All Forum Posts by: Rachel Stewart

@Corina Eufinger - I have a condo downtown Chicago that I’ve looked into renting, I could see how it could easily turn into a nightmare. Is there any Rockford specific things I should be aware of? Are there any good resources for getting familiar with these outside of picking through the official site?

@Craig Wilcox I’ll look into this! I usually use Trulia’s crime map. Do you find this is better?

I've been looking and running numbers for multifamily properties in different markets around Southern WI and Northern IL (I live in Chicago). My grandparents have lived in Rockford for 25+ years and I started running numbers and it looks like it could be a decent market. My perception has always been that it's a little more blue collar but when I asked around, a lot of people have said it's a depressed area and I'm better off sticking to the Chicago suburbs. 

My grandparents live north of state and west of Mulford Rd, so that's the area I've driven around the most and it seems OK. Any areas I should stay away from? Anyone have experience investing around here and have good/bad experience?

Hi! I actually do this as a side gig - creating websites for real estate investors (it funds my REI). I've used lots of different platforms, Wordpress is a good one (you'll probably want to host your own website so you actually own it). I can point you in the right direction if you DM me or my company can do the whole thing! Good Luck!

Thanks everyone! 

@Steve Sell - we ended up not going through with this deal, long story short - the numbers don't work with some updated tax/expense info and there's some competition for this property so I don't think I can get it at a price that does work for me. 

Anyway - we had decided to both be on the loan and form an official partnership for that property. Now I think we're back to  just seasoning the funds and waiting. This has really helped us refine what we're looking for. 

Thanks everyone! I think we'll probably co-borrow this time and set up an partnership/operating agreement with our lawyer and create a plan; possibly an LLC for the next one. I think maybe the only issue with co-borrowing is that my dad has been retired for ~8 years now so no W-2 income and I'm a 2 yr out recent grad.

For @Thomas S. 's suggestion - where I'm paying them interest on the money wouldn't that be a loan to me and be factored into DTI? If we're co-borrowing how does that work- it seems circular?. Also, if they didn't want to loan it to me, just put it in for "their 1/2" what are the gift/tax implications (now and if/when we refi'ed them off) ?

@Ryan O'Mara - what is a perm lender? 

@Josiah Collins - that's what I'm currently talking to both my dad and the lender about. I think there was some miscommunication between the lender and myself. There's no big reason that my dad or even both my parents couldn't be on the loan such as their credit. We just assumed the gift route was the easiest way to go - Thanks! 

@Alex Bekeza  Thanks! I really appreciate your responses.   

That's where I feel like I'm falling between communication between my lawyer and my lender. My lawyer (who is my family's estate lawyer who also does real estate) was the one who brought up forming an LLC. I've sent both of them probably an annoying number of emails in the past few days trying to figure things out. Maybe I need a new lawyer or lender or both lol

We're really tied to this area. My dad is the big private money in this scenario and he really wants to "start" around where he lives. He's not interested in doing any of the management but he does want to be able to drive past it and understand the area. I realize the amount of money we've got could go really far in other areas but for now we're sticking to the Chicago suburbs. 

@Account Closed  - Thanks, I admit I've had similar tempting ideas but I really don't want to plan around committing mortgage fraud. I do have a younger brother looking to move out of my parents house and stay in the area. I was trying to figure out ways to make that work but I'm really at a loss and as ridiculous as the rules are sometimes I don't feel comfortable blatantly breaking them.  

Thanks everyone! 

@Samuel Pawlitzki - Yes I've spoken with a lender. It's my understanding the gift letter is common for primary residences.  

@Alex Bekeza- We briefly considered an LLC. When I brought up the idea to my lender, he said you can't take out a residential loan under an LLC - only commercial. Additionally, we wouldn't have any history as an LLC so it would be hard to get lending. I think this is where I'm confused. How do we structure a partnership or LLC so the end result is using the funds in their account for down payment, I (or both of us, there's no reason my dad couldn't be on the loan other than preference) are on the mortgage/title/deed and also not screw ourselves over at tax time.