All Forum Posts by: Chang Hee Lee

@Kristopher Edwards I'm like the millionth person to say this but...those property taxes are low, I mean REALLY low. They're lower than a 14-unit apartment complex I saw recently whose property taxes stand at a whopping $38,000 and increasing (given, the owner still needs to appeal the assessment later this July). 

And yes, I know it's Illinois but even so, less than $2,000 for an 18-unit? Oh man... 

@Benjamin Cowles Is he working on your cabinets with his legs? 

Hey BP,

Currently working with an buyer and they've set their eyes on a nice fourplex that cash flows well and meets most if not all his criteria. Best part is that it is a double lot zoned R-4 Multifamily. Unfortunately, there is an easement (storm drain runs under the other lot) and the area is a designated so that all properties must be close to the sidewalk which is where the drain runs under so cannot build a property behind even though there's plenty of land. 

I've been through creative situations before but I'm not sure this one is going to work so I'm about suggest we walk away BUT I wanted to see if anyone else has encountered a situation like this and somehow made it work or taken advantage of the situation. Any views or feedback would be appreciated!

@Caleb Heimsoth Yeah, the 6% quote was definitely an outlier. Most of the other lenders quoted around low 5s.

@Harjeet Bhatti I PM'ed you!

@Russell Brazil Rates were much higher before, I am aware. Just relative to the short-term, it's disconcerting. 

@Bill F. Good strategy, I might recommend that to other investors I work with. 

@Max T. That could work, however, I am concerned because although the rate of unemployment is low the types of jobs and wages have not kept up which is why I'm against these rate hikes. We are simply not ready.

I was working with some investors yesterday and were calling some of the local banks in town. Thank God owner-occupied loans are still under 5% but I had some lenders quoting us 6% on a fixed 30-year for investment property. Just wanted to see how everyone else out there is adapting to these changes as the Fed is pretty confident on a total of four rate hikes this year (yikes!).

Call around with some properties in mind and ask them what they think. Even if you don't have any that you're currently thinking of (hence why you'd contact an agent/broker), still ask if they know of any deals in the area. Note the language they use when they talk to you. Instead of talking about brand spankin' new houses that'd you'd love or the awesome renovations done within select properties, true agents/brokers that understand the investor lango should mention cash flow, return on investment, etc. They should also be pointing you to properties that need some work or else, move on and go on to the next agent/broker. 

You'll also find many great agents on here and I'm sure they can refer you to top investor friendly agents/brokers in whatever market you desire. Good luck! :)

@Michael Temple Actually crazy you mention this, had the same discussion on that at our REIA meeting here in Champaign tonight with one of the local attorneys. I was shocked to hear this too, however she explained it like this.... A criminal record is serious but let's say for example the crime was committed 20 years ago and the individual has turned their life around (very broad but you get the gist of it). Essentially, these former criminals are being given a chance which is how she phrased it so in that way, I can see where they might be coming from on this ruling.

Still can't say this is comforting though... 

@Steven J. I also work part-time at the Panda Express on University in Urbana and wonder if that might be a possibility for the future meetups? Not sure if Perkins is the usual meetup spot but just thought I might throw that out there since I can get everyone a discount and the seating environment is pretty nice! 

@John Hagen I think I saw that one! Guess it's the closest thing I was inquiring about in my post. Are you in the association?

Always good to know a fellow Illini! It'd be great to see you!