All Forum Posts by: Matt B.

Anyone have any insight on Summit County or Akron area? I have been looking at some SFR and small-multi opportunities. I have a couple of good leads for Barberton, but I am not sure on the area. Any locals have any input? Good place for buy and hold? Good area for fix and flip? Thanks! Any input is appreciated.

- Matthew

Good afternoon,

I am looking to invest in Chicago and met a contact named Michael Tolliver.  He is a commercial broker and works at CRER.  Has anyone worked with him before?  How were your experiences?

Thanks in advance for your responses!

 Thanks for the info Dan.  

 Hi Mike,

Thanks for the quick info, I definitely plan on getting a PM.  I understand its worse than a B area.  Just wanted to see how it compared to south side Chicago which I visited a few weeks back.  Sounds like it is on par but again everything over there seems to be block by block.

Hey Mark,

Funny I tried to call you today actually to pick your brain. =)

I am looking at: Calumet Heights, Bronzeville, Woodlawn

Do you manage those areas?  Any advice?

Hi,

I am researching investing in South Chicago in "better" areas with less crime.  Does anyone have any PM references for south side of Chicago? 

Thanks.

- Matt

Hello BP world,

I am looking at investing in Chicagoland and eyeing "better" parts of the south side to maximize CAP rate. Seems like Indiana has more favorable taxes and landlord laws... Does anyone have experience investing in East Chicago, Indiana? Is this area better than / worse than other south side areas? For example Calumet Heights, Bronzeville, Southshore. I know it is very block by block, but I was just wondering in general if there are red flags with east chicago, IN.

Is section 8 in Indiana as popular as Illinois?

 I am also interested in finding partners in state.  I am planning on moving to Chicago for 6-10 months to purchase and rehab then move back home.  If I can find a good on the ground partner I would want to do more deals remotely.  Thanks in advance for your thoughts.

- Matt

@Derrick Craig , the article on homes under 30k was great.  Also agree it seems like it is all about trust and building the right connections and team.  I think I will take a trip out to my areas soon and start looking at properties and meeting contacts.  I PM'd you about the owner financing also.  Thanks!

- Matt

Wow, lot's of good discussion going on here.  Thanks everyone for their input.

@Trevor Ewen I really like the idea of looking through Facebook and linked in.  I tried Facebook and found a couple potential options.  Thats a great nugget!

@Engelo Rumora great advice on your articles.

@Derrick Craig Do you have any experience getting owner financing out of state?  Advice or previous deals you've done?  That sounds intriguing.  Is it common?

@Ali Boone and @Mike D'Arrigo , I agree that whether whole sale or building a separate team you still need to build trust. Also, minimizing my time spent on investing is ideal (after I learn the process sufficiently). I think a good strategy for me is to visit my investment areas, then look at turn key properties, MLS properties, and whole sale options. Talk to people and feel it out. Mike, also the fact of avoiding leasing fee and vacancy during the properties first year is intriguing.

@Ali Boone Why do you think turn key is less risky then building a partnership out of state?

Thanks again for all your input.  If people have specific success or failure stories with options 1, 2, 3, 4 please share them and keep the great advice coming!

Hey BP community,

I am looking intently on doing some buy & hold out of state investing and trying to come up with a good strategy. Some of the options and pros / cons i have been evaluating are listed below:

1) Turnkey -

Pros - hopefully easier / stress free, little $ down (conventional loan, no repairs)

Cons - i have heard sometimes it can not be easier / stress free in some cases… Also properties and repairs may be marked up compared to other options (in other words, not getting the max return on your cash)

2) Buy from Wholesaler. Build a team of GC / PMs

Pros - Cheaper costs, more trust with team members, likely higher cash flow / appreciation potential

Cons - requires more hands on work in location, time to build team, cash purchases,

These may be the extremes of the spectrum and I am sure there are a lot of options in between such as using a traditional agent, etc. I have also been thinking of a way to try and get the best of both worlds through a hybrid type of approach / partnership.. which leads to option / idea 3.

3) Find wholesaler/boots on ground who wants to do buy and hold, but doesn’t have as much cash… create partnership. This creates 2 parties incentivized to do the best thing for the partnership.

Idea: wholesaler finds deals. Both parties put cash in (maybe as the out of state investor I put in more up front, 65/35… 70/30?).  In location investor gets GCs to give quotes, and organizes any needed rehab. OOS investor works to get mortgage, insurance, coordinate w/ PM, etc.  We refinance the property and end up as 50-50 split.  

Does anyone have any thoughts on the feasibility of something like this? I am really trying to get good prices, maximize my money, and build a solid team through incentivized teamwork. Sound like a crazy idea?!? Haha. I would like to hear your thoughts and experiences on if you think it could work… Or if you have tried something like this.

I am looking into the areas of Indy and Kansas City mostly… SFRs and small multis.

Thanks for your input.