2020

Wow. So that happened.

Covid had us all scrambling and wondering what the future of our households, businesses and Country would look like. Our son was pulled out of preschool back in March and spent the whole year attending a virtual classroom at our kitchen table. Since we were working remotely for the better part of the year, we decided to close up our physical office and lease that space to Great Matter Books as they were looking for square footage and the opportunity to fill their shelves!

During lockdown, we tried to make lemonade by performing commercial remodels and making building improvements to all of the properties in our portfolio. We filled commercial vacancies and fixed building flaws where we could! We welcomed several new employees to our team, several new properties to our portfolio, several new tenants to our buildings, and transitioned some of our previous tenants into homeowners!

Welcome Raeann!

Raeann joined the Neighbors Development team as our Residential Advisor. We hate saying goodbye to great tenants and so we found a way to keep them! When our tenants are ready to buy a house, Raeann is ready to help! Raeann grew up right here in Grand Rapids and knows her neighborhoods! She has been working in real estate for the last few years and we are excited to add her to the Neighbors team!

Welcome Alexis

Alexis has joined our office staff! She is working remotely while simultaneously raising her two kids. She is performing administrative tasks for us and remodeling her home in her free time. Adding Alexis to the team has created tremendous growth opportunities!

Bring on the Buildouts!

2020 was a big year for us filling vacancies! As we said goodbye to 2019 we also said goodbye to our “Pop Up on Plainfield” featuring Serendipite Organiques and Flicker + Gem. Both businesses have found success in online markets and/or relocated out of West Michigan. We wish them well!

With the opening of their space we were able to welcome trophy and screen printing business Impact Enterprises who was looking to relocate from their previous location on the West Side.

We were approached by Tattoo Artist Mike Snyder who had a dream to open his own tattoo shop. The Neighbors Development team worked tirelessly to make Mike’s dream a realty and in September 2020 Praying Mantis Tattoo Studio opened with Covid 19 safety procedures in place. Shortly after, The Neighbors team started a buildout in the suite next door for Decorum Body Piercing and the piercing studio recently opened in January 2021.

Great Matter Books opened in November & our Plainfield building is fully occupied! We look forward to creative artwork and landscaping slated for spring 2021!

Adding Density!

In 2020, Neighbors Development spent a lot of time focused on zoning and putting effort into building density for West Michigan. We’ve expanded our portfolio into Muskegon and are focusing on creating affordable, compliant, and efficient units that people are excited to call home!

What’s next?

• We’ve been working on a new buildout with a homebrew brewery concept coming soon to Roosevelt Park!

• We bought a camper & are building a mobile office! This will allow us the freedom to bring our office to the job site!

• We are hiring! We are looking for a full time Maintenance Manager! This is a pivotal position as it is our goal to keep our properties in tip top shape! Contact our office at 616-920-0477 or by email to hello@neighborsdev.com

2019

We Moved!

For three and a half years Neighbors Development has occupied space on Grandville Ave. We worked primarily out of coffee shops & home offices but had an office hub in the old Cafe Aromas. When the cafe closed in 2016 we put our business in that space with the intention of finding another coffee shop to take over a lease full term.

Flash forward to 2019 & we've got a new cafe opening in Roosevelt Park early 2020!

We are happy to welcome Brother Hawk Cafe in the Rumsey Building at 880 Grandville Ave SW! Brother Hawk Cafe is a Native American inspired coffee shop serving fry bread & other light foods. It will also serve as a community gathering space hosting regular events. Brother Hawk Cafe has begun renovations!

Pop Up On Plainfield!

Neighbors Development is currently renovating & redeveloping a beautiful 120 year old building located right next to Fat Boy Burger in the North Quarter. This building has 4,000 square feet of commercial space & with some TLC we hope to get it up to full occupancy!

