Who is the next Sam Zell in Chicago?

Question

Hello!

I am new to Chicago and want to connect with an experienced (10+ deals) investor in the city.

My partner and I own 22 single-families in Metro-Detroit (not in Detroit). I am analyzing multi family in Chicago but would love to partner with someone that knows the market and contractors better than me.

Talk soon, thank you for your time,

Alex

Mike Nelson · Answer

I met Sam Zell when his business partner Mr. Robert Lurie passed away several years ago, of cancer.   My ex-wife was hired to play harp at Mr. Lurie's funeral, so we negotiated the terms with Sam.  Zell was a tough negotiator, he insisted on only Mozart be played by the harpist.  It was a challenge, requiring extensive practice in order to be prepared. They both wanted the very best, so it was win-win.

Robert Lurie's wife was later very generous in her donations to the Lurie Children's Hospital in Chicago.  When my son was treated for successfully treated for leukemia a few years ago - it was at Lurie Children's Hospital, where he got the very best of care by some wonderful people.  It is funny how things happen over time.

John Warren · Answer

@Alexander Krasuski I don't think you need to find the next Sam Zell here to succeed. As someone who has done 10 or more multifamily deals,  I would honestly recommend that you focus on Detroit over trying to jump into Chicago. Detroit is a large enough city that there will definitely be opportunities, and they are in your back yard. Chicago also has a lot of opportunities in the 5-24 unit space, but we are a long drive for you. You will burn out quickly in that space unless you have a very strong management team.

I personally am a big fan of staying local so you can stay in control. If you go further from home, make sure to bake in the time to really stay on top of things.

Greg Scott · Answer

LOL  Sam Zell would never invest in Chicago!

Jonathan Klemm · Answer

Hey @Alexander Krasuski - I didn't know who Sam Zell was until I looked him up.  Nonetheless, looks like quite a successful businessman and in the Billionaire Boys club lol, which is where I'm trying to get to.

We are an active Chicago multifamily buyer looking for 6-30 units with heavy value add opportunities.  Having the general contracting business helps to take on some of the big value add projects, the bigger the better.  Happy to connect and see how we might be able to help each other out.

Funny too - My other partner is out of cali and has a bunch of single families in metro detriot.

Forrest Williams · Answer

Who's the first Sam Zell in Chicago?

To echo what others have said, Chicago's money makers are in 2-4 flats. You can find good SFH in the suburbs, but for Chicago proper, the multi is the way to go.

Jason Albasha · Answer

You are @Alexander Krasuski, you're the next Sam Zell in Chicago.

Henry Lazerow · Answer

No idea who Sam Zell is but Chicago isn't very good for single family rentals. We have great returns of appreciation+cashflow+rent growth in 3 and 4 units in the gentrifying neighborhoods and also a lot of solid 5+ buildings. Single families are priced higher here then somewhere like Michigan, I find multi units far superior anyways in terms of cashflow over time and being able to scale into bigger and bigger buildings. I have lots of clients on their 3rd or 4th purchase in first few years investing by pulling out the significant equity 2-4s can create and using that to fund next deal.

Andy Nathan · Answer

Why would you want to be Sam Zell? He owned the Cubs a few years before they won the world series.

Jonathan Klemm · Answer

Hey @Alexander Krasuski - I didn't know who Sam Zell was until I looked him up.  Nonetheless, looks like quite a successful businessman and in the Billionaire Boys club lol, which is where I'm trying to get to.

We are an active Chicago multifamily buyer looking for 6-30 units with heavy value add opportunities.  Having the general contracting business helps to take on some of the big value add projects, the bigger the better.  Happy to connect and see how we might be able to help each other out.

Funny too - My other partner is out of cali and has a bunch of single families in metro detriot.

Who is the next Sam Zell in Chicago?

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