All Forum Posts by: Kyle B.

@J Scott, thanks again for the advice.

@J Scott, thanks for the feedback. Quick follow up question. Even though I didn't see any signs of water seepage, I probably won't know for sure until we get heavy rains in April. By then, I will have started the rehab on the house (assuming I get the property), so my rehab budget will already be set. Have you had to go through this process, where you need to buy now but won't know about repair due to seasonality? If so, what was your decision process? Obviously I can go to the conservative extreme and budget for the repair, but I'd hate to lose out on a deal because I over-budgeted for repairs.

Thanks! Appreciate the feedback.

I am going to be making an offer on a home and wanted to get some thoughts on whether or not I should budget to have an interior drain tile/sump pump installed. The home is a 1950's ranch with cinder block foundation, which is very common for the area. From what I could tell, the foundation appeared to be in good condition (ie, no bowing, no cracks). About 40% of the basement is finished and throughout I saw no signs of water seepage. 

If I purchase the home, I would update the area of the basement already finished and keep the remaining portion unfinished. What has other people's experiences been with these types of homes? Do you typically add drain tiles/sump pumps on an as needed basis and just make sure grading is going away from home, or is it more of a must have when a portion of the basement is finished?

Thanks,
Kyle                                

I think the article is primarily looking at home value appreciation as the metric to determine the success of a real estate purchase, while most real estate investors are making money by purchasing real estate at a below market value and adding value through rehabs / creating cash flow for the property.

So in my opinion, it is not an apples to apples comparison. A more accurate comparison would be purchasing homes at retail price and letting them appreciate in value vs. purchasing stocks at retail price and doing the same thing. In this instance, I would agree with the article; you're better off investing in stocks. However, real estate is much more localized, with much less efficient markets than stocks. So purchasing undervalued investments (ie fixer uppers, from motivated sellers) is much more of a possibility than in the stock market.

@Raymond Whitehead, it's difficult to answer your question without more specifics about your situation. If you give some background on yourself and what some of your goals are, you might get some more helpful responses. I will tell you that having a high W-2 income job will be very beneficial in that it will allow you to save money that you can invest into real estate and also will allow you to get loans from banks. Regardless if you are in this position or not, you will also need to educate yourself. Books and websites are a great source, but talking one on one with people will be the best way to learn about real estate (without actually doing it) and what avenue of it you want to pursue. Seek out those in your area that are doing what you want to be doing 1, 2, 5 years down the road and offer to buy them lunch. That is a great way to get connected with people. I have done this before and would be flattered if someone asked me the same.

Best of luck,

Kyle

@Jeff Valentino, I currently flip in Indiana and would like to expand to IL. In terms of specific area, initially I am thinking suburbs west of I-57, but without too much knowledge about the area it is hard to say what specific places I want to target. Essentially I'm looking for a realtor to help educate me on the markets, help with valuation of properties, and ultimately list my flipped properties with.

Hey all, I was hoping to get some referrals for real estate agents knowledgeable about the markets in the southwest suburbs of Chicago. I am looking to expand into that territory for flips and know very little about the area so far. 

Thanks,

Kyle

@Rick H. sorry to hi jack this thread, but I had a quick question for you. I've been sending letters to PRs of probate estates but typically not attorneys (unless I couldn't find PR address). My questions is do you think it's worth the extra time/money to send letters both to the PR and attorney for a single probate case. 

I wouldn't really think to send to an attorney. However, in the instances I have sent to attorneys, I have received some call backs. So some of my letters sent to them are taken seriously. Just looking at ways to maximize my time/money - thought you'd be a great person to get insight from on this.

Thanks,

Kyle

@Account Closed, so it sounds like there isn't much I can do at this point then in regards to the foreclosure, more or less a waste my time to pursue?

I have never been to courthouse auctions but always sounded like an interesting experience. Your suggestions about min price definitely make sense. Thanks for the input.

Anyone with advice on this topic? Thanks!