All Forum Posts by: Scott Steffek

Chris,

I would go to docusign.com. You can upload a contract on this site and then you go into the contract and "mark" where the seller needs to sign and initial. You then enter his email address and within seconds he has the document and he can sign for it. This is far better than mail! You can always escrow the earnest money with your title company and let the seller know that. I believe they offer a free 30 day trial. I use this service all the time. The close can actually be transacted through email too. Talk to your title company about that. Best of luck.

Can I have one of your cars? LOL

The market goes up and the market goes down.  I agree with David. Are far as renting a property, there probably hasn't been a rental market this good in a long time. The 08 crash caused a lot of foreclosures and people have to rent, as they can't get a mortgage. You can be choosy with the tenants that you put into your property and you can find good ones, that won't tear the house up. There's deals out there, you just have to find them. 

Would I do a building in Chicago green? Not a chance. But to each his own. 

Remember: "Difficult things take a long time, but impossible things take a little longer."

Kendra,

Why would you invest in one of the worst crime areas in the state? There's plenty of other far better areas to invest in. I live in  Northwest Indiana, but I'm close to Illinois and know the Chicago area well. Invest in Indiana, the south suburbs of Chicago or other areas. But I would stay away from Englewood. Your headaches will be far less and your cash flow will most likely be higher. We offer investors sfr's for $50k all fixed up and ready to go. They rent for around $1000 and the area is far better than Englewood. David mentioned his flip, but he also mentioned a break in and a 2nd attempt. If you're up for that, go for it!  Best of luck to you. 

Jeremy,

I would strongly suggest you use a property manager to find your tenants. It's the best 10% of the rent you'll ever spend. You can buy a super deal for a great price, but what good is it, if your tenants never pay and/or tear up your home? We work with 2 very good property managers for Northwest Indiana.  Private message me for more information. We can also rehab properties with our crews. Best of luck to you. 

Jeremy,

Seller financing can be tricky, but can be a great way of getting into a property. However, you'll still need to come up with some cash on a seller finance and they're hard to find. Many times, they need rehabbing and you'll have to come up with funds for that.  Northwest Indiana and the south suburbs of Chicago can be good places to start. Just stay away from Gary. Hobart is a good rental area and so is Merrillville. You can get "all in" in Hobart for about $70k and Merrillville is a little bit higher, depending on what you're buying. We offer properties in both areas. I wish you the best of luck in your endeavor.

Wade,

We rarely sell turn key properties, but when we run across a good deal, we'll snatch it up. Companies charge a premium for turn key and they get it all day long. One of the reasons is that many of the investors who buy, don't have the means to rehab the property and don't have connections in the market they're buying. As a result, you pay more. If that works for you, I say go for it. However, you're correct about some turn key providers. They'll lay down a few pieces of carpet and call it a day. Morris most likely knows they can find cash buyers for their properties, so why would they deal with financing? Financing can take a couple of months. One person mentioned that you might have a hard time financing under $50k. That can be true. There are banks that will lend under $50k. They usually require 25% down though.  As far as Morris investments, that's your decision. I'm not going to comment on them one way or another. 

As far as property management, you MUST find a good company, no matter where you invest. It's the key to cash flow, in my opinion. Some of the companies could care less who they put into your home. They tell you what you want to hear and that's about it. The company I use has a very cool program. You can look at your rentals online 24/7/365. It breaks down everything. When rent was paid and all of the pertinent information an investor wants and needs to know. I don't use real estate companies for PM. Typically their bread and butter is selling real estate. Just like I don't rehab our properties. I have a professional contractor who does that. That's what he's best at! 

As far as working your a-- off, yes. I think most of us in this business do that. You can use the BRRRR strategy and refi out of properties too. That frees up cash and allows you to have more cash in your pocket for the next deal. It all depends on what your strategy is and what goals you've set for your business.

Don't forget, you can form your own "team" in your area. That will allow you to buy within driving distance and would most likely give you more comfort, than buying out of state. Best of luck to you.

We sell sfr turn keys for $50k...give or take a few grand, on the Illinois and Indiana border. NO, they are NOT in the hood. Are they in an area that I would live, no. But they cash flow like a cow. You can make money almost anywhere. It depends on several factors, which I won't get into right now. But in my opinion, the most important factor for buying in these areas, is property management. If your PM doesn't take their time and check tenants backgrounds, thoroughly, you're in trouble. PM is a major key in renting properties anywhere. What good is high cash flow, if your tenants don't pay or tear your property to pieces? But these $50k houses bring $1000 and more a month in rent, and the CCR is well over 12%. So if you have a good property manager, what would you rather purchase.... One property for $200k at maybe what...$2000 a month in rent or 4 properties at $4000 a month in rent? The choice is all yours. Best of luck Wade.

My contractor is doing a major rehab right now and I'm looking for a licensed contractor to do about a $10k job on the far south side of Chicago. Can anyone recommend someone that knows what they're doing? Need to get the job done within 2 weeks.  Thanks in advance.