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All Forum Posts by: Crystal Smith

Crystal Smith has started 65 posts and replied 2692 times.

Post: Nonrefundable Earnest Money

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Stephen De Vita:

I was underwriting a seller financed 32 unit deal in South Carolina. I was getting ready submit an LOI. I would put 10% down, due at closing. We never discussed any earnest money up to this point. The broker calls me said 1% of the sales price was going to be be due. That was about 30K. I told him any money I put down will be refundable for any issues like environmental matters, physical inspection, title, zoning, and if I can't raise funds. This were everything fell apart. I'm trying to take this as a learning lesson. Any thoughts on this or advice on how to make this work going forward? What does your negotiation look like when you are talking to brokers about refundable terms?  When do you agree to 1% nonrefundable terms?  


 I agree with @Chris Seveney when you used the language "if I can't raise funds". you killed your deal before it started. Before I give my recommendation I have to comment- Letters of Intent (LOIs) are non-binding documents, not contracts. And in many cases EMD is not put up as part of an LOI. If you don't have a track record you can put up EMD as good faith, but in that case I would add a finance contingency in the LOI to protect the EMD. And the language used in any discussion with a broker would be the same (Even if you are trying to raise funds)

Post: What do I do?

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Blake Bailey:

Hey guys, I am hoping to be a first time investor here within the next couple weeks I have found a property in my hometown That is a Home that was built in 1936 and it used to be a duplex but now it is a single-family home but I believe if I purchased it, I would reconvert it into a duplex but anyways it is a 2100 square-foot property That has three bedrooms and two bathrooms right by the college in my town The seller says the only issue is that the wiring needs to be brought up to code and she is only asking 125,000 which to me and everyone I know seems to be an insane deal It also has new HVAC and a new roof just needing to see the inside but just wondered what I should do first in this situation to figure out if it is worth it or not just really panicking. Hoping no one else jumps on it before I can. any tips would be appreciated. Thank you.



I'd do the following.  First- Check with the village buiding department on the regulations for converting the property back to a duplex. 2nd- Have a professional run an analysis to determine the AS IS value of the property & the After Repair Value (Assuming it may need repairs and updates) 3rd- Get it under contract; 4th- During the due diligence period get your estimates to update the wiring and anything else the property may need.  5th- If the numbers work then close, if not then re-negotiate or cancel the deal.

Post: Rookie right here, and ready to get started!!!

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Nereyda Valencia:

Hi, everyone my name is Nereyda. I am SO new at REI. This has always been a dream of mine but have always been too afraid to take the first leap. Mostly due to fear, the unknowing and not having the money or credit to do so. Long story short my ex-husband left me in a lot of debt that has been affecting me for some time. I am ready to take the bull by the horns and learn and apply everything I learn. Yes, I'm scared, but if I just sit back and not face this fear my dream of becoming a REI will NEVER happen. If you guys have tips, advise, or anything that can help this rookie right here, I will appreciate it dearly. PLEASE, anyone who can help direct me in the right path I will for every be thankful for this. Someone did tell me about programs out there that can help, but I don't have +20K to join these programs. So, any tip and advise you take it and run with it. I am ready and motivated!


 Nereyda:

Welcome to BP. Regarding having FEAR (False Evidence Appearing Real). It's actually a good thing to be kind of a sceptic.  While money & credit are very important, when you don't have it then you need to learn how to do the following.  It's all about education:

1. Surround yourself with like minded people; listen & learn. For example- The $20K guru program most likely has a 3 day information session.  It's either free or a low cost. Attend the session. 70% of the session will be about upselling you to join. Don't join- Get contact information from every attendee & start establishing relationships

2. Do a search here on Bigger Pockets and find a few people on the forum that live near you. Investors, attornies, contractors, lenders,......

3. Start researching your market. What sector do you think you may thrive in. Single families, multifamily, commercial,......

4. Learn the laws in the area you plan on doing business in. (You may even consider getting a license)

5. Establish a business plan.

Bottom line- You need to educate yourself over the next few months and always be a continuous learner.  Eventually when you have enough knowledge you''ll be ready to pull the trigger.

Post: Is networking overrated?

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Joe S.:

So the question is what’s your thoughts on networking and is it over rated.

From my own experience, going to meet ups and talking big game with newbies was l not all that beneficial.  Going to meet ups and being exposed to a pitch fest was not all that beneficial either. Being somebody’s lap dog probably would not be beneficial for me…I never gave that a shot. Lol

What I have found for myself to be beneficial was marketing and getting in front of sellers and pretty well closing my ears and eyes from those that were talking big game so I did not get discouraged.. I’ve never had anyone take me under their wing, but that’s possibly because my personality does not seek out that kind of arrangement.

I am not a realtor or a lender so I do not have any perspective personally for that when it comes to networking.

What’s your thoughts on networking?

PS my Title was supposed to be (is networking overrated,), but I cannot edit it. Maybe a moderator can.


We don't think networking is overrated. We treat networking as a business process. The people or businesses we meet either virtually or through events are segmented into groups in our CRM with tags, notes,..... And at the appropriate time when we have a specific need we reach back into that network to find the person or company to fill that need or provide a referral to the right person. 

Our other objective- Provide a resource for others-  at least once per month we'll get a question- "Do you know someone that does.....? " And we reach out to our network to see if we have the answer.

Post: New to Wholesale

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Evan Webster:

Good afternoon everyone, I’m diving into wholesaling and I'm looking to connect with experienced wholesalers, investors who are open to sharing knowledge, mentorship and ultimately connect with serious cash buyers.

I’m located out of Chicago, Illinois and focused on locking up off-market properties in the Chicagoland area and surrounding suburbs. If you’re open to connecting or mentoring, feel free to leave a comment or message. Any and all information is appreciated. Thank You in advance to anyone who’s willing to help.


