All Forum Posts by: Erik Hitzelberger

I am interested to see if anyone has a better answer, but we simply repost and it eventually works.  This is actually minor.  If you do this enough, you will have ads 'hijacked'.  People will copy your ad, change the rent and/or contact info.  Some will be phishing others seem to do it for the perverted pleasure of it.  Roll with it.  

If I am working with someone I know well, I may tell them my target number.  Note that this is not necessarily the max number.  If it is a small project, $5-10K, I may do this as well just to save time.  Otherwise, I prefer to get 3 quotes and ask the contractor I feel best about to match the lowest price. 

Going from $321 to $315 saves you less than $25 / month.  This is fairly insignificant.  Your kitchen and bath rehab costs seem high especially considering you aren't getting a premium to the market when finished.  That being said, this is not a stellar deal.  I don't know how well homes cashflow in Chicago, but it sure seems like you could do better.

With little to no money to put down, it's going to be tough to get owner financing or a lease with an option given the impending deadline.  I'm usually pretty risk adverse, but now may be a good time to step-back and regroup.  Put the big stuff in storage, sign a short-term lease on the smallest place you can tolerate and start laying out your world domination plan.  Purchasing the MF prop @Ned Carey mentioned to use as a base of operations and an income stream would be an excellent first step.  

Here's the somewhat smart-*** version...

1) Because the owner stopped paying the mortgage

2) Take a day off work

I say 'somewhat' because the real version isn't too far off

1) The home is in pre-foreclosure because the owner stopped paying the mortgage.  There is no way to know why he/she/they did this other than asking them.  In my area, the Lis Pendis filings are available online.  SOME have the amount owed.  Note that every month, the 'payoff' increases as more fees accrue.

2) If it isn't online, the best solution really is to take a day off and figure it out.  Write down every step in the process in excruciating detail.  After that, hire someone for $10/hr to go down there at some regular interval (once a week, month) and update your list.

If the properties are on the MLS, find an agent to work with. He /she will take care of preparing the offer for you.

Many REO sellers will have their own addendums that you will have to sign. These generally take precedence over the purchase contract. Some will have deed restrictions that will prevent you from wholesaling the property (at least traditionally). Fannie Mae homes have a 90-day deed restriction. HUD homes have no restriction. Understand the restrictions before you get yourself into a situation you can't easily get out of.

Make sure you under the rehab costs, carrying costs, and closing costs that the rehabber will incur.  Rehabbers get really annoyed at wholesalers who bring them lousy deals because they underestimate or forget about certain costs.    

@Scott Kelley - If you want to start a Property Management Company, don't treat it as a side business. Act like it's a vital piece of your REI business. Spend the time to learn how to be an excellent property manager. Reading everything that @Chris Clothier has written is a really good place to start.

@Neguiel Hicks  - You need to figure out your long term goals first.  Do you want passive income from rental properties or are you investing in RE to get to another phase in your life?  Once you know the goal, figure out what strategy gets you there based on your available skills and resources.  Without doing these fundamental first steps, you are just wandering aimlessly.  Whatever decision you make, focus on it.  Don't try to learn landlording, note investing, and wholesaling all at the same time.  Master one and then move on to the next strategy.  

Looks like you've done a lot of really nice work!  Good luck on getting the last few things finished and getting it SOLD!!  Personally, I'd sell the thing and get on with the next house.  You'll make more in revenue than you'll save in taxes.  

@LaTisha Crawford   Greetings from down the road in Louisville.  

Creating a legacy for your family is certainly a noble goal!  I love your strategy of using Fix and Flips to ultimately finance your MF holdings.  This has been my basic strategy over the last 7 years as well with the exception that my buy&holds are SF (mostly college rentals).  

I understand the Cincinatti REIA is pretty good. You might check them out at http://www.cincinnatireia.com/ .

Good Luck!