Welcome to the third meeting of the 2008-09 year!

November MeetingMonday, November 17, 2008 • 7 p.m.

Free to RAA members • $15 non-members • Come to the meeting, join & save!

Venetian Club • 2180 Elmwood Road • Rockford, Ill.topic is:

“Rehab & Maintenance Pointers to Save Time, Money and Headaches”

Representatives from City Departments to speak about Property and Maintenance Codes, Zoning and Fire

See you on the 17th!

www.rockfordapartmentassociation.org

2 0 0 8

November

Join RAA! As a member, here’s what you get:

A one-year membership is $99. To join or e-mail RAA, go to www.rockfordapartmentassociation.org/newmember.html

To join the e-mail group: RAA members can join the RAA e-mail group at RAAmembers@yahoogroups.com Include the name your membership is in, and your e-mail address where the group can reach you.

N.

MA

IN S

t.

ELMWOOD Rd.

Venetian Club2180 Elmwood Rd.

Sportscore

RIVERSIDE Blvd. Rock

River

RAA membership doesn’t cost—it pays!

u8 monthly meetings with guest speakers covering a variety of property management topics—uWinter Member Mixer—uSpring Banquet —ua Web link or page advertising your units on the RAA Web site—uMember networking with current tips, bargains and referrals—uKnowledge of State and local political issues affecting property managers and owners—uMonthly newsletter

Page 2 November 2008Rockford Apartment Association

Guest Speakers at the November 17 RAA Meeting will discuss:

Building Codes The primary purpose of a building code is to protect the health, safety,

and welfare of the public and those who occupy the buildings to live, work and use for recreation. Building Codes cover buildings, fi re prevention, me-chanical/plumbing, electrical, property standards and existing structures.

At the RAA meeting Nov. 17, a representative of the Rockford Building Department will speak and answer questions about building codes, when permits are required, what are the exemptions and what is the permitting process. Find out about the State of Illinois Architecture Act.

Fire DepartmentIt is the mission of the Rockford Fire Department to protect the lives

and property of the citizens of Rockford from fi re, disasters (natural or man-made), hazardous materials and other emergencies including emergency medical care. The mission is accomplished by providing “Excellence Ev-erywhere” in the areas of prevention, education, suppression, advanced life support care, and other public safety emergency services to all areas and citizens of our community.

The Prevention Division is responsible for inspection of commercial/in-dustrial property; interpretation of fi re prevention codes and ordinances con-cerning the properties; presenting talks and demonstrations relative to fi re prevention and public education; also responsible for fi re ground investigative activities and related follow-up arson investigations; and reviews all plans for construction within the City for proper fi re and life safety code adherences.

When Seconds Count, Addresses Matter. Make sure all your properties have clearly visible addresses.

ZoningZoning has two major functions: administration and enforcement of the

Zoning Ordinance. Zoning administration includes the zoning application process for Zoning Map Amendments, Special Use Permits and Variances

requested by property owners or developers, and with providing background information and recommendations to the Zoning Board of Appeals on all re-quests for zoning changes.

Zoning also includes review of all building permits for compliance with the Zoning Ordinance, and enforcement of the ordinance by re-sponding to complaints and following up on previous zoning cases. Zon-ing also provides zoning clearances for building permits, new water me-ter requests and permanent sign permits. It also issues permits for Home Occupations, parking lots, fences, and banners and infl atable signs. A Zoning Department representative will speak and answer questions at the Nov. 17 RAA meeting.

Neighborhood StandardsThis division of the Community Development Department is respon-

sible for exterior, non-structural issues with property. The Neighborhood Standards Unit investigates complaints about the following property maintenance codes: Weed Abatement, Sanitation Violations, Inoperable/Abandoned Vehicles, Motor Vehicles, RV/Boat Storage, Prohibited Ve-hicles, Zoning Violations and Cisterns. On November 17, fi nd out more about gravel and dumpster surrounds. n

Illinois Emergency Management Agency (IEMA) http://www.iema.illinois.gov/

The IEMA Web site has good information about Property Winterization for Fuel Conservation; Steps to Prevent Frozen Water Pipes; Winter Storm Disaster Preparedness; Safe Winter Traveling; Protecting Your Health; and Safety in Cold Weather, to name a few. It is a good source of information about Radon.

