All Forum Posts by: Jim Gramata

If you know people looking to unload inventory please send me their names!! I've got lots of investors looking including myself. The state is a disgrace and the city is a fiscal disaster but I'm still bullish on long term investing in the region.

It depends on the terms in your contract but right off the top you're owing $7.50 for every $1000 in purchase price to the county and city for their piece of the pie. That's 0.75%. If you're lender is requiring escrows it's too hard to predict but generally you're looking at another 1/2 to 3/4 point so that's 1.5% of your purchase price. Good news is you should be getting seller credits for at least the prorated 2015 and 2016 taxes not yet paid. Your lender should know a better figure (ask them for the TIL) but 1.5% is a good ball park. Good luck and congrats if your under contract.

Ive found Chicago Title to be the old school mainstay selection for real estate in the region but I agree Proper Title is another good option which I've found to be much less expensive than CT. Good luck!

"Thanks, Jim. I guess we'll just have to work with the city and get through this. God I hate Chicago."

Don't hate Chicago. It is an amazing city with great profit potential. You are just experiencing the learning curve with big city bureaucracy. 

Glad you got the vacant building thing cleared up. Yes ordinance now requires vacant buildings to be registered. The City or their minions were looking to hold you hostage to collect revenue which they've done. Here is that ordinance which came about from bank owned vacant buildings which were causing lots of problems across the city. 

https://ipiweb.cityofchicago.org/VBR/assets/docs/o...

No an inspection is not a requirement. 

Yes the City holds full dominion over your property in terms of repairs. If they cite you it has to be done. Period. You can appeal but that is not a good idea really. Frankly they usually are accurate on what repairs need to be addressed. They could find stuff on most any building across the city but once you raise the red flag they'll come at you from any advantage to again fill their revenue stream and of course protect public interest. 

Wait is this a fire rehab? Skip the comments then about the exterior work to save interior repairs!

It depends how many layers on the tear off but it looks like you've got quite a few there. Regardless no way you pay that much unless you hire a union company like Allendorfer. 

I've done multiple tear offs and you're budget (assuming a standard building on a standard 25x125) is in the $8000 to $12000 range depending upon the extent of plywood replacement and R value on the insulation you put in. I paid $8k last year on a tear off in Bucktown. 

I suggest putting in at least 4 inches to cap your building and improve energy consumption, At the time of the tear off coordinate renting a blown insulation machine too and you can add insulation from the roof into the attic/crawl space above the ceiling level to avoid interior repairs. It works wonders especially if you're paying the heating bills. Even if you're not get copies of how low your heat bills are and use that in your marketing when renting your units. 

Good lucK!

I think you're on the right track to renovate what you have already to maximize the existing investment. Don't over improve. Then once that is stable you pull equity money on a refi and use that for your next investment. Then the cycle continues. Talk to a lender with the three of your financials before to be sure the exit plan will fly. 

I can't talk too specifically about the LLC details. That would be a RE attorney in the area to be sure you don't get bad advice

Best of luck!

Hi Ryan

I have a local bank that get you a 5% down on SF and 2 to 4 MF but owner occupied for the first year. LMK if you're interested in talking to him. He understands investments quite well. 

Where is the hot area you're focusing along hipster highway? 

This is great Joe. Thanks for this outline. Very helpful information.