All Forum Posts by: George Skidis

Glad to help

We invest in Southern Illinois. The problem is that the politicians are the problem. Eventually the state will get back on track and start enticing businesses to come to Illinois not flee. Good Quality residential properties are not on the market for long. We have a shortage of inventory. There are bargains to be had. Can you ride the curve until we start coming back up?

My Background: 30 years as an insurance claims adjuster. 15 as an insurance agent.

Most insurance companies use the same policies that are prepared by the Insurance Services Organization ( ISO ) and then approved by each state's department of insurance. These same companies can add bells and whistles to make their policy more attractive at the sale. Sort of like the sizzle of a hot steak on a metal platter. It doesn't make the steak taste any better, just adds the sense of hearing to the meal.

Your rates are based on several factors; location, value, your personal credit score, your personal and professional loss history, loss history of the property to be insured, cost to rebuild based upon area of the country and so much more.

Your loss history and credit score can impact the cost more than the location.

If you want to rebuild then by all means get Replacement cost coverage.

If you want to tear it down and buy another one across the street, find a company that will sell you a stated value policy like Foremost. They will pay you the policy limit for a total loss and DO NOT enforce a co-insurance clause or depreciation to reduce the settlement.

Insurance companies reduce their claim payments to you by applying a deductible, applying depreciation, and enforcing a co-insurance clause. If your current agent cannot explain those things to you, find a new agent who can.

There are two things that are crucial to real estate investing. 1. Your Mindset. 2. Your expectations. Once you have those under control you have a chance to succeed anywhere in the country.

If the Cash flow is to good to be true, appreciation may not be an option. Invest in a low income area and your ROI could be higher based upon the low cost of the unit. Don't expect the unit to skyrocket in value unless we are about to have another bubble. Sold over half of our units just before the bubble burst in the high 50s low 60s. Now they are running $20 K back where they were when I originally bought them in the 90s. HOWEVER, the CASH FLOW is great!

In a high end location we have owned the same unit since 97.Paid $170 about to sell for $300 to $335 K . 

A good neighborhood will appreciate. A low income neighborhood will stagnate until something huge comes along.

Where do you want to be? Answer that and you are half way there.

Student Housing around Southern Illinois University Carbondale has always cash flowed. Illinois REIA member Megan Webb is a Property Manager. She works that area and could help you.

Call the local court house and ask for the paperwork. I wonder if this is a case by case appointment?

Robert Lafrance - Cougar myself. Class of 83. IL REIA holds monthly meetings by your old school.

Located in Belleville. My contact info is below.

SIU-E or SIU C. Folks in Illinois want to know. Congrats on all the accomplishments. This old Leatherneck knows about accomplishment.

Real Estate laws vary from state to state. Check with a lawyer or realtor in your state. The realtor needs a contract to protect their interest in the proceeds of the sale. As the buyer you can try to write your offer to have the seller pay the commission. There are lots of issues here. Get good local advice. Try contacting ICOR. The Investment Club of the Rockies. They are located in Fort Collins.

Septic tanks are not an issue unless they are too close to the fresh water well supply.  Get the tank checked as a contingency of the purchase contract. Sometimes the laterals are plugged or collapsed. Treat the septic tank on a regular basis by flushing a box of Rid-X or similar product down the drain. If the system needs replaced there is a new one that you add a pill to every 30 or 60 days that puts out clean water on the ground surface.