Radon is the leading cause of lung cancer among non-smokers. As many as 900 Illinois citizens are estimated to develop Radon-related lung cancer annually. Most Radon enters a home because of air pressure and temperature differences between the home and outside air. When air is vented from buildings by natural or powered ventilation, Radon and other soil gases are drawn in from the surrounding soil through openings between the house and the soil.

In Illinois, higher levels of Radon are found in the northern half of the state. Radon, an indoor air pollutant, is a colorless, odorless radioactive gas. Radon comes from naturally occurring uranium in the soil.

The only way to tell how much Radon you have in your house it to TEST with a Radon Test Kit which can be ordered online at http://www.iema.illinois.gov/radon/RadonTestKit.asp For information locally, call Sheila Jascemskas, L.E.H.P. Radon Inspector with Winnebago County Health Department at 815-720-4129. n

Join RAA!As a member, here’s

what you get:u 8 monthly meetings

with guest speakers covering a variety of topics

u Winter Member Mixer

u Spring Banquet

u a Web link or page advertising your units on the RAA Web site

u Member networking with current tips, bargains and referrals

u Knowledge of State and local political issues affecting property managers and owners

u Monthly newsletter

A 1-year membership is $99. To join or e-

mail RAA, go to www. rockfordapartment

association.org/ newmember.html

November 2008 Rockford Apartment Association Page 3

Real Estate Rehabbing: Top 10 ListThis article is reprinted here with permission from Creative Real Estate

Online at http://www.creonline.comby Jonathan Mednick, Dania Beach, Florida

So you wanna be a rehabber? Before I give you my Top 10 List, I want you to know that I have been an active real estate investor for only two years. I started by visiting Creative Real Estate Online. It has been crucial to my success.

I’ve done mostly wholesaling, short sales, pre-construction sales, and pre-foreclosures. My partners and I are in the middle of six rehabs simultane-ously, so you can imagine how busy we are. We will do approximately 20 this year. At least, that is our target. It is important to remember that when I started, I knew absolutely nothing, just like many of you. If I can do it, so can you. That being said, here’s my Top 10 List for Rehabbing:

1. Estimating rehab costsThe biggest question I got was how to estimate the cost of repairs so you

can figure out what to sell the property for. When I do a walk through, I look at four things: roof, structure, plumbing and electrical. These are the biggest expenses AND all require permits.

• Roof: Look at the fascia and sofit for signs of wood root or termite damage. Look at the top of the roof for loose shingles. Look at the ceilings for water stains or discolorations or holes.

• Structure: I walk around the property looking for cracks in the founda-tion. If you’ve got a structural problem, it’s expensive ($7,500 to $30,000) to repair and could kill your deal.

• Plumbing: Look under the sinks in the kitchen and bathrooms. Look at the floor to see if there are any uneven spots and shower stalls for leaks. Most of all—look outside the property for any large trees with roots that are growing under the house. That could cause major plumbing headaches.

• Electrical: Fuse box or breakers? How long since the electrical was up-dated? Check the air conditioning unit. I always get an electrician to check out the house if I am not sure.

Also, tile or carpet? Depending on the area and demographics, folks pre-fer one or the other. Best to know which one. Assume you will have to paint inside and out and do some minor landscaping. Don’t forget to take the pulse of the neighborhood. Pride of ownership or run-down properties? Close to public transportation, shopping, and schools?

If you break it down like this, after a while, you’ll know what things costs, and you can estimate repairs before rehabbing or wholesaling it to another investor.

2. To use handymen or no handymen?There are two ways to rehab: Do it yourself or hire someone. There are

pros and cons to both. If you can do it, you save money on labor. The down-side is that if you don’t fix according to code, you will have major problems. If you have a day job that only leaves you nights and weekends, it might drag on for months.

With rehabbers, you have the cost of labor; and you have to make sure they do a good job; but they can do it in a lot less time than it would take you. That means you sell it faster and move on to your next deal. Now, I only work with rehabbers who are referred to me by other investors.

If I have to use a new one I don’t know, I always give them a small proj-ect to see how they do. If satisfied, they get more work. Otherwise, I show them the door. We currently have three crews, and we pay them well. Getting doughnuts and coffee for them is a nice gesture when you stop by in the morn-ing. You must manage the project yourself. I inspect the properties daily.

