Newbie - Chicago

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Newbie - Chicago

Remon Rasho
Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes

Good morning BP! First and foremost I would like to say that I'm grateful for this site and forums. My wife and I have recently become interested in investing in real estate and have been listening to pod-casts for months. A few months ago I found a mentor simply by calling on a bandit sign and asking the guy for help and although it isn't what I was hoping it would be, I'm grateful for his help and his sincerity.

Things have been slow going and I do wish things would move a bit quicker for me and now the clock is ticking. My wife came home with the sort of news you don't want to have to deal with, especially in today's economic climate. It isn't for certain, but she's being laid off in two weeks and will receive her last check on the 1st.

Guys and Gals, I will not allow this to break my family. However, I need to get my butt in gear, but how.... I don't have the money for marketing and I don't know what I'm looking for if I "drive-for-dollars."

I was looking at Joe McCall's program and how he'll call on "For-Rent" ad's in craigslist.org and so on, but at this moment I feel like all I have is information. I've got the gun, but no ammo.... I want to pull the trigger, but the round isn't chambered....

Could anyone please help me? I would love another mentor. Not that my current one is bad, it's just that I would love someone to truly... I mean truly take me under their wing and guide me! I'm eager, I'm hungry and I'm humble... I have a lot to learn and I'm driven by one of the, if not the greatest "WHY" known to man. Not to let your family down.

To everyone here, I say thank you in advance for all of your time and help. I say thank you for your consideration and I say thank you for your understanding.

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Account Closed
Real Estate Investor · Member since 2012 · 189 posts · 32 votes
13y

I must interject a li'l warning... it's REALLY EASY to get stuck in the study as the days pass by.

I'd strongly recommend figuring out a 14day plan on a 30day outlook of actionable tasks towards weekly, monthly deadlines/goals. By the time you know it, it will be July 1, and without a definitive course of action (syllabus per se), you may be scrambling and worrying that the time has flown by and you're not much further than where you were 60days ago with little to show for, but the ability to write a review or two and maybe even a bookreport on what you've read.

Joshua Dorkin / Brandon Turner is there a xx day (i.e., 30day) action plan in your Ultimate Investor Guide? I remember looking through it, but not finding such an action plan. Might there be any plans to create one (or get a poll on interest for such)? an action plan for each investor/strategy profile one might opt for (i.e., for wholesaler, for rehabber, etc.)

Starting off, it's realllllly too easy to get overwhelmed, spin your wheels, and get frustrated b/c you tried a li'l of everything, but nothing long enough to gain traction in any one direction/objective.

Hopefully, you have a detailed plan in mind or are drafting one to execute next week, if you don't already.

What are your measurable results to work towards in a step by step fashion to reach your goals? Better yet, what goals do you intend on hitting by June 1?

Much luck to you and your wife!

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  • Jason Vought
    Real Estate Investor · Griffith, IN · Member since 2008 · 22 posts · 1 vote
    13y

    Welcome Remon. I too am a rather new investor, but I will share with you some of the things that have been helpful to me.

    1. This site has been great
    2. Find local REI clubs and attend meetings and connect with the people there! There are many in your area I'm sure.

    Good luck!

    1Reply
  • Mike B.
    Developer · Chicago, IL · Member since 2013 · 433 posts · 356 votes
    13y

    Hi Remon, nice to see someone in my neighborhood on this site. I live in down town Crystal Lake, but I do most of my investing in Lake and Cook counties. I've been doing this for quite awhile so if you have any questions or if you need any help, feel free to contact me.
    Mike
    [email protected]

    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Jason, thank you for the tip. I joined meet up and went to a cash-flow game a few weeks back. I always thought REI groups were for brokers. I'll give that a go.

    Mike, I too live in Crystal Lake. I'm emailing you now. Thank you!

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    Welcome to BP Remon Rasho. If you haven't already you might want to check out the free new investors guide under the learn tab above. Regarding a mentor check out this post
    How to Find a Mentor

    Good luck - Ned

    0Reply
  • Shara Carlton
    Investor · Chicago, IL · Member since 2012 · 157 posts · 29 votes
    13y

    Welcome Remon! I might have some ideas for you. Email me. [email protected]

    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Thank you Ned, I have downloaded and have begun to read the beginners guide and have listened to numerous Bigger Pockets pod casts. Thank you again for your insight.

    0Reply
  • Account Closed
    Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
    13y

    Welcome Remon Rasho, I like your positive attitude. That is to be commended. I will say this, remember with real estate the first rule is "Location, Location, Location". Real Estate in AZ, CA and even say NY very different than Chicago. So to ask for help or advice on national guru types, makes me give pause.

    You want to deal with people that actually know the local markets, towns, codes, etc.

    That is where I believe local REI Clubs help the most. But once you get there, learn to weed out those that just talk about investing and those that actually do invest.

