org

Stephen Carlson

Websites: www.rpoaonline.org www.MIrentalguide.com www.tenanthistorywebsite.org

Stories Properties, LLC Timberline Property Management LLC Tim Wolffis Trevor Finton

Hours:

(616) 454-3385 • Fax: (616) 454-6163

Monday - Friday 9:00 AM - 5:00 PM

The Rental Property Owners Association is a nonprofit business association whose mission is to support and facilitate its members’ success in real estate investment and management.

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

Rental property financing solutions from United Bank.

Here at United Bank, we do more than write mortgages; we create, customize and innovate to provide a loan that fits your unique situation. Whatever it takes, we’re here for you. Now that’s a real mortgage solution.

UnitedBank4U.com | 616.559.7000

Member FDIC

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EXISTING-HOME SALES UP 0.6% IN JANUARY The National Association of Realtors is reporting that existing home sales were up 0.6% in January to a seasonallyadjusted annual rate of 6.69 million (up 23.7% from one year ago). Total housing inventory at the end of January was 1.04 million units, down 1.9% from December and down 25.7% from one year ago. Unsold inventory sits at a 1.9-month supply at the current sales pace with properties remaining on the market for around 21 days. The median existing-home price for all housing types was $303,900, up 14.%% from January, 2020. Once again, the culprit is low inventory: “Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” said Lawrence Yun, NAR’s chief economist. “Sales easily could have been even 20% higher if there had been more inventory and more choices.”

PANDEMIC YEAR SEES SOARING HOME SELLER PROFITS AS PRICES SET NEW RECORDS According to their Year-End 2020 U.S. Home Sales Report, ATTOM Data Solutions says profits on home sales increased in 9 out of 10 Housing Markets in 2020 with the national median home price up 13%. In addition the report says sellers nationwide realized price gains of $68,843 (a 34.7% ROI) on the typical sale, up from $53,700 in 2019 and $48,500 two years ago.

“Last year marked a unique year in the history of home prices and profits in the United States. A once-in-a-century health crisis tore through much of the nation’s economy but seemed to have the opposite effect on the housing market…” Said Todd Teta, chief product officer at ATTOM Data Solutions.

FORECLOSURE & EVICTION MORATORIUMS EXTENDED THROUGH JUNE 30TH The U.S. Department of Housing & Urban Development (HUD) announced in mid-February the extension of the FHA’s foreclosure and eviction moratoriums through June 30th, 2021, as well as an extension of the initial start date of a COVID-19 Forbearance.

Click here to read the full announcement.

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

EMERGENCY RENTAL ASSISTANCE PROGRAM GRANTEE LIST Rental Emergency Assistance funding came through in the December 2020 Stimulus Bill and will result in $25 billion being made available to residents who are behind on rent and utilities for Covid-19 related reasons. The funds are distributed like a block grant, to states, territories and substantial counties and municipalities, as well as specific Native American Housing Authorities.

Irrespective of previous income, if a resident lost their job due to Covid-19 and remained unemployed for 90 days or more, they can seek these funds for up to 12 months of arrearage and potentially, an additional 3 months, if needed. Grantees are encouraged to focus significant funds on those resident at less than 50% of the Average Median Income (AMI) for the region.

The State of Michigan has been granted $622,794,676 in funding. Kent County is receiving approximately $38 million for eviction relief and the State is looking to loosen the requirements to assist more tenants in need.

Click here to download the full list of Emergency Rental Assistance Program Grantees (12/20 Stimulus).

YOUR AD

HERE Advertise in

Contact Kathy Bartnick, RPOA Ad Salesperson, at 616-318-3503 to reserve your ad space today!

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Sign Up for The Home Depot Rebate Now! The RPOA's membership in the National Real Estate Investors Association (NREIA) 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 Please note: If the credit/debit card for the HD Pro Account is changed, please make sure the NREIA code is also added to that account in order to continue to get the discounts. DO NOT delete the old card from the account. * For semi-annual purchases over $5,000. Rebate checks are sent out semi-annually, usually in March and August.

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

2021 MICHIGAN LANDLORD & REAL ESTATE INVESTOR

VIRTUAL

ANNUAL CONFERENCE & EXPO On the third Tursday of each month we'll be bringing you an exciting new main event - national speaker, deal room, breakout sessions, or legislative and economic updates - in addition to each event having plenty of opportunity to network (up to 500 people per event!) and chat with vendors and sponsors! Visit the conference website at michiganreiconference.com to learn more!