You can pay them in milestones or weekly payments. With milestones, when they finish the kitchen, they get X amount; the bathroom, X amount, and so on. Weekly payments are fine as long as they don’t get behind. If you’ve paid the rehabber 75%, but he’s only completed 50% of the work, how are you going to handle this? This is why you need to stay on top of them each day.

3. Logistics, supplies, and expensesUnless you’re with Home Depot or Lowe’s, pay your rehabber a bit extra

to help you get the supplies. Of course, it is not uncommon to make four or five trips daily to get supplies. Most rehabbers expect all the supplies to be there for them, but you make sure they bring their own tools for the job.

With the six projects going right now, we have given each one of our project managers a $500 gift card from Home Depot. They give us all the receipts. When they run out, we get them another gift card. We pay them a bit extra to get the supplies they need. They have been working for us for a while now, so we trust them.

Otherwise, we would make the trips ourselves, and we need to focus on acquiring more properties. If you’ve got properties that are 15 miles apart, you have the travel time to consider. I am fortunate that five of my rehabs are

within three miles of each other—easier for me and easier for my crews. Make sure you keep separate invoices and receipts for each property.

When I get supplies for two or three properties, I have to get separate re-ceipts. Your accountant will thank you.

Finally, do some price shopping to know if you can get better deals on certain items like windows, tile, or carpet from the big boxes or the “mom and pop” stores. For example, I just put in 23 windows on one property and nine on another one this past week. At Home Depot, the cost per window was $105 (I get the double-hung, white colonial ones). A smaller store: $56 per window. I made the mistake once by buying a bunch of cleaning supplies at a “mom and pop.” At Home Depot, it was half the cost. So, big ticket items find a “mom and pop,” but for everything else, use Home Depot or Lowe’s.

4. Keep a low profileWhen you are rehabbing, cover all the windows. Keep the doors closed.

Take your signs off the car when you are there. Don’t let your rehabbers show up in commercial vehicles. Keep the music to a minimum. Don’t have more than two cars in the driveway. If thieves and scrappers see this activ-ity, they recognize the possibility of obtaining tools and materials of value once you pull away. Be sure to secure things as best as possible.

5. Permit issuesSpeaking of permits, you really need them for structure, roof, electrical, and

plumbing, and in many areas, windows. Some you can do on your own on the weekends and avoid permits, but you are playing a cat and mouse game with the city. I am not advocating one or the other. You have to weigh your risks and decide what to do.

6. Sign in the yardDon’t start advertising until you are 95% done with the house. Some

people will say advertise the moment you bought the property. The problem for me is having potential buyers come into a property I just gutted—wires hanging everywhere, broken drywall on the floor, and holes in the ceiling.

Most won’t make an offer until the work is finished. And, they are a distraction to me and my crews. I need to focus on completing the rehab,

Continued on page 4 u

Page 4 November 2008Rockford Apartment Association

not trying to sell it. Of course, I know the house will sell, so I am in no hurry to do it wrong.

If you put a sign out in the yard before the house isn’t ready to show, tell them you will call them back when it is ready. So, when you are indeed ready, you will have a list of 20 or so potential buyers. I also put an info tube on the sign to cut down on useless calls. By doing this, we rarely pay for advertising when we have a house on the market.

Our houses sell fast. One idea Phil (my apprentice) had was to drop flyers to the neighbors to let them know the house was available and to pay a $250 referral fee. Who wouldn’t want to make some money and have their friends live around the corner? See, even I can learn a thing or two from a newbie!

7. Negotiating with homeownersIf there is enough room in the deal, I have no problem working with Real-

tors, but I only pay 3%. Most will say they have a buyer for you. Now, if they have a problem with 3% and want to list it, I give them one of two responses. First, would you rather make 6% of nothing or 3% of something? Second, I tell them I will pay a listing service a couple of hundred to throw it on the MS.

When you do have a qualified buyer, it means nothing to me unless the underwriter has approved them. If they use their own mortgage broker, I speak to him personally. I usually tell them they have 30 to 45 days to close.

