All Forum Posts by: Chris Youssi

I am with Nathan huge fan of the ionizer /ozone machines. Cost is only about $150. CAUTION: They can be very dangerous if left unattended. We always take any any lockboxes - keys and go back once air in unit has been cleaned. Make sure and open doors & windows for a few minutes allowing fresh air to enter unit. Do your own research on the potential dangers if not used properly.

No money down not sure but here are some real world examples of  one we are getting ready to start next week and another one within 60 days. I will give you some rough numbers based upon my experience.

Project 1 - bought 10 fully improved duplex condominium lots from a bank 4 years ago for $100,000 or $5000/ unit. Cost to build the duplex is $80,000 / unit. Units appraised for $110,000 / unit so because the land is paid for my true cost is $85,000 / $110,000 or roughly 75% LTV/ EZ deal for a bank to finance assuming you have track record/ credit etc... We will be renting these and making a + cash flow of $300 /m / unit.So with little money down in this case $5000 we create a value add of $25,000 /unit . I'll take that all day every day.

Project 2- Similar to Project 1 except this is a project we will be developing from ground up / selling units on the left so to speak for $225K - renting units on ( rental units will bring me $500/ m + cash flow / unit ) the right so to speak . Exact same buildings same features same amenities. Key on this one is other buyers wanting to build SFR for resale will end up paying for my dirt and improvements so again I have built in equity plus my margins on Profit and overhead I leave in the deal.These units will have 70% LTV all day every day. Another EZ deal for a lander to latch onto and finance. Next week I will be interviewing 2 and let them fight over this deal.

Key to both these deals is adding value - the most important part of real estate. Location is what everyone talks about but in my world 2 things are far more important than location - first is you make your money on the buy and second is adding value to a project thru rehab/developing / renting / changing zoning/ building roads-infrastructure etc...

Hope this helps go get em!

Jerry/Marshall let me share some information on Commercial lending that might make some sense. I used to own 8 SFR/ townhomes that were financed thru the secondary market- fixed ( now down to only 2 ) money for 30 years. As an investor you are allowed 10 for yourself - 10 for your spouse ( assuming they have W-2 income separate from yours ) for a total of 20. We grew our SFR very quickly since 2015 purchasing now 32 SFR all financed in the commercial world. I have a LOC ( line of credit ) where I am able to pay cash for my purchase - we will use 50k as an example. I put 20 in rehab it then appraises for 100. I pay off the first 50 get my 20 back and then refi out do it again and again and again. Currently I have 3 SFR in production phase. Back in 2015 because of my 8 loans in the secondary market difficult to grow my portfolio so turned to a local community bank about $500M in assets - sister bank somewhere in the $4B range. I would recommend this approach for 2 reasons:

1.) Gives you a chance to grow your portfolio quickly

2.) The secondary market will require you to have at least 2 years of tax returns showing you have / can manage investment property. Once this is verified you can then refi from the commercial world into ( for a fixed rate longer term loan as commercial loans are typically 5 year balloons that reset after 5 with current rates )  the secondary market. Other thing to be aware of is secondary market has some strange rules about reserves once you reach anything over 4 units. 

I would /have interviewed 2/3 lenders ( community banks not the national lenders as they have much more flexibility / also credit unions  are a great source ) and shop just like anything else. I have meetings next week with 2 new lenders for a very large project we will be building and will be using some of these thoughts I have shared. 

Hope this helps Happy hunting!

What was her counter / response? Why tie up your LOC with a property you make minimal returns on vs buying it outright? I'm not qualified to answer ?'s on private money etc... as I had 1 partner in business for 31+ years and never again - doing fine without any outsiders. Happy hunting!

Check with a community bank look for a 5 year commercial loan then refi out with permanent financing when you qualify for same. I love cashville! Bought a townhome in Antioch 1 year ago let the tenants walk so I could sell for a profit. Purchase price 167- put in 5 k of flooring another few hundred for paint = listed wed for 195 sold for full price cash in 1 day close 6-8-2018. 

I have done several units where we have added a shower making the SFH a true 3/4 bath. IMHO it makes sense as you get better tenant and you force appreciation. Typically we get rid of the closet off the 1/2 bath - a complete no brainer. I would search 3/1.5+ so you don't miss these opportunities. Happy hunting!

Respectfully, I could not disagree more with the comments - especially out of towners who do not live in our market. Ez to pick on the negative without having facts: Here are some things to ponder:

1.) Last month Rockford was rated # 1 in the State for adding jobs 6500 that is a staggering statistic

2.) Within the last 6-24 months there have been several thousand high paying jobs added to our market including airport mechanics . medical field ( 3 new hospitals being built or $80-500M dollar additions )  utility companies - high paying manf jobs etc...

3.) I cannot speak of the "west side _ which is considered west of the rock river not west of Alpine which as one post said is mainly C/D properties with little appreciation but great cash flow. I have 31 SFH and only one west of the river and I have has the same tenant for 5 years very nice clean prop.

4.) I'll take Rockford over any community for its conservative family values - amazing park districts  - downtown turn around and sure taxes are high - schools are improving. Love my city where I grew up and have grown our companies.

5.) I have mainly B and a few  B-C+ props and the posts regarding appreciation and values again is untrue. Eg... all but 3 of may purchases have been since 2015 and having just sold 2 this year the 2015 purchases ave appreciated nicely based upon my sales - somewhere in the 15-30% range. Im getting ready to list a home for 185 that appraised for 145 not quite 2 years ago - I'll take that all day every day! I have about 1/3 in the loves Park /Machesney park locations the rest in ROCKVEGAS!

6.) Cash flow on our props are STAGGERING unlike anything I have seen in the 38+ years we have been investing. Some of our averages of the 31 props we have : rent $1140 - cash flow $304/ month - Values 105K - vacancy rate since 1-1-2016 1.09% -70% LTV. These cash flows are based upon 7 year fully amortized loans and 15 year amortized loans. I suspect if we did 30 years we would be pushing close to $500/monthly cash flow.

Happy Hunting by now curious if you have made any purchases as it's been 10 months since this thread started.  

Nate, I would agree with the last post. Have you reached out to Brian Gregory - City of Sycamore administrator. He is a great source - easy to setup a meeting with and will guide you along the correct path. If you do make sure feel free to mention my name ( Yow-c ) as we have built/ developed nearly 400 units in the Sycamore market. Best wishes!

Welcome Jason to the family . I would highly recommend joining Craig for the monthly meeting he hosts. We attended our first one and 3 days later I bought a prop from someone in the group.

Happy Hunting!

Awesome story thanks for sharing and be willing to help others.

Happy hunting and most of all congrats on your family way cool!