My Journey to $20M in assets

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

Okay, another quick update. I was able to get all documents submitted to an MLO that was recommended by the great and powerful Jonathan Klemm :) .

Now its a bit of the waiting game, but as stated previously the play will be a 3-4 unit in a trendy-ish area of the city.

Hope everyone is doing great and making strides to get the bag and help more people/ be of service leading into Q2!!!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Offer submitted on a multi folks. Keep me in your prayers😅🙏🏽

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

All Escrow'd up !

Hopefully negotiations proceed smoothly. I am definitely not the grinder type, I like having a fair deal all the way around. So yeah lets see how things go, should have this closed in the next month god willing.

Cheers!

0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Nice update on here:

3 unit that I am in escrow appraised with seller concessions!!!

Now the real hard work begins haha. At the close of the year I should be a $2M in assets with the new building. 18 more to go haha!

Yeah I have come to realize that I will need to get connected with limited partners in order to really scale, so that is something I will be looking into heavy the rest of the year, as well as networking with investors in Chicago and suburbs.

Also, I haven't talked about this alot, but I spent this morning at the lot in Mchenry County had a contractor come out and clear the entire half acre lot of all trees, ready for foundations! If anyone is curious I documented it on my youtube channel Life and Architecture.

Be good yall and happy memorial day!

It was about time I had a few wins on here after months of none haha.

Cheers!

1 Reply

Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Omw to the closing this am, bumping Mr. Bill Collector by Bone Thugs like a true millenial inner city kid (if you know you know).

cheers yall🫡

Quote from @Daniel Ortiz de la Garza:

Nice update on here:
3 unit that I am in escrow appraised with seller concessions!!!
Now the real hard work begins haha. At the close of the year I should be a $2M in assets with the new building. 18 more to go haha!

Yeah I have come to realize that I will need to get connected with limited partners in order to really scale, so that is something I will be looking into heavy the rest of the year, as well as networking with investors in Chicago and suburbs.

Also, I haven't talked about this alot, but I spent this morning at the lot in Mchenry County had a contractor come out and clear the entire half acre lot of all trees, ready for foundations! If anyone is curious I documented it on my youtube channel Life and Architecture.
Be good yall and happy memorial day!
It was about time I had a few wins on here after months of none haha.
Cheers!

0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Closed last week! This was the longest most arduous purchasing process. There were several aggravating factors:

-larger purchase 3: unit

-The building needs TLC

-Previous owners did not speak english

-Realtors on both sides were feuding openly

-I had to coordinate repairs before closing to satisfy loan

-Access was closely controlled the whole time and most of the time it was denied

It was a real marathon folks. The wildest thing is that now that I have closed, the REAL work begins of stabilizing the thing lol. Still, for the most part I am having fun, this process reminds me that real estate investing is NOT for everyone. As much as I like to pretend it is and rush to try to help when people even off handedly mentions they are considering it lol.

Its definitely DIRTY work. You will get yelled at. You will be disrespected (sometimes by your own side of the deal! -_- ) You will need to keep your cool through the entire process, and not let the stress bleed off to your relationships and most importantly your home. You will need to pay more than you expected and do more work just to get to the closing table! Additionally, in my opinion the only prudent way to do real estate investing is to do value add. What meetkevin calls "buying in the wedge"(youtube it!) and holding- when you do this the gains are massive, you force equity by 15-20% (avg home price in Chicago is 375K, going this route on that amount will force between $50-100K of appreciation on the avg home! That hits your net worth in a huge way) - Still it is work. and it is grueling work, that many people cannot handle, stress out even coordinating cosmetic work. I do almost none of the work myself, I have a close circle of trusted contractors that do quality work at a reasonable price.

So yeah, just a glimpse of a humbly successful RE investor for yall. I know there are people out there that will hear all of this and still say "I'm in!". This (Bud?) blog is for you!