The contract says that if they can’t provide a letter of intent from the underwriter stating the buyer is approved within X amount of days, I have the right to replace the mortgage broker with one of mine. It motivates the heck out of them. I put that in the special clauses section along with any other terms negotiated between me and my buyer. Remember, you need to control the deal.

8. Seasoning, corporate sale, and taxesMany ask how to avoid the seasoning issue? The answer is simple: I tell

buyers’ mortgage brokers up front that there is a seasoning issue, and they better use a bank that doesn’t care about seasoning. The big banks won’t do the deal, but there are plenty of small community banks and mortgage companies that will.

Second, when I have a contract on the property, I quit claim the property into my LLC. Why? When I sell it, the capital gains taxes hit my LLC, not

me personally. That means if I profited $50K on a deal for the year, but all my combined expenses for everything under the LLC came to $45K, I only pay taxes on $5K. That’s why I have a good CPA. Find one who specializes in creative real estate investing. Don’t forget to tell your buyer’s mortgage broker that it is a corporate sale. He/she needs to know this.

9. Buying from wholesalersI really don’t care what the wholesaler earns, as long as I earn the money

I want. The higher the price, the higher the profit should be. Many say that a good rule of thumb is 65% of the ARV (After Repair Value) of the property. I will tell you why this doesn’t work for me.

Let’s say you brought me a house worth $100K retail, you have a con-tract with the owner for $58K, and you want to flip it to me for $65K ($7K assignment fee). I look at the property and see $20K worth of repairs re-quired. So, $65K price + $20K + closing costs + holding costs for six months + marketing costs = ??

That’s a lot less then $15K of profit. After closing costs, holding and mar-keting, there is really no deal there. Now, if the property needed less then $5K work, 65% ARV makes sense. I can tell you that I’ve never spent less then $12K on any rehab. One property, we are into for $40K.

I spend a bit more, which is why our houses sell fast. So, I base my price completely on the estimated repairs regardless of ARV. So far, it works well for me and the wholesalers we buy from do the same.

10. Using hard money and financingI hate paying someone points on top of closing points, but if you don’t

have cash, hard money is the way to go. I usually get 85%-90% LTV with 12%-14% and 2 points. When starting out, use other people’s money (OPM) until you don’t need it anymore. I am intentionally vague because it depends on how many rehabs you do each month.

You have to plan, project, and budget your purchase costs, supplies, la-bor, holding, and marketing for worst case scenario six months. By the end of the year, my partners and I should have enough to avoid hard money altogether and still rehab two or three per month.

I would like to mention that rehabbing is not for the timid. It takes a substantial investment in time and money. If any book or course says you can do this part time with a minimal financial investment; I have only this to say. Run hard in the opposite direction.

Frank Chin’s reply to Jonathan:My rehabs involve rental properties, and I priced my last kitchen at

Home Depot. Their cabinets came out to $2,600 before installation. They are wooden doors and particle board construction. I found a local factory that makes all wood cabinets and got them for slightly more. For rentals, particle board construction, careless tenants, and water make a bad combination.

Like you, I have contractors pick up materials. I reimburse them, but I have to say some try to slip a tool or two in hoping I won’t catch it.

I use “mom and pop” hardware stores near my rentals. A tube of caulk-ing is 25 cents more, but I find it more cost effective. Other stuff like patch-ing cement costs twice as much or more than Home Depot.

To avoid multiple trips to Home Depot, one basement store room re-sembles a hardware store. The screw section is stocked with boxes of screws from 1/4-inch up. We have a caulking section, doorknobs, switch plates, toi-let assemblies, and parts. —Frank

Jonathan’s reply to FrankFrank, you bring up a very good issue. Folks, if you rehab as much as we

Continued on page 5 u

uContinued from page 3

November 2008 Rockford Apartment Association Page 5

do, you need to watch every penny. The other day I was at Home Depot with one of my partners picking up a bunch of minor stuff. We spent five minutes trying to find the cheapest masking tape. He found something for $1.63. I said it was too much for what was needed, and I found one for $.89. Other people would have just kept what they bought, which is okay if it’s a one-time shot. But when you rehab, you can’t. If we can get it for two bucks cheaper at Lowe’s, we will make the trip. Of course, it has to be for more than one item.

