Chicago Action Investors 6/4/16 Project Englewood

[Cory Gardner]

Hey there everyone!  CAI didn't meet this past weekend due to some members being out of town and not having access to houses like we normally do.  We'll be back on for next week though if you're interested.

On the 4th we redirected from a new property to an ongoing project between me and @Zachary Sargent

We had some new members come out to see the property that we purchased a few weeks ago.  We did a full walkthrough and reconvened after for a scope of work discussion and thoughts/comments on the property.

@Ernie Purnell @Sean Jones @Sherrie Wright @David Zhang @Ted Meltzer @Earl Stewart Jr

I did a quick walkthrough of one of the units before we gathered outside (it's sort of musty inside with all of the rain we got)

Once everyone was outside Sean handed out the comp sheets.  I've included this below for reference.

These look good for us since they're all in the 275k range.  Interestingly the property that is active came onto the market unexpectedly so that will drive our appraisal value up if it sells for what it's listed at.

As Seen mentioned we're pushing to be finished with the project in 8 weeks.  Demo is scheduled to be starting today according to Sean, we have three contractors working this project to get it finished ASAP.

The scope of work is pretty straightforward.  Sean has a template that he uses since he's done it so many times and then he'll get quotes from contractors on the project.

An interesting side note here, a question came up about whether or not we should relist the property on the MLS even if we have a buyer lined up. YES. Here's why...

Someone asked about how "shadow inventory" works with banks.  A lot of times you'll be driving through a neighborhood and there are clearly vacant properties that you know aren't listed anywhere.  Chances are these are bank owned properties being held by the bank as inventory.  Overtime and during strategic initiatives by the bank, they are released to the market place. Details below.

We also discussed how Section 8 housing could work and what kinds of rents you can charge.  Sharrie taught us that the neighborhood rent comps come into play here.

This is an ongoing project, assuming the demolition is starting today the house will not look like this for much longer!