All Forum Posts by: Scott Steffek

Jeremy,

I can help you with a contractor in Griffith and one in Crown Point. They do properties in Northwest Indiana and the south suburbs of Illinois.  I use them both and they do very good work. I won't use anyone else. PM me for details.

Everyone,

Do yourself a favor and make sure you check out the contractors with a fine tooth comb. I was ripped off I don't know how many times in the past. They will promise you everything and deliver very little. There's nothing worse than having to go back and fix a lousy rehab job! My guys hate it and it gets very expensive. Referrals, I think are most likely "safer." 

I agree with Nick and I'm sort of....a wholesaler. I try to develop personal relationships with my investors and there's a reason for that. 1. It's just good business and it makes then feel a little bit more comfortable 2. If you offer them a fair deal, they'll come back. I work in the Chicago and Northwest Indiana markets. I know the vast majority of wholesalers that have been around a while. I know of maybe 25 of them or so. I trust 2 of them. In my opinion, the rest are out to make a buck and could care less about the investor. ARV's are always inflated, rehab costs are usually double what they tell me and some of these guys are 4 or 5 people away from the person holding the contract! If I don't have a contract on a property and offer it to my investors, I let them know I don't have the contract. However, I don't offer it unless I know the person well. I just met a new wholesaler last week and he told me he's huge in the Chicago market. He was shocked I didn't know about him. Well, now I know why. I just came home from looking at one of his properties. He said the rehab costs were $30k. What a joke. It was more like an easy $70k. The ARV was $40k lower than what he put out. I always tell my investors to do their own due diligence on properties we give them. One of the problems is all of these guru's are telling people how they can make big bucks wholesaling. I don't know if people quit their jobs or what. But they get stuck, have no buyers and are desperate for money. So what do desperate people do? Lie through their teeth until they get a sale. It's a shame, but that's the way it is.

Marie,

I think Brie is correct. Chicago is "typically" 6% total and then 2.5-2.8% to the buyer agent. I would ask the agent for clarification. I'm going to disagree slightly with some of the responses. It does vary in Chicago, but I have a house that's not in the best neighborhood, that we'll only be able to sell for $90k. My realtor fee is only 5%. However, I do get a discount fro m my agent. But she would list it for anyone, for 6%. Keep in mind too, that paying the lowest possible fee, isn't always the best way to go. Other agents are most likely not going to focus on selling your home if their commission is low and the selling price is also. Make sense? Best of luck to you. 

Warren,

Elbert is correct. Chatham is on a block by block basis. Some blocks are well maintained and safe, and others are, shall we say....not so nice!  Take a close look at Northwest Indiana. Indiana is a landlord friendly state, Illinois is a tenant friendly state. In Illinois, it can literally take months and months to evict a tenant, that knows the system. Taxes and acquisition costs are much lower in Indiana too. I just sold an Indiana property for $60k. With the rehab costs, the investor has a little over $80k into it. The house is currently worth about $110k. Here's the kicker. The taxes are only $800 a year! However, Indiana doesn't have as many multi units as Illinois, but duplexes are common. If you're looking for upside in 5-10 years, take a look at Dyer, Crown Point, Schererville and Highland, Indiana. Prices will range between $100k and $230k.  Best of luck to you.

Kenneth,

I already feel better after reading your response!  You obviously have a good head on your shoulders and that's invaluable. I love this business, I really do. But way too many people "sugar" coat the business and the true facts about it.  At your age, you have all the time in the world to pursue RE and do it at your own pace. That's a huge benefit over others. Get your education and stay on BP and other RE websites. Gather all the knowledge you can, at your own pace. Absorb as much as you can. Knowledge is power. Surround yourself with the best and the brightest and you'll go far. I wish you the very best of luck an I'll look you up in 5 years! 

Marquis,

I've done them. Each one is a little different than the other. It all depends on who is responsible for what.  Structuring the deal correctly is extremely important. PM for more information.

Ken,

Having been in the RE business for quite some time, I'm going to recommend you stay in school. Here's why. If you finish school, you now have a "career". It may not be the career you want, but it will put the bread and butter on the table. That's more important than anything right now! You can always pursue real estate part time. You can follow your dreams while you make money. I see so many people come into this business thinking they're going to be millionaires in 6 months, that it makes my stomach turn. I would bet you that 90% of the "newbies" that are currently on this site, won't be around in a year.  Real estate is no different than starting any other business. It takes extremely hard work, perseverance, guts and time. I don't know if you have the first three, but I do know you have the time, based on your age. This is the hardest business I have ever done, hands down. I've been in upper management positions and many other jobs, but this one takes the cake. You need to know how to treat people. You need to know how to talk to others. How to negotiate. How to see through  the "poo poo" people will constantly feed you. You need to be very organized. You need to have a system. You need to be very flexible. You need a team. You need to know how to network with others. You need to think outside of the box. You need money. You need to be Mr. personality. You need to work 7 days a week. You need to work 60-90 hours a week for months and months, possibly years, to build the business. I'm not trying to steer you away from the business. I love it. I really do. But I want you to know the true reality of what it takes and what to expect. In my opinion, anyone who's successful in this business will agree with everything I just told you.  Yes, the money is good, when it starts to come in. But you and only you, can make that money start to flow. Not everyone is cut out to run their own business. Some people are cut out to work for a corporation and collect that weekly check and that's ok. To each his own. You have to evaluate whether or not you're willing to sacrifice things in your life, to do this business. Believe me, you will make a lot of sacrifices!  If you're not willing to consistently work 7 days a week and 80 hours a week for months and months to build the business, don't kid yourself. Stay in corporate America. You're better off. If you're willing to do what I mentioned, God bless you and I wish you the very best of luck. 

Joe,

Best of luck in the land lording business. I don't think you could pay me enough to handle that! I do think you're on the right track though, by doing things hands on first. That helps you understand the business and is great experience. If I can be of service, feel free to PM me.

Saad, 

If you're interested in "decent" areas, look for: Merrillville, Hobart, Lowell, Griffith, Highland, possibly Lake station and parts of Hammond. It all depends on what price range you want to be in and where you want your cash on cash return percentage to be at. Hobart, Hammond and Lake Station are blue collar areas. Griffith and Highland are going to cost anywhere between $90 and maybe up to $150k. Stay away from Gary! PM me, if you'd like more information.