Next month we'll be bringing you the well-known expert tax attorney, CPA and national speaker Bill Noll! And yes—this is still a completely FREE event!

Bill Noll will teach you how to protect your assets from lawsuits, share tax strategies to help you can use all year, plus tell you how you can sell a property tax-free and keep all the profits, how to avoid capitalization requirements and more!

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PLUS More National Speakers!

Alan Cowgill

Private Money Made Easy May 20th

Scott Meyers

Self-Storage Investing September 16th

Shaun McCloskey

Building an Insane Real Estate Business You’ll Love July 15th

Larry Goins

Dwan Bent-Twyford

Filthy Riches November 18th

30 Days to Cash Wholesaling Houses January 20th, 2022

And Other Fantastic Events!

Deal Rooms • Educational Breakout Sessions • Real Estate Legislative Update Each event will run from 11:00 a.m. until 2:00 p.m. online on the Remo platform. For more information on how Remo works, click here.

It is highly recommended that attendees create an account with Remo, register for the conference and set up their profiles well in advance of the conference start time.

The schedule, speakers and other events are subject to change due to uncontrollable circumstances. The conference website will be updated as necessary to reflect the most recent changes.

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Thank You 2021 Virtual Conference Sponsors!

We would like to thank all of our sponsors for the first event of our 2021 virtual conference!

WESTERN STAR INSURANCE (Main Sponsor)

Western Star Insurance is a company-owned independent agency that offers multiple lines of insurance to its customers.

Their experienced team will work with you to draft the coverages you want for your unique lifestyle. They are the convenient, dependable one-stop agency for all of your insurance solutions! You can learn more about Western Star Insurance by visiting their website at westernstarinsurance.com or call them at 1-800-545-8608 today to get a quote!

COMPASS REALTY

Compass Realty Services is the #1 seller of multifamily properties in West Michigan. Their team of agents has experience in all types of investment properties and can help you find an investment property, or sell yours with experience. You can learn more about Compass Realty Services by visiting their website at compass101.com or call them at 616-452-7080 and let them review your investment properties and goals today!

CULVER CPA GROUP

Culver CPA Group is a leading West Michigan accounting firm that serves individuals as well as small businesses. Our areas of expertise include real estate, hospitality, service providers, construction, skilled trades, job shops, and healthcare providers. You can learn more about Culver CPA Group by visiting their website at culvercpagroup.com or call them at 616456-6464 to schedule an appointment today!

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NOEL SELEWSKI AGENCY

Noel Selewski Insurance Agency is an independent insurance agency specializing in personal insurance services as well as real estate investor insurance. They have a variety of products from multiple carriers to find the best fit for you and your insurance needs. You can learn more about Noel Selewski Insurance Agency by visiting their website at noelselewskiagency.com or call them at 855-504-6787 to get a quote today!

VREDEVOOGD-BRUMMEL RISK MANAGEMENT & INSURANCE

Vredevoogd-Brummel Risk Management & Insurance has a unique approach to the insurance purchasing process that helps you to have a better understanding of your unique needs, and meets those needs with planning and policies that both fit the situation and the budget. Their mission is to help protect the assets and financial futures of their clients while being a source of stability for their team and community. You can learn more about Vredevoogd-Brummel Insurance Agency by visiting their website at insurancewestmichigan.com or give them a call at 616-797-9988 to get a quote today!

WESTSHORE PROPERTY MANAGEMENT

Westshore Property Management provides professional real estate property management services in the Greater West Michigan and surrounding areas. They can resolve problems quickly and at minimum cost when they arise. Their stable team of experienced property managers and support staff effectively balance the desires and needs of property owners and residents to create a positive experience for all parties. You can learn more about Westshore Property Management by visiting their website at westshorepropertymanagement.com or give them a call at (231) 798-6430 today!

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Let’s Build Something Together!

