Newbie from Chicago, IL!

New Member Introductions
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Newbie from Chicago, IL!

Cielo Macaraeg
New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes

My name is Cielo (you pronounced that as "shello")! In Italian & Spanish I've been told it means "heaven" or "sky" :) Though I'm neither of those nationalities because I'm Filipino, funnily enough.

I am 25 years old and I live in the northwest suburbs of Chicago. My strategy in real estate is to buy + hold for long-term wealth and my current goal is to acquire my first rental property through house hacking using an FHA loan.

I've been listening to BiggerPockets' podcasts for months now and all the success stories just makes me want to get started on my own journey too. I started getting interested in REI a few years ago when I noticed a ton of financial books in my mother's room. Long story short, she took notice of my curiosity and suggested I read Rich Dad Poor Dad.. so low and behold here I am today. For so many years my mother has read multitude of investment books since early 2000's and she still hasn't invested in real estate yet. Fear got to her. I then realized that knowledge isn't powerful unless action is taken with it.

So my question to you is, how did you get into real estate investing?

I look forward to making new friends here on this wonderful platform that BP provides as I'm sure I can learn valuable information from each and everyone of you. Thanks for taking the time to read!

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Alex Ferraro
Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
6y

@Cielo Macaraeg I got started house hacking a duplex in Logan Square in 2019. I used an FHA 203k loan to do rehab on the property. I'm also 25, so happy to answer any questions from that point of view!

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  • Brian Geiger
    Rental Property Investor · Phoenix, AZ · Member since 2018 · 141 posts · 165 votes
    6y

    @Cielo Macaraeg

    I get this question a lot. First off I do lease options and I'm working towards syndicating large apartments in other markets outside of Illinois. The way how I got into RE is by being frustrated with having my financial destiny in the hands of an employer. I worked hard building up a nonprofit just to get sidelined for an executive position. So I took my skills and went out and started my own RE business. Never looked back to the 9 -to 5

    1Reply
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    6y

    Cielo,

    I would recommend that you first get pre-approved by a bank/lender so that you know exactly how much you are qualified for to purchase. Rates are great right now so it makes it s good opportunity to use the banks money to purchase. FHA is great but there are other programs that offer 100% financing and conventional also has between 3%-5% down programs with a lower monthly PMI. These options help you save on your NOI to maximize your your future buying power and by keeping more of your money in the bank!

    [email protected]727-637-4289
    1Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    @Cielo Macaraeg You have a great opportunity with your FHA loan you can use so use it wisely and use it soon. You will learn more on your search & purchase process then all the other due dilligence you are running. Have people by your side other then your Realtor throughout the process so you have a second opinion that only has your best interest at heart.

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61078 Reviews
    WebsiteView Page
    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Brian Geiger That’s awesome, Brian! Way to get out of the 9-5 with all your hard work! I’m sure it wasn’t easy but you were determined. It’s definitely not pleasant to feel like being tied down by an employer. I hope to be as successful as you one day. Thanks for your comment!

    0Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Jason Wray Great suggestion, Jason! I've been talking to a few lenders & FHA was the main topic of our conversations. I'll start looking into conventional loans though. I was under the impression that the lowest I could get was 5% down. I'll ask around when I continue talking to lenders. Much appreciated!

    0Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Mark Ainley You’re right! Will certainly heed your advice. Thank you for your time, Mark!

    0Reply
  • Jodi Taylor
    Investor · Chicago, IL · Member since 2020 · 35 posts · 25 votes
    6y

    Hi @Cielo Macaraeg! I live in Rogers Park (northern most part of Chicago), and I too am just getting started in real estate investing. I'm aiming for any buy and hold properties I get to be in the San Antonio/San Marcos area, but I am also interested in getting into flips potentially in Chicagoland along with some house hacks along the way.

