All Forum Posts by: Derek Martin

Tough question to answer. Is the "best" town the one with the most favorable purchase price to rental income ratio? Is it one that's appreciating? Is it one with higher-end demographics and presumably better tenants? It all depends on your strategy.

For my initial buy & hold properties, I chose the best price to rental ratio. So I've invested in southern suburbs of Cook County. As I've developed cashflow and a process for investing, I've started to look at other areas. 

Brandon,

I like the concept. I keep the same thing on an excel sheet. It's fun to see it change over time!

1. It should probably total everything up at the bottom. Especially to give a total net worth.

2. The Purchase Price and Purchase Date don't factor into the current numbers. Are they just for reference purposes? 

3. Maybe include a basic equation for "Monthly Cashflow." Everyone seems to have their own equation (reserves, vacancy, property management even if it's self-managed, etc).

4. On my spreadsheet, I include a notes section. For example, "needs a new roof in 2 years" reminds me what lies beneath the numbers.

Great tracker. Hope this helps!

Welcome! BP should be very helpful in getting you to take action. If you have questions, just ask. 

I've used American Modern Insurance. I had issues so I can't really speak to their coverage. But it was easy to get set up and cancel.

@Russell W. there are many good real estate attorneys in Chicagland who can help you close a purchase. If you're going to be investing in Chicago for the long-run, you'll want to build a relationship with an attorney who understands investing. The same is true for finding an agent, contractor, etc. Think of them as members of your team.

As an attorney and an investor in Chicago, I can give you some good recommendations. Feel free to PM me. 

There are 3 considerations here:

(1) deciding which entity to use from a tax perspective & obtaining and EIN number

(2) deciding which entity to use from a legal perspective & getting a quality Operating Agreement in place among the members

(3) submitting the paperwork properly to the Secretary of State

Basically, they have all been discussed here. They are all important. A tax professional should advise you on #1. Only an attorney should advise you on #2. Take the time and effort to do both of those correctly. Then, if those are both in order, following directions on the SoS form is the easy part. 

@Dean Hulsing You likely do not have legal standing to challenge the taxes until you are the owner. Additionally, you're very unlikely to receive a ruling before closing. As others have mentioned, the seller will pay the taxes until the date you close. 

If the numbers make sense with the current taxes, a successful tax challenge down the road is just icing on the cake. Good luck.

It depends on your purpose. Common considerations are asset protection, privacy, taxes, and financing. 

A land trust will not provide asset protection. There are some benefits, mainly privacy of ownership, and those can be read here: 

http://www.idfpr.com/banks/consumer/tips/TRUSTS.ASP. 

While an LLC and S-Corp do provide limited liability, they're not foolproof. Not all acts will be protected and you must properly maintain the entity and business operations.

The biggest considerations, to me, are financing and taxes. Depending on your options, you may have an easier or harder time securing financing with an entity. 

Tax implications can be the difference between a profitable/losing property. Definitely consult a tax professional. @Steven Hamilton II may have more info.

Finally, Illinois does offer a series LLC which is what I use to hold my long-term rentals.

@James Syed I am not familiar with your county rules. However, it sounds like you have likely served good 5 day notice. Next step is typically to file the action at the courthouse, like you said. 

In Cook County, Illinois, single action is for possession. Joint action is for possession of the property plus back rent. Good luck! Let us know how it goes. 

@Ajie Attawia what are you looking to accomplish? I can probably point you in the right direction, but would need to know generally what you wish to do. A closing? Contract review? Eviction? Litigation?