Your local alternative to .com, call center insurance agencies and insurance agents that do not understand the complexity of REI. We specialize in

Auto-Owners

•

Single Family Rentals ( Any Number)

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Mulit Family Rental

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Mixed Use Rentals

American Modern

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Apartment Complex (Any size)

Berkshire Hathaway Guard

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Condo Complex

Citizens Insurance

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Student Rentals

Conifer Insurance Company

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Vacation Rentals

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Vacant Homes

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Vacant Commercial Buildings

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Renters Insurance

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Commercial Properties

AAA Accident Fund

Encompass Foremost Insurance group Great Lakes Mutual

Joel Emerson 616-797-9988

Hasting Mutual Liberty Mutual Safeco Insurance US Assure Wolverine Mutual

jemerson@vbins.net www.insurancewestmichigan.com

#1 Seller of West Michigan Multi-Family Properties Over The Past 10 Years!

Need help nding your next investment property?

Looking for passive income?

Need help deening your investment goals?

Want your portfolio evaluated?

Is now the best time to buy or sell?

Call for a Free Consultation Allison Koetsier 616-633-9445 AKoetsier@Compass101.com

TeamKoetsier.com 14

Women’s Real Estate Investor Meetup

Join our women's real estate investor meetup to network, learn, share and work out deals. Real estate investment isn’t just for men. Over 60% of licensed real estate professionals are women. So, join us each month to advance your knowledge and build wealth. We meet the third Monday of every month - more information here!

W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

WHAT’S IN STORE FOR THE

2021

Real Estate Market?

CLICK HERE TO WATCH In case you missed it live at our first 2021 virtual conference event, you can watch a recording of Paul Isely's presentation on his predictions for what's in store for the 2021 economy. Paul also shared a copy of his presentation, and you can download it by clicking here.

Are you wondering what the economic impact of the pandemic will be on your real estate investments in 2021? Paul provides real data on our city, state & country’s economic strength and what it means for your real estate portfolio, shedding light on the state of the economy and what we can expect in the coming year.

Paul is the Associate Dean and Economist for Undergraduate Programs in the Seidman College of Business at Grand Valley State University. If you’ve ever been to the RPOA’s annual conference then you already know that Paul is the most popular speaker by far and his economic forecast is always incredibly eyeopening and on point.

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

RPOA Member-to-Member Discounts RYLEE’S ACE HARDWARE 10% discount on all 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. BENDER MAINTENANCE & HOME IMPROVEMENT 10% off hourly rate for RPOA members. Property maintenance, general repairs; prepare property to rent at acquisition; inspection compliance for Section 8, City of Grand Rapids. General Contractor, Certified Lead Renovator, RPOA Member.

(616) 885-0132.

BERGSMA PLUMBING Bergsma Plumbing is offering a 15% discount to RPOA members when they mention seeing this listing on the website. Members must provide their RPOA member number to receive this discount.

COMPASS REALTY RPOA exclusive discount! Free 1 hour real estate consultation.

Call Allison Koetsier at 616633-9445.

DISCOUNT HOME IMPROVEMENT RPOA members: receive 6% off your order. (616) 451-3600.

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FOUNDATION SPECIALIST Foundation Specialist is offering to waive inspection fees and give free estimates for customers who mention they are a member of the RPOA when scheduling. (616) 438-0551.

GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA members receive 4th room free! Call Dave at (616) 4535368.

GRAND RAPIDS PRESS $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) 2225527.

HD RECOVERY HD Recovery is offering free impound service for abandoned vehicles. Call Jordan Morren at (616) 325-5751 with questions!

HOME DEPOT Sign up for the Home Depot rebate program through the RPOA and receive a 2%* rebate on all your purchases—no matter how small or big. Call the RPOA office to get your rebate

program started now! (616) 454-3385. *2% OF TOTAL PURCHASES OVER $5,000 SEMI-ANNUALLY.

INDOOR CLIMATE SOLUTIONS Offering all RPOA members Grand Rapids heating inspection stickers for $50.00 each and a 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 (616) 868-0050 for details.

J R MORTGAGE SERVICES LLC Free appraisals for 1 to 4 family unit homes with closed loan application for RPOA

W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

Take advantage of these great RPOA member-only discounts!

members only. Call Jim Riley at (616) 292-4491.

MODERNISTIC CLEANING & RESTORATION Protect your investment! RPOA members, call for special pricing. Need something other than carpet cleaning? We provide FREE ESTIMATES on all of our services: air duct and dryer vent cleaning, tile and grout cleaning, and flood/fire/ mold restoration. Call the simple & quick cleaning and restoration experts! (616) 531-1666.

OFFICE MAX/OFFICE DEPOT Office Max 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.

