All Forum Posts by: Crystal Smith
Crystal Smith has started 65 posts and replied 2753 times.
Post: Possible 8 unit deal, help!
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Jose Botello:
An opportunity of purchasing 2 4-unit apartment buildings has presented itself.
Currently being rented at $630-$650 per unit ( low for the area) all 2/1.
The current owners have had this for 17 years but are getting too old to keep up with it and are asking $500k for it.
What are some things I should ask and also how do I introduce the idea of seller finance?
The primary consideration for you to evaluate is the purchase price at which you can cash flow the property, given the current rents. You should then research to find out how much the current owner owes. Then formulate an offer that supports your cash flow objectives; provides the seller with some cash & seller finances the rest. Just my opinion.
Post: What would you do with $150k+ ?
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Dawson Burton:
With $150k+ to invest, what strategy or market would you prioritize and why?
The first thing I'd do is a search on Bigger Pocket that starts with the words "What would you do with". You'll find over 1000 pages of responses to this question. Here's what I would do:
1. Get qualified for a renovation loan with a Hard Money Lender (Why- The objective is to show you have the cash, but not to necessarily use it)
2. If you do not have experience, then partner up with someone with experience in fix & flip
3. Find a property to fix and flip where you can make at least $50K.
4.. Repeat the process a couple of times to add about $150K to your bank account. It won't be $150K because you'll pay short-term capital gain tax, but you understand the point
5. Then start purchasing or passively investing in properties to hold for cash flow.
6. Learn how to become a private money lender
Post: Looking what market to invest in as a beginner
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @David Pimentel:
Looking to begin investing as a beginner I live in NJ and prices are a bit high for what I can afford. Especially since I own my primary residence so house hacking isn't an option. Any ideas where I can look to invest i do have a good amount of equity in my home to use as a down-payment. Any suggestions. Thanks
A few questions- Is your objective to buy and hold, fix and flip. If buy and hold do you want to actively manage the property or be a passive investor?
Post: Why I Stopped Talking About My Goals with Friends and Family
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @William Miller:
Lately, I’ve realized that not everyone deserves a front row seat to my goals.
Most of my friends and family are good people but they don’t share the same vision or mindset when it comes to building wealth, real estate investing, or taking risks for long-term freedom. And that’s okay. But what I’ve learned the hard way is that sharing my plans with the wrong people can kill momentum before I even start.
You’ll hear things like:
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“That sounds risky.”
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“Real estate is too expensive right now.”
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“Why not just stick to your job and play it safe?”
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“My cousin’s uncle tried that and lost everything.”
Most of them mean well. But the truth is, most people want to give advice they’ve never earned. They've never done a BRRRR, never managed a rental, never dealt with banks or built anything from scratch but they have an opinion ready to go.
So I’ve been learning to keep my head down, stay focused, and connect with people who are actually in the game. People who’ve done what I’m trying to do. People who can offer real feedback instead of fear.
If you’ve ever felt the same like you’re moving in a different direction than those around you just know you’re not alone. I’m here to network, stay accountable, and build something real with people who get it.
Let’s connect. I’m always down to trade knowledge, share deals, or just keep each other locked in.
– Will
Very thoughtful post. I just have one thought to pass along- When you achieve a few milestones along the way let friends and family know. Don't brag- just let them know
Post: When to sell a still profitable investment?
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Seth McGathey:
There is always a lot of talk of when to buy. What markers to look for, how to calculate if it will be a good deal, regardless of the investing strategy you have. Cap rate, cashflow, ARV are some of them.
What you don't hear often is how to decide when it is best to sell strategically. What identifiers do you use to know it is time to sell a profiting property. Obviously a crappy one you either need to do something to make it less of a bad investment. But a good one, what is your personal signal you look for that it is time to dump a property for a better one?
We don't sell because a property is "crappy" (your words). If an existing property is still throwing off cash we will sell it if:
1. An offer is large enough that it doesn't make sense to hold on to a property when one considers the time value of $.
2. If there's another opportunity or we are scoping another opportunity, where the cash produced by the 2nd opportunity will increase our overall cash flow. I will tell you that we try not to sell. We will always see if we can leverage an existing property to purchase another asset in lieu of selling.
Post: Let’s Talk: Is Wholesaling Still a Viable Strategy in Today’s Market?
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Alexis Brown:
I'm interested in hearing from anyone who is currently doing deals:
- Are you still closing wholesale deals in 2025?
- Has your strategy or marketing changed?
- What is working (or not working) in your market?
P.S. I have never completed a wholesale deal. I've acquired two duplexes over the past couple of years through house hacking and am looking to get into wholesaling but I'm unsure if it's still a viable strategy.
We are not wholesalers, and it's not part of our main strategy, but there are times when we control a deal & after evaluating whether the property would be a good fit for our portfolio, we decide to either assign the contract or close on the deal and immediately sell to another party. So the answer to your question for us it's a viable alternate strategy. But it's not part of our main strategy.
