All Forum Posts by: Anthony Maicki

We invest in quite what a lot of folks would consider "rough" neighborhoods on Chicago's south side.  We have a strict screening guideline, and although a bad tenant sneaks through from time to time, we have mostly great tenants.

The dicey activity tends to stay away from properties that have surveillance and law-abiding citizens.  We work with the local Alderman and Police to make sure our properties are routinely checked on.  The drug dealers are smarter than most give them credit for and therefore do most of their business on blocks and corners where they can hide from regular folks.  

 Most gangs want to see their neighborhoods improve since it's where their kids live, where their mothers live, where they live, so once the gang leaders realize we are part of the solution - they stay away from our properties and our tenants.

ALL of our tenants are happy to have a SAFE, reliable home to live. These areas have some great people, you just need to make sure you get the good people and not the bad ones.  

Because of this, the returns can be astronomical compared to the north side of Chicago (Class A properties).  Also, it feels socially productive to provide a beaten down community with some much needed investment and improve the lives of some of the less privelaged.  

Investing in these areas is a different game than what's mostly discussed here, but can be rewarding and lucrative in so many ways.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

30 unit building (one of two buildings in a portfolio deal) completely renovated throughout with CENTRAL AIR, granite counters, stainless steel appliances, and hardwood floors throughout. These gorgeously rehabbed apartments sparkle with 1920's charm on the exterior with all of today's modern amentias on the interior.

What made you interested in investing in this type of deal?

We have been investing in southside multi-family properties for five years now. In the past we have always rehabbed abandoned buildings. This deal was extremely interesting because never before have we come across a southside building for sale that was actually rehabbed. Sure, we've seen everyone's attempt to "put lipstick on a pig," only to always be disappointed. This deal was different. It was actually done properly

How did you find this deal and how did you negotiate it?

We found it through Interra Realty. Prior to listing it publicly, a few investors were shown the deal. We pushed to see it one day ahead of the others due to a partner leaving town, and put in offer in that day.

How did you finance this deal?

First Merchants Bank Swap

How did you add value to the deal?

We have already begun adding value to this deal by plugging it into our management team. We strive to be the best manager not just on the southside, but in Chicago. We are currently working through open work orders to satisfy tenants unhappy with previous management. We are also adding new water service, performing some major tuck-pointing, and refinishing the floors

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Ted Stratman from Interra Realty is by far the most professional, most courteous, most responsive commercial broker we have ever dealt with. He is honest (a real rarity in his world), trustworthy, and very competent.

Hi John,  

Yes, we BRRRR'd all of our properties thus far. Good luck in Englewood - I am sure the residents there would appreciate some more investment in the area.

We have looked at Englewood properties a number of times. Although we have yet to pull the trigger, we have done what you are planning to do in Chicago Lawn and South Shore.  We have had success in those neighborhoods, and I believe the same success could be had in Englewood.  The key is strong management.  Are you planning on managing the asset yourself?  I believe you will need to manage it yourself to set yourself up for the best shot at success

My partners and I recently rehabbed a 12 unit apartment building on Chicago's Southwest side.  We have 12 beautiful one bed / one bath apartments with brand new appliances and individual energy efficient furnaces.  We have one of the nicest buildings in the area, and are also asking less than market rate.  However since it has been vacant for years coupled with  the time of year (January), I am wondering if it would be wiser to hire a real estate agent to rent the units out, or to do it myself?  I have signed the property up on Zillow, reached out to the 17th ward community, posted adds on craigslist, hit the streets with flyers, etc.  Please keep in mind that this is nice area, but a lower-income area.  There aren't many traditional real estate brokers working in the area.  Any insight on similar situations would be extremely helpful.