As Frank said, you need to stay on top of the rehab crew and watch them carefully. We’ve had other projects where some tools and supplies have gone missing, and we just don’t use that crew again. Eventually, you know what’s in your supply chest.

Last point, if you do simultaneous or multiple rehabs, try to use the same supplies for different houses. We use the same paint colors for all our houses. So, when we have leftovers, we just move it to the next house. So, again, watch your pennies, they add up. —Jonathan

RAA members sent in their Rehab and Maintenance TipsExteriors: I purposely don’t paint everything the same color. I like each

of our properties to be special and for our residents to feel special living in unique places. Nice color schemes attract positive attention. Just hold aside some touch-up at the site with other site-specific items. —Lori

Front Door: Make it inviting, colorful, splashy. Watch HGTV for new ideas both outside and in. Pizzazz is the Name of the Game to give your property an edge over the competition. Landscape with flowering bushes and colorful annuals and provide supplies and praise to residents who plant their flowerboxes or do litter patrol. —Gerry

During rehab, make vacant properties look lived in. This will reduce the probability of break-ins which can be costly. We immediately put up window blinds, cut the grass, clean up the outside and put some lights on timers. —Lori

Signage: Yellow and Black are the new “Jump at You” sign colors. Ken’s been using them for years. On the sign say “Owner/Manager” so folks know your level of availability and attention. For an Open House sign say “Call Now—See Now” and use a lock box. Locks: Use a passage set on top and a lock set with key on the bottom so folks can’t get locked out. You only have one set to re-key at move-out.

Take a walk around your building while it is raining. Is water collecting close to your foundation? Look for gutters that overflow and check that the drains empty out far enough away to remove the water. Check for grad-ing problems. Low spots in the dirt can allow water to collect next to your house and work its way in. Keeping basements dry will help prevent mold problems and reduce the moisture that causes furnace parts to rust. A clean basement that looks like useful space is an added selling point when renting your property. —Paul

Interior paint: Clean out the paint room and combine like items. We have a 50-gallon drum of a nice neutral color that was made from a bunch of oddball short cans. Great for covering a lot of interiors and Gerry says “Buckwheat is the new off-white” according to HGTV. Add trendy accent walls. Of course never use flat paints. They’re a waste of money because you can’t wipe the walls to clean them. Use satin or semi-gloss. —Lori

Flooring: Only use carpet with pad attached. They’re cheaper and easy to install. Use sheet goods for flooring—no glue down. —Muffy

Use 6-ft. x 8-ft. throw rugs to help protect from carpet wear & stains. —GerryWe lean toward hard surface flooring whenever possible. Whether we re-

finish existing wood, install new wood or tile, I think the hard surfaces show better, are easier to clean and the investment is long term. Tenants can bring and take their own area rugs with them when they move out. —Lori

Kitchens, Cabinets and Accessories: We buy cabinets from demolition sales in Chicago. —Muffy

Use some matching stain to fix cabinet scratches and give them a shiny new look with latex sealer. Granite countertops are “in.” You can get 9-in. x 9-in. granite tiles for 30-40% more cost or you can use Formica in imitation granite colors. Make the kitchen as appealing and usable as possible with a large double-bowl sink and high gooseneck faucet for about $10 more. For a little bit more, go for the “Deluxe” on towel bars. Add Pizzazz with ceiling fans, accessories and add some mirrors to open up space. —Gerry

Ever have a problem with a refrigerator that builds up ice or pools water inside on the bottom? Before you call a repairman, a simple thing to check is that the drain is not clogged. During the defrost cycle, water drains from the freezer through a tube that will be on the top of the refrigerator com-partment. The water will flow to a pan underneath the refrigerator. Follow the tube and take apart the connections to make sure crumbs from inside the freezer have not plugged the tube. If the unit is iced up, allow it to com-pletely defrost first. If the water can’t drain, it builds up ice or spills over into a puddle on the bottom of the fridge. Also take the time to clean out the coils under the refrigerator. A vacuum cleaner and a long brush is all you need. Brushes for this purpose are available from the hardware store. Be careful not to damage the coils because the refrigerator will be ruined. Just gently remove the dust so that air can circulate freely around the coils. This is how the refrigerator removes the heat and keeps cold. —Paul