So at the end of this month I will be about 1.5% to my total goal for the next 6 years (20M). Still lots of work to go, and I will check in periodically to share highlights. The cool part is even in a so-so appreciation year in Chicago, current net worth is growing while I sleep. I look forward to being on the other side of this journey in early 2030s and spending 90% of my time doing passion projects and hanging with Family.

But for now, I am finding passion in the smallest actions, and doing as much GOOD as I can for everything I have influence over. From lenders, to representation, to contractors to tenants to folks wanting to connect/ learn/share and build community.

Peace!

1 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

While I am project managing the cosmetic work at the latest multi deal (should be wrapping up with that by end of the week) I am now ramping up my efforts in finding a path to buy land and build a multi. For the highest return on rent I think my 1st build will need to be in the city proper. Pilsen, or comparable...will need to be a walkable area 10-15 min drive to downtown and land cost that is reasonable, this will be the hardest thing I have ever done but I am charged up for the challenge.

1 Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Daniel Ortiz de la Garza:

While I am project managing the cosmetic work at the latest multi deal (should be wrapping up with that by end of the week) I am now ramping up my efforts in finding a path to buy land and build a multi. For the highest return on rent I think my 1st build will need to be in the city proper. Pilsen, or comparable...will need to be a walkable area 10-15 min drive to downtown and land cost that is reasonable, this will be the hardest thing I have ever done but I am charged up for the challenge.

why would you build in Chicago when existing buildinds can be bought for a fraction of what they would cost to replace or replicate ? Just cuirous really.
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Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Jay Hinrichs:

Quote from @Daniel Ortiz de la Garza:

While I am project managing the cosmetic work at the latest multi deal (should be wrapping up with that by end of the week) I am now ramping up my efforts in finding a path to buy land and build a multi. For the highest return on rent I think my 1st build will need to be in the city proper. Pilsen, or comparable...will need to be a walkable area 10-15 min drive to downtown and land cost that is reasonable, this will be the hardest thing I have ever done but I am charged up for the challenge.

why would you build in Chicago when existing buildinds can be bought for a fraction of what they would cost to replace or replicate ? Just cuirous really.

Thanks for the question Jay.

There is a very long answer that I partially got into on the first post in this thread, but not in depth.

The short(ish) answer is:

I am not just interested in a path as a developer primarily to make money. My primary aim is to drastically improve design on a fundamental basis. As I study FLW's work I notice his brilliance in design could not just be "slapped" or "bolted" on in- say even a comprehensive gut rehab. The best design begins from the sketch/drawing board, closely working with structural engineers to create Romance in design. Think Fallingwater and how the slabs severely cantilever over the waterfall giving a floating appearance... just an example.

So yeah gut rehabs are awesome in their own way (especially the way @Jonathan Klemm 's team executes!), but it is my mission in life to return to the glory of FLW's Usonian designs, or get as close to it as possible in a cost effective way.

This is more of a 10 year plan. Understanding that in order to get to that point I will need maybe a decade of working with existing methods and existing design templates (particularly those of John Hanna who I briefly worked for as a drafter).

When I get to the 20M mark, this will be my sole focus in professional life.

Not quite a short answer, so sorry about that.
Again thanks for asking I had fun detailing things 🙂

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Jonathan KlemmBusiness Member

Moderator

Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

1y

Why in the world was your realtor feuding with the other realtor?

Maybe time to find a new one...if you need an investor-focused chicago realtor, connect with @Jake Lieser!

Keeping your cool in the middle of a deal is by far one of the most underrated skills and can be extremely challenging! What was your secret?

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1 Reply

Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Jonathan Klemm:

Why in the world was your realtor feuding with the other realtor?
Maybe time to find a new one...if you need an investor-focused chicago realtor, connect with @Jake Lieser!
Keeping your cool in the middle of a deal is by far one of the most underrated skills and can be extremely challenging! What was your secret?

