All Forum Posts by: Brent Watanabe

We're looking to close on a property in Washington Heights fairly soon. Hopefully this is just the start and we get some momentum going into the second half. Want to get another duplex or flip before the end of the year.

@Bryan Beal

Would be interested to know who your lender is and their requirements, if you don't mind.

Thanks!

As far as I know, you need an architect to stamp a set of drawings to obtain a permit. In Chicago anyway. That's been my experience, minimal as it is in the residential space. Depending on what you're doing, will also need licensed plumber, electrician, HVAC stamps too.

A GC would manage most of that for you, as Allan mentioned, but you still need the appropriate professional credentials to stamp the drawings and fill out the appropriate paperwork.

Hopefully someone more savvy than I has a better answer for you.

Where in Chicago is the property located and how much work are you actually trying to complete?

@Marcus Auerbach That story stressed me out, haha. My mistake on the core 4, by the way. It’s property manager, not lawyer as the 4th.

So far the process of buying and renovating our home in Milwaukee has gone smoothly, though a little slower than expected. I think that's a result of so many moving parts needing to get things done. I don't quite understand how flippers or BRRRR investors do it so efficiently. Fortunately MMP Building Remodeling and Renovation have been pretty easy to work with. And this is before we've even closed on the renovation loan! So it's nice to see that type of customer service upfront. Not sure if Veronika is on here, but as the process moves forward, I'll keep everyone updated either here, or maybe a blog post or something. Andy Derwinski with Cherry Creek Mortgage has been pretty helpful as well.

@Account Closed definitely know about the lawyer requirements in Illinois. We use Mark Edison. He’s been pretty great to us. 

Ah, that's a nice strategy. So you get forced equity in the property, and don't necessarily cash out refi, but just get traditional financing and then use a HELOC on the investment property? I thought you couldn't use HELOC's on investment properties. Or is that a different product I'm thinking of?

@Jared W Smith You thinking about doing the BRRRR strategy to start out? Are lenders willing to refinance and cash out a hard money loan?

I've seen a thread that mentions getting the entire value of the purchase and renovation on the HUD, but that means you need that much cash. I think HML doesn't work for that. But I'm still trying to wrap my head around all of it and make it work as a primary source of income. So far it seems bleak, haha.

Good luck on your purchase! Hope everything goes smoothly.

Ah, interesting question. I had a similar question for a lender, only in reverse. Apparently banks don't like to do renovation loans anymore? Or maybe I misunderstood him, but he basically said to try for a HELOC on our existing property, which we don't have to sell yet to be underwritten, and use the HELOC to make updates and use a conventional loan 5% down, to purchase the property. This is going to be our primary residence, not necessarily an investment property. Though I've been looking at all property with an investment lens.

I hope someone is able to answer your question though, @Jared W Smith. Because that sounds like what I’m going to need to do in the near future.

Going to follow this thread to see what comes up!

When you guys are talking low income in Milwaukee, what areas specifically? West of the freeway next to Bay View? North and Lisbon ish? Just curious what you guys think qualifies.

Thanks!

Old post that I’m reincarnating, but @Alex P., if you don’t mind me asking, what’s the process for verifying a home is actually in pre-foreclosure? I can find delinquent taxes, but are there other data sources?

Thanks for your help!

@Rebecca Knox, @Marcus Auerbach, @Matt Maurice Thanks for the tips. I’ll definitely hunker down and start that search process now. I’ll also be sure to check out MK3.

In general, it’s best to have those key players lined up before really zeroing in on a deal anyway, right? Contractor, Lender, Realtor, Lawyer (Core 4, right?)