Multi-family Investor · Langley, British Columbia · Member since 2013 · 14 posts · 1 vote
Hi! My name is Ashlee Reimer, and I am a first time investor. I have decided to start my journey in the Chicago area. I am searching for some contacts to start my business. I am mostly finding it difficult to find good contractors and hard money lenders for this area. I am looking to purchase 3 and 4 flats in South Chicago, rehab, rent, and hold for long term cash flow. Eventually I would like to break out of the residential world, and jump into the commercial world! If anyone has any tips or contacts that would be much appreciated! :)
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
Hi Ashlee,
I'm also a 'fix and hold' investor, but got started just a bit before you.. Too bad you can't do an FHA purchase on a 4-unit! Great way to build long-term wealth though. So far so good for me! A few tips about the site..
You'll find lots of good info in the "Learn" link across the top navigation bar, and in the link at the top of this introduction forum. You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the "vote" button if you like someone's post or is helpful. And you can earn "awards" for various "achievements" - just look at your profile. Hope that helps with the site! Good luck on your investments!
You will find lots of good information here on both residential and commercial real estate, particularly in the U.S.A, but some for other jurisdictions (including here at home).
Looking south east to Chicago (or Indianapolis, Milwaukee, Cleveland, etc) makes a lot of sense given you could buy a 4-8-unit apartment building for a price similar to a house in Langley these days.
Do make certain to consult with both an accountant and lawyer experienced with cross-border real estate investing and take the time to setup an ownership structure that provides you with the protection and flexibility needed to grow and meet your goals.
Multi-family Investor · Langley, British Columbia · Member since 2013 · 14 posts · 1 vote
12y
@Roy N. Thank you! =) No kidding! I haven't seen house prices this high before here! Vancouver is rocketing! Yes, we already have a cross border accountant and lawyer that set us up with a Can Corp & LLLP. Thank you for the tip!
Broker, Investor, Property Restorer · Fox Point, WI · Member since 2012 · 288 posts · 120 votes
12y
@Ashlee Reimer Hey, welcome to the good ol USA! As you can see in my profile, I'm from Milwaukee, which is just 80 miles north of Chicago and the way things have been slowly growing over the years, the two metro areas seem to be morhping into one giant metropolis. I LOVE both cities, Milwaukee is a great place to live and offers some big city life while not being super big and whenever I want some real big city fun, Chicago is 90 minutes away, so I go there fairly often. I also have quite a few friends who settled in Chicago after college as well.
One thing jumped out at me from your post, where you mention investing in "South Chicago" I'm wondering where exactly you're talking about? Chicago is a BIG city, nearly 10 million people in the metro area and has some very nice parts, some average parts and some very not nice parts, many of which are on the south side of the city. I'm wondering because in the nicer or even the average areas, Chicago is also pretty expensive, some parts of the city command near Manhattan type prices. We often talk about "warzone" properties on here and some parts of the south side of Chicago truly are warzones, unfortunately Chicago has had a huge spike in violence over the last few years. So, I guess I'm just wondering which areas you're actually talking about here.
Please don't let me scare you though, Chicago is still a GREAT city and a lot of people make a lot of money there every day, its just a city that you want to make sure you know where you're going in certain areas, mainly on the south and west sides of the city.
Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
12y
@Ashlee Reimer there are plenty of great areas in an around CHICAGO to invest. From southern Wisconsin to Northwestern, Indiana. Each location each city/town, etc has their own laws, codes and RE Tax levels.
If you buy in Chicago itself. Chicago has a very tenant friendly ordinance called the Chicago Landlord Tenant Ordinance. If you violate it, or do not keep up with it (It changes each year), you can owe a ton of money.
The question I would ask is several parts..
THe reason you want to invest in chicago is for what? Holds? Flips? etc?
No matter what style of investing, what returns are you after? Isn't it smarter to partner with someone here? May take less profit, but you can have more comfort that it is being done right and/or you can do more deals. so larger profits overall.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
12y
Welcome to BP @Ashlee Reimer ! Best of luck with investing on Chicago's South Side! I'd heed the words of Walter White and if you don't know what you're up against, tread lightly. @Robert Taylor summed it up well. There are some neighborhoods on the south side that can be challenging. Do you due diligence first. And never use copper for your water lines!
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Ashlee Reimer , I am a private lender & experienced real estate investor and based in Chicago. When you have a deal or property, let me know and I can tell you if I will fund the deal or not. This gives you an idea of whether the deal is a good one or a bad one.