PRIORITY PAINTING LLC Priority Painting LLC is offering a 10% discount to RPOA members. Contact David at (616) 893-7932 RENTAL HERO Accounting software for rental property owners. RPOA members get the first year for only $79 then pay only $7.95/month, billed annually at $95 after that.

Free 30-day trial. To sign up, visit rentalhero.io/rpoami.

RMS LLC Towing of abandoned and improperly parked cars on your property. Offering to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call (616) 730-2058.

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.

SIMPLIFYEM SimplifyEm is an easy-to-use property management software designed by real estate professionals​. They are offering a 25% discount for a 1 year subscription and a 50% discount for a 3 year subscription. Contact Bert Foreman at (510) 876-7070 for more information.

insurance agency representing multiple insurance companies. Always providing home and auto insurance but specializing in rental and vacant property insurance. We do all the shopping for you and special RPOA member discounts are available. Call Joel Emerson at 616-797-9988 for more details.

WEST MICHIGAN AIR DUCT AND HVAC Offering all RPOA members an exclusive 10% discount on all service repairs, installs, and tune ups. They also offer a pricing tool on their website at quotemyhvac.com that gives immediate furnace, AC, and water heater replacement estimates. Call David Mellema at 616-421-5610 to learn more.

ASSOCIATE MEMBERS WHO WOULD

VREDEVOOGD-BRUMMEL RISK MANAGEMENT & INSURANCE Independent

L I K E T O PA R T I C I PAT E I N T H E DISCOUNT PROGRAM SHOULD CALL THE RPOA OFFICE AT 616-454-3385.

"The promotion of offers, including discounts, rebates and other such benefits, goods, and services provided by the Rental Property Owners Association of Kent County (“RPOA”) members and advertisers within the Michigan Landlord magazine (collectively, the “Offers”), are for informational purposes only and are not an endorsement or recommendation. The Offers are not made by the RPOA or the Michigan Landlord magazine and the advertiser/member is solely responsible to you for the delivery of any goods or services. Your correspondence or business dealings with, or participation in the Offers or promotions of, advertisers/members found in the Michigan Landlord magazine, including payment and delivery of related goods or services, and any other terms, conditions, warranties or representations associated with such dealings, are solely between you and such advertiser/member. Neither the RPOA nor the Michigan Landlord magazine guarantees the existence or continued existence of any Offers, which may change from time to time. You agree to waive and release the RPOA and the Michigan Landlord magazine from and against any and all liability, loss or damage of any sort, incurred as the result of any such dealings with, or as the result of the presence of, any advertisement or promotion within the Michigan Landlord magazine.”

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Noel Selewski Agency, Inc.

R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

Insurance for landlords and residential real estate investment properties

Program Highlights •

Insure unlimited properties on one schedule

•

Coverage for vacant, rehab, new build and tenant-occupied homes on the same schedule

•

One monthly bill for your entire portfolio of insured properties

•

Easy online access to your account to add, change and remove properties

•

Insure multiple ownership entities on one schedule

•

Replacement Cost or Actual Cash Value available

•

Simple Property Reporting form and General Liability package

•

Apartment buildings up to 20 units, vacant or occupied (no subsidized)

The Tenant Protector Plan

Protection for both you and your tenant Add the Tenant Protector Plan (TPP) to your insurance package to avoid spending countless hours verifying your tenants renters insurance is in force. The TPP protects both parties in case of tenant-caused negligent losses with the following coverages: • $50,000 limit of liability for covered peril losses your property carrier can recover by passing the responsibility of the claim onto the negligent party • $10,000 of contents coverage for the tenant (subject to $1,000 deductible) • $2,500 of contents coverage for tenants of non-negligent affected units (subject to a $7,500 max.)

• $1,000 of Skip Rent coverage to reimburse your for lost rental income due to unexpected vacancies

Whether you have one property or hundreds, we can help.

Call today for a proposal.

855-50-INSURE (855-504-6787) 18

nselewski@noelselewskiagency.com

noelselewskiagency.com

W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

S&P CoreLogic Case-Shiller Index Up 10.4%

According to the latest S&P CoreLogic Case-Shiller Indices, covering all nine U.S. census divisions, the rate of home price increases reported a 10.4% annual gain in December, 2020. Their 10-City Composite annual increase came in at 9.8% and the 20-City Composite posted a 10.1% year-over-year gain. The S&P CoreLogic Case-Shiller Home Price Indices are one of the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate both nationally as well as in 20 metropolitan regions. Interestingly, they cite the ongoing urban exodus in their report: “These data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes. This may indicate a secular shift in housing demand, or may simply represent an acceleration of moves that would have taken place over the next several years anyway. Future data will be required to address that question.” Said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P.

