All Forum Posts by: Account Closed

With all the Chicago folks we should be able to have our own thread soon! Ha.

Welcome aboard Derek. I look forward to seeing you around the REI circuit here in Chicago.

Might be a good thing to start this Thursday by attending the WCRT meeting. ( http://www.wcrt.org )

Two things.

1. Selling on Lease Option, you can set the option at 2 years. Will you be ready then? If you aren't, then ok, but I like to do that because in 2 years I like to move that equity into a larger property.

2. Incentives. The best one, and cheapest, is to say "Cleaning Service" included. It costs me about 100/month, so I just raise the rent some and split the difference. Cheaper than having it sit empty a month!

You can get longer terms, just look for loans with NO Pre-Payment Penalties. They do exist. I do them for Rehabbers.

Yes winter is a bad time for tenants. You should also think about advertising it as a rent 2 own. That should get you a few more calls.

Since you are in the Chicago area, I suggest you go to a local club and hear what is working for others during the winter months.

There is one really solid club I prefer.. ha

As an investor, it is much more attractive to buy a house with a renter already in it. So have you tried renting it then selling it?

Have you talked to other local investors?

Mitchell,

Not sure what lenders or what areas you are dealing with, but I have had many successful short sales completed. Of course, you can get banks in 2nd position to really short a ton.

You see they have to hold a larger reserve of money for the house once a notice of default is filed. This is more money they can not lend out to others at the newer higher rates.

Of course they will be doing that!

Their business is lending money, not owning real estate. I have NEVER EVER had a bank tell me they weren't going to short it. Even if they take 10K off, they have shorted it and it might be enough to give you a deal you need.

Of course, you just can't call a bank and say, hey short this. No you have to give them a package that puts the property in its "best" light so the bank feels more obligated to short it.

But do me a favor, do not keep saying the process does not work. The only reason someone would do that is to keep competition in that market away.

You could do the same thing self employed people do, get a "stated income" loan.

My suggestion is to attend a local REI Club and talk to the members about the mortgage people they would recommend. Not all brokers understand the types of loans we REI types like. So get referrals.

You can find a local club here: http://www.biggerpockets.com/real-estate-investment-clubs.html

Start by going to your local REI Club!
I do believe this site has a listing of them. Look in the left hand column for the link under "Assorted"

Nicole,

Wow seems like a lot of Chicagoland people on these boards recently. Weclome to the forums.

I actually think I met Larry at that meeting last week. What did you think of the meeting Larry.

Anyway, how are those classes down at JUCO going? And yes, you do not need to have a license to invest. You need a license to act in a role on a deal in which you get paid a % of the sale if you are not a principal in the transaction. IE you are not the buyer, seller, etc.

As an investor you are the buyer, seller, contract holder, or you simply work as a consultant for a flat fee to one of the forementioned roles in a RE Deal.

Sounds worse than it is really. Pretty simple in practice.

That being said, if you are looking to get your license and become an agent, let me know as well. I can help you with that endeavor as well.

Welcome to the forums. I live in Chicago but invest all over Chicagoland, this includes NW Indiana. Where in NW Indiana are you?

I was at a meeting of a club tonight that had about 30-35 attendees some of who invest in Indiana as well. The meeting was in Orland Park, IL.