Property Management Blog

Blue Frog at the Fond du Lac Farmer's Market

Nick Malesevich - Sunday, June 19, 2016

Come and see the new Luxury apartments located at 131 Main St. Fond du Lac.  Blue Frog was on site last week during the Fond du Lac Farmer’s Market conducting open houses for these brand new apartments.  During our first open houses we showed over ten people a variety of available units.  If you are interested in seeing any of the available units stop by during the Farmer’s Market or schedule a showing via our website at http://www.bluefrogpropertymanagement.com/schedule-a-showing.

Blue Frog's New Inspection Software

Nick Malesevich - Sunday, May 22, 2016

Blue Frog Property management is happy to announce that we recently rolled out new property inspection software to support our property inspection and rent ready checks.  This software allows us to systematically check all aspects of a property to ensure that everything is completely rent ready.  We are able to create professional reports including pictures that appropriately document a properties condition.  The reports help us ensure we are providing top notch rentals to all of our tenants and makes the move out process quick and easy to determine any security deposit deductions.

Blue Frog Property Management manages rental property in Green Bay, Appleton, Oshkosh, and Fond du Lac.

Blue Frog’s New Office – Coming Soon

Nick Malesevich - Saturday, March 12, 2016

Blue Frog property management is expanding our brick and mortar footprint to the Oshkosh area.  We already have an office located in Green Bay as well as south Fond du Lac.  The office in Oshkosh will be located at 1511 Oregon St.  We will be doing a renovation on the property which should be complete around the end of July and officially opening around mid-August.  We are excited about this addition to our brick and mortar footprint and look forward to continuing to expand our presence to better allow us to serve our customers.

Blue Frog Property Management

Blue Frog Property Mgt is expanding to Green Bay!

Nick Malesevich - Wednesday, June 17, 2015

Hello,


We are proud to announce that Blue Frog Property Management is expanding our coverage to include Green Bay.  This will now allow us to manage properties all the way from Green Bay to south of Fond du Lac.  With the transition we will be adding another property manager and maintenance person to our team.  We appreciate all of our Business Partners and look forward to working with you in the future.


Sincerely,


Blue Frog Property Management

http://www.bluefrogpm.com

Online Property Management Systems

Nick Malesevich - Saturday, April 19, 2014

Blue Frog utilizes online property management systems to help owners and tenants stay in the loop.  Our owners and tenants both receive access to an online portal which allows them to perform several tasks.


Through our portal tenants can:

-          View vacant properties

-          Apply for a property

-          Pay rent with a credit card or electronic check

-          Request maintenance

-          Run a variety of reports

-          View rental documentation

-          Much more

Through our portal owners can:

-          View rental documentation

-          Access to a variety of reports

-          Monitor maintenance work orders

-          Full property accounting

-          Much more

Blue Frog Property Management services the Appleton, Oshkosh, Neenah, Menasha, Fond du Lac, area in Wisconsin.

Is It Better To Rent Or To Sell?

Nick Malesevich - Saturday, February 22, 2014

Is It Better To Rent or Sell?


A common question for many people is whether they are better off selling their property or renting it out.  We firmly believe that one of the best paths to long-term wealth is to hold investment property.  We would like to tell you why we feel it is better to rent then to sell:


Short term vs. long-term wealth


When you sell a property, you most likely have one large influx of cash depending on your equity position.  Then what?  Most people will spend the cash in their day-to-day life with no tangible improvement to their personal balance sheet.  Over the long term for most people, this one time influx of cash is simply a blip on the radar.  If instead you convert your property to rental use, you will have an asset and a cash flow forever.  Once this property is paid off you will most likely generate more cash every few years then you would have in total if you sold it.


As a rule of thumb – Sales are short term gains, rentals are forever!


The below compares selling a property for $100,000 with $20,000 equity that would rent for $1,000 a month.  Selling expenses are estimated to be 8%.  We will assume 3% increases to rent per year, 3.5% annual appreciation, and 2% increase in expenses per year.  Model also builds in approx. $5.5K a year in expenses to rent.  Model assumes 25-year mortgage.


Year

Cumulative Sell $

Cumulative Rent $ (Over Expenses)

1

$18,400

$792

10

$18,400

$15,840

15

$18,400

$31,177

25

$18,400

$81,116


As the end of year 25 if you sold your property in year 1 you got a total of $18,400.  At the end of year 25 if you rented, you generated $81,116 worth of positive cash flow and you now have an asset worth over $200K that is 100% paid for and should generate approx. $10K a year in positive cash flow.  If we factored in the time value of money the rental scenario would look that much better.


As you can see the results are not even close, which is why we firmly believe holding your property as a rental is a much better long term financial decision.


Blue Frog Property Management is a full service property management company servicing Appleton, Oshkosh, Fond du Lac, Menasha, Neenah, and the entire surrounding Fox Valley area.

Why We Love Real Estate

Nick Malesevich - Saturday, December 28, 2013

Well let us cut to the chase my friends.  Why should you invest in real estate?  There are dozens of investment vehicles that people use to accumulate wealth including: stocks, bonds, savings accounts, precious metals, etc.  What makes real estate so special?  There are dozens of reasons why real estate is the most powerful investment vehicle that exists.  We will explore several of these reasons throughout the book but for now I want to focus on what I call the Big 3.

