All Forum Posts by: Ben Walhood

Ryan,

I've gone through similar inspections/results near you (Glendale Heights), so sadly I'm not at all surprised by the inspection results.  These are pretty standard.  Item 3, I would definitely suggest pushing back on the village a bit.  Perhaps if you can get the tenants to stop using a power strip, then the village will accept the current situation?  I'd want clarification as to the exact problem in the eyes of the village:  1) Are more outlets required?  If so, exactly how many? or 2) Is the tenant simply not allowed to have that many devices plugged into one circuit?

As for Item 8, this sounds to me like a fossil fuel report (required in several local villages).  My HVAC contractor is one of several companies that are authorized by the village to conduct this test.  They're checking for any gas leaks around the applicable devices (hot water heater, stove, gas dryer, furnace).  The test usually costs $50-$75.  Not that I like spending money, but it's not the end of the world.  If they're actually requiring an AC inspection, that would be a new one for me.  I might double check if that was on the list.  If so, I would ask the village what exactly needs to be verified (enough freon in lines, a certain amount of temp drop between intake/exhaust air, etc)?  In theory, that should be a quick and relatively cheap test for the HVAC professional.

Hope this helps!

-Ben

CJ,

Welcome to the club!  I'm a fellow rehabber/investor in Dupage County.  Let me know if there's anything I can do to help you get started.

-Ben

Joe,

Welcome to the area!  I'm a bit biased to be sure, but I've been happy with the Chicago Area Real Estate Investors Association (careia.org).  I joined their board a couple years ago.  You can find a list of their events at meetup.com/CAREIA.

It's the only non-profit REIA in Illinois, which is a big part of why I've stayed with them over the years. Their monthly meetings are held in Lisle, with additional events in Glendale Heights and Lombard.

Hope this helps!

-Ben

Wow, that's a lot of Cashflow'ing!  Thanks, Mike.  I'll make it a point to join you at my next opportunity.

-Ben

Mike,

Thank you for putting together a Cashflow game.  I am a big fan of the game and its lessons as well!

Two points I wanted to mention:  

1) On your post it shows two different times (8:30am at the top and 7:00pm at the bottom), please clarify which is correct.

2) The REIA which I belong to (Chicago Area Real Estate Investors Association) has been hosting a cashflow game for about 3 years at the McDonald's in Lombard and we happen to hold it on the 3rd Thursday of every month at 7pm.  Is there any chance you could adjust your timing so that I can attend your event as well?  It would be much appreciated!

Thanks

-Ben

Admittedly, I want to share this because I'm really excited about being on CBNC, but I do have a legit question for all of you.

Last week, I was interviewed by CNBC (http://www.cnbc.com/id/102537364) for my rehabbing company in the western Chicago suburbs.  Diana Olick was awesome by the way!  

What is driving me crazy is reading the comments that people posted below the article.  Things like "Here we go again. This time these people who get stuck with multiple homes when the market crashes once more should not get an easy way out of it" and "Lets give mortgages again as well as let the predatory lenders lose again. What is the worst thing that can happen."

I quickly get the impression that the general public has no idea of the difference between a flipper (by my definition, someone who takes title briefly and makes no/little improvement to a property) versus a rehabber (someone who makes significant improvements, creates value, takes the worst house in the neighborhood and creates the nicest home).  I feel that the average Joe is mad a flippers who bought a house during the bubble, only to take advantage of crazy appreciation, who then complained when they got caught in their trap.  Whereas rehabbers are bringing tremendous value into an area that would otherwise be blighted by dilapidated, abandoned homes.

I'd like to hear your thoughts on how to educate the masses on this key distinction, as well as any other opinions on flipping vs rehabbing or other terms that are used in your area.

-Ben

Welcome to BP @April Kalad!

I've learned a wealth of info from BiggerPockets members over the years and I'm very glad you found this valuable resource.

As mentioned above, I would encourage you to network with the local community of investors. There are plenty of private lenders and hard money lenders in the area, it's just a matter of networking to find them. A couple of other members mentioned the Chicago Area REIA, which I've found to be a great group. But then again, I'm biased since I'm one of the board members :) We have an event tonight at the Hyatt Lisle, right in your area.

There are lots of other REIA's in the area too (Chicago REIA, CCIA, Chicago Connections Club, etc). Make sure you check on Meetup for these and other local events. Each group has its pros/cons but all offer a great opportunity for networking.

Let me know if there's anything I can do to help you get started!

-Ben

As an active investor in those areas, I would say that (very generally) all 3 are desirable areas.  I would rank them as Westmont as most desirable then Woodridge and Lombard.  But like with most areas of Chicagoland, you have to get down to a more micro level.  I used to live in northern Westmont which had $2M+ McMansions in gated communities but also plenty of $50k-$100k condos and townhomes.  In the southern part of Westmont there are some apartment complexes that I would say are less desirable.  Woodridge has many $500k+ homes, but west of 355 it seems to drop down to working class homes in the range of $100k-$200k.  In Lombard I tend to see mostly older homes, without a lot of the rehab/tear-downs that are seen in other western burbs with equivalent pricing.  

That's just my own two sense from driving those areas and looking at deals on a weekly basis.  I'm sure others would have different opinions based on their experience.

My advice would be to focus on the couple blocks in either direction of your target property.  If they are newer, rehabbed, or well-maintained homes you probably have found a nicer part of town.  If not...

It was pointed out that I forgot to list my contact info.  Thanks @Crystal Smith!

If you have an opportunity available in my area, please email me 

[email protected] 

and feel free to send a Colleague Request.

Attention all wholesalers and bird dogs, my rehab company is expanding this year and we are seeking off-market deals in the western Chicago suburbs that are listed below. We are cash buyers, with funds available to close in as little as a week. We buy most of our properties with an ARV between $150k-$250k, but we're willing to consider every opportunity. For an initial number, please use the 70% rule.  Bring us the deal and we can dig deeper if the numbers pencil out.

For SFR's, please ensure there are at least 3 bedrooms or room to create at least 3 bedrooms without using the basement. Ideally 2+ baths, but we've done plenty of 3/1 projects as well.

Occasionally we'll take on condo/townhome projects, but generally prefer SFR. If you have a condo/TH deal that has spread, let us see it.

Lastly, we are interested in small multi-family as well, just stay clear of the rougher areas (if there are multiple cars on blocks, blankets and newspaper used for window coverings, or several people hanging out on the front patio all times of day, we're not interested).  Hopefully that covers it, but I look forward to questions about the points I missed.

A few specific requests:  

1) Please do not put an MLS deal under contract then bring it to us for MLS price + 5%. That's not how it works, you've added no value. I'm amazed at how many wholesalers think this is ok. However, if you're able to negotiate the MLS price down considerably and make some profit margin for both of us, I'm all ears!

2) Please do not re-wholesale a deal in an attempt to make a quick $10k for doing nothing.  Again, you've added no value.  The wholesaler that found the deal has likely priced it in a way to make us both money.  When you step in between, you ruin it for both of us.  Please bring deals that you have located on your own.

Thank you very much for your time and we look forward to hearing from you!

Target areas west of Chicago, Illinois: Bolingbrook, Plainfield, Naperville, Darien, Woodridge, Westmont, Lombard, Villa Park, Glendale Heights, Carol Stream, Wheaton, Lisle, Elmhurst, Downers Grove, Glen Ellyn