Thanks for the validation my friend. I will tell you the whole story over a few cold beverages haha.
Thank you for the referral! Wifey and I just talked to Jake yesterday for some help on things in the near future, already very impressed by the professionalism and thoroughness!
As to how I kept my cool?... I think that is a great question and the truth goes to the root of things. I believe I was placed on this earth to not only create more beautiful spaces, but to make those spaces attainable to the average income. So the stress does affect me, but I have a definiteness of purpose that this is why I am here. I have "burned the boats" on any alternate path, so when I know this is the only thing I will do for the rest of my life there is an overwhelming calm that comes from that. Don't get me wrong though, I did lose sleep and felt everything, but I have no choice but to move on. It also helps me be empathetic and lead with love in all situations. With boundaries as well when necessary, but love first.
haha, that turned sappy.
Anyway thanks for checking in my friend! Excuted to chat in person again at some point🙂
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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Almost out of the storm of stabalizing the 3 unit. This thing looks incredible, if anyine is in need of an honest dependable master painter in the city hit me up on the DM. His name is John and at this point he has bailed me out si many times that he is practically family.

Will be walking Jake through the newly remodeled apartment this weekend, so that is exciting, one step closer to getting a great tenant. I plan to go slightly below market with rent to get the widest pool of quality tenants that are more likely to take care of the place.

Still kicking around the idea for the next play investment wise. It will be new construction, the where and what are still up for decision.

Cheers and happy 4th!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Synching up the work at the new 3 flat this week. Already have strong interest from tenants, hoping to get a lease signed within a few weeks. I didn't expect to do a value add on the backyard yet, but the combination of wild lettuce that grows 6' tall AND the strong advice of my agent, decided to do a nice sod/ mulch scape. Very clean minimal look.

As for the new build I am trolling around for whats out in the market. I am considering buying something that can be torn down and building the 4plex on top🤔.

Seems like there are some deals to be had near Avondale and Rogers Park👀.

The hardest thing I am coming up against is finding something that is already zoned for a 4plex.

I am going over some basic design decisions, still havent decided if I want a 4 flat, or 4 attached structures.

Onward and upward, cheers yall!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Tenant all moved in!

such a whirlwind, shout out to @jakel249 for the help in placing the tenant, he made a pretty involved process seem very easy, and I know its not having screened dozens of tenants before, looking forward to working with him in the future🙂.

The Quadplex idea is very much on my mind. There is a 2 acre parcel on the market near my house, and I am so eager to find a way to grab it assuming the zoning checks out🤔🤔🤔.

I am also back to networking hard, mostly to come across what my next play will be on the 9-5 end.

Also, pretty darn excited to be starting class this fall at College of Dupage for a certificate in Construction Management.

Be good yall!

0 Reply

Parker Schultz
Lender · San Diego · Member since 2025 · 39 posts · 6 votes
1y
Quote from @Daniel Ortiz de la Garza:

Tenant all moved in!
such a whirlwind, shout out to @jakel249 for the help in placing the tenant, he made a pretty involved process seem very easy, and I know its not having screened dozens of tenants before, looking forward to working with him in the future🙂.

The Quadplex idea is very much on my mind. There is a 2 acre parcel on the market near my house, and I am so eager to find a way to grab it assuming the zoning checks out🤔🤔🤔.

I am also back to networking hard, mostly to come across what my next play will be on the 9-5 end.
Also, pretty darn excited to be starting class this fall at College of Dupage for a certificate in Construction Management.
Be good yall!

Are you planning to cash out refi or sell this deal with the new tenant to finance the down payment of the 4 plex GUC or maybe do a 1031 exchange?
1 Reply
Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Parker Schultz:

Quote from @Daniel Ortiz de la Garza:

Tenant all moved in!
such a whirlwind, shout out to @jakel249 for the help in placing the tenant, he made a pretty involved process seem very easy, and I know its not having screened dozens of tenants before, looking forward to working with him in the future🙂.