    I've already met a lot of helpful people through Bigger Pockets, so I know you will as well! One loan type that has been suggested to me is Home Possible. You can only qualify under very specific guidelines, so it definitely doesn't work for everybody. Home Possible would allow you to have a 5% DP and save your FHA loan (which can be as low as 3.5% DP I believe) for your second property without having to refinance out of the Home Possible loan. If you are interested, feel free to DM me, and I can share the lenders that have been working with me on it.

    There is also the FHA 203k loan that will allow you to include any rehab work in the loan amount.

    I'm excited for the chance to connect - see you around!

    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Jodi Taylor Hi, Jodi! I’m glad to hear from a fellow woman investor like yourself! Love that you reached out. Home Possible doesn’t get much limelight. So for that, I’ll look into it as well. I’ll be sure to DM you. Thank you!

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Cielo Macaraeg welcome to the forums! I started off by purchasing a four unit property here in the western suburbs as an investment (not a house hack). I didn't have the down payment available, but my lender was able to help me get it by doing a cash out refinance and a HELOC on my primary residence. After that, I caught the bug and have been buying value add apartment buildings ever since!

    Like others have mentioned, the FHA loan is a great starting point for any newer investor if you can live in the property. The 5% down used to be the best loan, but it changed last year unfortunately.

    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @John Warren 
    Hi John!
    That's awesome that you were able to do that. I wish you many more successes! & yes, I'm looking to live in the property. I need to finally start moving out of my parent's house anyway. What better way to do that than to househack? Haha. Thank you for your input!

    0Reply
  • Michael Facchini
    Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
    6y

    As mentioned above, HomePossible is great....buuuut, after the income limits changed July 2019, the window of opportunity really closed for most in markets like Chicago where the price of real estate requires a certain income (and rental income) to even qualify, and that income in many cases surpasses the income limits.  Catch 22.

    1Reply
  • Alex Ferraro
    Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
    6y

    @Cielo Macaraeg I got started house hacking a duplex in Logan Square in 2019. I used an FHA 203k loan to do rehab on the property. I'm also 25, so happy to answer any questions from that point of view!

    2Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    Hey @Cielo Macaraeg, it’s good to see you here on BP!

    Read Beginner’s Guide to help you get started: http://www.biggerpockets.com/real-estate-investing

    Good luck on your journey!

    2Reply
  • Sam Lewis
    Real Estate Agent · Baltimore, MD · Member since 2018 · 283 posts · 228 votes
    6y

    I got stuck in a long car ride with my new boss who turned out to be an aspiring real estate investor at the time. I was 20, and he was 23, and he had already built a small portfolio of 3 or 4 homes.

    We listened to the Tim Ferriss podcast, bigger pockets, and other "mindset" podcasts on our dreadful 1.5 hour car ride to work. He kept prescribing me books to read and then he ended up selling me my first house! It was a househack

    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Michael Facchini Hmmmm.. I see. So it's looking like it'll be a juggle between a low-down conventional loan vs. FHA loan for me then. Talk to you soon, Mike! :)

    0Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Alex Ferraro Nice!! That's so awesome. & hey! We're 1/2 way to 50. Haha. Yes, I'd love to know how a young investor like yourself got started so I got a few questions up my sleeve already. Lookout for your inbox, Alex!

    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Dmitriy Fomichenko Thank you for this! I also just read Turner's book on Rental Property Investing. So much valuable information given. Gotta love BP!

    0Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Sam Lewis 1.5?! That does sound dreadful! But you sure didn't waste a second of your time getting lost into music and instead became productive in shaping your mentality for your investment journey. Well done, Sam! Thanks for sharing.

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    6y

    @Cielo Macaraeg - First off, love your name!

    I got into real estate investing simply because I knew I didn't want to pay rent anymore so I did a live-in-flip.  Then I knew I wanted to buy multifamily in Chicago in a nice area so I could live and pay cheaper rent than normal.  The last shift I made was aligning my career more with real estate and that is what really changed the game for me.

    Lots of smart people on the chain above, but if you have any specific questions or need some referrals feel free to shoot me a PM.

