All Forum Posts by: Chris Titcomb

@Steve Babiak, thanks for the home-turf insight.

@Dominique Nugent, I'm an Illinois licensed attorney who practices with another attorney who is licensed in Pennsylvania (he's also licensed in Illinois).  Each state is different and can be an "agency" or "escrow" state, the difference (in a very basic sense) is whether an attorney is involved in the deal or not (agency = yes; escrow = no).  I'm told Pennsylvania uses attorneys, i.e., it's an agency state, meaning the attorney is a necessary party in the transaction.  I can't say how much attorneys charge in PA, but in IL it's between $450 - $750 per closing for a residential purchase or sale.  Good luck with your flip!

@Account Closed provided an excellent overview of costs, how to set up the LLC, and what else you'll need for your new entity, so there's not much more to add on that end.

@Matt B., I have clients that would rather build new and I have clients that only buy existing buildings.  My developer clients like to build new because they are able to manage risk differently.  They know what their construction costs will be up front, and, after construction the risk of mechanical-related defects are limited (assuming they hold the asset).  Existing structures, on the other hand, may have latent defects, which could be missed by an inspection.  But -- and this is a big consideration -- when you're buying an existing building, you (hopefully) will have an income stream from day 1.

@Julie George, also, read the legal description of the property, that should tell you the storage number.

@Julie George, when you purchased the condo, you should have received a 22.1 Disclosure from the Seller. Often, that Disclosure will show the storage unit number and should mention if the lock is assigned or if it's a limited common element. But, being that this is Chicago, that's not always the case. Alternatively, you could review your condo Declaration and look to see if the storage locker number is disclosed (which would be more likely if its a limited common element, but again, that's not always included). To answer your question directly: no, you will not gain any relief from your HOA for this issue, unfortunately.

Daniel - I think the answer really depends on your risk tolerance and your access to capital.  Hard money lenders do offer financing for flips, but you'll be paying higher interest rates, origination points, and the maturity date may be short, with additional points due upon default, i.e., failure to repay.  Many of my Chicago clients that utilize hard money loans have used either Renovo Financial or Grand Coast Capital and have been pleased with their lending process.  Alternatively, if you have access to capital, and you're more risk averse, you could always purchase for cash, and try to negotiate better terms into the contract.  Alternatively, if the capital is invested, you can try to set up a margin account on the securities, which margin funds you could use toward the purchase of a flip.  With this route, you'll have much better lending terms and the funds would be unsecured against the property, i.e., not used as collateral.  

I'm here to help, if you'd like @Ryan Fox.  I know the area well!