What We've Done So Far:

In 2018 we commissioned local artist Erick Picardo to paint a mural titled, “I Love You” on the SW side of the building. Kids have taken senior pictures on site, couples have taken wedding photos & the mural has been highlighted as a significant art contribution to the Creston neighborhood.

We dedicate this mural to a deaf family member, a cancer survivor and a neighbor who we love very much.

In 2018 we renovated the first suite addressed 2456 Plainfield Ave NE & leased this space to a local woodshop. Rivertown Woodcraft got so successful & quickly outgrew its 1,000 square feet storefront!

In 2019, Neighbors Development was happy to help relocate the woodshop to a new space that better fit its needs. Rivertown Woodcraft continues to expand & you can view many custom woodworkings in stores, restaurants, homes, etc. all throughout West Michigan.

In 2019 we renovated the second suite & have created a “Pop up on Plainfield” concept for two local businesses that wanted to test the waters of leasing storefront space. We committed a three month opportunity for Serendipite Organiques and Flicker + Gem to create a beautiful retail space. Serendipite Organiques sells organic beauty care products; Flicker + Gem sells handmade jewelry & candles. Both vendors are happy to bring their knowledge and creativity to the North Quarter shopping district just in time for the holidays! Stop in & shop local!

With the opening of Brother Hawk Cafe, Neighbors Development was looking for a new business office. Since Rivertown Woodcraft left a vacancy in the Plainfield Building we decided to fill it! We are happy to set up shop for a “temporary” amount of time until we find a new local business to take over the suite & make it their own.

As of now we have two suites occupied & two suites still under renovations in our Plainfield building. Stop in! We love to meet our neighbors and we'd love to show you around!

What's next?

• We bought a house in West Grand & it is under construction! Soon to be our newest rental property in a wonderful neighborhood!

• We've hired a full time Maintenance Manager! Corry Spicer has been working for us for several months. We've been pleased with his level of care to each & every task he is asked to complete & we are happy to welcome him to the team! We look forward to the growth opportunities someone like Corry can provide!

• We are hiring! We are looking for great people to join our team. Commercial & Residential Advisor positions are available. Contact our office at 616-920-0477 or by email to Cole@neighborsdev.com to set up an interview.

Neighbors Development Helps Local Business Expand Again in 2019!

Rivertown Woodcraft has come a long way since it was started in Jim Torrey's garage. In 2018 Rivertown Woodcraft joined forces with Neighbors Development and moved its operation into our commercial space located at 2456 Plainfield Ave NE. With an emphasis on community, business owner Torrey hosts small intimate workshop classes, builds custom furniture, and runs a full-service woodshop.

Torrey recently approached us with a problem and we were happy to help him find a solution! The problem was simple: not enough space.

Rivertown Woodcraft can't keep up with the needs of the community they've worked so hard to service. Torrey's 1000 SqFt shop just simply can't fit all of the projects.

Neighbors Development takes pride in the growth of our tenants and our neighbors. We encourage open dialog and strive to find solutions. Our brokerage team worked with Torrey to find a bigger workspace for Rivertown Woodcraft to call home.

Rivertown Woodcraft is moving! The new space will include larger workshop class sizes and membership opportunities!

www.rivertownwoodcraft.com

Step By Step DIY Paper Bag Floors

After researching options for a cost effective, environment friendly, and attractive flooring we decided to move forward with a DIY flooring using paper bags. Over the course of our 4,000 square foot commercial building remodel we have been collecting brown paper bags from grocery stores, friends, neighbors, and recycling centers. With the subfloor complete in the first 1,000 square feet suite, we were ready to start the process! I want to reiterate that having a proper subfloor & a clean starting surface are vital to your success!

Materials: Paper Bags, Water, Elmers Glue All, an inexpensive paint brush, a paint bucket, a paint stirrer, stain (optional), t-shirt material, polyurethane or epoxy & a polyurethane applicator.

Step 1. We took our collection of paper bags and ripped them into various size pieces. We removed handles, creases, etc. then crinkled them up; this allowed them to have different creases and wrinkles that provided an extra element of hoopla!

