All Forum Posts by: Prashanth Mahakali

Hello Mitesh.

It all depends on the location of the 6 unit. 

I have experience in Chicago's south side. If your experience is in townhomes, I would start with 3 flats before you move to 6 units. I find 3 units to be an ideal entry level rental building for the investor. irrespective of the neighborhood, it becomes important to have a great management company to maintain your building and answer service calls. 

I am happy to share my experience and connect you with reliable people to form your team! Good luck!

Nino,

Its great that you have realized that sometimes investors / rehabbers do work without obtaining building permits. The common excuse for this is "I dont want to deal with the city?!" or "It takes too long for permits" etc. 

The informed investor / rehabber accounts for the time delays, obtains permits, passes all city inspections and proudly declares it in the listing. 

As an Architect, I have helped several clients when they are about to close and they get hit with a "Stop work order". Avoiding building permits makes you vulnerable. A rogue contractor might call the city on you and you have to ultimately get a permit. 

So its your choice. Be an educated investor, get permits, do things right and once OR be an investor and just do things and hope you will make a profit. 

Good luck!

Shawn, I am happy to connect you with more than a few. Do you know if an Architect is needed for the rehab? Most often talking to an Architect would be a great way to get the process started. Please let me know if you wish to discuss. Thank you and good luck.

Mike Spielmann I have a very reliable, effective and competitive management company for south side of Chicago. How many units do you have?

Solid income generating 2 story brick building with awesome tenants. Building is professionally maintained by a management company. Email for details ior google address to see MLS listing

https://www.redfin.com/IL/Chicago/1206-W-52nd-St-60609/home/13953773

Welcome Teniya,

I have been where you are now. I now know not to get started with real estate investing without having a great team in place. Reach out for any advice and happy to help.

Prashanth

Jen, If the work involves removing or relocating walls, plumbing, electrical or heating trades, it's a good idea to check with the village or city if a building permit is needed. The village official will tell you every contractor you need to get the job done and if the project requires a permit and drawings. One of the important professional left out in the process is the Architect. He/She is your ally in determining the best way to rehab or remodel. Most Architects offer complimentary initial consultation. Then check out websites like Homeadvisor and Angie's list to get contractor referrals. Arm yourself with knowledge and you will never waste a dime. Good luck!! Prashanth

Frank,

In order to search for PINs in cook county, go to:

http://www.cookcountypropertyinfo.com/Pages/PIN-Se...

If its a different county, let us know and there should be similar portals. 

Good luck!

Prashanth

Lucas,

This is a risky proposition for you and anyone attempting to give you a solution. The short answer is go through with the deal only if you have a substantial amount of money to spend to repair the situation. If the numbers are tight, walk away. 

Long answer: First your fix the water source and that may stop further deterioration. Second you have to remove and replace with a concrete foundation wall in its place and possibly underpinning. Most importantly, we cant tell what kind of loads that corner is carrying and whether it is capable of carrying additional loads as the building continues to be occupied.  You need a structural engineer to assess and draw a solution which you will use to get a bid. Further more, stay away from contractors who tell you that you do not need a  building permit for this work. Structural issues are serious and should be approched with caution. If this is a long term hold and has strong potential, assemble a good team of professionals, get a permit, do the work once and be at peace forever. 

Hope this helps and good luck! 

Prashanth

Dan,

Sorry to hear about your experience. Its never good when partners dont return calls. Its very frustrating and I can related to this from my first rehab project. 

Moving forward, it looks like you have all the information you need to pursue legal options. While you do that, I urge you to spend 80% of your time in focusing on how to move the project forward and 20% on pursuing legal options to get money back. While choosing your next contractor, visit their job sites and talk to them and their references. I look for clean job sites as a good sign for a general contractor.

Contact the village and place an alert on what happened so they know to watch out for him in case he tries to do business with the village. File a complaint at bbb.org. 

The fundamental mistake that most investors make is falling for the bottomline by hiring unlicensed people for low costs. Get educated by visiting the local big box building material store and create a commercial account. All materials are purchased through your account so you know exactly how much is spent on materials. 

 Get a licensed Architect and contractor as part of your team. Verify licenses at www.idfpr.com. Ask them to show copies of licenses and check status of the license with the city. All of this takes a few minutes and phone calls. 

Lastly, try to get even by completing the project. Its all the more critical now that you finish the project than getting even with the GC. Good luck and share your experience with others!