Advertise in

Contact Kathy Bartnick, RPOA Ad Salesperson, at 616-318-3503 to reserve your ad space today!

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Business Insurance is a Must

By Mark Gannaway, CPCU

From one business owner to another, having the correct insurance in place is not easy and not inexpensive. For Arcana Insurance Services, we dread paying insurance premiums just like you do. But prudent business owners are always concerned about large uninsured losses that could damage their financial well-being or worse, put them out of business.

To give you an idea of what coverages to review with your insurance agent, Arcana purchases a Businessowners Package policy, Businessowners Automobile, Directors and Officers, Crime, Professional Errors and Omissions, Worker’s Compensation, Commercial Umbrella and Health Insurance for our employees. That’s a lot of insurance and a lot of money. But this list also reflects the many financial dangers we all face every day of the year.

Other insurance options you should consider include flood insurance for your office location; and if you are a sole owner or have a business partner or partners, Key Life insurance to fund the Company’s expenses for a period of times such as tax implications.

Article continued on page 24.

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WE ARE CPA’S WHO OWN REAL ESTATE

SAVING YOU TIME & MONEY

Do you know where your money is going, or how to stop the leaks? We let you focus on running your business, and we handle the numbers . . . saving you time and money.

culver | group CPAs & Business Advisors

616.456.6464 . culvercpagroup.com . 1419 Coit . Grand Rapids

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R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

UPCOMING COURSES & EVENTS SCHEDULE BILL NOLL: ASSET PROTECTION FOR R E A L E S TAT E I N V E S T O R S — 2 0 2 1 VIRTUAL CONFERENCE

RENTAL PROPERTY MAINTENANCE AND HOUSING CODES (LIVE OR VIA ZOOM) March 11 @ 10:00 am

THIS MONTH: Bill Noll: Asset Protection for Real Estate Investors Thursday, March 18th at 11:00am

2 Hours Credit for RPOA REI Mastery Training Program

At our next event, we’ll be bringing you well-known expert tax attorney, CPA and national speaker Bill Noll! Bill Noll will teach you how to: • Set up the best legal entity for owners of real estate • Save on taxes by avoiding the costly status of being a dealer or developer • Take advantage of the magic power of depreciation • Take deductions when you improve a property and avoid capitalization requirements • Sell properties tax-free and keep all the profits • Protect your assets from lawsuits • Be your own bank and create a public record of your debt • And more!

• state laws regarding rental property maintenance • local housing codes affecting rental properties • the International Property Maintenance Code (IPMC) – most locals use this code • local rental inspection programs & how they work • how to comply with local housing codes and get the maximum certification length for the least cost • And more!

Click here to register now!

Frustrated with rental property inspections? Not sure what is required of you? Need to know how to appeal a housing code violation you believe is wrong? Topics will include:

Click here to register.

MARKETING & SCREENING FOR PAYING TENANTS (ONLINE)

LANDLORD-TENANT LAW (ONLINE)

March 15 @ 9:00 am

March 4 @ 1:00 pm

Learn effective and proven ways to fill your apartments using different marketing tactics. This course covers the essentials needed to find and attract the best possible tenants and help you increase your rental profits. Erin Duffy, Licensed Real Estate Agent and Marketing Specialist, will present the course, which includes:

2 Hours Legal CE Credit for Licensed Real Estate Professionals 2 Hours Credit for RPOA REI Mastery Training Program This course will cover the most relevant Federal, State and Local regulations that every landlord/buy and hold investor needs to know. Not knowing them can lead to huge fines, penalties—and even jail time. An update on possible changes in state law regarding lead and other laws will also be covered. Join us for this two-hour course on the specifics and hear stories that will help it all make sense. Taught by Matthew Stout from Stout Law, PLLC. Click here to register.

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• A primer on federal, state and local fair housing laws • Preparing your property for showing to attract quality tenants • Setting rent • Where to advertise • Incentive programs • Setting screening criteria • Screening for tenants using free online resources

W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

• Reasons you can refuse a tenant Click here to register.

