All Forum Posts by: Henry Lazerow

I had a similar issue in Roscoe Village. Owner claimed 4 units it showed 3 units on zoning doc. They used an old water bill showing it was 4 units to get the zoning doc changed during attorney review. This is a possibility but may take some time. Do not close on the deal unless the zoning doc shows legal 3 units. A legal 2 unit is worth much less then a legal 3 unit. You can kill the deal  with no recourse as long as your attorney review letter said something along lines of must show legal zoning for 3 units. Consult your attorney* 

If you want to see the grandfathered in route that got it legalized feel free to PM me your email I can send a copy of the PDF. Either way though I would not close unless the discount in price is very significant as in six figure discount. 

Landon Hoon. Several here on BiggerPockets have/use him. PM me for his email 

@Anthony Mai you legally have to intend to live there for 1 year which it will say on your loan docs. After 6 months though I have seen lenders give approval to move. After 1 year you can just move out and rent all the units you do not need to refinance out of it when moving. 

I don't understand this whole idea of mentors. Real Estate is not that difficult. Run some comps buy at the bottom 10% of market prices and make sure it cashflows after vacancy/capex/reserves and you can't go too wrong. Find a broker who knows your local market and has been referred to you (can find this at any local meetup) they will lead you to deals. Have them put you on auto search and research every new listing, you will quickly be able to eyeball what has highest rent to purchase price ratio for your target area and pick out the good deals. Lots of strategies here on BP of how to then grow to more deals through helocs, etc. 

No need to pay a mentor. Go to a local meetup and you will find lots of cool people doing what you want to do. Most of them will be happy to help you for free. 

This 100%. Also pretty much all the wholesale deals I see are junk. They are often expired MLS listings trying to sell for the same price or sometimes more then they expired at. The profit is made by finding a sucker on either the buy or sell side. A lot of newbie investors get excited that its an "off market deal" and get taken for a ride.

Just become a broker. I now have repeat business from happy investors to buy and sell with me again and again. If your market has mid to higher priced homes and you work hard you will make six figures as a broker. As a wholesaler you can but it's a hell of a lot less likely. The wholesalers I know who are successful have huge marketing budgets and the personality to crush it in any sales job. 

Congrats :) 

@Brant Biba For City of Chicago we are still finding cashflow in.....

Avondale, East Humboldt Park, Western and Southern edges of Logan Square, Near West, Pilsen, Mckinley Park, Bridgeport, Bronzeville. These areas you can find ready to rent deals that positive cashflow with solid tenants/demand. 

At $350-450k I would recommend checking out Mckinley Park or Bridgeport they both have a very suburban feel to them and are right off I55 so if work in suburbs not a bad drive. 

In Chicago 2-4 units are in strong demand and appreciating. Higher end residential housing has leveled out and fallen in some neighborhoods. The demand for rentals from millenial renters in urban cities I only see strengthening and this trend continuing of growth even as other real estate classes eventually all level out or fall. 

Do any of my fellow BP members know of a 6 unit lender in Chicago who can do longer term loans (Looking for 20-25 year term or a 15 year term with 25 year amortization). This is for buying a 6 unit building stabilized. Under 800K. 

Most banks want a 5-10 year balloon 25 year amortization. Wells Fargo was willing to do a 15 year term 15 year amortization annually adjusting which is the longest term I have been able to find but being only 15 year amortization weakens cashflow. Does anyone know of a local bank that could do something similar with a 15 year term but on a 25 year amortization? Both myself and partner are very strong borrowers. 

Feel free to PM. Thanks

As mentioned above. Just get licensed if you want to be ethical. You will make way more money as a good broker then the average wholesaler and build long term relationships helping people out and being honest. 

My friends and I go to a lot of networking events and we always joke about how 99% of the "wholesalers" we meet have never done a deal and say they are "just getting started" but 99% of the brokers we meet have at least done a few deals. 

Bottom line the best way to make money wholesaling it to sell books to newbies with barely any money on how to wholesale LOL