Marketing: Make sure there’s no garbage, no dirt, and no dust. Ask a friend or neighbor to do a walk-through and give you their honest feedback. They will see things you may miss. Ask the prospective tenant, “Is there something we may have missed that would make this place special?” Allow for a price point with utilities furnished as a convenient option. Make sure you have a quick response to calls. An answering service with live people is better. Our phone line is open 7 a.m. – 10 p.m. for both marketing and response to maintenance calls. —Gerry

We put the word out to tenants, friends and neighbors as soon as we have a vacancy and let them know our estimated availability date so people have time to consider things. This may work better for us because we have a low volume with little turnover. Our average length of stay is 10.5 years. —Lori

Maintenance: DON’T TRUST THE TENANT TO CHANGE FUR-NACE FILTERS! They don’t do it, even if they say they will, and then you end up with costly furnace repairs. —Sylvia n

uContinued from page 4

The City of Rockford receives Community Development Block Grant and HOME Investment Partnerships federal funds each year for housing and community development projects. The Community Development Depart-ment wants you to have a voice in how the City invests this money.

The City of Rockford Community Development Department is beginning to develop its 5-year plan for housing and community development for the years 2010-2014. To complete this plan, they need the public’s perspective and advice on how to best address the needs in our city. To participate in the community survey, go to http://www.ci.rockford.il.us/ n

Community Development Department wants community Input

Page 6 November 2008Rockford Apartment Association

Ryan Roberts from Forward Communications (above) and Chris Grimm from Amazing Carpet Cleaning (below) display their products and introduce their companies to the association at the October RAA meeting.

RAA October meeting 10-20-08

Carbon MonoxideCarbon monoxide (CO) is odorless, colorless, and tasteless. It is produced

when any fossil fuel, including natural gas, is burned. When fossil fuels do not burn properly, CO can build up and cause sickness—even death. Carbon monoxide kills about 200 people in the U.S. every year.

Homeowners, landlords and building owners of any occupancy that have rooms used for people to sleep in are required to install carbon monox-ide (CO) detectors by January 1, 2007, under legislation passed this spring. The new Illinois law requires the owner of the building to install carbon monoxide detectors within 15 feet of all rooms used for sleeping. This law applies only to those occupancies that use fossil fuel to cook, heat or pro-duce hot water, or is connected to an enclosed garage. For more information about the law go to http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=0940741 (link to Public Act 094-0741) or contact the local build-ing commissioner.

The carbon monoxide detector may be battery-operated, plug-in with battery back-up or wired into the home’s AC power with a secondary battery back-up; must bear the label of a nationally recognized testing laboratory; and must comply with the most recent standards of the Underwriters Labo-ratories or the Canadian Standard Association.

Safety Measures: • Never heat your home with your gas range or oven.• Never burn charcoal inside your home or garage.• Always open the chimney fl ue when you use your fi replace.• Never run a combustion engine, such as your car, lawn mower or snow

blower in enclosed areas.Install a CO detector:

• Install a CO detector within 15 feet of any room used for sleeping in accordance with the manufacturer’s instructions.

• Do not install a CO detector near your kitchen or garage or in a room with a furnace.

• If your CO detector goes off and you feel ill, leave the house and call 911 or the local fi re department. If you feel ill, leave the house and call 911 or the local fi re department. If you do not feel ill, push your detector’s reset button. If the alarm goes off again after a few minutes, open the windows, leave the house and call 911 or the local fi re department.

Recognize the symptoms of CO Poisoning:• Dizziness, nausea, headache and coughing• Irregular heartbeat• Pale skin with cherry red lips and ear tips

Know what to do if you suspect CO Poisoning:• Get fresh air and stay outside• Call 911 or the local fi re department n

Chimney Pestsby Jessica Wilson

During the past year, our company has removed over dozens of animals from inside chimneys. Especially this time of year, it is very important to cap all your chimneys to ensure that raccoons, squirrels, birds, bats, and many other creatures aren’t able to nest inside them. Nesting materials pose risk of fi re, disease and carbon monoxide buildup hazards to you and your fam-ily or tenants. These risks are just not worth it. Prevention of these issues is much more cost-effective than having to remove these animals and clean out your chimneys and/or fi replaces! Call us for chimney capping options and a free estimate. Who are you going to call... When Nature Calls Pest Control, Gerrod Walker, owner, at 815-601-7378. WNCPC is at 1204 21st Ave., Rockford, Illinois 61104. n

FREE raffl e prizes at each meeting! Get your ticket at the

table at the door.