1.  Leverage                         

            Without a doubt the most powerful attribute investing in real estate brings to the table is the power to leverage your money by a wide margin.  The primary reason that you are able to leverage real estate is the loan is backed by the real estate asset.  Historically speaking real estate is a relatively stable asset that appreciates with time.  I understand that the real estate market has been more volatile over the past few years but fully expect this to fall back in line with historical trends in the near future.  The chart above details the power of leverage.  With $10,000 and the right approach you can easily obtain control over a $200,000 real estate asset.  Think this isn’t possible?  I assure you that it is.  I have personally leveraged to 95% of my contribution on several occasions both with and without banks involvement.  I plan to do this several more times (potentially several hundred) over the coming years.

2.  Return

I hate to be the bearer of bad news by if you currently house a majority of your savings with the bank you are actually losing money.  The average inflation rate for the US is approx. 3%.  This means that if you aren’t making at least 3% return on your money that your actual spending power is being depleted year after year.  If your goal is to be financially independent (a very worthy goal) then you need to receive well above 3% to get there.  The below chart details that difference in investment returns over time.  The difference in total value of an investment that earns 5% per year vs. an investment that earns 20% per year over 25 years is a staggering $460,049.  I can assure you that returns in excess of 20% in real estate are very possible.  Obtaining these types of returns consistently over years will make you wealthy.  The opportune word in the previous sentence is will.  This is not my opinion.  This is mathematical fact.

3.  Ability to obtain a high return

          Dare I say that with the proper training your ability to obtain a return on investment higher then 20% is relatively easy.  I am quite sure that certain people will scoff at the previous remark.  Please do not misunderstand.  I am not suggesting that anyone can go buy a real estate investment without the proper knowledge and without doing the proper work and come out with a gold mine.  In fact, if you do this there is a good chance you will end up broke.  What I am suggesting is that in real estate most of the variables that attribute to an overall return are not educated guesses or assumptions.  They are either already known or can be determined with a very high degree of accuracy.  For this reason, a skilled investor can expect to receive high returns on a consistent basis.  By the end of this book we will develop your investing skills so that you to can enjoy these types of returns.

4. Protects your most precious asset – Time   

            There is one last important variable that draws me to real estate and that is the fact that you can manage a substantial real estate business while not consuming all of your free time.  Every investment takes time to properly build.  I have thought about opening several different businesses over the years and the one large negative always staring me in the face is the amount of time that it consumes.  Many entrepreneurs work endless hours day after day, month after month, year after year.  This was always a major deterrent for me.  Once you reach a solid base with your properties, you can very easily outsource the property management and the maintenance of your properties.  These are the two items that not only take up most of your time but they are also the least enjoyable part of managing a property.  I am not suggesting that you don’t have to put any time into it.  You are entrusting a property manager with millions of dollars in assets and only a fool would let them run wild unchecked and you know the old saying – A fool and his money are soon parted.  I am however suggesting that it is possible to correctly manage millions of dollars worth of real estate on a very part time basis and to me this is what it is all about.

First 5 Rules of Real Estate

Nick Malesevich - Thursday, October 03, 2013

First 5 Rules of Investment Real Estate

 

1.  LOCATION - When I first started learning about real estate, I was quickly taught about the first three rules of real estate investing.  They are 1. Location 2. Location and 3. Location.  For this article, we will only list location as the #1 variable to consider but it just goes to show you that you cannot stress the importance of location enough.  The same exact building could be a great investment in one area and a terrible one in another.  Therefore, before you ever even think about investing in a certain property you need to do your homework.  Drive around the neighborhood to see what the area is like.  Make sure that you do this during different times of the day so that you can gain different perspectives of the property.  List the reasons that a person would want to live in this location.  Is it close to schools, shopping, the highway, ect.?  If you cannot think of very many reasons that someone would want to live in this area MOVE ON to a different property.

 

2.  CASHFLOW – Buying a property with a negative cash flow can be a strain on you financially for years to come.  Many properties have positive cash flows out there so unless there are some compelling reasons to do so avoid any properties that do not have a positive cash flow.  To figure out a properties cash flow you really need to do your homework.  Some of the numbers in your analysis you should be able to get almost exact; like water bills, taxes, rents, ect.  For others you will have to use estimates to come up with a figure.  Remember to error on the side of being overly conservative.  It is better to be happily surprised then sadly disappointed.  If your property still cash flows when you are using very conservative numbers then you are on the right track.

 

3.  RETURN ON INVESTMENT (ROI) – Every investment property out there is unique.  To compare different properties you should calculate return on investment so that you are able to compare them fairly.  The higher the ROI on a property the better of an investment it will be.  ROI can be calculated in a couple of different fashion for investment real estate but typically it is calculated as change in the value of your investment divided by your original investment.  Therefore, if you invest $1,000 into something and it is now worth $1,100 your return on investment is $100 / $1,000 = .1 or 10%. 

 

4.  RENT TO VALUE RATIO – Before you ever buy an investment property you should know exactly what its rent to value ratio is.  Rent to value ratio is calculated by dividing the total monthly rents by the price of the property.  (If utilities are included in rent, you may want to make an adjustment for this)  It is an old rule of thumb that you should look for properties that get at least 1% of the properties value in monthly rent.  Normally the bigger the building the higher of a percentage you can get but there definitely are diamonds in the rough as well.

 

5.  RENTAL HISTORY – When looking at a potential investment always try to gauge the properties rental history.  Talk to current tenants and ask them how long they have been there for and if they have any plans on moving any time soon.  Talk to neighbors and see how long tenants normally stay before moving out.  You want to find a property that keeps tenants for multiple years because you will have less vacancies and less stress from filling vacancies.

 


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