All Forum Posts by: Bob Floss II

@Michael Van Something must be off with the numbers, why is your pro forma coming in at a lower cap than the current numbers?

@Elena Koyun @Chris T. Chris is correct, FHA is probably not the way to go with short sales. It can be done but you are going down a very difficult road. FHA is going to do their own inspection of the property, and if they find issues the seller isn't in a position to do repairs.

@Steve Karpinski We get this all the time. The best method I've found is start a new LLC for the purchase with your LLC and partner as member. Everything in your jv can be spelled out in the operating agreement and then there is no confusion.

@Marco Calderon Wholesaling and wholetailing are not illegal in Illinois. However, people have gotten into trouble. The misconception comes from the execution and not the concept. The best rule of thumb I give my clients is disclose everything. As long as all parties understand, there shouldn’t be an issue.

It also helps to have all your paperwork in order so your process is transparent and the title company can clear title. 

The status of Chicago investing is the same it's been in previous years. You can find amazing opportunities but you need to network hard to find them.

@Joe Ramirez The County does to prorate exemptions. You either quality for them on January 1st and get them for the year, or you do not quality and don't get them at all. Someone on your team should be familiar with local laws so you don't get caught in these scenarios. Everything you just described is pretty normal for Chicago. A homeowners and senior exemption are pretty easy to calculate, the scary one is a senior freeze. Removing a senior freeze from a tax bill can result in a massive hit.

@Dominique Mickles Not sure why you are not getting a good response from attorneys. Sellers provide and pay for title unless you contract to pay for and obtain your own title insurance. You just need a good real estate attorney and they can guide you through the rest. 

@Michael LaRocca If you want to stay close to Downers Grove, your probably looking more residential. You should be able to find a house that needs a rehab and work in it while in school. 

@Sonja Regis He's using your down payment to finish the previous project he didn't finish. You'll likely be in the same boat when you get to the end and he can't complete the work on the last draw. 

I was burned by a contractor like this once and never again. They get no money up front and you pay for all materials yourself. They get paid for completing projects. If they don't agree, don't hire them.

@Arthur Royale I'm not clear on default judgment. Did you get a default judgment against them personally or on the foreclosure?

Your hard money should have been secured on the property in the form of a mortgage and note. Your agreement with them should have also spelled out how to handle this scenario. We typically work out an agreement between the parties that escalates the default procedure so the investor can take possession and recover funds as quickly as possible.