Newbie from Chicago Interested in Multifamily Rental Properties

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Newbie from Chicago Interested in Multifamily Rental Properties

Mike T.
New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes

Hello Everyone,

My name is Mike, I'm out of Chicago and I'm completely new to the world of real estate investment. I first became interested in real estate after reading the book Rich Dad Poor Dad by Robert Kiyosaki. I found out about BP after buying and reading The Book on Rental Property Investing by Brandon Turner. I've since been watching webinars, YouTube videos, and reading BP forums to try and learn as much as I can. My goal is to eventually become completely financially independent using the buy and hold or the BRRR strategy with multi-unit properties. At this point I'm dying to get off the sidelines and into the game, however, I feel like I don't know where to start. Maybe getting a loan preapproved or possibly having a real estate agent put me on a list to send me daily property listings? I'm not sure, but I suppose posting here is a good start.

Thank you for welcoming me to the great BP community! I look forward to making some great connections who may be able to provide some guidance as I embark on my rental property investment journey.

Kind regards,

Mike

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Mitchell Ridge
Bend, OR · Member since 2019 · 13 posts · 10 votes
6y

Welcome, Mike. I would recommend getting the financing portion (both conventional mortgages and hard money) ready as soon as possible because you'll be depressed if you find a deal and you don't have that set up. Find out the max you can get, then see if there's anything out there that you can afford. If not, get out to all of the networking events that you can to see if you can find someone to bring the money portion. I'm at about a dozen properties that I've tried to make work that have fallen through, so mentally prepare yourself for that and you'll make something happen. Best of luck.

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  • Mitchell Ridge
    Bend, OR · Member since 2019 · 13 posts · 10 votes
    6y

    Welcome, Mike. I would recommend getting the financing portion (both conventional mortgages and hard money) ready as soon as possible because you'll be depressed if you find a deal and you don't have that set up. Find out the max you can get, then see if there's anything out there that you can afford. If not, get out to all of the networking events that you can to see if you can find someone to bring the money portion. I'm at about a dozen properties that I've tried to make work that have fallen through, so mentally prepare yourself for that and you'll make something happen. Best of luck.

    2Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    @Mitchell Ridge I appreciate the advice, Mitchell.  I'll definitely keep that in mind.

    1Reply
  • Josh Sartori
    Investor · Chicago, IL · Member since 2015 · 29 posts · 7 votes
    6y

    Mitchell has some great advice for you. To follow up on that there's more than one local REI meetups in the chicagoland area. It's in your best interest to get out there and attend them all as they're all free and it will give you a great idea on what is available out there in terms of different REI investment channels. There's so many different ways that you can sink your teeth into real estate it'll make your head spin. Good Luck!

    1Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    Thanks, @Josh Sartori.  I'll definitely have to attend some of the meetups.  I appreciate the advice!

    1Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    6y

    Financing like the others say is the most important you can analyze deals all day long but you need to be able to know if you can purchase and how much. Also connecting with local experts to learn and grow is just as important. Getting sent deals and analyzing them will help, play around with the numbers so you can see your returns. BP is one of the best resources to learn and ask questions. Best of luck!

    1Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    Thanks for confirming @Caleb Brown.  Getting pre-approved seems the consensus.  I appreciate everyone's help! Due to your suggestions I just got off the phone with a lender, explained my investment plans and filled out an application for pre-approval.

    I don't suppose anyone has any other recommendations on preferred lenders here in Chicago?  I should probably get a few quotes now so I only get dinged once for a hard inquiry on my credit report.
     

    0Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    @Mike T. If you really want to do something get your finance lined up, write out your ideal investment, present it on here, get feedback, get agents sending you properties, and reach out to wholesalers to get you on their lists.  

    This can all be done in the next 10 days so if you want off the sidelines here is your next steps. This is a game of "next steps".  Your long term strategy can be adjusted as you go but if you never get going there is no long term game.  

