Anyone worked with Profit From Rentals?

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Anyone worked with Profit From Rentals?

Petru Popovici
Investor · Littleton , CO · Member since 2014 · 30 posts · 10 votes

They are a Turnkey Company in Chicago and trying to see if anyone has dealt with them before and if so what's your experience?
Thanks

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y

@Miriam Nalumansi @Brie Schmidt @Engelo Rumora 

First off

 Brie is correct I do have experience with this company and I have a lot of experience in the space having funded over 2,000 rehabs in a 20 year career in 21 different states. And as such I consider this company a top Tier TK company and have invested with them.

I suspect I have quite a bit more experience than you have Miriam. To that point.

As Brie noted on a trip to Chicago when Brie and I got together for a nice dinner and to talk shop the purpose of the trip was to do deep due diligence on PPR and Alex the owner. I also met with Engelo and his partner on that trip...

I spent 4 days there going through the as is  middle of construction and finished product

I met with their staff their rehab superintendent along with Closing attorney REaltors etc etc. The kind of deep due diligence one cannot get from a cab ride and talking to a know it all cabbie.. your feed back is not credible in my mind. And to sway others is a disservice to the community.

While your correct  non inhabitable  units will sell for 40 to 50k AS IS these units require 80 to 120k in rehab to get to the point that Alex's company then sells them..

Alex's rehabs are top notch from my due diligence and experience.. homes are taken to the stud's new plumbing new electrical new windows all new kitchens with slab granite under mount sinks bathrooms completely redone in tile.. ( heck they are as nice as my new construction here in Oregon). 

I just wanted to clear the air here since on BP anyone can take pot shots, and as we know there are a lot of newbies on this site that really have no clue as to what they are doing.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @John Lowe 

      on my trips to what I suppose is the south side... its by Obama's home... I have seen those block associations all over the place and I dig them... Very nice sense of community.

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  • Mark Doyle
    Real Estate Investor · Frankfort, IL · Member since 2011 · 46 posts · 22 votes
    11y

    Thank you @John Weidner .  I get so frustrated with people saying there is nothing nice on the south side.  I grew up in Beverly and my parents still live in Mt. Greenwood.  Those always have been, and as far as I can tell, will always remain great neighborhoods to live and raise a family.  I'd certainly classify those as "A".  The nicest homes in Beverly sell between $500k and $1 million, and you can pay well over $300k for an updated 1,000 sq. ft, three bedroom ranch with a finished basement in Mt. Greenwood.  There are other nice areas on the south side as well.  The entire south side is not Engelwood and Roseland.

    A lot of people value the safety you feel surrounded by the homes of cops and firemen.

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  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @John Lowe Thank you for the detailed answer.  I am curious what your or anyone else's take on the Auburn Gresham neighborhood is.

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  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    @John Lowe  Small world,  we are working a non performing note just a mile from your example property (47th and S., Saint Lawrence).

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Bob E.   let us know how that works out.  I really really like the bone's of that stock there in Chicago those brick two and tree flats etc are built to a quality that could never be replaced.  and once a top end rehabber goes in and guts them and builds them brand new you have a pretty solid rental unit for many years to come...

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  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    Thanks @Jay Hinrichs  i will let you know how it works out.  Unfortunately the former owner is deceased and the family is not returning calls so we will probably have to go all the way tot FC on this one.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Bob E. 

      the closing attorney I use there is very responsive I don't know if he prosecutes foreclosure's or not.. but ping me off line if you want a referral.

    Its a mortgage judicial state as you probably know.. at least the stuff I have seen.

    best of luck  I will be there next week as well.. I funded one on St. Lawarence I can probably snap a pick If you wish...

    I bought a go pro for myself for my Christmas present.. I plan on figuring out how to use it on my 4 hour flight from PDX to Ohare...  

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  • David B.
    Investor · Chicago, IL · Member since 2012 · 80 posts · 31 votes
    11y

    @John Lowe 

    Good, well descriptive post.  I own properties on the southside as far south as West Pullman onto the South Loop and quite a few neighborhoods in between.  I enjoy the discussion here about Chicago and it's neighborhoods.  In regards to Auburn-Gresham, it has one of the largest inventories of brick bungalow and 2 flat properties in Chicago.  I agree with the repeated anthem that when it comes to real estate in quite a few neighborhoods on the southside, it is a block by block venture.  Parts of Auburn-Gresham has its crime challenges while other parts can resemble suburban oasis with well orchestrated block clubs.  Due diligence and on site visits should be any potential investors prerequisite.

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  • Michael L.
    Investor · East Bay, CA · Member since 2014 · 156 posts · 48 votes
    11y

    Started my experience so far on this thread:

    http://www.biggerpockets.com/forums/223/topics/167...

    @Account Closed 

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  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @David B. 

    What do you know and think of the 7500 to 7800 blocks of S May St in AG?

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  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    @Larry Fried that area of AG is still pretty rough surrounded by a lot more rougher areas.   Going south of 85th on May is much better.  

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  • Alberto Fernandez
    Investor · Glencoe, IL · Member since 2015 · 27 posts · 11 votes
    11y

    I am new in BP and I am a Real Estate Investor in the Chicago area. I believe Chicago has great potential for nice ROI and cash flow, still you need to be careful to chose the right locations and type of property to maximize return, the rehab work to minimize maintenance and property management for a sustainable return.

