All Forum Posts by: Calvin Lipscomb

I am currently preparing to start my real estate business in my home area and would like to know what would you believe is the most important principal in being creative with your funding (growing your knowledge base, networking, etc)? 

I see this is late as Besnik said in the last post but I figured I'd still give my input.  The Chicago market is not dead, my team and I are having deals come in and out of our door faster than you would believe. I recently moved to the Chicago market to pursue my first real estate venture and couldn't be happier with the Outlook I see potential for. Obviously this isn't within the same scope of time when the original post was made but being a new member of BP I wanted to share 

@Syed Lateef I agree repairs/maint. are not properly reflected in the comparison. Those were items directly related to the new rehab anyways. Without those in analysis it increases margin over standard rents. 

@Ray Harrell It's a 3br 2ba coach house. Small house in the rear of a chicago lot where the horses at one point lived. In front is a 2 unit building. 

@Bob Floss II It's a clients they own whole property I can't give out specific rehab financials but will say it was not a cheap build. They used quality materials and the same crew that does 1.8 million single family builds. Overall the current rents got the cap rate well above similar properties in neighborhood for a bit of context. 

I am a HUGE fan of coach houses just did another deal with one and got the pro-forma significantly higher then any other 4 units in area. I also feel like as these coach houses get torn down more and more for new construction there will be less and less of them which may create a rarity/premium from a long term buy and hold standpoint. 

Ps. We’d buy a large multi if we could, but I imagine with no landlording xp we won’t get very far?

(Deals 10 units +) 

Are you looking for a new construction opportunity in multi-family/apartments OR are you chasing down existing units? 

Have you explored the pros and cons of each? If so what are some problems or concerns you or your group have run into? 

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Are you doing any target market analysis to determine market potential? Would your market accept new construction? 

Are there an excess of vacant buildings which you could possible convert? Do you look for blight and try to create deals there instead? 

I appreciate all feedback and discussion, thank you.

-John 

 The deal we were looking at fell through, so we didn't need to use them. Did you end up going with Lending Home? How did it go?

I have decided to become a passive investor in MF. I am just starting out and my research indicates the syndication will create a LLC so there does not seem to be a need for me to create one. That said, should I open a business bank account in my own name as a sole proprietor or create a DBA to protect my SSN? All I am providing is capital into any deal for now... Your help is appreciated.