Looking to connect with investors to find best strategy
Chiacgo 路 Member since 2025 路 2 posts 路 5 votes
Looking to connect with investors to find best strategy
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Quote from @Zoey Fischer:
Hi looking to househack or flip, new grad stacking cash and looking to connect and learn. Have been looking on meetup but many dont seem legit. Open to all suggestions
Hi welcome to BP.
Navigator taproom in Logan Square has a good number of meetups every month, all are very legit. I would suggest house hacking first since it's probably your lowest cost of entry into the business. Learn the basics then expand. I'm at the tap room the first Tuesday of every month for a meet up. Keeping it real estate Chicago investing and house hacking.
8 Replies
Quote from @Zoey Fischer:
Hi looking to househack or flip, new grad stacking cash and looking to connect and learn. Have been looking on meetup but many dont seem legit. Open to all suggestions
Hi welcome to BP.
Navigator taproom in Logan Square has a good number of meetups every month, all are very legit. I would suggest house hacking first since it's probably your lowest cost of entry into the business. Learn the basics then expand. I'm at the tap room the first Tuesday of every month for a meet up. Keeping it real estate Chicago investing and house hacking.
- Real Estate Agent 路 Chicago, IL 路 Member since 2018 路 1k+ posts 路 1k+ votes10mo
When you say many don't seem legit, what do you mean by that?
If you google "straight up chicago investor meet ups" you should find a comprehensive list of meet ups in the Chicago area.
I know @Jonathan Klemm also hosts a meet up you could check out.
- 10moAaron ZimmermanBusiness MemberAccountant 路 Chicago, IL 路 Member since 2018 路 2k+ posts 路 1k+ votes
Zoey - welcome! There's a lot of great meetups in Chicago and Paul provided a great suggestion.
also - I'd recommend house hacking. It's the most affordable way to enter into the housing market. What areas are you looking in?
Brick House CPAs53 Reviews - 10moThomas FranklinPro MemberReal Estate Investor 路 Miami, FL 路 Member since 2010 路 939 posts 路 739 votes
Since you might be interested in fix and flips, I propose the following action plan. It is not the Fast Food Plan you want, but it is strategically methodical and highly accurate. The first step would find an Investor Friendly Realtor assuming you do not have access, to the MLS. I would suggest that you interview several Realtors and ask them the following questions, to ascertain if they are truly Investor Friendly, or if they are throwing you a sales pitch.
1. How many investors do you currently work with and how many investors have you worked with, in the past?
2. How many transactions have you closed, with investors?
3. Do you currently own any Investment Properties? If so, what type do you own?
4. Are you a member of any REIAs?
The next step would be to work with the Realtor and determine the hot markets, in your County, with the greatest number of sales over the last 90 to 120 days. Personally, I would prefer 90 days because markets are always changing. This list would contain the zip code and corresponding name of the municipality, and a breakdown of the number of SFRs. This will be your Farming Area. From this data, you can utilize a website bestplaces.net that will give you a breakdown of the percentage of homes that sold, in various price ranges, for a given zip code. This will identify the retail price ranges, in which you can list the rehabbed property and the price ranges, of distressed homes, you should target.
You can use the Realtor to help you find deals and also use Wholesalers. If you acquire a property, from a Wholesaler, once the property is rehabbed and ready for the Retail Market, allow the Realtor that provided you the zip codes, to list the property for sale. This creates a WIN-WIN Situation and gives the Realtor incentive, to work harder on your behalf.
ARV FORMULA
Many Investors that flip homes use the 70% Rule that says 0.7 x ARV - Repairs = Your Maximum Allowable Offer (MAO). What hurts Investors that use this formula is it does not account for Holding Costs, Backend Selling Costs, etc.
I use the following formula to determine my Maximum Allowable Offer (MAO). This formula is the Profit Margin Formula that accounts, for 99.99%, of everything.
ARV - Desired Profit - Closing Costs to Buy - Repairs - 10% of Repairs - Holdings Costs - Concessions - Realtor Fees - Closing Costs to Sell = Your Offer (MAO or Maximum Allowable Offer).
ARV: After repaired value or what you think it will sell for once repaired.
Desired Profit: This should be taken off the top first. Most people run their numbers to determine what their profit should be. That is backwards, you should use your profit to determine what your offer should be. As a General Rule, my Desired Profit is $20,000 or 20% of ARV whichever is greater. To have an offer accepted, one may need to adjust their Desired Profit; however, it should not be below $20,000, or what one feels is acceptable.
