All Forum Posts by: Dooreuhn Cee

I went to Fortune Builders in San Jose about a month ago.  The first seminar was short and free and promised to deliver during a 3 day for about $200 so I signed up.  Went to the 3 day and was sorely disappointed.

As an investor with some experience, the show quickly became transparent.  The 3 day is essentially a long marketing pitch for the big catch of 35k.  The information was shallow.  A lot of motivational speaking with repeat after me and raise your hand for this and clap for that.  When asking the reps for an agenda or other questions they all stuck to the talking points.  

In summary, and in my opinion, there may be some good to Fortune Builders, however I saw it as more of a business opportunity for them than for us.  The opportunity to prey on scared first time investors with too much theory and not enough action.

BIGGER POCKETS forum and podcast are by far much better resources.

 My assumption is that CD are mostly investor owned and AB are mostly owner occupied.  This comes from empirical observation rather than actual statistics.  You think that is too blunt?

I was considering converting Chicago security deposits to rent to avoid RLTO.  First, as an owner occupant you are exempt.  But separately, I've been told by counsel that conversion or return of a security deposit doesn't necessarily get you off the hook for RLTO for a current tenant lease if you have not fully complied.  You have to also have an agreement to extinguish any potential security deposit liability.

Now I do last month rent or move in fee, depending on the situation.

And to think how much crooks get for copper pipes and wiring... the damage to profit ratio is insane (ie, lots of damage not much money for scraps)

Another way to phrase that question is... Would you buy in C or D class neighborhoods?

100% outsource based on my skill set and where my time is most valuable.  If you came into this game from the contracting side, then your perspective is much different.  

Have fun closing through HUBZU :(

That is a broad statement.  You have winners and losers in every market and there is plenty of room for both in Chicago as well.  There are some very good flip opportunities and buy and hold opportunities, and it mostly depends on your own experience and resources to make them work.  

Look on Redfin and you will see many 40k purchases resold for 170k 6 months later.  Also, look at Zillow rents and then check for the price paid on Redfin and estimate the price of rehab to estimate cash flow for that buy and hold deal.  They are plenty of opportunities there.

@Rafael Velasco the one thing I look for in buy and hold is the intersection between easy landlording and cash flow (sneaky way to include a bunch of factors :) ).  More seriously, @Bogdan Cirlig has a good point on red flags, but as you increase your cash flow, IMO you agree to take on more of these red flags.  There is  happy medium in carefully selected C class areas.  My criteria for Chicago is areas without many vacant lots, multi-units, or board ups for buy and holds that have 2% and 3% cash flows.

@Bogdan Cirlig are you referring to southside of Chicago or to south suburbs?  

In Chicago bricks are king.  The are prettier, more desirable, sell faster, and typically the construction is higher quality. 

For value, you will see them comping out higher.  Importantly days on market is lower even at higher prices.  Although frames are better for cash flow which is one of my main aims, the history of rentals in my frames do not match that of my bricks.  I believe the main reason is quality of renter that I can attract with a brick.