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    1Reply
  • Salomon Lino
    Residential Real Estate Broker · Chicago, IL · Member since 2016 · 51 posts · 14 votes
    6y

    Hello Cielo and welcome to the forums. Rich Dad, Poor Dad is a classic. I think if you ask majority of investors and landlords name your top 3 books, Rich Dad, Poor Dad always comes up. It's not rocket science and it's can be read in one day, but it changes the way you think. It's a great book to you into Real Estate.

    We just wrapped up a mentorship program at Dream Town. I believe we are the only company in Chicago doing the following. We paid all the fees to learn how to become a leasing agent, the MRED (MLS) covered all their fees . We paired up each mentee with an experienced mentor for 6 weeks. I learned that more and more young people are not only getting into Real Estate but want to house hack or life hack.

    You should speak to an experienced lender and consider up and coming areas. Check market trends for different neighborhoods. 

    My childhood was spent growing up in rentals in Wicker Park & Humboldt Park. Over the years I saw firsthand the change in neighborhoods and prices. I wanted to own my own property and slowly began investing. 

    1Reply
  • Cielo Macaraeg
    OP
    New to Real Estate · Chicago · Member since 2020 · 14 posts · 6 votes
    6y

    @Jonathan Klemm Thank you, Jonathan! I love how all of us on here are like-minded about wanting to pay cheaper rent/not payingg it at all. Will reach out to you. Much appreciated.

    @Salomon Lino Hi Salomon! I heard of Dream Town! That's awesome Chicago is offering a program like that. I can see how it would benefit many young adults who are looking to get started and are looking for someone who can give them their undivided attention during the entire process. It's something to consider. Thanks!

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    Welcome to the Chicago area. I just got started with house hacking in Irving Park using an FHA loan. It's a fantastic way to get into the Chicago market for a relatively low down payment option. Happy to answer any questions you may have and always happy to connect!

    [email protected]
    Brick House CPAs53 Reviews
    WebsiteView Page
    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Cielo Macaraeg:

    My name is Cielo (you pronounced that as "shello")! In Italian & Spanish I've been told it means "heaven" or "sky" :) Though I'm neither of those nationalities because I'm Filipino, funnily enough.

    I am 25 years old and I live in the northwest suburbs of Chicago. My strategy in real estate is to buy + hold for long-term wealth and my current goal is to acquire my first rental property through house hacking using an FHA loan.

    I've been listening to BiggerPockets' podcasts for months now and all the success stories just makes me want to get started on my own journey too. I started getting interested in REI a few years ago when I noticed a ton of financial books in my mother's room. Long story short, she took notice of my curiosity and suggested I read Rich Dad Poor Dad.. so low and behold here I am today. For so many years my mother has read multitude of investment books since early 2000's and she still hasn't invested in real estate yet. Fear got to her. I then realized that knowledge isn't powerful unless action is taken with it.

    So my question to you is, how did you get into real estate investing?

    I look forward to making new friends here on this wonderful platform that BP provides as I'm sure I can learn valuable information from each and everyone of you. Thanks for taking the time to read!

    We got started through an investment club; read Rich Dad Poor Dad like you. Then started playing the cashflow quadrant game with other investors, then started playing the investor game for real. Moved from the board & books to the real world. Got qualified for a loan and started buying multi families. My 1st purchase was a house-hack; my partner purchased Turn-key multifamilies. 

    Good luck.

    312-681-7487
    0Reply
  • Alex Ferraro
    Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
    6y

    @Cielo Macaraeg - I think the main things that got me into it were various podcasts and books, similar to yourself and the others that posted. That sounds good, looking forward to it!

    1Reply
  • Luke Marsh
    Property Manager · Cincinnati, OH · Member since 2019 · 131 posts · 237 votes
    6y

    Welcome to BP @Cielo Macaraeg! I started my real estate journey by buying a single family property and slowly grew from there with other investments. 

    2Reply
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