All Forum Posts by: Crystal Smith

Single family home in class C area: 

Buying for $141k 

$20k solar loan paid @ $90/month

Rehab of $12k to get rent ready 

Rent amount of $1,250/month 

Would appraise for $200k 

_________________________

So, all in at $154k, which is 77% of ARV

Rent - insurance & taxes = $1,150/month 

Hi, I’ve been doing a lot of reading and studying and I want to get my feet into the real estate game. My long term goal is to creat generational wealth for my family. With that being said I am really not sure how to start this process. Would love to hear from some of you! 

Hello,

So the inspection report came back with these red flags, the offer for the house was 300k, then i asked for 25k reduction and they take care of all the hazardous stuff but they said ok for 25k but you take care of everything.

Anyone know how would approximate be to:

1) put chimney flue

2)do knob and tube rewireing (i heard it will be costly around 30k)

3) change furnace

4)pluming and asbestos (not sure if I should do anything for the asbestor)

any help will be much

So I get investors reaching out to me everyday and it goes like this:

"Hi, I know you offer turnkey properties and property management and am interested in the Toledo market, I don't want to buy turnkey but was hoping you could help me find a deal.

Also, do you have any contractor and lender referrals?

I'd also love to work with your property management company"

Diplomacy left me a long time ago so how would you guys reply?

Seems like to me that everyone wants something for nothing nowadays and nobody is willing to put in the work or to pay the margin for someone else that is willing to do the work...

Folks want to "own a monkey", play with the monkey, but not "carry the monkey" or clean it's S#@% when it does one hehe

I guess next time I go to McDonalds, I'll ask them for organic burger buns or where I can find them, I'll bring my own meat paddy and potatoes, get them to make a Big Mac meal for me and maybe I throw some change their way haha

How about those analogies above... lol

Have a great weekend guys and much success with your investing 🙏

New real estate investor. I am looking to start my real estate journey with house hacking small multi-family property.  I am limited to house hack only in Chicago because of my job with the Chicago Fire Department. Excited to get my real estate journey started.  

I don't care about deals that were 'successfully' exited in 2021.

Here's why:

→ Real estate market was on fire
→ Interest rates were at historic lows
→ Market appreciation was outrageous

Sponsors could buy a property
do basically nothing to it
and sell 1-year later for a huge profit.

Those days are over.

The market in 2021 saved a lot of bad deals (and sponsors).

Longer term holds, operations, and successful asset management practices will be critical moving forward.

- -

✅ How can you verify a successful exit?
→ Compare actual performance to original underwriting projections.

Was the property sold due to market appreciation? Or based on the real value from a strong NOI?

What are your thoughts about this? Should passive investors care about deals that were exited in 2021?

I have 3 rental properties in Chicago. I find that I’m only increasing rents when I have a turn (every 2-3 years).

I’m debating if I should implement rent increases for current tenants during lease renewal, even if it’s just $25/month to help keep pace with increasing costs and taxes. 

All my tenants are great. Pay on time. And are helpful and understanding when things go wrong (there is always something). I’m attentive to issues quickly and make quality fixes and updates. Overall, good working relationships on both sides. 

I want to keep tenants longer in general but also want to keep up with rents. 

Any thoughts on increasing rents for lease renewals? Is there a % increase that others use or rules of thumb?

Thanks

hey guys -- here's one: 

- I live in a multi unit property (4 units) and would love to make an offer to acquire it from my landlord / owner

- I have a single owner S Corp that does well, I pay myself a reasonable W2 salary with, but not likely impressive enough to qualify for the appropriate mortgage necessary

- Imagine needing ~$6M for the acquisition -- plan to keep one unit as short term rental, convert one unit to office for S Corp and combine the other two to become my primary dwelling 

- I can put together ~$2M cash as downpayment -- but could the S Corp be the entity to acquire this property? 

- Thinking is: low 7 figure gross revenue from S Corp looks better than low six figure salary I pay myself, Using one of the units as S Corp office could unlock some tax benefits, Using the 4th as a short term rental (under the S-corp) could unlock even more

So: Can I acquire property via S-Corp and is this a benefit or add unnecessary complexity because of the past-through structure of corp?

Thank you!

@Crystal Smith Yes the assigning is allowed in my state.

No the (buyer) I signed the contract with has not put any money into escrow. That’s for said end buyer to put up, and that is when escrow will officially open. 
problem is we was never told that they was not  the “buyer”, except if a investor they new would be interested in the property signing the assignment is so they can allow that investor make the purchase. They said we are the buyers unless (Joe) we no is interested. That allows us to pass it to him to purchase.