Closing Costs to Buy: What is it going to cost you to buy the property? If you are using hard money you need to budget for the points and fees as well as traditional third party closing fees.
Repairs: The money it is going to take you to rehab the property plus an extra 10% of estimated repair costs to account for unexpected repairs.
Holdings Costs: Here is where a lot of investors get tripped up. Start by determining an amount of time that you will hold the property, probably 4-6 months. Then add ALL costs related to holding the property (utility costs, property insurance premiums, property taxes, loan payments, HOA Fees, etc.).
Concessions: Concessions are what you give back to the buyer at closing. It could be for closing costs, unfinished repairs or something else. I typically subtract 3%, of the ARV.
Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent. Utilize 6% of ARV.
Closing Costs to Sell: Title fees and other closing costs. You can budget around 4% of the sale price to cover these.
This is a conservative formula. If you come out ahead without Buyer Concessions, on budget, etc., this puts more money in your pocket, when you close at selling.
You also need to interview and vet multiple General Contractors (GCs) too. I have a lengthy list of questions, for them as well.
_______
I am not a fan of "House Hacking." If you are looking to owner occupy, you may want to consider starting out, with buying a Duplex, TriPlex, or a Four Plex. Many Realtors will suggest purchasing a property using a FHA Loan, to reduce your out of pocket money. If you do choose FHA Financing, you will be required, to live in one unit, for a minimum of one year. If the property requires rehab, a quality Realtor and/ or Mortgage Broker will suggest applying, for a FHA 203k Loan. A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.
Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate). You live in one unit and let your tenants pay the mortgage and other property expenses. This will give you experience as both a Landlord and Property Manager. The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC. What happens if one of your tenants has a slip and fall, on your property, or something else happens to them? You are on the hook and can be personally sued, for everything you own. Some people will say, "Take out a quality Insurance Policy and you will be protected." Ambulance chasing attorneys know their way around and can legally navigate around Insurance Policies. Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.
If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years). This is what I am encountering, in the current Mortgage Industry.
If you think you will go FHA, Conventional, FHA 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days. These clauses are contained, in all Promissory Notes nowadays.
Many Realtors and/ or Mortgage Brokers will not tell you this information. Many, but not ALL are only focused on the commissions he/ she will earn and not focused, on your best interests. You may be asking yourself what can I do? Locate a Motivated Seller that will consider Seller Financing. You may have to put more money down (10-15%), but you can close, in a LLC, with no worries about banks. I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.
- 10moEudith VacioPro MemberReal Estate Agent 路 Chicago & NWI 路 Member since 2015 路 860 posts 路 521 votes
Hey @Zoey Fischer 馃憢馃徑
Theres plenty of meetups every month around Chicago - we host the Cashflow Breakfast club every 3rd Thursday of the month at Ark Attorneys - definitely a great way to network with other investors to get you started. But best of luck! Hope to hear from you soon on your journey!
- 10moMarc RiceBusiness MemberReal Estate Agent 路 Columbus Cleveland Dayton, OH 路 Member since 2018 路 2k+ posts 路 1k+ votes
Quote from @Zoey Fischer:
Hi looking to househack or flip, new grad stacking cash and looking to connect and learn. Have been looking on meetup but many dont seem legit. Open to all suggestions
Great decision. I would look at different markets to see what fits my criteria best. Happy to help!
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Specialist 路 Member since 2025 路 483 posts 路 270 votes10mo
Love the hustle鈥攏ew grad stacking cash and hunting real connections is the right start. Two tips: skip sketchy meetups and hit local REIAs or BiggerPockets city groups where active investors show up; also pick one lane (house hack or flip) and analyze 3 listings a week to build reps fast.
What market are you targeting first, and when do you want to lock in your first deal?
- Real Estate Agent 路 Chicago 路 Member since 2021 路 178 posts 路 64 votes10mo
Hey Zoey, great to see you getting after it early. I house hack as well and it鈥檚 one of the best entry points into real estate, low barrier to entry, strong returns, and you learn the business from the inside.
Totally agree that most meetups can be hit or miss. Look for smaller local investor groups or agent led events where people are actually doing deals, not just talking theory. You鈥檒l get more value connecting with those actively buying, managing, or house hacking in your target markets.
If you ever want to talk through financing options, deal analysis, or what to look for in a solid house hack setup, happy to help however I can.
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