Step 2. After having collected a good amount of crumpled pieces we purchased 3 gallons of Elmers Glue All. We found this product at Lowe's but it can also be purchased at most craft stores or online. There are multiple sources for DIY paper floors and contradictions as to the ratio of water to glue. We found that three parts water to one part glue was the most ideal. 50/50 was a little too thick. Overall, I used my best judgement to find a consistency that worked best!

Step 3. With a paint brush we applied the glue mixture to the subfloor starting along one corner of the room & giving us the ability to work our way out. We used bags along the wall that had straight edges, whereas, through the rest of the room we tried to avoid edges. We also made sure that any bag logos or writing was facing downward and not visible to the eye. In the paint bucket, roller pan, or whatever you are using to store your glue in, we dipped the entire piece of paper leaving it saturated in the mixture and ready to adhere to the floor. We laid each piece and flattened it out making sure there were no bubbles or creases.

Our space was approximately 1,000 square feet so we repeated this process a zillion times over the course of several days. What we found was that each day when we returned to check our work the bags looked better and better; but they definitely looked unfinished and there were occasional spots that would need further maintenance.

Step 4. We examined the floor for raised edges, small bumps, or general “ugly” areas. In these spots we ripped out the bad bag and replaced it simply by adding a new bag right over top. For example, around your vents or walls you may not have applied enough glue and the piece may not be laying flat. If you rip that out and replace it, please allow 24 additional hours of dry time and you are good to go!

Step 5. This is an entirely optional step. If you like the look of brown then you can skip this step, add a polyurethane and call it a day. If you are going for a different color then find a wood stain that fits your desired goal and paint it right overtop. We purchased a Minwax wood finish in Dark Walnut. We used old t-shirts and materials to apply and quickly wipe the stain away.

Once Dry the floors looked copper!

Step 6. Polyurethane. The final step includes several layers of sealing. For our 1,000 square foot space we applied five coats. We purchased five 3-galloon buckets of polyurethane at Lowe's along with a long sticked applicator to apply. It is important to stir the contents of the 3-galloon bucket thuroughly, eliminating bubbles that could possibly show through when rolled onto the floor. Between each layer we allowed at least five hours of dry time. Once the final coating was applied we allowed a 24 hour period before walking on the newly completed floors.

Step 7. We put up new trim around the bottom of the walls to cover up any stain that may have made its way up the wall ever so slightly. Trim give the room an overall look of completion. What do you think?

The Impact of Plastic Grocery Bags

This is a topic that every middle school teacher addresses with their students every year. Grocery Bags. Some states have even implemented a tax on plastic bags provided by the grocery store. Since 2007, over 200 municipalities have implemented laws banning or taxing single use plastic bags with one goal in mind: to reduce the extensive use of single carrier bags.  

Michigan has yet to implement such laws. Those of us who are proactive, know that paper bags and reusable bags are a much friendlier alternative to plastics that are not biodegradable. 

So what happens to those bags you bring home after you unload your groceries? Nothing. Many people take pride in their reuse value. For example, they can be used as trash liners or used to pick up dog poop. Have you ever thought about how silly it is to use bags that cannot naturally decompose to store poop? 

Occasionally, my family and I will hike through our beautiful natural habitats and come across a plastic bag filled with poop sitting along the trail. The logic is that the dog owner will pick it up on their way out of the park and dispose of it. Regardless, this bag will end up in a landfill or remain on the trail for 1,000 years. 

So what is a better alternative? The best option would be to eliminate the unnecessary bag altogether. Stores like Aldi and Costco don't even offer bags and still somehow remain in business. Pet stores, provide shovel like apparatuses called pooper scoopers that allow you to pick up the waste without touching it and carry it to a garbage bin where it will be removed and decompose naturally. The natural decomposition process will take less than a year.  