The Quadplex idea is very much on my mind. There is a 2 acre parcel on the market near my house, and I am so eager to find a way to grab it assuming the zoning checks out🤔🤔🤔.

I am also back to networking hard, mostly to come across what my next play will be on the 9-5 end.
Also, pretty darn excited to be starting class this fall at College of Dupage for a certificate in Construction Management.
Be good yall!

Are you planning to cash out refi or sell this deal with the new tenant to finance the down payment of the 4 plex GUC or maybe do a 1031 exchange?
Thanks for this question as well. Holding all property for the long run (10 years min).

How to finance the quadplex is a $1.2M problem I am still trying to figure out.🙂

0 Reply

Parker Schultz

Lender · San Diego · Member since 2025 · 39 posts · 6 votes

1y

Quote from @Daniel Ortiz de la Garza:

Hey all,

After thinking it over I decided to create a new thread.

I am a small time passive real estate investor who has ambitions to expand greatly, first to $20M and perhaps maybe more. i guess I will give a little bit of background on my journey up to now.

I am 38 y/o, Electrical Engineer by day, Architectural enthusiast by night. I was deployed to Iraq in 2007 and through a mentor got word of a book called The Fountainhead. Incredible book that has probably changed my life more than any other book I have read (though admittedly I do not read much) As I poured over the 700+ pages I fell in love with the spirit that was protagonist Howard Roark, who defied convention to make more beautiful architecture and was loathed by society, especially the ruling class. I forgot how the book ends but one of the high points was his design of a chapel "for the worship of God and the service of Man". I had no idea what Ayn Rand was writing about was a REAL person: Frank Lloyd Wright. Fast forward a year later I am at home (Chicago) and find myself in the beautiful suburb of Oak Park. Imagine my surprise as I walk up to this structure, thank god I was "awake" enough to be able to notice this beautiful piece of Architecture:

The enigma that was Roark hopped out at me in real life in the form of his temple, in reality it was designed by Frank Lloyd Wright. This was a turning point in my life. Since then I have dedicated most of my free time to study Wrights work, developing myself as 1st an Architectural Drafter, and now as a conduit of beautiful Architecture and interior/exterior design in the spirit and style of Frank Lloyd Wright. I have moonlighted for several Architects and through hard work and good fortune stumbled on an opportunity to become an apprentice electrical engineer. 10 years later I am a senior engineer, together with my wife, have a decent portfolio of Real Estate. I always suspected that to achieve anything of great notoriety in Architecture one needed to have access to wealthy friends or develop projects oneself. Not having the latter I find myself on a journey to build a portfolio not just for wealth's sake, but to move the proverbial needle on beautiful design and provide a more pleasant built environment for all!

So that is me. Thanks for reading and I look forward to posting weekly progress on here. Cheers and hope you all have a great weekend!

It feels like some modern architecture is made to despise the lower class. You will live in a cement box and be happy! I still never understanding how we build less ascetically pleasing buildings now than 100 years ago. People claim the lost crafts and etc. but with all this technology and money in real estate, we can easily manufacture and 3d print beautiful architecture pieces and masonry that are not load bearing to bring beauty back into the world.

1 Reply

Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Parker Schultz:

Quote from @Daniel Ortiz de la Garza:

Hey all,

After thinking it over I decided to create a new thread.

I am a small time passive real estate investor who has ambitions to expand greatly, first to $20M and perhaps maybe more. i guess I will give a little bit of background on my journey up to now.

