All Forum Posts by: Julece Glaum

Syed,

Its a pleasure to meet another DePaulian!  I would suggest you look around and see what areas you like in general.  You can start off looking for deals by doing a mailing. Look in the county records, cookcountyassessor.com and cookcountytreasurer.com to find Parcel Id Numbers or PIN's and look up tax records.  You can then see where tax bills are going.  That is how you can start asking if people want to sell,  that way you can work out deals sans a realtor.  I do use a broker and I can pass his name along to you if you want.  

When I started I found that I did a better job understanding  analyzing better when I worked out the deals myself that helped me get comfortable with numbers based on what I sought as a return.  Often brokers can give you leads but its up to you to find the deals that work.  Hope this helps. 

HI Eric,

Welcome to Chicago! 

Getting started can be difficult but you've asked the right questions.  What are you looking for in terms of property style?  That can determine where you start looking.  You can start with Baird and Warner's website.  They have a great feature to show what properties in the area you settle on sold for they give solid comps.  Start making offers.  After awhile you won't care what people think if you know that the offer is based on real comps.  You can also work with an agent that can get you the comps.  That is a free service and once you start making offers they can see you are serious.

Finally I would say you can start to price things that are commonly changed in a rental, kitchens, baths flooring.  These things can be priced and are usually similar in price anytime of the year.  You can buy them in bulk or seek out places that allow for you to use store credit so that you can buy when you need them.  Overall you must get started getting comfortable analyzing deals and making offers.  Hope this helps!

OK 10 days have passed and here is what I have discovered:

The two homes without tenants one is occupied, presumably by the previous owner they other is vacant.  In Cook county, it could be awhile before the owners are out and that makes that home extremely less attractive.  The other three still work.  

They are individually deeded, but I thought it would be easier to keep track of one mortgage payment.  *I own another business that is very hands on at the moment.

Because two units have renters, I am budgeting for standardizing the units so updating not really doing much more than that.  So about 5-7K each which will give me a value around 60K each.  Not much in the way of equity but it will cashflow which I can use because I will be doing my core business full time.  The last unoccupied unrented unit my sister agreed to rent from me (yeah I know never do business with family!!!)  But because I am aware that she has been paying rent on time for the last 3 years and it is above what I would charge her I will be ok.  Plus she is aware that I am a strict landlord with very little tolerance.

So the number now look like this:

Three homes for 19,500, 20000, and 30000. 15000 to 21000 to rehab with ARV of

60000 a piece.  Not too bad especially since it's a buy/hold for equity and cashflow.

Tony,  great to hear from you.  I haven't been in the market but I'm back!  Where would you suggest.  I'll email you the list and you can let me know.  I did some quick BPO and comps and I agree.  I also see that commercial may be a better idea.  thanks for your response.

@MindyJensen, thanks.  These are in Riverdale outside Chicago, IL

Hi BP:

 Here's the deal, literally:

The four houses are in the suburbs of Chicago in primarily stable locations. My problem is that the deal seems skimpy for a wholesale so I thought buy and hold. My background in commercial made blanket loan seem like a perfect fit but I'm not sure where to look.

The properties are being bought w/deed from a tax sale buyer.

Price 19,500

30,000

32,000

and 20,000

for a total of 101,500

Two have renters paying 500 and 1100 to the tax buyer currently and I have two renters lined up for the other two. If I wholesale I'd be looking for 3000 for the two with renters and I'd keep the other two for the cashflow charging 750 each.

My estimation is that if the buyer wanted to they could put 15-20 into the rented ones and the ARV would be around 55-60. See too tight for fix/flip, but good for buy/hold strategists. Property values are in the 50-70 range for O/O

But if I keep all four, I'm getting a nice cashflow that can help me in my primary business at the moment.

The wholesale seems to only work for 2 of the four if I'm right but I'm new so I may be way off base. But I doubt it.

@ChristopherBrainard Thanks for the reply.  Here's the deal, literally:

The four houses are in the suburbs of Chicago in primarily stable locations.  My problem is that the deal seems skimpy for a wholesale so I thought buy and hold.  My background in commercial made blanket loan seem like a perfect fit but I'm not sure where to look.

The properties are being bought w/deed from  a tax sale buyer.

Price 19,500

30,000

32,000

and 20,000

for a total of 101,500

Two have renters paying 500 and 1100 to the tax buyer currently and I have two renters lined up for the other two.  If I wholesale I'd be looking for 3000 for the two with renters and I'd keep the other two for the cashflow charging 750 each.

My estimation is that if the buyer wanted to they could put 15-20 into the rented ones and the ARV would be around 55-60. See too tight for fix/flip, but good for buy/hold strategists. Property values are in the 50-70 range for O/O

But if I keep all four, I'm getting a nice cashflow that can help me in my primary business at the moment. 

The wholesale seems to only work for 2 of the four if I'm right but I'm new so I may be way off base.  But I doubt it.

I know I should have a buyer's list and I'm working on that but in the interim a deal came up here in the Chicago suburbs and fits a few needs of mine. My question: Should I do a blanket loan as these are 4 SFR's two with renters and I have two renters for the others.? Not sure on this one.

Tim thanks for that.  Knowing what to say is as important as knowing who to say it to.   Thanks everyone for your help. 

Thanks.  That's a great idea.  Deals move fast here in Chicago so I will put things together and then post it.