All Forum Posts by: George Skidis

As a new investor you may not have an appraiser that you trust. Help yourself by doing some comp research NOW. That way you can cherry pick the comps and present them to the appraiser when they arrive. Choose comps that really are Like, Kind and Quality.

If you cannot find comps that are LKQ in the price range you want to sell for, you might be paying to much for the property in today's market.

You indicate that investors are snatching them up. What are those investors doing after they snatch them? Buy and Hold, Flip, Lease Option? Look for an investor who has a business model that is similar to your end game. See what they are doing.

As a landlord in a low income area since 1993 I have seen the prices of 900 square foot, 3 bedroom, one bath, National Homes on a slab ride the roller coaster. They peaked at $59,000 before the bubble burst and plummeted to $7,000.00 and less afterwards.

I even know a fellow investor who quit paying his real estate taxes and making repairs altogether.  He just wanted to get out from under them with no further expenditures. He walked away from over 100 homes. At $1,500 per year average in real estate taxes he managed to collect almost four years of rents with out paying taxes or fixing anything. In effect he sold his business to the Saint Clair County tax collector for about $6,000.00 per home. He also declared bankruptcy. He was a senior, experienced and savvy investor who got in to deep on another project.

What will you do? You basically have three choices. 

1. Breach the contract and forfeit your earnest money

2. Go through with it and make the best of things and flip at a potential loss.

3. Become a buy and hold landlord, finance the properties and wait for the next market upswing to sell them.

Being a landlord is a long steady road to wealth building. Your tenants pay for your investments over time. Do you have what it takes?

As an insurance agent I can tell answer your question. 

1. Random quotes consume our time and only get us a paid commission 5 to 10 percent of the time. 

2. Most if not all Insurance companies require a CREDIT CHECK to determine your rate and cost.

3. Most of the quoting software we use requires data collection before we get the quote to you. One exception is the Illinois Fair Plan. They insure ALMOST everyone. You will pay a higher premium for that privileged.

Now I am not speaking as an insurance agent but President of Illinois REIA.

As a Chapter of the National Real Estate Investors Association we have access to online quote service that does list billing and invoicing in arrears.  Check with Bill Tan who runs the Los Angeles Real Estate Investors Association (LAREIA) to see if he can help you or check us out as well.

The Seller Finance Coalition is working to alter Dodd Franks to allow smaller investors to up to 24 of their own homes each year and not be subject to the banking regulations of Dodd Frank. Charles Tassel and Jeff Watson of the National Real Estate Investors Association have been working very hard on this and several other anti real estate investor legislation bills. As one of the local leaders of National REIA I went as a representative of Illinois REIA with them in March to Washington DC. Not sure what I can post here about that without violating protocol. We made good inroads and had a great time there as well. We also met with our representatives about renewing the National Flood Insurance Program, giving investors 120 days to cure before an equal access lawsuit could be filed and other important issues as well.

For those that missed last night's off the charts Vendor Fair and Fish Fry with Illinois REIA, - - be patient.

We will have an even bigger event next year.

Until then you should look into attending our July 22nd Power Negotiating Seminar. Learn to profit using the Win Win Mindset!

Your enrollment fee includes 8 hours of training. A 3 ring binder course guide produced by the National Real Estate Invests Association.  Donuts and coffee in the morning and Jimmy Johns for lunch,

Members: $59.95

Guests: $69.95

Go to www.ILREIA for more information or follow this link to register:  Click Here

This presentation is part of Illinois REIA's quarterly Super Saturday Series. We also hold four membership meetings a month in Belleville, Marion, Wood River and conduct a joint meeting with Missouri REIA is South County.

Any questions give me a call. 618-520-8999

Good Luck and Great Investing

The Illinois Real Estate Investors Association is having their Vendor Fair and Fish Fry tomorrow night!at VFW Post 2859 - 231 East Edwardsville Road, Wood River, IL 62095 from 5:30 PM to 9 PM. Door prizes and much more. Equity Trust will be there to discuss Self Directed IRAs, Aspen Roofing, Real Estate Agents and much more.

Stop in and enjoy this free meeting and check out Illinois REIA

The Illinois Real Estate Investors Association, Inc. is a great place to learn the basics and enhance your skills if experienced. We are looking for real estate Investors all over the state to join and help us combat anti investor legislation while learning to increase income from multiple streams of income.

We hold four monthly meetings and quarterly Super Saturdays which are intensive studies in all aspects of real estate investing.

Here is our monthly meeting schedule. All meetings open at 6:00 PM  with the keynote speaker at 7:00 PM

1. First Thursday - The Home Depot - 7481 S Lindbergh Blvd, St. Louis, MO 63125 - Training Room

2. Second Tuesday - Drury Inn Marion - 2706 West DeYoung Street, Marion, IL 62959 

3. Second Thursday - VFW Post 2859 - 231 East Edwardsville Road, Wood River, IL 62095

4. Third Tuesday - The Home Depot  - 5501 Belleville Crossing, Belleville, IL 62226 - Training Room

Go to www.ILREIA.com to check out the meeting calendar for more details.

Any questions give me a call.

Section 8 is a great tool for a new investor. It is also a club to beat you with. Section 8 does NOT SCREEN TENANTS and the DO NOT PAY for tenant damages. They check for financial need. Make sure you perform interior inspections, if possible meet all the tenants and then review all of the leases before closing. Normally Section 8 does not pay 100% of the rent. The tenant must pay their share. The lease is one year and the tenant's share can and will change each and every year.  We have a Section 8 tenant who is celebrating her 20th anniversary with us this month. When we first started we had others that were asked to leave after only one year. Learn to screen your tenants whether Section 8 or self pay.  The deal sounds like it needs more research. The reason is one bedroom homes are harder to resell. This will be a buy and hold issue for you. After your due diligence make a low ball offer. Gradually work up to what you are comfortable with. Don't be afraid to walk away and try something easier. If you make the purchase, notify Section 8 as soon as you take possession or they will keep paying the old landlord. Check the home page of Bigger pockets for a Real Estate Investor Association in your area. Find a mentor.