BiggerPockets

Hi guys,

I doubt anybody would remember me from when I joined this past February...I posted a topic explaining that I had moved to Chicago specifically to get into Real Estate investing and that I had $100K to start me off. Well, I figured its about time I checked in... After spending almost every day in my target areas, getting to know the streets and neighborhoods, and chatting up anyone in a 5 foot radius, I have made some progress! I have closed on, rehabbed and occupied four rental properties, with another two under contract. I have investor commitment for another four properties as well, and then I'll have to hunt for some new capital.

With G-d's help, in four short months the bankers and managers at my bank know me by first name, I have assembled two separate rehab teams that will follow me to the end, the Housing Authority officials think Im God (funny story, for a different time), I've had lunch with the founder of the largest tax lien buying company in Chicago, I have four big players as mentors and friends and I have true satisfaction in every waking hour of my day.

The past four months have been such an adventure for my wife and I, and I love every single day of it!

To anyone sitting on the fence and undecided about pursuing what you want: DO IT! Its an incredible feeling and success in itself.

Onwards!!

Cheers,
Jake

Jake / Stand and take a bow...you deserve it!

Mike P.

Congrats on taking that first step. Many watch from the sidelines but never get into the game. Let success breed on itself and keep pushing further. I'd like to hear that "God" story as well!

Jake,

Thanks for posting your story. It is great to hear of someone following their passion. It sounds like you are not working everyday but having FUN! :D

Thank you all for the well wishing.

I guess I have to tell the Housing Authority story now.

I was there to give in a Tenancy Approval Packet and after waiting in line for 15 minutes, I was told that I cannot hand in the packet because I also need a signed Notice To Vacate. I asked why that was never needed and suddenly it is and I got the brush off "Thats just the way it is". When I asked why it wasn't on the document checklist, she shrugged and didn't say anything. There was a landlord right behind me with the same beef, so we held up the line for an extra ten minutes demanding to know which big wig downtown we need to speak to to "get the Housing Authority to shape up". She gave us a name and we left, thinking more about the notice to vacate than actually going to speak to a higher-up. Because of my 5 foot radius rule, I chatted this landlord up in the elevator, it turned out we had a mutual acquaintance and we spoke in the lobby for about a half hour about different ideas and projects, during which time this same Housing Authority official that dealt with us walked through the lobby and saw us talking. I looked at her and said "Oh boy are we gonna take care of THIS!!" with a straight face and continued "strategizing".

Didn't think anything of it until I walked in two days later. The same lady was sitting at the desk and she seemed to suddenly sit up straight and give me a big smile. "Hello Sir!" she beamed. Weird, I thought. After a minute of processing the papers she looked up and said, "Who did you speak to??"...I said "about what?"...she said "well, the day after you said you were going to complain, Ms Stuart (the head honcho) walked in and gave us all a memo stating that we dont need the exact documents that you and your friend were complaining about the other day. How did you do it?!".

"Well, sometimes you gotta just take charge. Im tired of the HA slacking off and I decided to do something about it"

"But how did you even get to Ms Stuart? How did you get past her assistant? Why did she listen to you??"

"Lets just say we've got juice."

"Can you get me a raise?"

"How long have you worked here for?"

"Almost a year now"

"Let me know when you hit 18 months"

"Oh, I will!"

Well, this lady doesn't whisper, so all the staff in that room was kinda just staring at me. As I walked out, I could hear them mumbling about me.

Needless to say, every time I walk in there now, whether for pick up or drop off, I get VIP treatment, they bend a lot of rules for me without me even needing to ask and they trip over themselves to help me. They now call me "Mr Jake" and one lady keeps offering me coffee.

Yea...we got juice.

Steve, I got private investors for the fourth house plus three more. I'm making just under 40% ROI, but I pitch investors at 25% net split 50/50. Under promise, over deliver.

Hi Jake,

Great to hear about your successes. Thank you for sharing. I would like to know more on how you got together with the bigger investors/mentors in the area.

Great stroy Jake, thanks for sharing.
Question: Did you quit your job to pursue the RE investment career?
If so, how hard is it to get financing without a job?

I'm not Jake, but I can answer based on my own experience...

Unless you plan to work with HML, private lenders or portfolio lenders, you likely won't be able to get financing for the first couple years that you're in the business full-time, as lenders will require two years of tax returns as a self-employed before they will consider that income on your application.

So, expect that it will be two successful years before you can qualify for any type of conventional financing.

Great story. Thanks for encouraging those of us on the sidelines!

Truly inspiring. Keep it up. We on;y learn real estate by doing it