EPA RRP CERTIFICATION TRAINING March 24 @ 10:00 am The EPA requires all contractors, landlords and property managers performing RRP activities on pre-1978 rental properties to use lead-safe work practices and be certified under the new RRP rules. In this EPA-approved certification course, a certified lead-safe work practices trainer will teach lead-safe work practices in a comprehensive session.

Click here to register.

An online portion of this certification course MUST be completed no later than 48 hours prior to the in-person class date. You must pass the online portion with a score of at least 80% in order to take the hands-on in-person portion of this course. Click here for instructions for taking the online portion of the EPA RRP initial online portion.

The EPA RRP Refresher course is online only. If you are already certified and are due for recertification, click here.

B U Y I N G A N D S E L L I N G R E N TA L PROPERTIES AND ACQUISITION STRATEGIES (ONLINE) March 25 @ 3:00 pm 2 Hours CE Credit for Licensed Real Estate Professionals 2 Hours Credit for RPOA REI Mastery Training Program Learn the correct way to handle real estate deals and how to avoid complications while saving money in the process and improving your return on investment.

Join Allison Koetsier, experienced buy and hold real estate investor and broker, as she eliminates the mystery from purchasing rental and real estate investment property.

Through her class you will learn how to keep it legal and profitable as you negotiate inspections, title work, transfer taxes, and other important real estate transaction nuances.

Click here to register.

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Article continued from page 20.

We won’t name names, but Arcana’s management is always amazed at the lack of insurance discussions at the conferences we attend. Most do not have a breakout session on insurance or a continuing education program to offer their members throughout the year. Symbolically putting your “head in the sand” or making a dangerous assumption Investors hope the minimum priced insurance coverages one purchases will protect you in the event of ALL Losses. This is financial suicide.

Many of you work out of your home and believe your homeowner’s and personal automobile Policy will provide you the necessary protections for your business entity. That is one of the biggest mistakes we see in this industry and in almost all cases is a false sense of security.

Any insurance policy that has the heading “Personal” in its title usually means “Not Business!”

For example, in reviewing my own personal automobile policy, which happens to be from the number one consumer rated company in the United States year after year, uses “regular use” consistently throughout the Policy. What is also interesting, it isn’t defined in the Definitions section of the Policy. For clarification; I went to the Business Automobile Policy (BAP) to see what qualifies for coverage. BAP “provides insurance protection for a company’s use of cars, trucks, vans, and other vehicles in the course of carrying out its business. Coverage may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes.”

You need a BAP policy if you drive to or between several locations, or if a colleague regularly takes your car to visit clients. You will also need it if you drive hundreds of miles a week for business purposes.

Another interesting exclusion in the personal automobile policy states “For bodily injury to an employee of that Named Insured during the course of employment or maintaining or using any vehicle while that Named Insured is employed or otherwise engaged in a business” is excluded.

Now to the business owner who works out of the house and believes his homeowner’s and personal umbrella policy protect his business for property and liability claims related to his business operations. Again, if doesn’t have Commercial or Business in the title of your insurance policy, chances are you’re not covered for your business.

Again, going to the Definition Sections of both my own homeowners and personal umbrella liability policies, Business is defined as: “A trade, profession or occupation engaged in on a full-time, part-time or occasional basis. Any other activity engaged in for money or other compensation.” Exclusions include bodily injury, personal injury or property damage arising out of or in connection with a business and includes locations where the Named Insured “engages in or conducts business from either owned or property rented to the Named Insured.” So; if someone comes to your ‘home office’ to conduct business and falls and is injured, your Policy will not cover the upcoming medical and potential legal suits for damages that may follow.

They go further in both policies by defining and excluding coverage for any employee or employees of the Named Insured. An

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employee is: “an employee of an Insured, or an employee leased to an Insured by a labor leasing firm under an agreement between an Insured and the labor leasing firm, whose duties are other than those performed by a residence employee.

Most Homeowner’s insurance policies also have a limit of not more than $2,500 coverage for business property within the home.

As you can see, Homeowner’s insurance and Personal Umbrella Policies are not your “friends” when it comes to your business.

I hope this little insurance exercise clarified the differences in business verses personal insurance needs and what to discuss with your insurance agent at your next visit. Always remember if the answer cannot be found in your insurance policy, make sure your insurance agent puts it in writing to you.