    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Couldn't agree more, thank you Ryan. I've found / been invited to my local REI group tomorrow. Hope to network and possibly (at some point) find a partner / mentor / friend(s)!

    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Today is day 3 since I first posted here and I have emailed and spoken with some truly great folks. I'd like to simply say thank you to everyone here, your input is highly valued.

    With that, I've been poking around a bit and found a site: http://www.myhousedeals.com/ Has anyone had any luck with this site.

    Lastly, I'm familiar with the 70% ARV formula; however, could anyone help me understand how to determine what the ARV of a home should be? My issue (as perhaps most people) is that I'm not a licensed broker and wouldn't have access to the MLS and wouldn't know how to go about getting comps. I've heard Trulia, Zillow, Redfin and the like are good starting points; however how can one be certain of home values?

    Are there multiple methods? I've also been instructed / referred to befriend a Realtor and "become" an assistant so that I can gain access to the MLS. I spoke with a family member (a Realtor) and he grimmest at the notion. He explained that "things have changed" you can't do that and that it was illegal..... Anyone with countering thoughts on the matter?

    0Reply
  • Mike B.
    Developer · Chicago, IL · Member since 2013 · 433 posts · 356 votes
    13y

    Start by mailing out to your list, if you get the appointment, send me the address and I'll comp it out for you. I personally went and got my RE license because of this same problem. I'll be responding to your email soon and we'll set up a day to get that coffee.

    1Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Mike......... I don't know what to say.... Thank you! I'll need to decipher what a good list to purchase is, in the mean time I'll be creating my yellow letters / buying my materials! Again, thank you!!!

    0Reply
  • Mike H.
    Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
    13y

    re: calculating ARV
    When you list the likes of trulia and zillow, I'm guessing you're referring to their appraisal values - which are definitely not to be taken for any real value.

    However, you can also go to their site and get actual sales that occur. Those are exactly the same sales that your appraisal is going to use.

    In crystal lake, you should have enough volume to generate all the comps you can handle in order to determine your homes value - or at least put you in the right ball park.

    The key is finding homes that are within a quarter mile or so and have sold within the last 3 mos. If not 3, then at least the last 6 mos. The homes should be about the same size with roughly the same number of bedrooms and baths and age.

    ex: You have a 3bdrm 2bath house for 1,400 sq ft
    There's a comp you find thats a 3bdrm 1.5 bath at 1,200 sq ft that sold for 120k. And another comps of a 3bdrm, 2.5bath, 1,500 sq ft home that sold for 130k, you can probably guess that your house will fall right around 125k or so.

    Whats tough is when you have some foreclosure sales in your comps that are outliers. Typically, you can throw them out. But if you have a lot, the appraiser may use them so you might want to account for them too.

    It'll look something like this:
    120k
    110k
    110k
    80k

    The 80k house may or may not be used by the appraiser so you might want to bump your number down a bit from 110k to 105k or even 100k.

    Depending on the comps that you find, it can be an art to come up with for sure. But the key is that the comps can be found on several of those sites and thats all you need to come up with your home value.

    Hope this helped a little. And good luck. From what I've seen, that area seems to be a real nice price point to rent number for investing so you should be able to do pretty well up there.

    1Reply
  • Patrick Jackson
    Bakersfield, CA · Member since 2013 · 184 posts · 19 votes
    13y

    Hey Remon Rasho,

    Welcome to BP. This is a great site to network and gain knowledge about the market. Best of Luck!!!

    1Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Thanks for clarifying Mike H. That does help a lot.

    0Reply
  • Account Closed
    Real Estate Investor · Member since 2012 · 189 posts · 32 votes
    13y

    Welcome to BP!

    have you or your wife considered getting your re license? as you become familiar with what to look for in homes as investments, it should be useful to also be an agent for those looking to buy/sell. at the very least, you'll have access to the mls - a valuable tool to determine home value and doing comps.

    i'd recommend to definitely understand how to do the numbers and evaluate home value... even just as important, connect with other local investors - don't stop going to the rei meetings ... or at least continue to network with ppl in the industry so you can get more familiar w/the terminology and the goings on in your market.

    much luck to you and your wife!

    0Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    13y

    Hi Remon,

    You have gotten great advice above. I'd like to add a couple of comments.

    I don't know about your market, but don't get too fixated on the 70% ARV rule. So what if it's 75% or 80%. As long as you can make money, do the deal.

    If you don't have access to the MLS, try Redfin.com. I'm not sure if you have Redfin in your area. Zillow is always behind the market, and not very accurate in my opinion.

    Keep your chin up and good luck.

    0Reply
  • John Philippo
    Wheaton, IL · Member since 2013 · 19 posts · 3 votes
    13y

    Good luck Remon Rasho! I'm actually located out in the western suburbs of Chicago, Glen Ellyn to be exact, and just starting out myself. I look forward to following your progress on BP and as you learn of any good REI groups in the area or other good tips I'd love to compare notes!