RAA 2008-09 Board Members

November 2008 Rockford Apartment Association Page 7

President / IRPOA Rep ..................................Paul Arena ......................815-243-2924Vice President / Nominating Memb. ..................Ken Becker ....................815-399-8000Secretary / Taxes...........................................Tim Hoffman ..................815-988-4004Treasurer ......................................................Mike Cavataio ................815-397-3320Bus. Relationships / Ads ...............................Jim Merrick ....................815-222-7423Business Forms .............................................Pete Suknaich ................815-332-9463Membership .................................................Vince Miosi .....................815-877-3272Newsletter / Fair Housing Rep ......................Lori Gustafson ................815-963-0268Programs ......................................................Karl Fauerbach ..............815-877-6077Lease Committee..........................................Ken Hagemeyer .....................................Website / Promotions / Special Events ...............Steve Lantow ..................815-633-9967

Have a Repair Party!This article is reprinted here with permission from Creative Real Estate

Online at http://www.creonline.com by Jennifer Sedlecek (Jen NE)

I’m very new at this game so I’m not sure if anyone has done this. I just bought my fi rst property (big ol’ home) that needed quite a bit of

cosmetic work: Paint inside and out, new carpet, new tile, landscaping—you get the idea. My original plan was to use my equity line for fi x-up costs. How-ever, the costs of all the repairs after taking some bids from “handymen” were a bit higher than I estimated (no surprise, just learning.) Problem is that I work a lot of hours and could not do it all myself to save money. I was also nervous with this fi rst deal taking too much time to turn it around...

Well, I also play for a women’s traveling softball team and we were hav-ing a team meeting on fund-raising ideas. It then occurred to me that I had a win/win situation. We had a repair party! My whole team came over to my new property a couple of nights and the weekend. We scraped, painted and one of them even knew how to lay carpet! I paid for all the materials (many had their own tools, brushes, etc...) Then I paid the “Team” for all their labor but at a good discount from what I would have paid the handymen!

They were more careful with the details than I would have been. I tend to slop paint. They were happy and I was happy!

It wasn’t a tremendously huge savings, but as a newbie with limited funds, it was BIG. Not to mention, it was a lot of fun with all of us there painting away. They want to do my next house. I fi gure that many of us know local high school/adult sports teams or other organizations that are trying to raise a little money. This may not work for a traditional rehab but, on the cosmetic stuff, it worked great. n

EPA Lead-Based Paint Pre-Renovation Education (Lead PRE)Lead PRE is a Federal regulation affecting renovations/repairs in resi-

dential housing built before 1978. Lead PRE is designed to provide residents of pre-1978 housing with information to help prevent lead exposure which can cause serious health effects, especially in children and pregnant women. This applies to anyone whose compensated work disturbs paint in housing built before 1978 including Residential Rental Property Owners/Managers, General Contractors, Special Trade Contractors including Painters, Plumb-ers, Carpenters and Electricians.

Beginning in April 2010, federal law will require that contractors per-forming renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certifi ed and follow specifi c work practices to prevent lead contamination. Until that time, EPA recommends that anyone performing renovation, re-pair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices. The contrac-tor should follow these three simple procedures:

• Contain the work area • Minimize dust • Clean up thoroughly (Effective until April 2010) Before starting a renovation in residential

buildings built before 1978, the contractor or property owner is required to have tenants sign a pre-renovation disclosure form which indicates that the tenant received the Renovate Right lead hazard information pamphlet.

GET THE LEAD OUT (GLO) AND CREATING LEAD SAFE ROCK-FORD (CLSR) is a Grant Program to identify and correct lead hazards in qualifying households. Both rental units and owner occupied proper-ties may qualify. For rental property to be considered for entry into the program, the owner and the tenant must fi ll out the initial application to determine if they qualify. There is a matching fee of $500 from the owner of the rental unit to participate in the program.

