All Forum Posts by: Henry Lazerow

It's grandfathered in if built before the code changed to require 2 doors very common in Chicago. If someone illegally remodeled it and got rid of a door is where you will face violations.

Wear chinos and a dress shirt with sleeves rolled up. That's the go to business casual look. Safe for interviewing brokerages. Remember you are interviewing them pretty much every firm will take you. 

I do 10 million a year and wear nice jeans and a t shirt most of the time. Often the agents who wear the dressiest clothes actually close the least deals. Clients want someone relaxed not at all pushy and fun to work with not stuffy. Most important answer your phone! So many agents don't answer until a property is gone you got to be fast.

There was an agent at my old firm who would wear all designer suits with various $300+ belts and he did under 2 million a year it was funniest thing. 

I never use buyers agency forms as I like to be able to easily fire a client and vice versa wouldn't want anyone to feel stuck if I wasn't a good fit for them.

Theres lots of agents out there go set up coffee with a few others see if you find a better fit. 

No lol unless your making a lot of equity from the value add then maybe. 

The vast majority of people who buy a multi unit put 25% down do not fail. It's actually pretty hard to fail I don't know anyone who failed simply on a buy and hold. If you mean 97% don't ever invest it's definitely not for everyone. It takes significant capital/credit to buy real estate outside high risk gimmicky "pitches" those seminars are often focused on. 

I would look for a class A/B major metro and find the deals that cashflow. Atleast here in Chicago 99% of deals don't cashflow but there is so much supply that if you watch the mls for a month you can find 5-10 deals that do cashflow well. 

In terms of syndications. These will get hit much harder then directly owning real estate if the market does fall. The sponsors charge fees and are balloon mortgages unlike 2-4 units you buy which is a fixed 30 year that you hold throughout a downturn. 

Personally though I do not think we are in for a downturn. The FED seems to drop rates whenever economy is showing weakness which pumps up real estate. Lots of people on here thought we were at the top in 2016 prices have been steady going up since then. I do think there is always risk of a downturn though and buying with positive cashflow is important mitigation strategy. 

Kitchen and bathroom is what sells. If you can even do new counter tops/backsplash in kitchen, refinish the cabinets and remodel the bathroom you can often see a several times over return on that basic remodel from a sales standpoint. I wouldn't do just the bathroom if you can't afford to also do the kitchen though as they both need to be nice for it to be viewed as rehabbed. 

In Chicago buildings this age it's normal/expected to have some settling. If it's leaning a lot though I would pass unless you have a big rehab budget. I have seen before frame buildings were one walls leaning one way in front and leaning other way in back big PASS lol 

Rates dropped this morning just locked in a 3.75% through the above mentioned program. Reserve requirement is now 6 months. 5% down.

With these new low rates opportunity to capture higher cash flow at same cap rates as when interest rates were higher is now present. Definitely something to add in your analysis for next deal. 

Heloc can be a great tool. Calculate out the payment of not just interest but with principal pay down in 30 years. If comfortable with that ammount of debt.

If you are just buying 25% down real estate is not very risky (properly underwritten) it's more when doing rehabs or investing in high crime areas you hear of people flopping. Focus on class A/B in markets that cash flow.