All Forum Posts by: Larry Smet

I don't think it's common to charge back the water to tenants in Chicago so it would make it more challenging to find tenants. 

Always make sure you change the water to a metered account if it's unmetered.  Not only is it typically significantly less expensive but the metersave program guarantees that your bill won't be higher than an unmetered account for 7 years!  You can sign up for it through www.metersave.org or by calling the city water department.

Don't forget to register to do business in the state or else it can mess up the legal action if it comes to that - I'd consult with an attorney that specializes in evictions here.  PM me for more details if you want.

Hi @Douglas T.  - good question.  I'd suggest getting several quotes.  The more contractors you talk to, the more comfortable you'll be.

Also, get everything in writing - even if it's a small job write down the scope (an itemized list of each item that needs to be done) which will be put into the contract.  I'm not a lawyer but even for a small job you'll need to have the parties identified, the scope of work, the draw schedule (when and how much you will pay the contractor) and any other conditions that are appropriate.   You should write it - a lot of contractors are happy to sign it if you've written it up, but don't have the time/patience to do it themselves. 

If you're worried about a contractor taking a deposit and then never showing up to do the work, you can find out (or choose) the materials that will be needed and buy them yourself to supply to the contractor.  And then pay the contractor for each item in your scope of work as they finish each item.  Don't forget to keep a hold-back (a small part of the contract price) until you're sure the work is done properly... it's your "insurance" that the contractor will find time to come back and finish the last few little things (commonly referred to as a "punch list") that never seem to get done unless you keep a hold-back.

Good luck!

Hi @Zach Fox - thanks for replying - it would be great to meet up and compare notes while I'm in Indy. I'll PM you to arrange a time.

Thanks @Scott Steffek - I'll be coming into Chicago Nov. 6-10 to check in on my flips and rentals there so if I can squeeze it in I'll come down to NW Indiana to meet you that week.  I'll PM you to arrange a time after I lock down my meetings in Chicago.

Any Chicago investors want to meet up while I'm in Chicago?  I'll be staying at an AirBnB in Bucktown.  Days will be pretty packed but evenings will be more free.

Don't forget to determine how much deferred maintenance there is - i.e., how much will you have to pay to keep the properties maintained when you first buy them or within the next few years.  And don't forget to factor in the vacancy rate for your area and type of property.  Vacancies (and turnover costs such as repairing the unit to make it rent ready and maybe paying a leasing agent) are potentially huge expenses that MUST be factored in.  Good luck!

Thanks for the offers @Casey Speer and @Josh C. - I'll PM you to figure out logistics.  Also, thanks for the suggestion re breakfast Josh - my AirBnB comes with breakfast but maybe I'll have to skip it one day to try the garf!

Thanks @John Cohen - I'll let you know what I find  :)

Thanks @Alain Perez-Majul - will do!

Hi Indy BPers - I'm coming to Indianapolis on Nov. 1-6 to start looking at the market and build a team there.  I'm hoping to meet with as many local investors and potential team members as I can in the 5 days I have there.  I'm specifically interested in referrals from investors on investor-friendly and reliable agents, wholesalers, contractors, attorneys, inspectors and property managers.  I'm also very interested in any recommendations of foreign-friendly lenders on Indianapolis real estate.

I live in Toronto but have been investing in US real estate since 2012 - mainly I've been flipping in Chicago (and Orlando) and more recently starting to acquire rentals as well. I work with private lenders, equity/funding partners and (occasionally) hard money lenders. Most of my partners and private lenders are Canadian. I'm interested in learning the market better (and establishing some specific farm markets within Indy) - specifically I'm interested in SFR rentals, SFR flips and small to medium sized multifamily (in that order).

Any suggestions would be greatly appreciated and I would be delighted to meet any other investors willing to share their experiences while I'm in town.  I'll be staying at an AirBnB in Garfield Park but will be roaming the whole city so please let me know if you have some time!

Thanks,

Larry