Regarding marketing, the only thing we have changed is implementing AI into our systems. Still experimenting with it.
In my opinion, if your objective in Real Estate is to make wholesaling the main focus and you're just getting started, then find the largest wholesaler in your market and join them.
Post: New investor seeking mentor or like-minded individuals
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Jovany Espinoza:
Hello everyone,
I am new investor who is seeking to begin my real estate journey. I am a recent veteran who is currently a software engineer and would like to acquire my first rental property within the next 3 - 6 months. I recently relocated back home to the southwest suburbs of Chicago, IL and I am seeking like-minded individuals or potential mentors who are willing to meet over lunch or coffee and discuss their experience and provide some guidance. If you are interested in connecting, please tag me here. Thank you, I look forward to connecting with you all.
Consider yourself officially tagged. Feel free to reach out.
Post: How to set up LLC structure for current/future properties
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Stuart Udis:
@Crystal Smith Assuming you do not own real estate in any of these states, can you provide real life examples of your WY, NV or DE entities helping you? The instance where the charging order protections became applicable? The WY or NV case law applying? Ever been in a business dispute where DE was the proper venue and choice of law and the DE Court of Chancery heard the case? Or was it the DE or NV Series LLC accessibility? Many states do not recognize the benefits and many lenders are reluctant to lend to a borrower using a series LLC.
mmm, let's see. Should I engage in a discussion with an attorney on a public forum about my business and any potential disputes, or should I trust the attorneys and business advisors who work for me? I think I'll do the latter.
Post: How to set up LLC structure for current/future properties
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Brad Neihardt:
I have recently acquired my first property. Looking for help/advice on setting up LLC structure for this property and future properties. I want to be able to build business credit so in the future I don't have to provide a personal guarantee. I also want to isolate each property in its own LLC for liability purposes.
The first property I purchased over 20 years ago was a multifamily building. I obtained the loan in my name but set up an LLC to manage the property. Tenants were informed that the building was now under new management, and all rent payments were made to the LLC. Although I lived on-site, the residents were unaware that I was the actual owner. That LLC, over time, developed a modest management track record.
In hindsight, while I didn’t pursue it, I later realized I could have used that track record to begin building business credit. It likely wouldn’t have been enough on its own to acquire additional properties at the time, but it would’ve provided a solid starting point.
As for protecting your properties, it may be too late to fully isolate your first one if it’s already recorded in your name, since ownership is now part of the public record. In my experience, and based on strategies we’ve implemented over the years, the key is to close on the property using the appropriate entity from the beginning to ensure proper separation and protection.
I recommend you look into the following strategies:
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Holding Companies
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Incorporating in states like Wyoming, Delaware, or Nevada
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Using Land Trusts Effectively
Insurance
We’ve used all four methods in combination to manage and protect our assets, especially since our long-term vision included investing in both real estate and other business ventures.
It’s worth noting that in response to your question, you received a range of opinions, some of which contradict each other, and others considered someone's advice to be bad. My suggestion: create a 10-year roadmap for your business. Assume success. Then present that plan to experts or experienced business people who have already accomplished what you're aiming to do. Learn how they’ve structured and protected their business and use those insights to decide what’s best for your long-term business plans.
Post: Old multi-family building in Chicago...what to upgrade and how much?
- Real Estate Broker
- Chicago, IL
- Posts 2,814
- Votes 1,750
Quote from @Anita Afandy:
Hi fellow BPers!!
TIA on all your insights and advises. I am highly interested in investing into a multi-family brick oversized building in Chicago (5000 sqft 3 units), but am intimidated by the scope of the work. This building has been vacant for over a year but seems to be in decent shape inside. However, there have not been a lot of updates on the mechanicals and interiors. I have done real estate investing in multi-units previously, but they have mostly been updated in the past 20 years. On this one:
1. Electrical fuse system - I likely will need to re-wire the entire 5000 sqft?
2. Plaster walls and popcorn ceilings
3. Boiler HVAC system with no forced air and no AC
4. Original plumbing from the 1800s
5. The building seems to be structurally sound but do I need to bring in structural engineers to inspect?
6. Original flooring and additions in the back
7. Need to add extra bath and WD hookups
Any suggestion on where to even begin? I am still in inspection period but would love to understand if there are any potential unanticipated surprise. Additionally, what would cost be on something like replacing boiler to central HVAC and electrical fuse to circuit breaker and rewiring of everything? Am I too bold to undertake this project?
Again, thank you in advance!!
You're only too bold if the After Repair Value isn't high enough relative to the cost to acquire and the cost to renovate. If the ARV is high enough and your numbers are right, then go for it. One major item that you're missing. You will have to change the water service when adding a new bathroom. Make sure this is included in your plumbing estimates or have it as a separate line item.
Regarding the structural engineer- Your lender may force that. They did on our property in Woodlawn.
If there's a deck I'd budget to replace it.