Investor · Fairfax, VA · Member since 2013 · 126 posts · 28 votes
12y
Welcome Ashlee. I know a couple of other Canadians who invest in the Chicago area, so you're in good company. I would echo Ryan's comments about doing research first and partnering with people who know what they are doing. It's the stuff you don't know that you don't know that can really come back on you. That being said, you're at the right website. The Beginner's Guide is a great resource if you haven't already read it. And if you follow through and start picking up places in Chicago, there is a good network here to help you along. Best of luck!
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
Hi Ashlee,
I'm also a 'fix and hold' investor, but got started just a bit before you.. Too bad you can't do an FHA purchase on a 4-unit! Great way to build long-term wealth though. So far so good for me! A few tips about the site..
You'll find lots of good info in the "Learn" link across the top navigation bar, and in the link at the top of this introduction forum. You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the "vote" button if you like someone's post or is helpful. And you can earn "awards" for various "achievements" - just look at your profile. Hope that helps with the site! Good luck on your investments!
Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
12y
Here are a few sites that show crime:
This one shows REPORTED crime in the last 10 days: http://spotcrime.com/il/chicago remember this is just reported crimes. Many many crimes go unreported as they victim knows it will do no good to report the crime.
The largest local publication has this interactive map by neighborhood:
Broker, Investor, Property Restorer · Fox Point, WI · Member since 2012 · 288 posts · 120 votes
12y
Hi @Ashlee Reimer my advice would be to hook up with someone (as you can see, you've already found several potential contacts here on BP!) that knows that part or really all of Chicago very well and who can advise you on what you're looking at and what your goals are, how much you're looking to spend, etc, etc.
Not trying to be nitpicky, but even when you say that you're looking at the "south east" part of Chicago, you're still talking about a HUGE area! I've never been to the Vancouver area (I've heard its a great place to visit for many reasons though!) but I looked it up and the entire Vancouver metro area is about 2.5 million people. Chicago itself has 2.7 million residents, metro area has 9.5M, so you're talking about a city or metro that's 4 times the size of the Vancouver metro, its BIG! Also, the south side of Chicago, as I and others have mentioned has a very wide variance in neighborhoods, residents, etc. For instance, President Obama's house (not the big white one in DC, but his actual family home!) is in Hyde Park, a really cool area on the south side of Chicago, full of lots of beautiful older homes as well as apartments and condos that sell for a lot of money. Yet, you can drive just a little ways, blocks even and be into some pretty darn sketchy areas where you really have to watch your back. Last time I checked, they still don't make maps yet that show where "the hood" is!
Again, don't take me the wrong way here, not trying to discourage you one bit, but is there a particular draw for you to Chicago? Besides what others have mentioned about the Cook County landlord laws, the nice or even average parts of Chicago are very expensive places to buy property in. I know Vancouver is a nice place to live, I have a large number of extended family members who've lived in and around Seattle for many years, but I'd think that Chicago would actually end up being even more expensive-IN THE NICE PARTS! Some parts of the Gold Coast on the north side have areas where houses regularly sell for $5M, $10M or more. (although they are VERY nice houses!) I guess I'm wondering a bit why you wouldn't want to invest in a mid sized are like Milwaukee, Minneapolis, Indianapolis, etc where you can get in for less? I'd think that the only pricier cities in the US would be NYC, LA, San Francisco, not sure where else would be pricier than Chi-town, unless of course you're talking about buying "in the hood"!
So, my advice would be to hook up with someone soon that can educate you as to where you're looking and what these areas are really like. Otherwise, I think you're just really spinning your wheels looking at what's for sale and how much rents are without knowing if you're buying in a decent area or a warzone.
Having said that, good luck on your future plans, I do have to say that I admire your ambition for looking to invest elsewhere!
Investor · Chicago, IL · Member since 2012 · 39 posts · 5 votes
12y
Ashlee,
Friends tell me that foreign institutional money (specifically Shanghai) has been dumping boatloads of money into the southeast side. Word is that they've been taking a beating on fix and flip multifamilies. I'd recommend doing extensive research through the mls and county recorder before jumping in. Get an idea of the real story.
It's a rough area and it's important to understand that you will be a slumlord. There's several threads going on at this time about these war zones in Chicago. The common theme of all the advice is drive through the neighborhoods before you invest in them. It's a simple but critical suggestion to follow.
I was referring to a statement made on BP by an experienced investor in Chicago.
"Slumlords can make a lot of money there. They will ignore upkeep and soak every dime from the property. That is the business model that works best. But regular landlords who want to have nice properties, rent them out and keep them nice don't tend to do well there over time."
Honestly, it's been a while since I have been these neighborhoods so I am going off past experience and the advice I've gotten from friends. Sorry if I misinterpreted anything about the area.