All Forum Posts by: Bob Floss II

@Lisa Donaldson Very impressive investing in real estate from such a long distance. Curious what part of Chicago you selected for your multi family investment? Are you happy with the results?

@Account Closed Partner up with another investor. The other guy buys the property, your friend uses his money for the rehab, split the profits.

From an attorney point of view, you need a CPA that can answer questions about limiting your tax liability or taxable events as your grow your business. I can guide a client on things like a 1031, but when it comes to questions about taxes for an investment or flip or deeding a property into someone else's name, you'll need a good CPA.

I’m working on a house with wood windows that haven’t been getting enough light and have rotted in some parts. Obviously every window person I talk to wants to replace all the windows on the house. However, I’ve been doing research that some contractors can repair these windows and replace the rotted wood for much cheaper. 

Does anyone have any experience with this issue? 

@Byron W. I’ve personally handled lawsuits from the city on legalizing basements. I’ve won some and lost some. Everything @Vinay H. said was 100% on point. If you don’t have the ventilation, egress, and height, forget it. 

I’ve seen some investors install a stairway from the first floor unit to make it larger and increase rents, but a project that big can be very expensive. I’d go with storage.

Flipping is never dead. We just experience highs and lows of finding good properties. Some weeks you have dozens of great leads, some weeks you have to really hustle to find them. They are always out there.

@John Warren When you get your building in Berwyn updated and rented out, what do you project your CAP?

I should amend my comment. There are always multi family opportunities but they are not nearly at the CAP I was getting a couple years ago. You can still find some but they are becoming fewer and fewer.

@Paige Alexandre You got a lot of good information from @Jim Cummings. The only thing I would add is if you are starting from zero you probably need to focus on finding good partners or team members to help you close the gap. 

Having worked heavily in multi family for the past four years I can tell you that market has been heavily saturated by investors. If you stick with 2 to 5 unit buildings there are still opportunities but the market for larger buildings is brutal. I'm taking the contrarian view and have been looking back at residential flips in the burbs. Many of the rehabbers turned into wholesalers and left the market wide open. So far I've found a lot of opportunities. Don't go where the puck was, go where the puck is going.

@James Masotti The 5+ multi family market is a disaster right now. I've spent the last four years doing a huge amount of multi family closings and they've come to a screeching halt. The only buildings available are either way over priced for the neighborhood or they need a full gut rehab. A great building at a reasonable price popped up on the market the other day and by the time I called the agent they had multiple cash offers. 

Anyone looking to get into multi family can still find a nice deal if you focus on 6 unit buildings. I don't know if it's the case for everyone, but I know my clients can get a non recourse loan if they buy a building that's 8+ units.  If they buy a 6 unit building, they have to sign a recourse loan. For that reason, they only jump on the 6 unit buildings unless they have crazy cash flow or can buy a group of buildings. For a newer investor, that building could have nice cash flow and be a good starter building with less competition.