All Forum Posts by: Bob Floss II

@Shachar Hess If you don't know where to invest, maybe focus on finding a person or team that is doing well rehabbing properties and seek a partnership or offer yourself as a hard money lender. There are opportunities in every city and state if you are working with the right people.

@Van Blackman I think you missed something on Number 1 that drives me crazy. I don't mind working with a wholesaler that can bring me a good deal to flip. I'll pay you for doing the grunt work to track down a seller that is ignoring or abandoned a property. My issue is I get emails every day from wholesalers offering me a property where they are A. offering it at a price where I can't make a profit, B. using unrealistic rehab numbers, and C. giving me an estimated sale price that is horribly inflated. Nine times out of 10, I run a simple CMA and the sale prices are not even close or the comps they gave are for completely different style properties.

@Oliver Santiago It's extremely hard to evaluate the property without knowing more of the expenses. Eliminating heat as an expense should make this a good cash flowing building. You need to inspect the two units that are in need of rehab and check their condition. There seems to be a conflict between the supposed great condition of the building and the low rents and vacancies. If they are giving free rent to a property manager, it shouldn't have two vacancies. 

The market is hot right now so I would try to schedule an appointment asap to go see it.

@Charisse Higgins Where are you located?

@Francis Rusnak I prefer areas with some type of economic stimulus or driving factor for tenants. I avoid areas like Dolton and Olympia Fields because they are loaded with rental properties already and there's nothing really drawing tenants.  I've had a lot of success with properties around University of Chicago. It creates some stability in the neighborhood and draws tenants. Find areas in the south suburbs where there is some type of economic growth and new jobs.

@Peter Daniledes What State are you located in and what State will the LLC be registered?

@Calvin Lipscomb From an investors perspective, there are better areas of the city for a good ROI. The key difference here is the buyer wants a property he can live in and enjoy for a period of time before converting to a rental. He's placing a value on the time for his personal enjoyment. For this investor, he's willing to break even on a monthly basis on the future rental and make a profit in 5 years on what looks like a still growing part of the city.

This is not the approach for a typical investor that is looking for returns. You want to be in a different area of the city where you get great monthly returns and appreciation is icing on the cake. I’ve never looked at appreciation as a stable investment strategy, only a byproduct of the overall investment. 

We have to keep in mind that every investor has different goals and they may not share our strategy. He’s not wrong, he’s just taking a different approach. 

@Michael Kretch I’m sure a few people will come to Illinois but I feel many will stay in Wisconsin. I can tell you many families that live in northern Illinois are either in the process or discussing moving over the border to Wisconsin. We have high property taxes, sales taxes, and state income tax. People want to get away from it. 

I had a conversation with a rehabber that told me business is booming for him in the pleasant prairie area. He has a large number of people jumping the border. It’s an opportunity I’ve been meaning to look into along with the other areas closer to the plant. I’d be interested in talking more and learning more about how to invest in this region. 

@Conrad Kostrzewa Finding a condo with an hoa under $350 is great. You sound like you are on the right track. 

Well, I guess @Rebecca Knox doesn’t mess around.