All Forum Posts by: George Skidis

Check your comps and do not overbuild. In a traditional Real Estate market adding to a property will not increase the value enough in the short run to cover the cost of the improvement. It takes years to recover the upgrade. The other problem is building outside of the norms for a particular neighborhood. Normally, no one builds a mansion in a blighted area. However, I am aware of one in Sauget, IL right next to a chemical plant and copper works.

However, Hawaii is a different animal all around. From what I have heard Real Estate in Hawaii is extremely expensive. So is the cost of importing the materials for an upgrade.

My normal advice to homeowners and investors is that if they want a bigger house buy a bigger house. But Hawaii is outside the norm.

Before you move and buy do the following.

1. Check for a local Investor association on the island you are moving to and join it NOW.

2. Develop Real Estate Agent connections and get the comps in a three mile radius. Also find an appraiser and get their opinion.

3. Make sure you can afford the materials for the upgrade. The five islands must IMPORT almost everything but pineapples and sugar cane.

4. Determine if your current income is sufficient to live in Hawaii before the upgrade. Prices are higher for food, utilities, gasoline etc.

5. Good Luck and I hope you succeed.

The city of Belleville was investigated by the Federal Government for racial discrimination a few years ago. It may be that the inspections and good old boy network are a spin off of that investigation.

We will not buy in the city of Belleville and do not recommend it to others. 

Check out the Chicago Creative Investors Association (CCIA) run by Jane Garvey. Pre-Covid they met in a hotel in Lombard, IL on the third Sunday of the month. 

Wholesaling, by definition, means transferring property from the owner of record to a third party buyer and retaining a profit for setting up the deal.

If you take title to the property and then resell it 24 hours or 24 years later that is not wholesaling. Short term ownership could be deemed flipping but not wholesaling.

The only concern on properties being resold is the mortgage company's concern with title seasoning which was a huge issue prior to the housing bubble bursting.

You can wholesale one property per year in Illinois without a real estate license.

I am not an attorney and do not play one on television.

1. Check with your lender BEFORE transferring title of non owner occupied real estate to a Corporation, LLC or Land Trust. Non owner occupied loans are not protected by the Garn St Germain Act as it refers to estate planning purposes. You need the lenders permission to make the move. Some banks will, some banks won't.

2. In my opinion the business entity such as an LLC or corporation should own nothing. It deals with the public and can lose everything it owns with a roll of the courtroom dice. Land Trusts are a great tool for anonymity. The land trust can rent the property to your business entity and grant it the right to sublet.

3. Selling real estate owned by a corporation can create a tax increase hazard. With the goals of the current administration in mind the Corporate Tax will be going up. Depending on jurisdiction It can also make it harder to sell the property.

4. An individual who owns property can represent themselves in court. Any entity must be represented by an attorney. Some judges even want land trusts represented by an attorney.

Always consult an attorney when considering a change like this.

There are multiple factors at play in determining your capital gains tax rate. It depends on your Adjusted Gross Income (AGI), Marital status and length of ownership. 365 days or less is considered a short term capital gain and it is a higher bracket than something you own 366 days or more which is a long term capital gain.

The biggest punch is who is in office. The current administration wants to raise capital tax rates. The prior administration lowered them. 

You would need to disclose your financial information to someone to get a correct answer.

The McLean County Area Landlord Association meets at 112 Boeykens Place, Normal, IL 61761 Contact is Marti Ryan President.

READ YOUR LEASE. First what does the lease say about access. Second have you ever had an attorney review your lease to make sure you are in compliance with ALL state and local laws/ordinances? No one should be a landlord without an attorney on speed dial.

IMPROTANT: I am not an attorney, nor do not play one on television. This is a common sense approach and not to be considered legal advice.

There is nothing wrong with driving by your property and observing at a distance. You can even go to the door, knock and ask for permission to enter. To enter the property you must give either proper legal notice or receive permission to enter for a specific reason.

Sample door knock conversation with a dog whistle in your pocket.

Blow the dog whistle a few times and listen. Does it sound like the hounds of Hell are trying to answer the call. Put the whistle away and then knock on the door. Here is your script for the resident.

"Hi! With the heat (or cold) being what it is I just dropped by to see if you need to change the furnace filter. A clogged filter can double or triple your heating and cooling costs. Is it Ok with you if I check your current filter and see what size your unit takes?"

IF! they grant you permission go straight to the furnace filter, do not pass go and do not collect $200.00. Go no where else in the home. This is not a search warrant. It is limited permissive access for a specific reason.

If you find evidence of pets on your path to and from the filter, that is ok to bring up. If not, schedule a regular inspection according to your lease and prevailing law in your area.

If you need an attorney feel free to call me for a referral.

if she was terminated or laid off from her job she can draw unemployment and pay the rent. If she quit her job it is sometimes difficult to draw unemployment.

Tom:

My personal opinion does not favor the city of Belleville, I will not buy property in the city limits. A Belleville mailing address does not mean in the city limits. I always check.