When a bag is absolutely necessary, there are biodegradable options that can be used as substitutions. These options typically decompose within six months time and allow the waste inside to begin a natural decomposition process quickly. 

Most middle schoolers come to the conclusion that the best option is a reusable bag that can be brought back and forth to the grocery store, stored, and then reused time and time again. 

I am certainly guilty of forgetting to bring a reusable bag with me on shopping trips. If I use the provided plastic bags, I never attempt to throw them in the trash or in the recycling bin. Neither bin will collect them and they will not ever be recycled into new materials. The best option is to collect these bags separately and drop them off at a designated collection facility. Most grocers have collection bins in the store entryway. 

Another often overlooked option is the paper grocery bag. Most stores keep these by the register and will bag your groceries in paper if you ask.  Not only does paper biodegrade more quickly than plastic but you actually use less. The bagger will fill a paper bag to the top as opposed to their plastics that they bag specifically with certain items only. You might come home with two items per bag if using plastic, whereas, with a paper bag there is closer to ten items inside.  The process of recycling is easier as your home bin will accept paper items & the reuse value is substantially greater.  

As Neighbors Development begins our journey toward eliminating waste and reusing recycled materials, we've also began the renovations on our new office location. While building out this space we have set a goal to reuse as many materials as we can. We've been collecting paper bags and intend to create a paper mache style flooring. Stay tuned for the outcome! 

Office Floors made of Recycled Materials! 

IRAs and Real Estate: What You Need to Know

Many investors are familiar with using Individual Retirement Accounts, or IRAs for short, to grow their wealth in the stock market tax deferred. Did you know that you can take advantage of those same tax benefits when investing in real estate?  It’s true, ever since 1974, IRA and 401(k) account holders have control over how they invest their retirement money.  This means you don't have to invest your IRA or 401(k) into the traditional stocks and bonds. You can invest into tax liens, or even real estate. 

There are many advantages to real estate investing. It can be a great investment for your IRA because real estate can be much safer and more familiar than the stock market.  Real estate is a tangible asset and investment. Real estate investors can see what they are investing in; they can visit their investment; they know if it is being maintained well.  That is why astute investors are starting to turn to real estate investment as a means to support their retirement accounts.  

And still, most investors don’t understand the power and advantage of buying and selling properties through an IRA. Since your IRA is the title holder of the subject property, all earnings from that property are tax free, including earnings from rent, interest, and appreciation of value. Furthermore, your IRA can buy real estate of any property type, such as residential, commercial, agricultural, or unimproved land. 

Investing your IRA into real estate can seem daunting because of the large sum of money that is involved in an initial transaction, but there are alternative methods to raising the capital needed for real estate investment. Non-recourse loans, loans that do not require a personal guarantee, and land contracts can finance the remaining balance not covered by your IRA. Try hedging your risk by bringing in partners! Instead of paying 100% of the purchase cost of a property, consider having a partner or multiple partners invest in the property with your IRA.  Partners can be a person, another IRA, or a company.  

The team at Neighbors Development often brings partners together to invest in various income producing investment properties.  Contact us by email or phone with any questions you might have about investing your retirement accounts in real estate. 

Kevin

Business Development Manager | Neighbors Development

Don't Get Trapped: 3 Lies About Real Estate

When people find out that I sell real estate, they want to talk to me about it. Fortunately, real estate is my favorite topic to discuss. I love real estate.  But, there are so many misconceptions about real estate.  I feel that being able to recognize these lies and avoid getting caught in their trap, is the first key to successful real estate investing. 

1. Your Home is Your Biggest Asset.

"Your home is your biggest asset," is the most believed and dangerous lie regarding real estate. When challenged about this false cliché, many people become offended or go straight to denial. I assure you, your home is actually your biggest liability.  My point is simple. Does your home put money in your pocket or take it out? First, lets count all the ways your home takes money out. 

Expenses:

1. Property Tax.
2. Insurance.
3. Utilities.  
4. Maintenance.
5. Debt Service (Mortgage Payments).
6. Condo or HOA Fees.

