All Forum Posts by: Brandon Rauscher

At the time of her post, she was correct. Rates were low. However today, the heloc rates are much better than refinance rates. I'm currently at 4% on my heloc, refinance rates are around 5.7% as of today.

It can be debated if I made the correct decision to heloc over refinance while rates were low. However, the heloc has accomplished what I needed and continues to serve the purpose well.

0 Votes

Quote from @Usman S.:

Count me in; Schaumburg would be perfect !

In the beginning stages of organizing a Schaumburg based meet up. However I believe the location would be perfect for many investors. Access from 390, 290, i90, 53 make it an ideal location

1 Vote

Quote from @Jonathan Klemm:

@Brandon Rauscher - I'd definitely come to check it out. I also know @Joe Mueller and @Mark Ainley are on the NW side of the city.

If you are looking for other Chicago meetups here is a good resource: https://www.straightupchicagoi...

We are going to try and make thier meet ups, however those are all in Chicago and tough for us to make. Traffic to the city really kills the practicality of going there during rush hour

2 Votes

Update on my personal experience with this. I went ahead and secured a HELOC. I then utilized the heloc for flipping one property and to BRRRR another. The strategy worked well for us. I currently do not have a project going on, the heloc is paid in full and waiting for the next deal to come along. With that said, one downfall I did notice with the heloc strategy is, my credit score dropped significantly while the heloc was maxed out during our renovation period. Fortunately my credit was strong enough to weather the storm and I was still able to refinance the BRRRR property. However the credit score drop was not expected and could have landed me in a tight spot if the credit dropped to a point in which I was unable to refinance. lesson learned, hopefully this helps someone else out as well.

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unfortunately we had to let this property go and cancel the deal. we are still open to partnering with other investors on our future deals.

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I have been searching for meet ups and real estate events outside of Chicago, however I have been unable to discover any. Is there any interest out there for investors to attend a meet up in the North West burbs? My wife and I would be happy to organize the events if there will be interest and attendees. Let us know your thoughts, we are thinking the Schaumburg area.

2 Votes

Quote from @Jonathan Klemm:

@Brandon Rauscher - Definitely a misread.

But like @John Warren mentioned Subto & Seller financing are two totally separate strategies. A lot of times the reason you would use one verse the other depends on how much equity the owner has in the property.

My partner is pretty familiar with both transactions. Happy to connect you guys if you want to talk more about the two different options and figure out what would work best for you and your seller in this specific case.

That would be very appreciated if you could connect us

1 Vote

Quote from @Nathan Gesner:

@Brandon Rauscher this is one time where the government may work in your favor. Her rent subsidy requires her to abide by the lease. Moving in a boyfriend is a clear violation of her contract with HUD. She's also violating your lease by smoking and adding animals.

I would stop communicating with the Tenant and contact Section 8 office directly. Let them know of the violations and the fines/fees your tenant is subject to. See if they will terminate her Section 8 or at least put pressure on her to get in line and abide by the lease.

Update on this:

I tried to contact section and to deal with them. They were and continue to be very rigid on not helping at all. Section 8 will not get into the middle of any issue on any level outside of bill payment. Section 8 will provide zero assistance on an issue e.g. smoking, additional persons living in property, bringing pets, ect. outside of tenant not paying their portion of rents.

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Naperville, Illinois

Quote from @John Warren:

@Brandon Rauscher I don't think you are doing a seller finance deal. I think you are looking to do a subject 2 deal, which is quite different. Instead of becoming the bank, the seller is allowing you to take over their mortage which carries a lot of risk for them (more than you). What issues are you running into? Subject2 is not common these days, although it may make a come back with rates rising.

The issue is lack of knowledge on how to structure the deal.

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Quote from @Caroline Gerardo:

If seller does not have an existing mortgage they can carry a first trust deed. I suggest you offer them 8 percent 30 year note due in full in seven years. This is a bit higher than existing rates but fair. In Illinois you can't do a land contract or wrap around. Seller has to annually disclose any impounds and interest paid.

Thanks for the reply. The seller currently has a mortgage and is willing to pass on the current locked in APR

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All Forum Posts by: Brandon Rauscher

Brandon Rauscher has started 9 posts and replied 39 times.

Post: HELOC vs Refinancing

Post: North West Suburbs of Chicago meet ups

Post: North West Suburbs of Chicago meet ups

Post: HELOC vs Refinancing

Post: Property under contract and no contractors

Post: North West Suburbs of Chicago meet ups

Post: Seller financing questions

Post: Dealing with a tenants that break rules

Post: Seller financing questions

Post: Seller financing questions