All Forum Posts by: Andrew Holmes

@Chris Mignone

Hey Chris: There are many option. You have to look at a few things

1. Goal

2. Time Frame to accomplish this goal

3. How much time you are willing to dedicate to reach this goal

4. You understanding of real estate and experience

5. Risk to capital evaluation

250K invested invested in my market in very safe suburbs around Chicago will yeild $ 60K all day long and equity. The problem is you have to set it up for yourself that requires time and effort. 

In terms of lending. Just my suggestion lend to people who have money and credit. Minimum score of 700+. They are borrowing the money to grow but have their own money. Less risk. If you lend on rentals for the front end part of the purchase and part of the rehab you will be safe because you have an exit strategy. 

You can do 2 point on the front end and 4 month interest only loans at 12%. The key is knowing the asset you are lending on that is critical. I would never lend on anything I would not mind owning. There are a lot of very low risk people you can lend to that are using a Purchase rehab rent and refi strategy. 

Personally stay away from flip lending just to reduce risk. 

Of course turn key rentals. I have never bought those to can't comment. 

Or going into bigger sponsored type of deals. I have not done those to I will stay away from commenting on those as well. 

Lot of opportunities but do extensive homework before investing. You have a fairly straight forward goal and you can achieve that no issue.  

@Yoseph Kalman

In the suburbs section 8 pays out based on how they rate the suburbs. I will post the breakdown of which suburbs pay the most tomorrow. 

I'm sure in the city there will be a document that you can get from CHA that is similar. 

So as an example A three bedroom in Streamwood is not the same as three bedroom in the bellwood.

So that will make a difference in terms of how much you can pay for the property and how much cash flow you will receive. 

Also when you look at these numbers they will also do an overlay in terms of what are the trending rents in a particular area. 

Just make sure when you went out to section 8 tenants that you do the same screening and use same strict guidelines for all tenants.

Do not make exceptions because that is what gets people in trouble when they lower their standards. 

@Lesley Resnick

Love your comment and I totally agree "We are a large and diverse country with vast natural resources. A nation that encourages the sprit of the individual to strive for their own greatness. A legal system that seeks to protect individuals rights and property. We are a destination the world over for tourist and foreign nations seeking a better life. SO, MY FORECAST - LONG TERM PROSPERITY, WITH MOMENTS OF DOUBT AND FEAR"

@Michael Richardson

Alsip, Midlothian,  Tinley park Marinette Park crest wood Burbank Oaklawn Evergreen Park Orland Park Palos Hills Flossmore Homewood with Flossmore schools these are a few in the southern suburbs. 

Some of these I would say are A and some of these I would say Are B. 

@Bryon M. Monson

Go to Fidelity National Title. 

We do a lot of business with them. They are the one of the biggest in the nation. They underwrite most title companies. So go directly to the source. 

What you really need there is a good closer. So he/she understand simultaneous close or double closes with 2 hud statements etc. 

@Kathryn Daniel

If you are going to start your own property management company and your license is not held under another managing broker then you need a managing broker license. 

@Eric Matson

If you wait to invest then investing will go on a back burner once you get a license. But have a license does help your investing. 

@Danny N. I am laughing because I have the same disease with cars. I know they are bad but so tempting that I give in every 15 to 18 months. I keep buying them. Oh well. 

The properties that you have rented Rental homes 1 through 5. Do you have debt on them or are they free an clear. 

If they are free and clear. You can get a portfolio loan. Given your equity position in your personal home and all the properties you own $ 600k should not be a big deal. 

I guess that question is really going to be your Global Debt to Income ratio. Based on the numbers you have here I don't see an issue. May be I am missing something. 

@Don Chambers

List source or any other place you use to get absentee owners with equity is going to be a bit hit or miss. The reason is that they way they pull this data is what is available through public sources and crossmatching that with values at Zillow.com or other valuation software. 

There are a numbers of factors that can be mis reported and incorrect. So part of it is a bit  of a crap shoot. Not that all data is wrong but you will find a lot of misreporting. It's all computer generated data so if the data points that are pulled are wrong then you will have bad results. 

It's really a numbers game if you are going to do mailings. 

We produce our own lists for chicago and it's tough when it comes to pulling equity positions. Both first and any other existing mortgages have to be accounted for and the data sets are not always accurate. Also the estimated home value can be all over the place. 

@Tatyana M.

You can always get certified copy of the deed from the county recorders office for a small fee.

A copy of Title insurance can also be obtained from the title company or the attorney. The attorneys after a couple years send it to a long term storage place for keeping records. I am not sure about the law as to how long they maintain those records in storage. 

Either get a fire proof safe or bank locker and now a days there are a lot of cloud based online storage solutions available as well but they will of course only have scanned copies not originals.