Now let's count the ways it puts money into your pocket.

Income:

1. Rent? (Only if you are renting a portion of it out)
2. Sale? (But then you don't own it any more) 
3. My home gained artificial intelligence and got job with a nice salary!

You see? Unless number three happens, your home is a giant liability. The good news is that recognizing your home as a liability allows you to take action. You can turn your home, or a portion of it, into a short term rental (airbnb.com) or long term income property putting money in your pocket. You could go a step further and make your tenants pay some or all of expenses 1-6 listed above, reducing your liability. I suggest before you buy your dream home, buy assets, like income properties, that cancel out your giant liability of a home on the balance sheet.

2.  Debt is Bad.

While getting over leveraged can be dangerous, not all debt is bad debt. Many people want to pay off their loans so they don't have to pay interest. I am always puzzled when someone tells me they don't want to invest their money at a 10% return until they completely pay back the money they are borrowing at 3% interest. At the risk of getting too technical, lets walk through an example. 

Cindy has $10,000 she wants to invest. She can buy stock that is paying out dividends at $1,000/year or 10% annually. Or she can borrow $40,000 from the bank, at 5% interest to be paid back in equal monthly payments over 20 years, to buy a $50,000 income property that profits $5,000/year or 10% annually.

Both investments return 10% of purchase price annually so which is the better investment? The answer lies within the power of good debt. Cindy's Annual Debt Service or annual mortgage payment is a little less than $3,170. This means that Cindy would make $1,830 a year after paying the bank.  An income of $1,830 dollars annually would improve her return from 10% to 18.3% annually on money invested (remember Cindy only invested $10,000 of her own money in the property). 

Now lets say in 20 years neither the stock or the property go up or down in price, when Cindy decides to sell. The stock would sell for $10,000, returning all of the money Cindy invested.  The income property would sell for $50,000 returning an extra $40,000 dollars more than Cindy invested with out going up in price.

This example shows how taking on good debt can allow you to enhance return on investment and build equity in more expensive assets.

3. You Need to be Rich to Invest in Real Estate.

I think a lot of the people who are currently investing in real estate may be the ones propagating this rumor. After all, who wants more competition? The reality is you just need to know where to look to get capital.  If you only have $1,000 and you want to buy real estate then my advice is simple. Find a good deal; then find, partners, grants, or banks to finance the deal. 

The first property I bought was a duplex for less than $15,000. I had partners. We pooled our money, bought the duplex, used grants to fix it up, and then rented it out. We reinvested our profits into more real estate. Just remember you have to start some where.

If you want to learn more about getting started in real estate investment the team at Neighbors Development wants to help. Give us a call or Email us.

Look out for my next article "That Vacant Strip Mall is a Cash Cow!"

Coleman

President & Broker | Neighbors Development

Hello Neighbors!

Dear West Michigan,

I am writing you to introduce ourselves. On January 15th of 2015, Kara, David, and I started Neighbors Development with the understanding that better real estate makes better communities.  Although none of us can agree which of West Michigan's many great breweries is best, we all agree that the local community is important and we want to be a part of shaping West Michigan's future.  

We have been investing in real estate through out West Michigan since 2011 and now we want to help our community do the same. Kara has many years of both dental practice management experience and property management experience; she provides Neighbors' clients the highest level of professional management services. David is an architect and real estate investor, he has architectural experience, in medical, retail, and restaurants. As an architect and investor David offers important design and development experience to the community. And I am a real estate broker and investor who specializes in commercial and investment real estate. I provide our clients and investors brokerage services and investment advice.

We are exited to work with you.  We hope to grab a coffee and get to know you soon. Contact us if you are interested in learning more about our company or investment real estate. Follow our news feed; we will be posting development news and real estate advice on a regular basis.

Take care,

Coleman Baar

President & Broker | Neighbors Development