    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Thank you all so very much. John, I signed up for; however didn't get a chance to go to a local-ish REI group in Lake Zurich. The group can be found on meetup.com. It's called RE123, there having a real estate 101 meeting on the 30th. I'll be there!

    Kelvin, yes we've thought / considered this route; however classes aren't always being held and money / cost(s) can and do play a major role at this point in my investing career. That isn't to say we're not getting our licence, we're just not going to at this point. Our local collage has the class this August. By then I'm expecting my "business" is paying for that class and I can deduct it!

    Minh, I hadn't thought about that or I should say not in that way. I was getting stuck on the 70% rule. So much so in fact that I felt / feel that I should try and aim for 65% just to be safe...

    Alas, you may have a great point there as I have decided to cut into my "profits" if it meant a "win-win" situation for all. So I make 5K as suppose to 10K.... who'd throw that away :)

    On a separate note,
    I'm reading real estate 101 by Donald Trump, I'm really enjoying it at the moment and feel it'll lend well to my future endeavors. Would anyone else have a suggestion to pass on. Have an excellent weekend everyone and thank you again!!!

    0Reply
  • Wanda Cardenas
    Real Estate Investor · Chicago, IL · Member since 2013 · 19 posts · 0 votes
    13y

    Mike H. great advice!

    0Reply
  • Account Closed
    Real Estate Investor · Member since 2012 · 189 posts · 32 votes
    13y

    I must interject a li'l warning... it's REALLY EASY to get stuck in the study as the days pass by.

    I'd strongly recommend figuring out a 14day plan on a 30day outlook of actionable tasks towards weekly, monthly deadlines/goals. By the time you know it, it will be July 1, and without a definitive course of action (syllabus per se), you may be scrambling and worrying that the time has flown by and you're not much further than where you were 60days ago with little to show for, but the ability to write a review or two and maybe even a bookreport on what you've read.

    Joshua Dorkin / Brandon Turner is there a xx day (i.e., 30day) action plan in your Ultimate Investor Guide? I remember looking through it, but not finding such an action plan. Might there be any plans to create one (or get a poll on interest for such)? an action plan for each investor/strategy profile one might opt for (i.e., for wholesaler, for rehabber, etc.)

    Starting off, it's realllllly too easy to get overwhelmed, spin your wheels, and get frustrated b/c you tried a li'l of everything, but nothing long enough to gain traction in any one direction/objective.

    Hopefully, you have a detailed plan in mind or are drafting one to execute next week, if you don't already.

    What are your measurable results to work towards in a step by step fashion to reach your goals? Better yet, what goals do you intend on hitting by June 1?

    Much luck to you and your wife!

    2Reply
  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    13y

    There isn't Kelvin K., but that isn't a bad idea . . . Brandon Turner and I will discuss.

    Podcast Guest on Show #100
    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Excellent.... Absolutely excellent advice! Thank you all, I'll keep everyone here informed to my progress even if it seems like I have nothing to report. What a wonderful community you guys have cultivated here Josh / Brandon... And love the podcasts, not looking for brownie points here, but your podcasts keep it in perspective... I appreciate not having to weed through bs hype you often find elsewhere.... Again, thank you all!

    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Thanks Remon Rasho! We enjoy doing the Podcast a lot. I can't say I did a whole lot in the building of this community (I was just a member till 6 months ago!) but I'm glad to be part of the team now pushing it forward with Joshua Dorkin :)

    Podcast Guest on Show #92
    0Reply
  • Remon Rasho
    OP
    Crystal Lake, IL · Member since 2012 · 24 posts · 0 votes
    13y

    Good Morning Everyone,

    I thought I'd update everyone here as to where I was / am in my journey and I am please to say I am still moving forward! "Mike B., thank you again for meeting up with me and taking your time to do so.

    With that, I've worked out a few "issues" and am on my way with creating a "system" for managing and creating my sellers list, buyers list and for creating and replicating my Yellow Letter so that I don't have to truly hand write them myself.

    As my cash is limited, I've gone "driving for dollars" and via the treasurers website (no county assessor site that I have found) I am able to pull up the names of these individuals and most importantly whether they're in state or not.

    I mailed out a few letters last night and feel confident, but not delusional about them. Seriously, if nothing comes from them I'll be ok with that. I'm just happy I'm not just listening to podcasts anymore.... love the podcasts Joshua / Brandon.... don't ever stop, seriously That I've taken action. So far it's cost me a few bucks in time, gas, paper & other materials.

    Thanks again for a wonderful forum to discuss and learn "Brandon Turner & "Joshua Dorkin and thank you all for spending the time you have in this thread and the countless other threads sharing your experience and expertise with all. I hope to reciprocate how I can, when I can. Happy Friday, happy weekend everyone!!!!

    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Awesome Remon Rasho! It's really great to see you moving forward! Keep pushing, keep fighting, and you'll get there!

    Podcast Guest on Show #92
    0Reply
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