All Forum Posts by: John Clark

Hi all,

I’ve got an appraisal question. The subject property is a single family pre-fire brick build in Pilsen that was originally built as a 2 story home on a slab. Both floors have 9 ft ceiling height. The parcel is “sunken” with raised front street and back alley. Access front door from street through stairs to the second floor. The upper level is designed as the living space with some bedrooms and there are 3 bedrooms on the lower level. No part of the lower level is below ground compared to the parcel level. But it is below street level. I know in multi family buildings of this kind the lower level apartment is usually legal. But I’m wondering if the lower level will appraise as GLA in a single family. The lower level is currently only partially finished but the plan is to finish it the same way as the upper level. Although single family homes are rare in Pilsen, I’m guessing since this is common here there must be an appraisal standard for these sunken single family builds? 

I'm looking for a realtor that specializes in north suburbs a southwest suburbs of Chicago for multi family long term rentals and SFH for flips. Thank you.

Has anyone found where prices for multi family buildings make sense around Chicago? When I look at rent prices versus mortgage, taxes, utilities, multi families are priced so fixed monthly costs are higher than the rents. Or you'd be making $0 monthly with 20% down. Am I looking at this wrong or am I looking into wrong places?

@Greg M. Although, I can appreciate a different point of view, you are Wrong... The easiest way NOT to get sued for discrimination is to NOT discriminate. Not by setting unobtainable standards.

Wrong again... My job is NOT to do whatever the owner tells me and to meet their criteria. Talk about open up yourself to lawsuits! You have no clue what owners ask for - no old people, no kids, no single people, you really don't know what you are talking about. We follow the laws to the strictest standards despite what an owner may want. Our job is to execute and provide a great product to owners and tenants, not to do what every owner wants.

Quote from @Adam Bartomeo:

Whatever multiple you use, it should not be a hardline yes or no. It should be a gray area or a guideline. Our goal is to find ways to say yes, not try and find reasons to say no. If they are below our 2.5 times rent multiplier we simply ask for advanced rent based on the added risk involved. 

Personally, I would not work with an owner like you due to inflexibility. I have found that ridged owners should not own real estate as they do not understand all of the "what if scenarios". 

It should be a minimum, not a grey area. If you give a number and then accept certain people with a lower number, you're opening yourself up to discrimination claims. You really want to explain to a jury why you ask for 2.5X, but took the white guy with 2.4X, but declined the black guy with the same 2.4X?

I'm kind of stunned by your attitude. You would not work with this person due to their inflexibility, while it is your flexibility that will end up getting them and you sued. If you're willing to set standards and then look for ways to say yes to people who don't meet those standards, I don't think you understand the "what if scenarios" that are going to get you and the property owner sued.

Your goal should not be to find ways to say yes. It should be to find a tenant that meets whatever criteria the property owner (the person paying you) sets. 

An assignment fee if $10k is reasonable but asking for $40k or more is obscene and makes it virtually impossible for flippers to make money. This type of silliness needs to stop 

@John Clark Thanks for asking but I am unsure how that has any basis on the thread. How do you get paid?

Whatever multiple you use, it should not be a hardline yes or no. It should be a gray area or a guideline. Our goal is to find ways to say yes, not try and find reasons to say no. If they are below our 2.5 times rent multiplier we simply ask for advanced rent based on the added risk involved. 

Personally, I would not work with an owner like you due to inflexibility. I have found that ridged owners should not own real estate as they do not understand all of the "what if scenarios".