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All Forum Posts by: Benj Ecker

Benj Ecker has started 3 posts and replied 7 times.

Post: What can I afford with $35k?

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

@Kris H. Sage advice. I appreciate it.

My target is a multi family property that produces a solid return. Conventional lending is going to require 25% for that. So I’m stuck in that narrow price range.

It sounds like alternative financing is my only option for anything above $120k (but also below in the $30-100k range that I can’t pay cash for). I guess I need to get more familiar with these strategies.

Post: What can I afford with $35k?

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

@Jim Kittridge This is a vacation rental market. Strong month to month rental to offset the slow winter STRs.

My friends in this town self-manage their properties. One even said she would “only” charge us 18% as a favor; every PM agency charges roughly 25% or more.

Post: What can I afford with $35k?

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

Thanks for these replies.

I should add that we already own our primary residence so the first time homebuyers loan isn’t an option. We can’t claim residency unless we move in to a multi family property, which isn’t in the cards right now.

I've found out of state properties that fit this price range but the PM fees are 25%, which cuts into the ROI severely.

Do I have options other than 25% down that could get me out of this narrow price range (so that I could look at my local market)?

Post: What can I afford with $35k?

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

I'm looking for my first deal. Conventional lender who pre-approved me is a REI himself said 25% down payment on an investment property is standard. And they won't do a loan under $75k (since closing costs would be over 5%). So that puts me at $100k minimum purchase right there for a conventional loan.

Let’s say I have $35k I could invest. With the math above that puts me at a ceiling of $120k ($30k down payment plus closing costs).

Is that right? Would I really be stuck with a window of $100-120k?

Post: New member introduction from Rockford, IL

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

Welcome, Mason!

Post: Exclusive Representation Contracts?

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

I'm new to real estate investing and looking to buy my first property. I connected with an agent who knows my area, understands my goals, and has some experience as an investor as well. He sounds knowledgable and trustworthy. I've been sent an exclusive representation contract to sign, which expires at the end of 2020 (roughly 130 days). I get that agents often invest a ton of time into representing a buyer, who could easily choose to walk without an agreement in place. So this makes sense to me--but I haven't experienced this with either of the primary residences I've bought previously. 

- Is this common practice for someone representing a real estate investor? 

- Does the time frame seem overly long to anyone else? 

I don't want to begrudge an agent their due; neither do I want to paint myself into a corner for the year if things don't work out.

Post: Rookie in Chicago suburbs

Benj EckerPosted
  • Lake Zurich, IL
  • Posts 7
  • Votes 2

Hi BPers. Glad to be a part of this network. I'm in Lake Zurich, IL and just starting this journey of REI. I've listened to a few dozen BP podcasts, read a few books, and have been scouting my area for potential deals. I'm also looking for a good REIA or meetup I can tap into. Anyone in my area know of any?

Looking forward to being a part of BP!