Gainesville, FL · Member since 2017 · 6 posts · 0 votes
9y
@Christopher M. Can you add in the closing cost from the lender if you don't have it??? Also for us Beginner Women Investors, is there a way we can tell if we are being over charged or ripped off by Handyman/Electrician etc???
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
9y
Thank you everyone! I received these questions a few times, so I will answer them here on the thread.
My friend/mentor is @Mark Ainley from GC Realty & Development. Mark and his company are great. He has worked with me every step of the way from purchase to now getting the property refinanced. If it wasn't for Mark, I would still be sitting on the sidelines.
My hard money lender is Groundfloor. I have a 12 month term at 9% interest, no monthly payments, no prepayment penalties. Interest and principle are due at the time of refinance or at the end of the 12 month term.
The GC I worked with is @Robert Leach. His company does great work! Him and his team do not cut corners. If something needs to be done, they do it right the first time
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
9y
@Thao Kieu - I posted the contact for the HML I used. I hope this helps.
@James Su - Its located on the south side of Chicago which varies block by block. This property is located in a blue collar neighborhood with little to no crime and pride of ownership in the homes. I did have to replace some of the plumbing and upgrade the electrical from a 60 amp to a 100 amp and redo rerun the electrical for every outlet in the house and garage.
@Account Closed - I purchased the property using Cash from my Home Equity Line of Credit. Once I owned the property, then i went to Groundfloor and let them know I owned the property free and clear and I only needed the funds to rehab. They gladly took the deal and gave me terms as well.
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
9y
@Alfonso Velazquez - I will be refinancing out of the HML, but I will be doing it with a community bank. I posted the terms of my HML as well.
@Paul Schilling - I will be getting a 30 yr fixed on it within the next month through a local community bank.
@Edward Wodziak - I found it on the MLS and drove the neighborhood for about a month. I received my real estate license prior to this purchase for the purpose of getting in homes and making offers quickly. I would prefer Section 8 over market tenants, but if a more qualified market tenant would have applied first then I would have accepted them as well. Section 8 pays rent through the eviction process and if you are Tier 2 of the excellence program, you get an additional 2 months of rent while the unit is vacant. You can't get that from a market tenant.
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
9y
@Sabrina Trotter - I recommend getting additional quotes if you don't feel comfortable with the price you are being quoted by any of the contractors you are working with. Anything that may pop up outside of the original Scope of Work (Trust me, it happens) that would result in a change order should get at least 3 bids if you do not like the price your GC quoted you. Also, BP is a great place to ask about the cost of something and compare to what you were quoted. Hope this helps.
Investor · Oakland, CA · Member since 2015 · 135 posts · 82 votes
9y
Section 8 tenants are great. I learned a valuable lesson through Sec 8. That was when a tenant gives you a 30 day notice, moves with in the 30 days yet the due day say the first of the month rolls around you are do rent for the entire month. I look back over the 30 yr's I was a landlord, I lost a lot of money from market tenants!!! :) Congrats again on your deal!!! Be safe in Chicago!
Flipper/Rehabber · New York Tri State Area | Jacksonville | Orlando, FL · Member since 2017 · 33 posts · 7 votes
9y
Congratulations "ECXELLENT JOB" I wish you much success in all future projects. I hope my first house flip is successful as yours wishing nothing but the best for all your future projects again congratulations.
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
9y
@Eddie T. - Groundfloor did not have to pull my personal credit as they require the property to be in an LLC and they vet the deal. After I transferred the property into my LLC, it took about 2 weeks to close. I did have to pay $500 for a BPO, and I had to pay $250 per draw which was included in each draw request.
Accountant · Atlanta, GA · Member since 2014 · 9 posts · 0 votes
9y
Congratulations on the property! Looks great.
If you don't mind me asking, how does the Section 8 housing work? Did your property qualify for that before you purchased it? Or was it something you applied for?
Investor · Chicago, IL · Member since 2013 · 451 posts · 96 votes
9y
Lol live it. I used to own that house. I owed 107k when the market dropped and houses all around me were 20/30k. I let that go and purchased three more. I'll see if I can get some pics of how it was before I left.
I do miss the two sump pumps and the den in the basement. It was a cool spot for company to hang while we were shooting pool.
Good work.