All Forum Posts by: Lumi Ispas

@Paul Welden, Thank you for the name correction and confirming it is still around. I just had a client using is last month and several using it in the last 6 months. I also called my lender and reconfirmed it is just semantics. The program is around and is called "Limited 203K". 

@DeMonte Dinkins, Congratulations on realizing the big money is in "buy & hold". If you don't own a home yet, your first building will be best bought using leverage. So buy owner-occupied a 3-4 unit building using the house-hacking method, meaning having 3 out of 4 units pay for the expenses and having the 4th unit for yourself to live for free. 

If you are a veteran you can accomplish this purchase using the GI bill and only a minimum of $1000 our of your pocket and having the seller paying the closing cost.

If you are not a veteran, you can use a 3.5% down FHA loan and if the property needs work, the bank will even give you the money to fix it up, that type of loan is also 3.5% down FHA renovation loan!

Much good luck to you!

@Hai Loc, US market is different than the Canadian. I agree with @David N., Karen & Mike Wilkinson. 

Most of the high end buyers have taken a hit on the stock market, and they are either renegotiating or exiting deals, while the entry-level buyers finally have a chance to grab properties, as usual on these properties are multiple offers and if they are lucky enough to already be under contract, some are trying to get additional credits, some I see just closing.

Over the last 10 days, I got daily multiple new clients, so in Chicago, the market has not stopped. Life goes on. Kids will start new schools this fall, students will finish colleges and move on. New households are formed, you see the picture.

The showings are the issues, not the buyers not wanting to buy! At these low-interest rates, all my house-hacking buyers are hoping to be able to place contracts on good 3-4 flats even sight unseen and see the properties at the inspection.

The inventory is still low and mostly only vacant properties can be easily shown, so these properties will sell first. I am personally waiting on two new listings to place on the market on April 1st after they are vacated, even though they are ready to go live now. I am also looking at adding floor plans and video marketing to the professional photos to help the buyers that really have to move.

In the end, this shall pass too.

@Account Closed, That's a great question. Bank of America had already announced that they'll let their customer defer mortgage payments up to 120 days. I expect all the other banks to follow suit. As you mentioned, nobody said that tenants should not pay their rent. We'll all have to use good judgment on how to handle rent payments.

Hi @Sebastien Beauboeuf, that's a great question. Everyone is concerned about what's going on and they are right to be. At the same time, the last time the market went down it did recover. If it will take 5 or 10 years, it will recover. Personally I prefer to sit in a mortgaged property that is getting paid off and lock in a low-interest rate. When you buy for long-term with low monthly payment, the cash flow benefits outperforms an asset purchased later at a slightly lower price with a higher interest rate and lower cash flow.

If you find the right property where the cash flow makes sense - I will say - buy it now!

Over the last 2 weeks, I've been getting multiple calls from first-time buyers and investors looking to get in the market and buy now. As Warren Buffet said:

Good luck to you and reach out if you need help!

@Sebastian Hernandez, keep in mind one more thing. Not only the property has to appraise, but the property also has to pass the self-sufficiency rule, meaning 75% of income (if it's a 4 unit - the total amount of rents from all 4 units) has to cover 100% of the mortgage payment: PITI.

In Chicago that's a challenge, so make sure your Realtor knows how to navigate everything that will pop-up after you place the property under contract.

Lastly: If the property needs any work, take advantage of the 203K rehab loan or the streamline FHA loan ( lower amount of renovation cost, up to $35,000 including reserves).

Good luck to you!

Hi @Danielle Smith, I have someone perfect for you. I'll send you his info!

@John Westbrook, Are the building in close proximity to each other, and what neighborhood? You can PM if you prefer!

@Brandon P., - Chicago is the answer! It's considered to be the 8th most powerful city in the world and as Real Estate is one of the most undervalued in the USA. On the below list, we have only NY and LA more powerful, however the cost of RE is at the peak, so where would you better buy?

Google, McDonald's worldwide headquarters have moved here and a lot of tech & new start-up companies.

https://www.businessinsider.com/most-influential-cities-in-the-world-2018-5#8-chicago-illinois-14

https://www.americaninno.com/chicago/newsletters/chicago-just-jumped-in-a-ranking-of-tech-hubs-worldwide/
Yes, property taxes are high, and, in the end, the tenants carry that burden, not the landlords.

And let's not forget, Chicago is one of the top travel destinations in the World, so there is a lot of money to be made in AIRBNB if you like that route, plus as you actually moving in this town, as you are also going to live your life where you move - as a traveler, you'll appreciate a city that you'll totally enjoy with lots of public transportation, world quality art, architecture, music, sports, parks, restaurants, etc.

https://www.chicagotribune.com/travel/ct-trav-chicago-rankings-20191231-20191226-azdidiyibrfu5h6wwyyntbq5c4-story.html

Gook luck to you!

@Bryce Strange, Congrats on getting started, as I notice you are new on the platform, there are already a lot of great messages on "how to find a mentor". 

To give you just the jest of it:

1. Go to investor meetings in your area and talk to the speakers, see who does a lot of deals and ask them to mentor you.

2. Go to Real Estate educational events, some will be free, some will have a nominal fee and check for the same people as above.

3. Check out your MeetUp events in your area for any RE groups you are interested in, and reach out to people.

4. If there are bus tours, join them.

After going to at least 10 events over a month you should be able to distinguish who talks a big game and who actually does the deals. The trick is to ASK, ASK, ASK!

Good luck to you!