All Forum Posts by: Account Closed

View it like fishing. If you aren't getting any bites, move your boat to a different part of the lake.

Some people have gone so far as to to move to a different lake altogether!

Of course, before it all melts later this week, we will get 4-6" more tomorrow. Closing in on 2nd snowiest winter of all time in Chicago.

I have seen so many deals debated and advice offered here on Bigger Pockets. I am concerned that just because people post on Bigger Pockets, many new investors feel it is "safe". Even going to a "meet-up" doesn't ensure people are moral, honest and just.

Doing your homework on properties is one thing, but what about people you partner with or take advice from? It is MASSIVELY IMPORTANT!

Read more details with examples in my latest Bigger Pockets Blog Entry.

Do Due Diligence on People as Well!

Yes winter tends to mean getting more creative with your marketing, or having patience in renting. Every weekend recently in Chicago was either BITTER cold or heavy snow was falling. In fact, officials closed the roads on the way to a place I was renting because of the conditions. I got creative. Marketed to the places I know people always go regardless of weather.

CHURCH!

McDonalds..yeah sad as it is... (and the like)

Grocery Stores

Hospitals

That paid off, this weekend, while still cold, had a blast of calls, people showed up to see the unit and I received 5 applications.

With that being said. Either give the person a 6 month or 18 month lease to start. This makes their renewal cycle in the heart of warm months. So if they chose to move out, you won't have that same issue.

While I second the notion that this is a high price to pay for limited rental income. If you are out of pocket cash it isn't good. If you can get in for very limited out of pocket funds, then they CCR and IRR skyrocket.

Sub2 on the first, maybe a ton of seller financing to limit your cash outlay.

To lay out nearly 300k (barring any deferred maintenance hits) to get a gross cashflow of Legal $1,900 plus $550 illegal (2450 total) seems a bit off.

for 300k cash, where I do most of my work, I could snag 6-7 properties bringing in 900-1200/month gross cashflow each. Even the low end would be 5,400 of gross monthly. So if you are outlaying cash, I would give pause because your CCR would be extremely low.

If you are wanting to live in one, build equity, etc that is a completely different animal. But since you mentioned "wholesaling" that isn't the case here.

I was never pushing for "traditional" or "Residential" financing. I haven't gone that route in YEARS!!! If you are going that route, it is troubling.

1. Owning a property in your own name is scary. What if a tenant, or a guest gets hurt on your property and they sue? You have no liability protection.

2. This isn't something we do for fun, this is a business and your future. Treat it as such. Properties should be owned in ENTITIES!

3. Commercial financing, will set you free!!!

Disclaimer: I am not an attorney, just a guy that has 700+ units (Was over 800 but got divorced. ha), and has been doing this for over 2 decades.

@Jason McKenna Welcome to Bigger Pockets. There is a treasure trove of information, but, and this is a sad comment to make, you still need to trust your own judgment. As with real life, BP does a solid job of self editing some of the "bad eggs" and "Bad advice" but there are still some that aren't to be trusted.

Now, to the positives. AWESOME you are taking the interest in REI. Also congrats on the kids! So rewarding to be a father!

Keep educating yourself. Having a supportive significant other also puts you in a good place!

I hope to see you at some of the local events soon!

@Ronan Donnelly

Chicago.. my town! Chicago usually doesn't have the big swings in values that the areas like Vegas, Florida, Phoenix et al do. However, sounds like you are buying retail and renting. That is solid, but if you also want appreciation and equity, need to re-visit how you are buying properties here.

Andrea Raila is who I use. She does a great job and always seems to get the assessed value lower than I would have if I had done it myself.

@Lucas Bonasio before I can answer the question on how to refi and structure it properly, I need to ask how the properties are owned? How are they titled?

In your personal name? In a trust? In a LLC? etc.