New to Chicago, looking for wholesale properties. Taking referrals for wholesalers or brokers. Any knowledge on particular permit or regulation issues that most people encounter in this region would be great. Any known delay issues with the city? Thank you!
Hey @Yash Kamaat ! Welcome to Chicago and BiggerPockets!
What neighborhoods are you looking to invest in (I am assuming the city)? I actually have a few properties that you might be interested in. Shoot me a PM and we can see if you are interested.
Also, here is another good post regarding Chicago permitting. https://www.biggerpockets.com/...
Look forward to connecting!
Hey @Yash Kamaat welcome to Chicago! What are your specific goals? Wholesalers (and brokers for that matter) are a dime a dozen. There are 16,000+ brokers in the city. You can weed about 99.9% of them out by just focusing on the ones who are active on here.
Thanks for your response. Our specific goals are to find properties C4,C5. No major fixes. Looking for a properties at wholesale price (definitely want to find either and weed out the ones who would waste time and can’t move at a fast pace). I’ve looked at some areas here in Chicago (Humboldt Park, Logan Square, Lincoln Park etc.), and already I can tell the law is a bit different than ours in California And New York City. Are there any huge barriers to entry here in Chicago, or issues with the city that can cause long delays?
Awesome! Thanks for the link. I will PM you.
Kismet Investments, LLC
@Yash Kamaat I don't know if these are barriers to entry, but there can be some costly delays depending on your cost of money.
1- If you decide to do a rehab beyond a repair/replace permit, make sure to hire a self certified architect. They will typically get you permits within 30 days. Non-self certified architects can take 60-90+ days to acquire permits.
2- Try to project your inspection requests. Meaning, don't wait until your done with the work to call. It can take up to 30 days to get an inspector onsite right now so call when your trade is roughly 2-3 weeks from completion. This will also speed up your trades to get the work done quicker when they have a hard deadline.
3- DO NOT ARGUE WITH THE INSPECTORS. Even if they're wrong, smile and say no problem. It's a battle you will not win.
4- Zoning certs are taking a long time to get right now (30 days plus). If you decide to buy a multi unit, this will be necessary to close.This won't cost you anything to wait, but something you should be aware of.
If I think of anything else, I'll add to this thread.
@Yash Kamaat , @Mike B. laid out well for you. This is definitely a market that institutional money has been a little shy to enter because of the perceived barriers form the outside, the complex tax law and looming questions about budget and pensions.
You're right on the money with wanting a solid team on the ground. I've heard that it's more necessary in Chicago than perhaps any other part of the country.
@Yash Kamaat I have a short list of trusted Chicago and Chicago suburb wholesalers that I have bought from in the past. If interested send me a DM and happy to share.