All Forum Posts by: Bob Floss II

The collar counties around Chicago are starting to move. I've seen sheriff sales in McHenry and Lake (Northern suburbs and far northwest suburbs of Chicago). Although Lake County is pushing out the first court date for any new foreclosure cases to July 2021. DuPage (west suburbs of Chicago) is starting sheriff sales the end of October. Will County (south suburbs) is moving foreclosure cases but there are no sales scheduled. Cook (Chicago) is technically hearing foreclosure cases but I'm hearing the sheriff isn't getting service on defendants. I haven't seen any sheriff sales in Cook go through, they all get cancelled and continued.

@Rodney Miller The SDIRA typically doesn't invest in the flip. It invests in the company that will do the flip through a promissory note. I've done shorter term notes like 6 months or long term notes for 5 years. Investing in a flip is complicated and messy for a SDIRA. 

@Thalia Mena Good luck to you on your journey into real estate. Stay disciplined and try to learn something new every day. 

@Tony Barrera I'll message you a guy now that I know is available and does good work.

@Stephen Foltin What you are trying to accomplish is a Line of Credit. You borrow money from a lender and have cash to go use at auction. It requires having assets or cash flow to pledge as collateral. 

@Chandra Sekhar What border of South Shore? I've found there's a big difference depending on which end. The northern end of South Shore performs really well and my clients have very few issues. The southern end of South Shore has caused us problems for rent collection and latent defects. 

@Jake Celler Most wholesalers won't work with a buyer getting a mortgage because the underwriter will require them to produce documents they don't want to show. It falls under the category of wholesalers that say they disclose everything, but when it comes time to hand over documents, they get pissed off. I've done several deals where we let the buyer get a mortgage, but we renegotiated the contract with the seller for a higher price and had an agreement for the wholesaler to be paid their fee as a closing cost by the seller. We let the seller and buyer work directly as a normal transaction would be done and the wholesaler was paid. 

@Jay Hinrichs Everyone in Illinois hopefully has their broker's license at this point. I imagine there are some that will keep doing it until they get caught. Sitting through the course and passing the test doesn't seem to be making a huge improvement on disclosure. They typically hang their license with a brokerage that charges minimal transaction fees and no commission splits with no training. Most of the large real estate brokerages with training have said no wholesaling is allowed in their office. One bright spot is we don't have to look at those ugly bandit signs anymore. They don't conform to advertising rules for brokers so they can't use them.

I honestly don't think the State is "going after" wholesalers. Now that they are licensed, they will wait for sellers to file complaints like any other licensee. They simply don't have the staff and rely on public complaints.

I'm an attorney, so of course I'm going to say always put your properties into an LLC, and if possible a series LLC. I also find it a bit concerning that everyone has so much faith in their insurance policy. One of the biggest fields of law is insurance defense. There is a long history of people thinking they are covered by insurance and the insurance company telling then otherwise.

@Jake Chelios I have to agree with John's recommendations. Either partner up with someone that will get the mortgage and you'll provide the capital or buy a building for cash and then refinance and pull your cash out at a later date.