I am 38 y/o, Electrical Engineer by day, Architectural enthusiast by night. I was deployed to Iraq in 2007 and through a mentor got word of a book called The Fountainhead. Incredible book that has probably changed my life more than any other book I have read (though admittedly I do not read much) As I poured over the 700+ pages I fell in love with the spirit that was protagonist Howard Roark, who defied convention to make more beautiful architecture and was loathed by society, especially the ruling class. I forgot how the book ends but one of the high points was his design of a chapel "for the worship of God and the service of Man". I had no idea what Ayn Rand was writing about was a REAL person: Frank Lloyd Wright. Fast forward a year later I am at home (Chicago) and find myself in the beautiful suburb of Oak Park. Imagine my surprise as I walk up to this structure, thank god I was "awake" enough to be able to notice this beautiful piece of Architecture:

The enigma that was Roark hopped out at me in real life in the form of his temple, in reality it was designed by Frank Lloyd Wright. This was a turning point in my life. Since then I have dedicated most of my free time to study Wrights work, developing myself as 1st an Architectural Drafter, and now as a conduit of beautiful Architecture and interior/exterior design in the spirit and style of Frank Lloyd Wright. I have moonlighted for several Architects and through hard work and good fortune stumbled on an opportunity to become an apprentice electrical engineer. 10 years later I am a senior engineer, together with my wife, have a decent portfolio of Real Estate. I always suspected that to achieve anything of great notoriety in Architecture one needed to have access to wealthy friends or develop projects oneself. Not having the latter I find myself on a journey to build a portfolio not just for wealth's sake, but to move the proverbial needle on beautiful design and provide a more pleasant built environment for all!

So that is me. Thanks for reading and I look forward to posting weekly progress on here. Cheers and hope you all have a great weekend!

It feels like some modern architecture is made to despise the lower class. You will live in a cement box and be happy! I still never understanding how we build less ascetically pleasing buildings now than 100 years ago. People claim the lost crafts and etc. but with all this technology and money in real estate, we can easily manufacture and 3d print beautiful architecture pieces and masonry that are not load bearing to bring beauty back into the world.
Hey Parker,

100% agree with all of that. A huge part of living a fulfilled and happy life, I believe is severely turning away from what the establishment wants for the general public which is: to be sick, divided and entertained/ distracted. Each one of us has a unique god given ability and potential, and it is up to us to fight like hell to actualize that.

agree about design declining as well. The question of why used to really mess with me for years. I think what happened is Architects were convinced that real estate business is a fussy and complex pursuit and that they are above it. So most doodle away, and when the client with the $$ arrives, they straighten up and ask "what shall you have me design???" eagerly. They never allow themselves to break out of the glass box and realize THEY can be the $$ behind THEIR visions. The Architect as Developer.

Here I go on a rant again🙄. Haha anyway thanks for chiming in, really appreciate the comment and context.

0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

I realized I have been bad at posting more photos on here when I bring up projects. Here is one of previously mentioned fallingwater. Built in 1937 but looks like its from 2037.

cheers!

0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

So timing is not going to work on the lot near my house, its a great lot steps away from metra AND fast developing Lisle downtown. It is definitely a unicorn but just a bit too soon to move on at this point.

In order to feel better I have started laying out the 4plex design concept. It will be heavily borrowing on FLW's Suntop homes, very unique pinwheel layout.

I was really racking my brain with coming up with a viable Usonian layout for the 4plex, and through a bit of digging and help from the FLW fb fanclub I came across Suntop Homes project. 1 of these was actually built and incredibly available for rental on VRBO!

After seeing the renderings, I am convinced that this is an economical way to give the feeling of space and connection with nature. Unobstructed views to the huge garden are maximized and terrace balconies are private and give access to the outdoors.

Curious on folks thoughts about this layout. Just for clarity, each one of these "pinwheel" structures has 4 - 3 br 2 bath units!!!

Cheers!

0 Reply

Jeremy Horton

Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes

1y

I like the attitude and enthusiasm...I would have a few questions though.

Are you the only one who wants to build and design houses/buildings like an artist? Probably Not. Are there any other people currently prioritizing design over income/functionality (that isn't already a multimillionaire)? Again probably not. Why do you think that is?

No doubt these special architectural houses are more expensive to build. They are probably harder to work on, less functional, less efficient etc. Especially in this environment - higher material prices, higher interest rates, high labor prices...

