All Forum Posts by: Michael Caruso

Hey all! 

I'm in the beginning stages of finding properties in the Chicagoland area- I've been hearing that the properties on the MLS aren't the best way to get a good value on a property, especially if I want to BRRRR. In the future I hope to begin direct mailing- though for the time being I've seen a few FSBO website- in particular, byowner.com.

Do any of you have any experience buying from these databases? Would you advise for or against it? Should we just stick the the MLS and direct mailing?

Thanks!

@Shane Ward good to hear a positive story about hard money- hopefully will get a chance to learn more about it in a future deals...

I did something that I should have done the first day when we found the property- I called the broker to get further details. The damage is actually over $150,000- lesson learned. Never run numbers based on photos alone- speak to the broker first, then find a contractor to walk it... 

@Jeff Burdick Thanks for the insight... What about if we hired a contractor to come in and estimate costs for us beforehand? Would that be a safer option or would you still rule it out since its a first time investment? 

Actually I should also mention that I am currently house hacking a two flat so this wouldn't "technically" be my first investment...

@Rhonda Wilson Thanks Rhonda, that is good advice... I'm sure it's different everywhere but do you have a rough idea of how much a contractor would charge to look at a building and estimate costs?

@John Casmon Thanks for the tip! I'll check it out...

Hey all!

I'm a new member in Northwest Chicago looking to make my first investment. My partner and I found a three-flat property on the MLS located within the northwest side of Chicago that happens to be a foreclosure/cash only deal. The property is currently vacant and will likely need 3 updated bathrooms, refinished floors, new paint and new siding for the garage, however we haven't toured the property yet... I'm roughly estimating the cost to repair after purchase will be around $10,000.

Because this is a cash only deal, we will likely need to look into hard money lenders in our area that will cover the entire building cost as well as the repairs. However, based on my estimations, the cash on cash return will likely be around 14% and because it is currently bank owned, we will likely be able to get it for $50,000 less than it is valued for.

For those of you who have been in the game for a while- do you think this is a good idea for our first deal? I admittedly do not know a lot about hard money lenders yet, but I've been hearing a lot lately from my broker friends that they are pretty risky and have enormous interest rates.

Any advice is appreciated!

Mike

Have you considered recording the meeting? I'd love to learn but don't think I'd be able to make it this Monday...

This is right near my office, though unfortunately I live on the North side and try to stay away from the office on weekends. Are you planning on having another one of these on a weekday sometime soon?