All Forum Posts by: George Skidis

In Cincinatti Ohio check out "Queen City REIA" run by Danielle Mahoney. The are a Chapter with National REIA and have excellent educational opportunities.

If you join Queen City REIA they have a screening service that will help you establish rental criteria, and the applicant pays for it.

We buy cash ads are usually lowball offers. 

The goal of those ads is to get as many inquiries as possible. The old sales calculator works as well here as in used car and insurance sales. Get 100 people interested and you will get 10 appointments and 3 deals. It is a numbers game.

There are some who ask this question but are really looking for owner financing. "Well we can pay you cash however, what are you earning? Only 4% Sell this with owner financing and we will pay you 8% or whatever.

Poster is brand new to Bigger Pockets and their profile is incomplete. Proceed with MAXIMUM CAUTION and perform 5 times your normal due diligence.

Provo is great, but hot. The National Real Estate Investors Association (NationalREIA.org) held a leadership conference there a few years ago. My biggest surprise was that they offer machine gun classes. Definitely not Illinois where they want to disarm everyone but the criminals.

When you get to Utah join a local REIA. Go and network with other investors and newbie's. The closest National REIA affiliate is Utah REIA in Salt Lake.

Peter Ledger
:

Before your move find local group like Springfield Area Landlords Association (SALA) and attend a meeting of two.

When you are at home NationalREIA.org has online videos you can watch. Between that and attending Utah REIA you can earn the Professional Housing Provider designation from National REIA.

When you see Pete in Utah tell him George from Illinois REIA sent you.

That price seems way low. I pay that for an Errors and Omissions policy.

Is the company located in southern Illinois or is your JOB located in Southern Illinois. The answers will vary upon location. We run a real estate club that meets in Southwest Illinois (Alton)about 270 miles from Chicago and Southern Illinois (Marion) about 300 miles due south of Chicago. 

Those markets are a little different from each other but drastically different from Chicago. Chicago rules are a universe to themselves. 

Our Alton meeting is tonight

 Omar. If you complete your profile with city and state where you are located the responses you get my be more specidig or direct you to the right contacts.

My advice is walk away.

Insurance companies charge a premium for multifamily properties with 5 or more units. There is an additional premium for mixed use units such as yours with 5 apartments and four commercial units. Insurance companies like to limit their exposure to loss at 4 or fewer units of the same type. They have learned that mixing commercial and residential units is not the most profitable policy on their books. Single family, Duplex, Triplex and Fourplex are in the zone these days. Same goes for commercial buildings.

As an independent insurance agent, I can get you a quote, but the forms involved are extensive and the price will be way more than you were considering in your budget. The policy premium will be well over $10,000 per year.

So why would any agent be interested in driving 70+ miles to Pinckneyville, spending three or four hours inspecting all 9 units, then putting in another couple of hours filling out half a dozen accord forms to create your quote. Then after all of that watching you turn it down because the price is too high. That is what you're asking any insurance agent you talk with to do.

Then there is the questions of whether the property will be acceptable to the insurance carrier, that you will actually buy the policy, if they sale will even happen do to not receiving a loan or any number of reasons this could fall apart.  

Yes, insurance agents work on commission. But this sounds like a losing time waster. Unless they are located in Pinckneyville, most agents will focus on the short work easy sale. Two days to write and issue your monster or two days write 16 auto and homeowners' policies with the chance to get a life insurance sale. 

First you need to look for an agent in Pinckneyville.

Second find out which agent has it insured now. they already agreed to it and may be happy to keep it on their books. Plus, they have already done most of the work.

If you cannot get them, you should consider compensating whichever agent you select for their time up front. Otherwise, you might not get any takers.

Selling everything at one time will have some MAJOR INCOME TAX consequences. Are you ready to pay the maximum in capital gains taxes right now? PLUS, someone who wants the entire package will expect to buy it at a discount.

Immediately after the sale, take the sales documents and meet with your income tax preparer. Have them look into making estimated income tax payments to avoid late payment penalties and interest. Yes, even if you file on time and pay by the 15th of April you can still be charged late fees and interest if not received in a timely manner throughout the year.

If you must sell, consider disposing of one or two buildings per year over a period of years. Start with the one that is causing you the most issues. Then work your way down the list always selling the most problem unit next.

At some point you may decide what you have left is now a manageable rental business. At that point you stop selling.