All Forum Posts by: James Ihssen

Robert,

Sometimes it can be a challenge to find a patient, qualified agent, especially one that focuses primarily on investment clients.   Maybe include less information in your original email and see if that gets a response.  

As 

@James Wise mentioned, maybe copying an email here could give us a clue as to your lack of success.

Either way, this is the place to be for an investor.   There is a ton of information here to absorb and learn.   On top of that it is free for the taking, you just need to possess the desire and drive to learn and succeed. 

Best of luck!

I am not an attorney, but I have successfully files for multiple llcs in Illinois.    If you are extremely comfortable with every aspect of the filing docs, then you should be fine. 

With that being said,  any properly formed business entity must have a well thought out plan.   If your attorney is just gonna file some forms, do it yourself. 

If you have any doubt or questions, seek legal help as the ramifications of your actions could have huge implications down the road, when it will really matter.

Good luck!!!

I am active in SW Michigan, Berrien and Van Buren Counties.   I have a house in coloma for sale that needs minor rehab.  I do not have the time to put into it.  I will sell it for 35k, it is only a few miles to Lake Michigan and walking distance to Little Paw Paw Lake.

It does not need much work for a rental, maybe a bit more for a flip.  

Hey Alex!!  I am a Real Estate Broker and Investor and my (Illinois) target area is centered right around Aurora.  Aurora is a great place to invest, with that being said, there are certain areas that present different challenges, which really depends on your strategy, and the risk profile that you are willing to accept.  

Assuming that there generally A type areas, B type areas, and C type areas, with A being the best neighborhoods and C being on the opposite end; any of those areas are potential investments that will make money.  All of those areas exist to different degrees in Aurora as well.  There are some Fantastic Areas right around Aurora that make great investment locations also, including the Fox Valley Region, North Aurora, Batavia, Geneva, St. Charles, Sugar Grove, Oswego, Montgomery, Yorkville, Plano, Sandwich and Naperville of course.

Most of those cities outside of Aurora are generally A type and B type areas.  Great places to raise a family and hence they are great places to invest.

Those are generally my favorite areas these days, mainly due to the proximity of where I live and also my belief in the long term future of the area.

As a first time investor you may want to play it safe and focus on the better areas, but understand those areas are going to cost more per unit.  I would recommend having a solid grasp of the pros and cons of each, also drive some neighborhoods and get a feel for the area.

Also, management plays an issue in your question.  You may be a bit less hesitant to invest in C areas if you know someone else is going to be doing the 'day to day' management of the property.

Lately I have been 'shopping' for my real estate by school district.  Schools, in my opinion, drive demand and shape demographics, which will always keep a steady supply of renters / buyers available for my product, even 25 years down the road.

Regarding the tax write offs and holding property in your IRA, you are correct that you cannot write off any expenses... but the income is 100% tax shielded. So you will never pay any taxes on the income. If you can manage the expenses and maximize the income this is the way to go.

I also like the idea of lending my self money from my IRA also. I am planning on doing a few flips in my IRA to get my account balance bigger and bigger then I will have more options.

I also own property outside of my IRA, in fact this was the first time I have purchased Real Estate with my IRA @John Thedford

@Walter Davis    I really do not have such a system planned out in such a clear and cut fashion.  I often feel more like a deal hunter, or 'rain maker' as they used to say.  I have searches in the mls based on REOs, Short Sales, in and around my target areas.  I also have searches for any property under certain price thresholds.  I also use courthouse lis pendens lists and buy at the sheriff sales when I can.

I also have many 'rubber band map' based searches that get my everything in the target area.  This allows me to become a market expert in a specific area by knowing Everything that is going on in that area.  I love telling people 'oh yea that place just came on the market for xxxx and it sold for xxxx and so on and so forth.  It is an extremely effective way to demonstrate your knowledge of the local market!

Sometimes you just have to be in the right place at the right time with the mls.  I have gotten lucky with deals and also been beat out on many many many multiple offer situations where the highest and best has been asked for.  

I think the key is consistency.  You cannot beat yourself up if you cannot get a place but you have to keep writing offers and trying.  There is no tried and true rule for me regarding offer amounts.  It really is deal specific.  I always feel out the listing agent and determine if there is significant activity, etc etc.  Also the potential profit on the deal will determine my bid amount.  It is definitely not like it used to be a few years ago, there is much more demand for my bread and butter rental properties and fix and flips....

