Young Professional From Chicago

[Matt Souza]

Hello BP,

My name is Matt and I am a young professional living in Chicago. I came across BP about three months ago, and have since become fascinated with REI. My current goal is to purchase a 3-4 unit property that needs some work with an FHA 203k loan, specifically in the Logan Square, Humboldt Park, and Avondale areas. I currently have my buying team in place and have made several offers over the past month, but the market is extremely competitive right now.

Does anyone have advice for finding deals in these areas? I am going to keep pursuing the MLS angle like I have for the past two months, but was wondering if anyone has had success with other means. It seems that there are a lot of cash buyers out there making high-ball offers that do not make monetary sense.

Any advice would be greatly appreciated!

Matt

[Nick Patterson]

@Thomas Franklin that was a great answer.  

I'm assuming FHA due to the fact you want to live in the property. Forming the LLC and quit claiming is your best bet. The lender might have a due on sale clause since the ownership is technically changing hands, but 99.99% of the time you will probably be fine. The cost is $612 for the LLC and your attorney will probably charge you $300-$400 for the quit claim.

The market is crazy now, there is a lot of stupid money. Plus at 2-3 flats I dont know how anyone makes any money. Look at only 4 units and keep on placing offers. MLS is really your best bet, just keep chugging away.