All Forum Posts by: Funsho Adesanya

If you have a proper operating agreement you can leverage to create yours then I'd recommend just setting up your LLC yourself through your State's secretary of state website. I used an attorney (cost $750) for my first LLC in order to get a proper operating agreement in place. I've leveraged the same OA for my subsequent LLCs which I created myself. You can also hire a Registered Agent in your state to do it all for less than an attorney would cost.

@Ray Os As long as you don't expect any other water/pipe related issues within the next 12 months, I'd suggest you find a way to fix this issue yourself and not file a claim. Insurance should be used ONLY for really significant issues. I ran into this myself where I had two legitimate water related claims within a 12 month period and my insurance carrier did pay for the claims I filed but they also ended up not renewing my policy when it ended leaving me scrambling to find alternative coverage. The other thing is the claims will follow you wherever else you go as it will remain on your record for a few years (I think 2-3yrs not 100% sure exactly). I've had to find "creative" ways to get reasonable insurance coverage on my subsequent deals including taking the highest deductible plans since I know now not to file a claim unless there's no other way around the issue. Hope this helps and Good luck! 

Quote from @John Warren:

@Funsho Adesanya glad we just connected. You will find a few operators lurking here on BP, but the best place is definitely in person meetups as they come back. 

 Appreciate it @John Warren

Quote from @Paul De Luca:

@Funsho Adesanya

A 1031 exchange could be a great way to make the jump to commercial.

 @Paul De Luca Yes I've given that some thought but it'll have to be fantastic deal for me to 1031 my current units into a commercial property. The cash flows I'm generating right now are pretty decent.

Quote from @Eudith Vacio:

Welcome @Funsho Adesanya! 

Where in Chicago do you own your units at? There are plenty of meetups around Chicago if you search on here on meetup.com

Thanks @Eudith Vacio. I've identified a few meetups that I'll most likely be joining. Also, I own units in the Bronzeville and West Humbolt Park areas. Still on the hunt for more of those but want to start putting more energy into scaling up to larger multi-units. 

Quote from @Jonathan Klemm:

@Funsho Adesanya - Good to see another Chicago multi-family investor on BiggerPockets, welcome!

You'll see that there are a ton of great investors here, happy to mastermind and share ideas.  What areas are your properties in and where are you looking to buy 5+ units?

I'd definitely recommend checking out @Mark Ainley & @Tom Shallcross website: https://www.straightupchicagoi...    It has a ton of Chicago-specific resources like their podcast and a list of local meetups.  

Our next meetup is next Saturday the 30th, definitely come check it out if you are available:  https://www.biggerpockets.com/...

@Jonathan Klemm Yeah I'm already signing up for a few meetup events here in Chicago. Plan on making it out to your event on 4/30 too. Appreciate the other valuable information as well. 

Quote from @Wale Lawal:

@Funsho Adesanya Welcome to BiggerPockets you are definitely in the right place. I am not in the Chicago area, but I would still like to share my knowledge. Joining events in your area is a great way to start connecting with other experts.

I would suggest looking for meetups and investment groups in your area. You can look for those by going to the BP Forums, enter the filter "Real Estate Events and Happenings" as shown in the photo below. Then you're able to put in your city or zip code and a radius that you'd like to search within.

I also advise you to interview investor agents and find one that best meets your criteria. Investor- Agents have a better understanding of profitable locations and help you understand numbers. They also have connections to contractors, lenders, and many other people that can help reach your goals. For this you can use the find agents tool at the top of BP. This will allow you to search for an area and show you some agents in that area along with their BP profile. You can then pick which one best fits your needs.

Best of Luck!

@Wale Lawal This is very helpful. Much appreciated 

Hello BP Family!

I'm a Chicago investor currently owning 10 units (2 fourplexes & a duplex) and looking to start scaling into larger multi-family properties (5+ units). Would love to connect with like-minded investors/operators in this space. 

Thanks!

@Andrew Merritt I did a similar type transaction in January for a 4unit. I was quoted 4.25% rate and term and 5.25% to do cash out refinance. Essentially 100bps premium for the cash out. It still made sense to me at that time so I went ahead with the 5.25% rate for the cash out refi. Now if this is any indication of where rates are going, this was only a couple of months ago. I know I won't find that anywhere else right now in the current market. If you have enough equity in your properties, perhaps it'll be best do a rate and term refi and then get a HELOC. I personally wouldn't look to refinance again in 12 months as who knows where the rates will be at that time plus you'll have to pay a prepayment penalty as you've indicated. Think about it and discuss with your loan officer. Good luck!

HELOC would be the way to go for me as well. You can essentially use a "rinse & repeat" strategy with the line of credit. You'd be exposed to higher interest rate (assuming your current rate is lower than the going rate in the market) by doing cash out refinance.