If I had access to more capital I would be writing 5 to 10 offers per week but for now I am limited in my resources and that is what is keeping me from writing more offers.  I always say I need to find five to ten motivated and savvy investors that I could consistently find deals for.   I love negotiating deals and the 'art of the deal'!!

@Mike Osterman  There will always be deals to be had due to the foreclosure process the key is just sifting through the deals to find the ones with equity on the table!! Good Luck!!

Hey there! It looks like you are on the right track! 

This is the perfect way to get started investing, in fact a term has been coined by @BrandonTurner called house hacking.  It is a great way to get your feet wet.  A way to learn the ins and outs of the industry while reaping almost immediate benefits of your desire to invest.

Way to go!!

I think that in areas where there are many investors then the group has the potential to be more of an organic type of thing, free of rules which may dictate mixtures and types.

On the flip side, in a small town environment, you probably are an added asset as long as you can bring anything relevant to the table, due to the size of the potential group.

As far as mastermind is concerned.. I would network like crazy with locals and people with knowledge from around the world.. that really is the beauty of the internet.  When I started investing there was no forum like this to bounce ideas off of people who share like minds and kindred spirits from around the world.  It really is an amazing thing that can easily be taken for granted in this day and age!!

Mike, 

I am a Realtor.  A Real Estate Managing Broker to be exact.  I manage a boutique brokerage firm downtown where I indirectly helped a few investors build a portfolio of over 200 rental units.  My personal real estate investing is mostly not in the City but in the suburbs and even outside the Chicago MSA.  

I also am a Rehabber.  I buy properties to fix and then resell.  It is fun and rewarding for me.

I am also a Long Term Investor.  I feel this is the key to building long term wealth for my family and my Legacy.

You are correct in saying that neither "make the good stuff" as far as "making dough" is concerned but  the key is to use the knowledge of your profession to adopt a strategy to build long term wealth.   Every Smart Realtor should be an Investor as well!!

For example, you could develop a strategy that dictated every third flip would be a buy and hold deal.  This would be a great way to get going.  

I actually prefer the sheriff sales for the best deals.  Buying on the courthouse steps is risky, but has its rewards as well.  You just have to be diligent.  

You simply cannot find the same deals in the mls as you can get at the courthouse.  The pool of buyers is miniscule compared to retail (the mls).  But you have to learn the business and know what you are doing!  Definitely Buyer Beware!!!!!

Good Luck!!

Update:  I figured I would update everyone on the status of everything that has been going on so far!!

First of all, to everybody out there just learning and waiting, if you have the means to do a deal, go out and find someone with experience and get it done!!  Opportunities are lost and wealth will never be made if you don't start taking action ie.. writing offers on properties....

I feel like it is all starting to snow ball for me.  In a FANTASTIC WAY!!!   I listed my rehab project in North Aurora at the top of the market and it sold in One Day!!!  

The place turned out fantastic though and I put a lot of attention to detail into it!

I am working on two flips right now.  One is a multifamily building with 10 units on 3 acres and the other will be my primary residence. 

My buy and hold leg of my real estate investing strategy has not progressed as much as I would like.  I am working on financing, not necessarily acquisition but for the stabilization of my portfolio.  I have established relationships with three of the main "hedge fund SF buyer turned landlord lender" companies and intend to work with them as I build my portfolio.   I also have a small list of hopeful portfolio lenders in my area but have yet to reach out to them.  I am getting there I just need to line up some more hard money for buy and hold properties.

There are still decent deals to be had out there, even on the mls, especially for buy and hold properties.  I go and look at properties at least two to three times a week,  and would buy a lot more if I could.  Some day when the market peaks I will be saying the exact opposite (think 20 years down the road when the bad taste of this recession has left everyone's mouth).  I remember how it was in the 2000s and when I see the market get like that again I will begin to sell!!

Good luck everybody!!! Get out there and do some deals!!!

Welcome Ryan!  It sounds like you bring more to the table then the average 'new investor'.  Good luck and I am sure you will have a great experienced here at BP!