Landlord’s Guide for Working Safely with Lead is a very thorough brochure about working safely with lead. We will have copies of the bro-chure available at the November 17 RAA meeting along with copies of the GLO/CLSR Grant Programs, the PRE-Renovation Brochures and Pre-Renovation Forms.

EPA Publications about Renovation, Repair and Painting can be found at http://www.epa.gov/lead/pubs/renovation.htm For information locally, call Winnebago County Health Department Jim Hilliger, Environmental Health & Lead Risk Assessor 815-720-4114, or Kristine Stensland, Coor-dinator–Lead Programs 815-720-4130, or Amour Peterson at the Regional Offi ce 815-987-7972. n

Service Directory A D V E R T I S I N G

Rock River TimesFrank Schier • 815-964-9767

B A N K I N GMidwest Community Bank

3963 N. Perryville Road • Richard A. Schrom, Executive VPCommercial Lending • 815-637-7847

C A R P E T C L E A N I N GAmazing Carpet Cleaning

815-229-9222 • Commercial–Residentialwww.amazingcc.com

HARDWARENicholson Hardware

1131 Second Ave. • 815-963-4821

HEATING & COOLINGNorstar Heating & Cooling

Dan O’Boyle • 815-398-1973 • 608-273-4200www.norstarhvac.com

L AUNDRY FACILIT Y LEASINGHales Equipment

1607 Fulton Ave. • 815-965-8767Sales–Service–Leasing • www.HalesEquipment.com

Great Lakes Commercial SalesBill White • 262-790-5885800-236-5599 Toll Free • www.greatlakeslaundry.com

Coin Appliances Inc.Geoffrey Erdman • 800-242-5453e-mail: gerdman@bizwi.rr.com

REAL ESTATEKen Becker Realtors

1720 Rural St. • 815-399-8000eves 815-226-4800 • cell 815-670-3300

RENTALS—RESIDENTIAL

Rockford Area Renter Guide815-964-6700 • Free to tenants

SE WER SERVICENorthern Illinois Sewer Service, Inc.

Doug M. Rogers • 815-229-1174Industrial–Residential–Commercial

Page 8 November 2008Rockford Apartment Association

PO Box 2502 • Loves Park IL 61132

Rockford Apartment Association Code of EthicsWe, the members of the RAA, recognizing our duty to the public and the intimate nature of the relationship between the apartment resident and

the owner, or manager, and being aware of the vastly increasing role of the apartment industry in providing the home of the future, and in order to provide the apartment-residing public with the maximum in quality and service upon the highest standards of honest and integrity, do hereby bind ourselves, with each and every member, together and alone, agreeing that, so long as we remain members of the RAA and so long as nothing contained herein shall be unlawful, we shall:1. Promote, employ and maintain a high standard of integrity in the performance of all rental obligations and services in the operation of our

apartment communities.2. Maintain and operate our apartment communities in accordance with fair and honorable standards of competition, ever mindful of the purposes

of the Rockford Apartment Association and in compliance with the bylaws thereof.3. Strive continually to promote the education and fraternity of the membership and to promote the progress and dignity of the apartment industry

in creating a better image of itself in order that the public may be better served.4. Seek to provide better values, so that an even greater share of the public may enjoy the many benefits of apartment living.5. Establish high ethical standards of conduct within the apartment industry in the business relationship between the owner, managers and

suppliers of products and services to the apartment industry.6. Maintain property standards of the appropriate governmental authority.7. Ensure that every qualified individual, regardless of that individual’s race, color, religion, gender, disability, familial status or national origin is

afforded the same opportunity to rent an apartment and enjoy the benefits of apartment living.

Volunteers neededRockford Apartment Association (RAA) is in need of a few volunteers to help in a variety of areas within the association. Please consider sharing

your specific knowledge and expertise with RAA. If any of you would like to help, please call Karl Fauerbach at 815-877-6077. Thank you.

Set up your contractor’s tableAttention contractors: To set up your contractor’s table at one of the RAA meetings, call Karl Fauerbach at 815-877-6077.

Content disclaimerThe content and opinions expressed in the RAA newsletter do not necessarily reflect the views of, nor are they necessarily endorsed by, the

Rockford Apartment Association or its board.