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61078 Reviews
    WebsiteView Page
    2Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    @Mike T. 

    I have a couple lenders I can refer you to but many lenders can inform you based on what you tell them(maybe you have a recent credit report you can share) and when you find the guy you want to work with they can run your credit. You must be honest on what your credit report looks like cause you will be the only one let down in the end. Also pretty sure most mortgage guys are not a hard pull.

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61078 Reviews
    WebsiteView Page
    2Reply
  • Michael Facchini
    Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
    6y

    @Mike T. - as echoed above, I'd recommend getting preapproved first.  This will give you a sense of what is possible and what the dollars/cents look like, and then you'll have a better idea of where to go from there.  I'd then meet with some realtors and narrow in on one that you feel is a good fit for you and what you're looking to do.  I also recommend getting involved with some meet-ups/networking groups.  Speaking of which, there is a great one tonight in Lakeview.  Check out the events page on BP.  Hope that helps!

    1Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    Hi @Mark Ainley, thanks so much for the response and the strait forward, quality advice.  I agree, this def seems a game of "next steps".  I've just finished filling out a loan preapproval application at my bank and have been given another lender's number that I plan to call either today or tomorrow.  If you have another that makes 3 and I think I feel pretty good with that.

    Not sure if I'm meant to start a new forum or just post here but I suppose my ideal investment would be as follows...

    Property Type: Multifamily 2-4 Units

    Property Condition: Something that doesn't require extensive repair, maybe rent ready but room for improvement / ability to add forced appreciation without costing an arm and a leg.

    Price Range: I feel like a realistic range for me may be between $100,000 - $350,000...

    Location: I am in the Beverly/Morgan Park/Mount Greenwood area, southwest Chicago - Would love something nearby here or in the burbs south or west

    Investment Strategy: Buy and hold or maybe BRRR

    My FICO scores are currently pretty good:  Experion 801 / TransUnion 811 / Equifax - not sure on this one to be honest but I think in the same ballpark

    I have a copy of my Experion report if the lender requires that before making a hard inquiry.  

    Thanks again for the help, looking forward to your thoughts.

    0Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    Thanks, @Michael Facchini! I appreciate the advice.  Networking at a meetup seems like a great idea, I plan to keep an eye out on the events page and attend one soon.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Mike T.:

    Hello Everyone,

    My name is Mike, I'm out of Chicago and I'm completely new to the world of real estate investment. I first became interested in real estate after reading the book Rich Dad Poor Dad by Robert Kiyosaki. I found out about BP after buying and reading The Book on Rental Property Investing by Brandon Turner. I've since been watching webinars, YouTube videos, and reading BP forums to try and learn as much as I can. My goal is to eventually become completely financially independent using the buy and hold or the BRRR strategy with multi-unit properties. At this point I'm dying to get off the sidelines and into the game, however, I feel like I don't know where to start. Maybe getting a loan preapproved or possibly having a real estate agent put me on a list to send me daily property listings? I'm not sure, but I suppose posting here is a good start.

    Thank you for welcoming me to the great BP community! I look forward to making some great connections who may be able to provide some guidance as I embark on my rental property investment journey.

    Kind regards,

    Mike

     Welcome aboard Mike.

    0Reply
  • Rich Zubek
    Member since 2019 · 1 post · 0 votes
    6y

    @Mike T. About a month has passed. Care to provide us with an update on where you currently stand? I too am waiting on the side lines and in a similar situation as you.

    0Reply
  • Mike T.
    OP
    New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 5 votes
    6y

    Hi @Rich Zubek.  Sorry for the late response, been busy with the holidays and whatnot but here's my update so far.

    - I now have two preapproved loans

    - I also have a realtor

    - Realtor has me on a list where i get emails whenever a property hits that matches what i'm looking for

    - Been analyzing and crunching numbers like crazy

    - Went with my realtor last week to see a building and have scheduled to see a couple more the weekend after Christmas

    0Reply
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