All Forum Posts by: Andrew Holmes

Try working with Divyesh Patel for hud homes in your market. 

Look at the absorption rate in your market. 

Some basic data from past 12 month then past 6 months. Should be able to give you this answer. 

Also the real estate market is not one way or the other. It will change throughout the year. In the same years things switch back and forth depending on your local market. 

Year over year the sales and pricing may be up but there are low period in each market make for a perfect buying opportunity. 

Patrick J. Noone

CPA at PJN TAX SOLUTIONS GROUP, INC.

Attorney: Gardi & Haught Law Firm Schaumburg

Hiten Gardi.

@Marvin S.

I think Marvin BP at the end of the day is a business. I am sure they have a huge structure behind all of this. I had a PRO account then did not use it much just signed up again. From the forum that I have used even with a free service it seems really good and they seem to allow a lot of different ideas and it's a great place for real estate investors to participate in a community. 

I don't really know the guys behind or history about BP but personally I think it's a really service for many investors.

I hear you about that more is always better but I think compared to anything else that is available in the marketplace from what little I know about BP they have done a really good job. 

It's only $ 250 or so for the year for a PRO account we all waste more than that in a week. I think for the price it's a hell of a deal. 

More importantly charging money creates value I feel. Free has no value. 

That is just me. 

@Sam Denny

Look at the map included below.

In southside chicago and southside suburbs there are a lot of pockets that you need to stay out of totally and then some right door are great. Reach out to some like Frank Montro with Keller Williams Realty does a lot of investor business. He is very good. Tell him Andrew Holmes says hello. 

He is a friend and he cares about your investments. I have had him come and speak on our radio show and at Chicago REIA on a number of occasions.

The south areas can be a great market but a lot of people run after returns and ignore the other basics a huge mistake in southside or in the south suburbs. 

@Account Closed

If you going to buy in the low income and very cheap properties do a lot of research. You will find people who have done very well in these area but these are very savvy investors and still it can be a huge pain. Yet a handful of people do well. 

We absolutely don't use this strategy but build your model after some of the investors that are already successful and more importantly have long term investment history. Do not emulate someone who has just scaled up. You might be just looking at a shooting start before it runs out of steam. Longitivity and staying power while investing matter a lot. 

@shawn byrd

Your idea is not crazy at all. 

You are in a market that is very hot from what I understand. 

BRRRR (Buy -Rehab -Rent & Refinance & Recycle)

Take each piece and break it down.

It will depend on how fast you want to scale up. Because that will vary your technique a bit. If you do not want to get held up because of 6 month seasoning you can go two ways. Either buy and do a rate a term refi not a cash out refi. or go the commercial route. 

I have 160+ single family homes here in Chicago is very good suburbs done with Buy -Rehab - Rent and refi. 

This can be a very long answer but remember some basics if you want to scale.

1. Buy with a minimum equity position of 25%. After rehab you need to maintain that equity by what you do in your rehab so your ARV needs to be 25% higher compared to your total in cost.

2. Rental - Commercial banks look for 1.2 debt coverage ratio. Keep it conservative so keep a minimum of 1.33 DCR.

3. We only do 2 year or more leases I do not want turnover. That is what kills most landlords.

4. Refinance this is most tricky part because the initial setup needs to be done correctly so you can refi and recycle. 

The key to all of this specially if you want to scale is find really good deals. 

Sheriffs sales work well in our market but are only for savvy investors because they can be a mess. We have done very well with them. 

There is a guy at GNT title the name attorney's name is Robert Rothstein. He is nuts but really good for this. He does a lot of these for a lot of private money lenders. 

@Demetrius Davis

There are still a lot of transactions that have margin the only issue is that MLS is tough. You can still find deals but it's not a cake walk like it was from 2008 to 2014.

Go after Probates

Shadow Inventory Deals

Pre-foreclosures with equity

Pre foreclosures 30 days from Auction

@Ori Foyer

The best way to search for area is download all sales, pending and actives in the northside area from the MLS.

Then import them to Excel and do a double search for flips. Then look for spreads of a minimum of 120K and a profit margin of 35 to 45K. 

Use the old 33/33/33 rule

33% for rehab

33% for carrying and selling costs

33%  for profit. 

You will be able to identify area with the highest number of flips and then you can duplicate that in those areas.