I do agree there is a luxury market - no doubt. I think part of that is straight consumerism and part of it is that you can't hardly build a single <200k house for much of a profit. You either scale and build 50 of them. Or you pivot to luxury where the profit margins are higher.

I do like your attitude but I would seriously question the feasibility and long term success of this project. I think it makes sense to renovate existing buildings that you can buy under market. Once you build a base and have some breathing room then I would do want you "want" to do.

Regardless, I hope you prove me wrong and I'll follow along

0 Reply

Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Jeremy Horton:

I like the attitude and enthusiasm...I would have a few questions though.
Are you the only one who wants to build and design houses/buildings like an artist? Probably Not. Are there any other people currently prioritizing design over income/functionality (that isn't already a multimillionaire)? Again probably not. Why do you think that is?
No doubt these special architectural houses are more expensive to build. They are probably harder to work on, less functional, less efficient etc. Especially in this environment - higher material prices, higher interest rates, high labor prices...
I do agree there is a luxury market - no doubt. I think part of that is straight consumerism and part of it is that you can't hardly build a single <200k house for much of a profit. You either scale and build 50 of them. Or you pivot to luxury where the profit margins are higher.
I do like your attitude but I would seriously question the feasibility and long term success of this project. I think it makes sense to renovate existing buildings that you can buy under market. Once you build a base and have some breathing room then I would do want you "want" to do.
Regardless, I hope you prove me wrong and I'll follow along
Hey Jeremy,

Thanks for the comment. I honestly love this feedback, all these concerns brought up are legit and I will be taking some amount of risk on things. The comment really deserves for me to go deeper on each concern, and I am in full transparency still mulling over some of the concerns so yeah I will do a more thorough write up. I honestly really appreciate this type of comment, reminds me why I love this platform so much, folks on here really are just looking to help and provide perspective/advice to lift each other up. Thanks again!
0 Reply
Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Jeremy Horton:

I like the attitude and enthusiasm...I would have a few questions though.
Are you the only one who wants to build and design houses/buildings like an artist? Probably Not. Are there any other people currently prioritizing design over income/functionality (that isn't already a multimillionaire)? Again probably not. Why do you think that is?
I think I am one of the only that is doing this. I have sought my type out for a long time in many corners of life and have honestly not found him/ her. My priority in design is rooted in practicality. Meaning I am very experienced on researching my market and demographic. In short, I know how to make the numbers work so that every one of my properties cash flows. I don't talk about this a ton because eveyone talks about it, and honestly to create anything sustainable that is a "win-win" the business acumen is table stakes, I have it.
No doubt these special architectural houses are more expensive to build. They are probably harder to work on, less functional, less efficient etc. Especially in this environment - higher material prices, higher interest rates, high labor prices...
This is true, but I am obsessed with finding the most economical and practical approach to beautiful design. An example of what I do not aspire to is I visited the Edith Farnsworth house in Plano yesterday. Gorgeous modernist cabin along the Fox river designed by Mies. for its beauty I believe it was grossly overpriced (costing $800k in todays dollars for a studio cottage!) AAAAAND impractical. The Fox river floodings are disastrous and unpredictable so even though the house is raised 5' above ground it has taken on water several times through the years, once notably the water line rose to an interior depth of 5' casuing hundreds of thousands in damage. I would not build anywhere near the Fox river, or anywhere I have not closely studied the environment over the span of years.
I do agree there is a luxury market - no doubt. I think part of that is straight consumerism and part of it is that you can't hardly build a single <200k house for much of a profit. You either scale and build 50 of them. Or you pivot to luxury where the profit margins are higher.
Luxury market will be what I am banking on to make the endeavor sustainable. However for every luxury project, I estimate I will create 3 budget design-forward ones which I already have 5 of these under my belt.
I do like your attitude but I would seriously question the feasibility and long term success of this project. I think it makes sense to renovate existing buildings that you can buy under market. Once you build a base and have some breathing room then I would do want you "want" to do.
This is the beauty of buying value add real estate for the long term. Most major cities have a huge demographic of tenants living in poor conditions (due to tired landlords) that are willing to pay a few hundred more per month to live in something akin to a mid-tier hotel. If the luxury endeavor fails, my fallback is value add investing and extrapolating 10-15 years I will still be in a great place.
Regardless, I hope you prove me wrong and I'll follow along
Cheers!