Arcana offers members of National REIA multiple insurance products specifically designed for Investors and their tenants.

Features include no underwriting or inspections, 24/7 desktop & smartphone certificate delivery system, outstanding claims management service, and a very knowledgeable & courteous staff to handle your insurance needs. Learn more by visiting https://nreia.arcanainsurancehub.com.

Mark A. Gannaway, CPCU, is the Chief Executive Officer and Founding Partner of Arcana Insurance Services, an all-lines property and casualty managing agency that’s been working with real estate investors since it began in 2005.

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?

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.

Test your smoke detector each month and replace it if it doesn't work or if it is already 8 to 10 years old.

Replace your smoke detector batteries at least once a year and especially when you hear the warning signal that the battery is low.

Grand Rapids - 1234 Michigan St. NE * 616.451.0724

1205 Fulton St. West 616.233.4711

Walker - 4300 Remembrance Rd. 616.453.7741

Rockford - 643 Northland Dr. 616.866.9155

WE’RE HERE TO HELP MONDAY - SATURDAY 8AM - 8PM, SUNDAY 9AM - 6PM

*OPEN AT 7AM MONDAY - FRIDAY

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Foreclosures Continue to Hit All-Time Lows

According to ATTOM Data’s latest U.S. Foreclosure Market Report, showing there were 9,702 U.S. properties with foreclosure filings (default notices, scheduled auctions or bank repossessions). This figure was down 11% from December, 2020 and 80% from one year ago. In addition they reported that lenders repossessed 1,428 properties (REOs) in January 2021, down 28% from December and down 86% from last year – marking the 13th consecutive annual decline in completed foreclosures.

Across the country, one in every 14,164 housing units had a foreclosure filing in January, 2021. States with the highest foreclosure rates were: • Delaware (one in every 4,923) • Louisiana (one in every 6,581) • Florida (one in every 7,920) • Indiana (one in every 8,668) • Alabama (one in every 8,707) “The moratorium and CARES Act mortgage forbearance program have effectively prevented millions of seriously delinquent loans from entering the foreclosure process. But it’s important to remember that the number of foreclosures we’re seeing right now doesn’t reflect market reality – and that’s something we’ll need to deal with once these government programs expire.”

Said Rick Sharga, RealtyTrac executive vice president.

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“Cheap Old Houses” Attracts Millennials Escaping the Cities There have been a lot of stories about the exodus from our nation’s urban cores to the suburbs. With that in mind a recent story from Reuters about millennials searching for homes in “far-flung places” should have flippers & rehabbers taking note. According to the Reuters, a new startup called CheapOldHouses.com promotes the purchase & preservation of historical houses across America, most of which come in under $100k and contain unique and interesting architectural detail. Their site says they search nationwide real estate listings daily to handpick the “most beautiful of the bunch.”

“More millennials may leave big cities even after the pandemic is over…”

“With so many offices going remote, people have more opportunity to just say, ‘maybe I don’t need to be paying more than half my income in rent. And I can, I can take that leap.’”

“We feature homes people can realistically buy, but also use their hands on as opposed to sitting in a cubicle all day long,”

Ad-o-Grams WANT TO ADVERTISE HERE? Contact Kathy Bartnick, RPOA Ad Salesperson, at 616-318-3503 to reserve your ad space today!

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BOARD OF DIRECTORS President, Kim Post President-Elect, Justin Workman Past-President, Brian Hamrick Mark Troy, Treasurer Steve DeKoster Gary Hall James Loftus Rob Minch Sharon Olson Jon Smith Justin Wheeler Kevin Wright Nicholas Wyma

RPOA STAFF: (616) 454-3385 Clay Powell, Director Email: clayp@rpoaonline.org Ava Grover

Email: avag@rpoaonline.org

Heather VandenBos Email: heatherv@rpoaonline.org Kristina Kyle

Email: kristinak@rpoaonline.org

Kathy Bartnick

E-mail: rpoaoutreach@rpoaonline.org

MAGAZINE EDITOR Clay Powell (616) 454-3385

Email: clayp@rpoaonline.org

MAGAZINE DESIGN & LAYOUT Kristina Kyle (616) 454-3385

Email: kristinak@rpoaonline.org

AD SALES Kathy Bartnick (616) 318-3503 MARCH 2021

Email: kvallie@aol.com M I CHI G A N L A ND LO R D

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A 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