All Forum Posts by: Rahul Visal

We all are part of a very active Real Estate Investments Group in Chicago where we share each others passion and help every investor achieve their goals.

We all have different goals in the life and we are using real estate to achieve our goals. What we have achieved in Chicago can be duplicated in any other US city.

What I could achieve is due to the current market conditions and by following a certain game plan. Its very disciplined and conservative investing technique to accumulate properties at right cost, right location and right time!

@adil oghlan

I can only imagine the numbers in your market. I wish I could give you a specific number that would work in your market. 

In my market the numbers are as follows. 

All in cost basis:

Townhome 2/3 bedroom - $ 55K to 80K

Duplex $ You can pay $ 10K more because no association fees

Single Families $ 95K

2-3 Flats - $ 155 - 180K

This assuming you have cash flow of minimum $ 400/unit.

I cannot tie up 20% in each property we try to do 100% refi or 75% LTV's based on Appraisal value with commercial loan. Still there are some properties that appraise out a bit lower and money get stuck. It would be great if I can get all my investment out every single time. That is not reality.

I am in the mid west so our prices are not as high as your. Even in this market we cannot make rentals work in A suburbs. I have to buy B suburbs but at least for now. If they market goes up then I will have to leave money in properties to make these numbers fit.

@adil oghlan

When I mean we. We have a group management system. $70 per property. 

Some one to manage properties that is good costs about $ 3500/Month. That burden cannot be paid by one investor so based on the amount of properties Andrew, I, Ed and few more people chip in money to manage properties with a property manager. Hopefully one day I pay some one full time just on my properties. The way we allocate it is $ 30 towards paying salary and $ 40 per property for handy man services.

To buy, manage, rehab and maintain this many properties over a short period of time you need some system. Andrew a 4 years ago figured out that if we all had the same goal we could not achieve that with out cooperating with each other. 

So buying is done based on each person availability of cash in that moment in time. But rehab of properties and management is done by one company. Most investors compete for deals. 

The whole idea is to try to cooperate with a small group of investors that are trying to achieve the same thing and keep accumulating properties.

Rahul

@Aaron Mazzrillo: Good question. 

I  do not have 4 partners. I have 1 Andrew. I own the properties. My self. The real estate investment companies I own are owned by me. 

The beauty of real estate is that you cannot hide really what you own. 

Quit my job at 40 and now I own properties. 

If you guys want I am happy to post all the addresses.

Please feel free to verify. Look in Cook County, Dupage County, McHenry County. 

Tax records.

Here are the business names

Raavi Inc. (S corp)

257 Investments Inc.

Zenith Investments Inc. 

There are 2 more but I think you will see that just in these entities I own more properties than just a hand full. This can be verified with the State Of IL as well.

Pinnacle Real Estate Investments Group, LLC (With Andrew)

Ed owns his 13 properties. Working on 14 & 15. (Ed manages the construction for Andrew our connection is through chicaoreia.org we all buy properties in the same area. Use the same system and same management.) Hope that helps.

Vince mostly does wholesales. Has his first cash flow property. 

Thanks

We self manage all of them at this point. Charge $ 70 to each rental owned each month. 

Initially there was no money to pay others to manage. 

Now the portfolio is too big not to self manage. 

Rent collection has been an interesting experience. All the rentals are minimum of 2 years. 5% are rented to Housing Choice Vouchers those are the only ones that are not 2 year leases. 

Rahul.

@John Weidner - Yep CFO of Chicagocashflow.com

Lake in the hills & Surround suburbs

Aurora 204 school and surround. (No C Area)

Schaumburg and surrounding

Westchester & Surrounding area.

Tinley Park & Surrounding areas

I don't buy anything in the City Of Chicago.

@Jeffrey Pohlymeyer

Jeff: To answer your question. Andrew, Vince, Ed & I. We all are connected via ChicagoREIA.org

All of us own a bunch of properties here in Chicago. The idea started with @Andrew Holmes saying that most investors in any market hide that they do. Yet if we cooperate on deals, funding & refi's. We will all benefit because to try to do something on your own in real estate is very tough.  

It's worked we have developed a group of 500+ investors here in Chicago that are pretty much buying properties with the same model. Most of us just friends but the synergy it creates is great. Initially I thought Andrew's idea did not make sense because we were letting out our secret but I have come to see the wisdom in it. The more you share the more fans you win as long you are genuine. In turn a lot of other folks bring you deals and resources. From my understanding that is the intent of this forum. Share your 2 cents and others do the same and we all grow as a group. 

Hope that make some sense.

Rahul Visal

@Aaron Knoll

The way I started was a follows. 

Personal house was worth $ 250,000

Had a loan for $ 100K

Took about an equity line of credit $ 90K

Bought 1st 2 properties refied them payed back $ 90K on my equity line

Did 2 flips with @Andrew Holmes made $ 30,000 Net

Again used equity line combined with flip profits bought 3 this time had to borrow a little from private money also. Then paid back the equity line and private money with refi.

After 5 things became a bit easier because I found a few private money sources so I could buy at a faster pace. 

I do a few flips a year because I don't touch the money from cashflow properties. 

Rahul Visal

Hey Andrew & Ed. Great Interview.

@Jaquetta Turner

So the 2 strategies are

1. 2-5-7 Cash Flow For Life

2 properties In 5 Years and Pay them All Off in 7 Years

So it's 100% money recycle formula

Look up @Ed Boutros - Free At 23

His interview with @Andrew Holmes talks about this strategy.

I just took it to the next level.

4 years 53 properties and pay them off in 7 years

Rahul