0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

Not much going on except for an unusual amount of service calls the last month from all but 1 property. I self manage so things can get dicey sometimes, but I manage.

Excited to hear the fed is starting to drop rates, I will be doing several refi's in the next few years. Marry the house, date the rate.

I placed design for the quadplex on the backburner for now in favor of designing an addition to my home. I am super excited for it to take shape and actually building a 3d model in lego of the entire project.

Also still networking, oh yeah I also started a construction project management program at COD which I am really liking.

0 Reply

Benjamin Louie

Property Manager · Erie & Millscreek PA | Maggie Valley & Haywood County NC · Member since 2024 · 264 posts · 118 votes

1y

Wow @Daniel Ortiz de la Garza, your story is seriously inspiring, thanks for sharing it. That moment of discovering Wright’s work in real life sounds like something out of a movie. Love how you’ve blended your engineering skills with your passion for architecture and are using real estate as a way to bring beauty into the world.

Also, huge respect for your service and your long-term vision, not just building wealth, but building meaningful spaces. I’ll definitely be following your updates.

1 Reply

Daniel Ortiz de la Garza
OP
Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes
1y
Quote from @Benjamin Louie:

Wow @Daniel Ortiz de la Garza, your story is seriously inspiring, thanks for sharing it. That moment of discovering Wright’s work in real life sounds like something out of a movie. Love how you’ve blended your engineering skills with your passion for architecture and are using real estate as a way to bring beauty into the world.

Also, huge respect for your service and your long-term vision, not just building wealth, but building meaningful spaces. I’ll definitely be following your updates.
Thank you my friend!
0 Reply

Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1y

I have been absent on here and social media. I have a few interesting things cooking but I will be slower on updates here for the next few months. Other than that, properties are looking awesome including the newer 3 flat did some major value adds.

I am excited for these rates coming down and playing with refinance scenarios.

Love yall bye!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

2mo

I had to come off of here for a while last year but starting back up. After 50K of capital spend as of 9/1 the 3 flat is now fully stabalized. Learned a ton about building systems on this 150 year old thing. Some items I have deferred for now(galvanized pipes) but its pretty much 75% where I want it to be which is a huge relief.

On another note, not sure if I mentioned it before but I wasn't really happy at work, so with the help of my network and a bit of tenacity I was able to pivot to my passion and became a Construction PM this past May.

Although I am having a blast every day, the current job leaves very little time for anything else, but I will commit to post on here weekly.

Currently my goal in real estate is to find a way to buy land and build a SFH or preferably a multi within 15 min drive time from my home in the SW burbs AND put as little down as possible. My current plan is to hit up some local banks to see what is available.

Cheers yall!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1mo

Keeping the weekly cadence going.

Work has been extremely busy, but I am doing what I love. I am actively networking with construction and development professionals in the western suburbs in case anyone is interested in meeting for a coffee.

September I start the 4th quarter of DePaul MSRE which has been great so far. Cheers!

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Daniel Ortiz de la Garza

OP

Investor · Western Suburbs, IL · Member since 2015 · 109 posts · 59 votes

1mo

Did something pretty crazy this week.

I quit my job and have decided to go all-in on devekoping relationships with RE developers and folks adjacent in my local market.

More to come!

in case anyone is interested in my daily execute strategy its this:

1. Find 2 target companies

2. Find & contact 3 people

3. Make 2 follow-ups

4. Make 1 career investment

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My Journey to $20M in assets

My Journey to $20M in assets

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