All Forum Posts by: Ana N.

Hi Cliff,

Thanks for for the input.

The property is in Back off the Yards / New City neighborhood. This is a moderate income working class neighborhood.

What neighborhoods do you buy in?

What CCR do you look for generally?

In what types of neighborhoods do you look for 1-1.5% vs 2%?

Thanks!

Welcome @Marcin Jurkun !

Congrats on getting started!

I would suggest finding a good REIA group near you and NETWORK, NETWORK, NETWORK.

Out in the burbs there's CCIA in Lombard and WCRT in Elmhurst.

If you're looking for a Chicago group also, I HIGHLY recommend the group that @Brianna Schmidt . puts together.

I've been there twice and can attest to the fact that there is no pitching and no sales, just people meeting to network and do deals together.

You can also join their FB group here: https://www.facebook.com/groups/CREIMU/

Also, read everything you can by @Wendell De Guzman . He's one of the top wholesalers in the Chicagoland area and his weekly update is very insightful.

Hi all,

I have this property under option, but before market it, I'd like to check the #s with you all because it doesn't meet the 70% rule, which I had previously been going by.

I'd love to know your thoughts! Thanks!

Description:

5 bed / 2 bath Frame 2-Flat about 1200 sqft with unfinished attic

I have this property under option. Offering it at $45k.

Worth: 80k

Repairs: 20k

Asking: 45k

Repairs:

Paint (interior and exterior)

Carpet

Roof

Kitchen remodel

Bathroom remodel

Minimal Drywall Repairs

You may want to replace a couple of windows with high efficiency windows

Rentometer: $1700/mo median rent ($700/mo 2 bed, $1000/mo 3bed)

Questions:

For all you landlords out there.....

1. What discount do you like to buy at for rentals?

2. What criteria do you use to evaluate rentals in today's market?

3. Do you go by a certain % of purchase price? 70%? 80? Minus repairs?

4. Rents for 1-2% of purchase price?

5. What minimum cashflow do you require?

6. Do you care about cap rates and cash on cash return?

7. What #'s do you look for in CCR and Cap Rate?

***It doesn't meet the 70% rule, so it's probably not as good for a Fix and Flip as for a rental: but it'll cashflow over $900/mo with a 17% Cash on cash return for a Landlord to Fix and Hold. See Cashflow Analyzer below.

I appreciate any input!

Thanks to @Wendell De Guzman for the Analyzer which you can find here: http://www.biggerpockets.com/files/user/Mister4closure/file/wendells-simple-cashflow-analyzer

Nice to meet you @Debo Adesida on Wed!

Congrats on jumping in and taking the first steps!

For comps without MLS access...you can get pretty far with a ballpark value on sites like Redfin and Zillow for properties that

Sold in the last 3-6 months, within 1/2 a mile from your subject property that are as similar to yours as possible: same construction, +/- 1 bed or bath, and within 20% of the square footage of yours. These will be your best comps.

Also, check out the youtube videos by Steph Davis on finding cash buyers and what they're willing to pay for your deals using blockshopper and findcompsnow.com. Her Youtube channel is called FlipThisWholesaler.

Best of luck, and keep us posted on your successes and learning experiences! (not failures- you only fail if you stop taking action!)

LOL @Brie Schmidt

Looking forward to hearing about your leads @Jonathan Avila

Hopefully Joe and @John Weidner can also make it!

See you all tonight!

I plan to be there @Brie Schmidt

Looking forward to seeing you all again and meeting you in person @John Weidner

@Raji Kaur ...I'd love to hear how your Waukegan deal is going!

Nice to meet you @Alex Huegle

There are no wholesale deals to be had in Chicago....sorry!

LOL just kidding. Chicago is awesome.

You can't go wrong by reading everything on BP by @Wendell De Guzman

He's the most active Chicagoland Wholesaler that I've met on these boards.

Listen to his recent BP podcast here: http://www.biggerpockets.com/renewsblog/2014/04/10/bp-podcast-065-creative-investing-wendell-de-guzman/

Check out his "Real Life of a Real Estate Investor" post here:

http://www.biggerpockets.com/forums/223/topics/121707-real-life-of-a-real-estate-investor?page=1

He gives out a lot of great info about wholesaling in general and the Chicago market specifically.

Let us know if you have any questions! Happy wholesaling!

Nice to meet you @Steve Medina !

I'm a newer wholesaler myself and from what I've been reading / researching / told by other investors, it seems like the average is around $5,000, but the better the deal, the more you can ask for.

I would read as much as you can by @Wendell De Guzman and other successful and experienced wholesalers. I think he recommends building in higher wholesale fee than you think when starting out because your repairs and/or ARV may be off when you're just getting started and learning how to estimate.

Here's Wendell's podcast with the guys from BP: BP Podcast 065: Creative Investing, Mistakes, and Bulletproof Vests with Wendell De Guzman

Best of luck!

Nice to meet you @Samson Kay !

If you're looking at Bridgeport, but are turned off by the high prices, perhaps you may consider looking further west or south.

Also, check out Trulia's Crime Map that's in Beta here: http://www.trulia.com/crime/

Good to meet you @Michelle A. !

If you're looking to join a suburban REI group, the ones @Timothy C. mentioned are the big ones.

If you're looking for a Chicago group also, I HIGHLY recommend the group that @Brie Schmidt puts together.

I've been there and can attest to the fact that there is no pitching and no sales, just people meeting to network and do deals together.

You can join the FB group here: https://www.facebook.com/groups/CREIMU/

Also, someone please correct me if I'm not supposed to post outside links lol.