 Feel free to reach out to me.

Post: 📊 Is there a tool that gives you everything in one place — property report + ROI + c

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Eduardo Cambil:
📊 Is there a tool that gives you everything in one place — property report + ROI 

Eduardo Cambil

Hey everyone,

I'm wondering if something like this already exists in the U.S. — or if this might be a gap worth building for.

Imagine this:
🔹 You drop a property address (from Zillow, Redfin, MLS, etc.)
🔹 In seconds, you get:

  • A full property report (condition, comps, rent estimates, taxes, etc.)
  • A built-in ROI calculator (cash flow, DSCR, cap rate, rehab budget, etc.)
  • Auto-generated PDF summary for investors, agents, or clients
  • Works for buy & hold, flips, BRRRR, or wholesale deals
  • All done by AI, no need to go through 6+ different websites or tools

💬 Question:
➡️ Does anything like this already exist in the U.S. market for real estate investors, agents, or brokerages?
➡️ Or is this still a fragmented experience that everyone’s piecing together manually with Zillow, Rentometer, PropStream, spreadsheets, etc.?

I'd love to hear from anyone — agents, investors, SaaS founders — especially if you've felt this pain.

Thanks in advance 🙏

— Eduardo


 There is no such tool that will in seconds tell you everything about a property.  If there was I would not trust it.  

We use a system that consolidates almost everything we need for our business in one place; We can pull comparables, run financials for fix and flip, holding, rent to own, repair analysis, marketing, generatign reports. all in one system. But it is not automated. There are tasks that require human intervention, such as assessing the condition of the property to determine cost to renovate of CAPEX, choosing which properties to include in a comparative market or rental analysis.... But it's all in one system.

Post: Looking for guidance in making first steps in my real estate journey.

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Ayden Bourne:

Hello all my name is Ayden Bourne, I am 22 years old and sell insurance for a living. I have been growing my credit since I was 18 so I have established credit, I have an LLC, and a decent amount of knowledge on real estate. I am looking to make my first steps in getting into the industry. I am somewhat overwhelmed as to where to start so I am glad to be apart of a community full of people who had startup stories similar to mine and also very different in their own way. I am in the right place to grow my knowledge on the industry and learn how to apply this knowledge to start making money and gaining equity through real estate.

I am most interested in learning about wholesaling, BRRR method, and grants/DPA programs to buy properties whether I must live in it or not.



My recommendations below:

1. Do not focus on wholesaling. Focus on learning how to find properties that fit an investment criteria.  This means establishing relationships with other investors, realtors (residential & commerical) other wholesalers,...  Decide what kind of investment are you willing to make in systems to market & manager your business. Once you know how to find opportunities and you have the right systems in place you can the knowledge and systems for your real estate business.

2. Fund It- While establishing the methods and processes to find opportunities you also need to start working on how you will fund the opportunities. 

Good luck

Post: House Hacking Using 203k or Homestyle Loan to Duplex Down

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Lucas Helliker:

Hi all, 

I am looking to house hack a 3-4 unit building on the North Side of Chicago with an owners unit that will offer my family more space than we have now. One option that I am evaluating is buying a 3 flat with a basement and creating an owner's unit by duplexing unit 1 down to the basement. I am wondering if a homestyle loan could cover this. In my current residence we built an ADU in the basement through the cities ADU pilot program. It was extremely expensive because we needed to replace the electrical for the basement, dig down 8 inches, and replace the water service.

Since we would of course be pulling permits in the duplex down scenario, I am wondering if we would potentially need to do all of those major renovations again? It seems like this approach to duplexing down could create a lot of value and make the refinance worth the costly renovations, especially if I could use a renovation loan. Before pulling the trigger I would do market research on the ARV for similar product in that area. Has anyone done this that could share some insights or tips ? Appreciate you!!


You're spot on regarding doing your market research on the ARV before pulling the trigger.


Regarding buying a 3 flat with a basement and duplexing down. To save $

1. Don't add a bathroom or kitchen in the basement or anything that may require a new water service

2. Use a self certified architect- It saves time which I equate to saving $

3. My GC friends on BP are going to cringe & you may not be able to do this using an owner occupied renovation loan- but only use the GC's for the items that require permits.  i.e. Electrical, plumbing, HVAC....  then act as your own contractor and sub out the rest. Permits aren't required to paint, hang cabinets........ 

Post: How to best comp properties?

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Fabio Cattolico:

Hey everybody,

I'm curious how y'all comp properties when you are looking for deals. The problem I'm having with Zillow is that certain states don't display information on the property's actual sale price so it's hard to comp things since I can't simply go of what properties are listed for. What's the easiest and best way to get this information? 

thanks for the help!



Find out the requirements to become a real estate assistant in your area. Then make a deal with a realtor to become an assistant.  You'll then be able to run comps using the MLS.  Please note however that you'll most likely only be able to pull data for properteis that sold on the MLS.  Other tools will be required to pull data for sold properties not on the MLS.

Post: buying a D.R. horton property in jacksonville fl

Crystal Smith
ModeratorPosted
  • Real Estate Broker
  • Chicago, IL
  • Posts 2,753
  • Votes 1,705
Quote from @Elvin Torres:

I am looking into buying a town home from D.R. horton in jacksonville fl. does anyone has any experience with them? they are offering all kinds of perks. they are paying my fee for early lease termination from my old apartment, they are offering a 3.990 inerest rate etc.


 D.R. Horton has a good reputation.  The only thing I would check on is if the 3.990 interest rate is a teaser good for a short period of time or is a true 30 or 15 year fixed rate.