All Forum Posts by: Calvin Lipscomb

Once you enter attorney review, the seller should supply all current leases, historical utility bills, etc. I am going through the same process in Chicago, good luck!

@Calvin Lipscomb I own a number of properties on the south side of Chicago including one in South Shore  (12 unit by the lake) I am also a Real Estate Agent with Second City Real Estate and work with a number of investors who target that area.  Feel free to reach out to me if I can be of any assistance to you.  

Income and expense information should be looked at before you offer. 

ditto what was said. These neighborhoods are investor friendly. if you have not practed running number I would recommend using the bigger pockets calculator and stress testing to see what effects them the most. The biggest mistake you will make on the first deal is paying too much. If the numbers don't work don't pull the trigger. I might know an agent or two who work that area. *cough cough*

For your first deal I would recommend not going over 2500 sqft to reduce your risk.

High crime has a LOT to do with absentee landlords and the concentration of lower income rental units in an area. Don't be fooled by the lower prices in South Shore. There's a reason for that. It's not yet at the point where people are willing to pay market rent without a subsidy. South Shore has the highest concentration of Section 8 tenants in the city, due primarily to working class, middle income flight. Check the news from a couple weeks ago.

Hi Calvin, sorry to hear about your agent headaches. I had a great buyers agent for all of my rental property purchases, can't say enough good things about her. Having said that, there were a couple of bank own properties where I was frustrated just like you, communication issues. So that was the deciding factor in getting my real estate license, not commission savings. I am very good at knowing when people are lying, even over the phone, that skill set was not being used with the buyer broker buffer. Getting licensed in IL might not be practical for you, just thought I would share.

You should never make an offer with the listing agent. The listing agent is working on behalf of the seller to get them the best offer. For them to also represent you presents a conflict of interest. Secure yourself a buyers agent to work on your behalf.

The last thing South Shore needs is more absentee landlords, to be honest. That's the main reason the crime is so high there.

@Calvin Lipscomb I am sorry to hear about your frustration. I don't know which agent you are working with, but I can tell you that this is definitely a "sellers market" here in Chicago. I have not done a deal yet in the southwest suburbs that hasn't been multiple offers (on the buy or list side). You may have to offer on multiple properties to get a deal, even if you are offering cash! One of my cash buyers in Berwyn recently had to go well over list because we were competing with multiple cash buyers. 

The south shore neighborhood is definitely getting very competitive as well. Have you touched base with @Ronan M.? He invests in that area and knows it pretty well. 

@Calvin Lipscomb sorry I am just getting to this now. The baltimore city auction is over. It is a very well run auction. It is run by the Grant street group and the website for bidding is very good. This year was one of the most competitive I have been in. Two bidders were bidding silly numbers that will likely end up in losses on many properties. 

The Baltimore county auction is coming up. I am not as familiar with how they run that one.  You need to understand MD law and how the "High Bid Premium" will affect your interest rate. If you bid more than 40% of the assessed value of the property you start paying a high bid premium (IE stupid tax) that does not earn interest. This lowers your effective interest rate. Typically interest is bid down to below 8% in Baltimore County.