    I have two unit buildings in the south of Chicago and single family homes in the south suburbs. In paper the two unit building look more appealing but the tenant rotation and maintenance cost are higher. In my experience, single family homes offers similar ROI and cash-flow and are easier to manage and tenants stay for longer period of time.

    I have been a passive Real Estate investor for 14 years and two years ago decided to focus 100% in real estate to expand my and other investors' portfolio. 

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Alberto Fernandez Welcome to BP - You should start a new thread introducing yourself http://www.biggerpockets.com/forums/55-new-member-...

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  • Joe Chin
    Investor · Laguna Beach, CA · Member since 2014 · 30 posts · 20 votes
    11y

    Can someone provide opinion on location immediately south of Marquette Rd, east of I94 (State St) and west of I90 (MLK Drive)? Thanks.

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  • Cliff Mccue
    Investor · Chicago, IL · Member since 2012 · 111 posts · 73 votes
    11y

    @Joe Chin 

    Greater Grand Crossing?

    It is block by block there.  There are some good spots and some really bad.

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  • Alex Love
    Investor · Oak Lawn, IL · Member since 2015 · 3 posts · 0 votes
    11y

    Hi, most of their properties are located on the South Side of Chicago and are over priced by 50-75% ARV.

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  • Michael L.
    Investor · East Bay, CA · Member since 2014 · 156 posts · 48 votes
    11y
    Originally posted by @Alex Love:

    Hi, most of their properties are located on the South Side of Chicago and are over priced by 50-75% ARV.

     There are a ton of folks interested in PFR's product, so if you can refer a seller offering a similar product at a 50-75% discount please post!  I try and check nearby listings, but only find other flippers/sellers offering products that are 10-15% below PFR's price points, but their rehabs aren't as nice.  Then you have to go out and find a quality PM to boot.

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  • Alex Love
    Investor · Oak Lawn, IL · Member since 2015 · 3 posts · 0 votes
    11y

    Hi, as a follow-up, I've been checking out HomeUnion. They basically do all the work for you and price their units to sell and offer financing - country wide. 

    Check them out and let me know what you think.

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  • Michael L.
    Investor · East Bay, CA · Member since 2014 · 156 posts · 48 votes
    11y
    Originally posted by @Alex Love:

    Hi, as a follow-up, I've been checking out HomeUnion. They basically do all the work for you and price their units to sell and offer financing - country wide. 

    Check them out and let me know what you think.

     Thanks for the heads up on HomeUnion.  This is the first I've heard of them, but a brief search turned up this thread: http://www.biggerpockets.com/forums/92/topics/1415...

    Looks like they just promote other turnkey providers' products.  I had my hopes up for a second :( 

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  • Account Closed
    Redwood City, CA · Member since 2014 · 83 posts · 19 votes
    11y

    @Michael_L. 

    Just wanted to clarify...At one point in our (HomeUnion's) history, we did just promote turnkey provider's products. However, we've evolved greatly since then. We now source properties from all sorts of different channels now including MLS, we then do our due diligence on them and if they pass the mustard recommend, help acquire and to our clients. We moved to this new model over a year ago and are now offer properties in 14 different markets (only a very small percentage are from turnkey providers).

    I also live in the Bay Area and would be happy to discuss on the phone or via email.

    -S

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  • Dooreuhn Cee
    Real Estate Investor · Chicago, IL · Member since 2014 · 229 posts · 171 votes
    11y

    @Alberto Fernandez

     i have the same experience as you... ie, multi units are a management headache compared to houses... many investors fall in love with spreadsheet investing which shows multi units with higher cash flows... leaves more SFHs for us tho

    1Reply
  • Fellipe Novaes
    Real Estate Investor · Los Angeles, CA · Member since 2014 · 18 posts · 4 votes
    11y
    Originally posted by @Kate Santon:

    Rents are 1100 per unit in the duplex so 2200 total. Both tenants are section 8. My projections show cash flow of 600 monthly. I will track actual cash flows monthly starting next month and can provide more detail then. 

     Hi Kate, 

    I am very interested to know how is your property/investment performing? Would you enlighten me? I appreciate any info you can share. I also liked your previous post by the way, thanks. 

    Fellipe

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  • Charles Worth
    Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
    11y

    @Alex Love

    Where are you finding properties 50% of the ARV from what they sell that include a very nice full gut rehab? I do see stuff cheaper but they are generally not the same quality.

    I also have experience with HomeUnion as a potential buyer and I don't think Scott will tell you they are doing those types of rehabs nor did they control pricing on properties (at the time at least) it was more a middle man service at least when I was talking to them. 

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  • Kate Santon
    Real Estate Investor · Irvine, CA · Member since 2012 · 8 posts · 9 votes
    11y

    @Fellipe Novaes

    Since I closed last November, rents came in higher than expected and I'm averaging about $750 in cash flow every month after mortgage, expenses and property management fees. It's been good so far. The tenants aren't super quick to pay. One tenant pays on time every month and the other pays a couple weeks late. Property management is generally pretty easy to deal with although they sometimes take a couple days to respond to a question and I wish they could respond a bit more quickly. Other than that, everything has been pretty easy. 

    1Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    It should be noted that Profit for Rentals is no longer the same company it was when this thread started.   The partners split up, and there are now really two companies, PFR and Elite Invest - both selling turnkeys.  I got involved with a PFR property while the split was happening, and it wasn't pretty.  Anyone that is interested in my experience with either of these companies can PM me.

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