All Forum Posts by: Brie Schmidt

My Instagram and FB accounts were Meta verified (@chicagobrie) and someone hacked my linked business account (@midwestresummit) and violated community guidelines. This was a 6 year old business account the never posted anything besides promoting our real estate conference. 

This happened almost a year ago and I have not been able to reactivate my personal accounts. I don't care about keeping the business account at this point.  

My personal account was just for talking about beings a landlord, investing in property, and being an agent in Chicago, so nothing remotly close to inappropriate.  Anyone know someone who can fix this?

I urge any Chicago investor to use this "call to action" to send an opposition email to the mayor and alderman. It has a pre-filled message with the option to add your own thoughts on the ordinance.

https://www.votervoice.net/ILRealtors/Campaigns/118318/Respond

This ordinance took effect immediately for the neighborhoods of Avondale, Hermosa, Humbolt Park, Lower West Side (Pilsen), West Town and Logan Square. This pilot program could be expanded to the entire city if they deem it to be successful. The sponsors’ goals included “protecting naturally occurring affordable housing” from teardowns, decreasing “gentrification” and lowering property taxes for homeowners. While the ordinance went into effect on October 10th, the large response to the Call For Action yielded an initial ‘grace period’ of enforcement until November 9th.

Below is the summary of the ordinance. Basically there are two parts to this:

• Landlords must give tenants a "first right of refusal" to buy the property before marketing it. I don't mind that, but the way this is set up is so that the tenants could delay the sale 6-9 months without ever having to prove they are financially capable of buying the property in the first place. So if your tenants don't like you they can do this just to stick it to you. Instead of following these rules, it is way easier to get rid of the tenants and sell the building when it is vacant. Which does the exact opposite of what this ordinance is supposed to accomplish. Landlords will just leave their leases MTM and terminate the lease if they want to sell. Additionally, if any public funds are used it has to remain affordable housing for 30 years, devaluing the property and making it nearly impossible to sell.

• They increased the demolition fee by 400% which will absolutely stop any development in these neighborhoods. Keep in mind that it is the city's zoning policies that are creating this mess in the first place. They are the ones that rezoned every side street to RS-3 which does not allow anything more than 1-2 units. They are the ones that refuse to spot zone or increase density. So these developers taking 2-4 units and converting them to SFH are just bringing the property into conforming status. Instead why don't they change the zoning map so 2-4 units are now in a RT status which allows us to increase density by right. These neighborhoods have tons of multigenerational properties in disrepair. They were purchased decades ago with the intention of having their family live in the other units. Because of this they never charged market rent, so never had money set aside for capex or repairs. Now these buildings have not been updated for decades and it costs more to repair them than to build new ones. But this seller is going to be stuck with an unsellable property that they will end up losing in foreclosure and it will sit vacant cause nobody wants to buy it.

So please take a few minutes to complete the opposition form and share it with anyone you think will be affected by it

Key details of this ordinance include:

• Demolition surcharge quadrupled as part of a “pilot program”
  • The fee for demolition within the pilot zone will increase from $15,000 to $60,000 for a detached house, townhouse or two flat.
  • For a coach house or multiunit residential building, the fee will increase from $5,000 to $20,000 per dwelling unit for the demolition. Affordable housing demolition plans are no longer exempt under this ordinance.
  • The demolition surcharge pilot program shall be in effect through December 31, 2029
• Sellers of all residential rental property (including one unit) must adhere to new rules and notice requirements
  • Prior to listing a rental property for sale, the owner must provide a “notice to sell” to the Department of Housing and to the tenant association, or to each tenant. The notice must be no less than 60 days prior to listing for five or more dwelling units. For four or fewer dwelling units, 30 days notice prior to listing is required.
  • The Department of Housing will provide a form and the “notice to sell” must contain specific information including the proposed asking price. The owner shall also post a notice of intent to sell at all public entrances to the property (that form will also be provided by DOH).
  • If the owner receives an offer from a third-party, the owner shall provide a written notice to the DOH, tenant association or to each tenant in the rental property. The notice of sale must include an executed duplicate original of the third-party purchase agreement and make available specific details about the property including the most recent rent roll, list of vacant apartments, income and expense report for the 12 month prior to the notice and any other information the Housing Commissioner may specify by rule.
• Tenants’ first right to purchase the building before a third-party (‘Right of First Refusal’)
  • Tenants in buildings with five or more dwelling units have a period of 90 days from receipt of ‘notice to sell’ to form a union to exercise their “right of first refusal.” Tenants of a rental property consisting of four or three units shall have a period of 30 calendar days of notice to form a tenant association. For one or two dwelling units, the tenants have 15 calendar days to inform the owner of its intent to exercise its right of first refusal.
  • For tenants exercising the right of first refusal, written notice must be provided to the owner. Terms and conditions may be similar to the third-party purchase agreement; however, earnest money is capped at 5% for the tenants/tenant association. The owner may not require the tenant association to prove financial ability to perform as a prerequisite to entering into a contract.
  • A tenant association may exercise the right of first refusal in conjunction with a third party or by assigning those rights to any party, whether private or governmental.
  • The timeline for closing is 120 calendar days for rental properties consisting of five or more dwelling units, and 60 calendar days of four or fewer dwelling units.
  • If the tenant association fails to close, the owner may sell to a third-party purchaser. Any material change in the terms of sale, the tenant association right of first refusal is reinstated.
  • Despite this being a pilot program, there is no defined end date for the tenant opportunity to purchase provision.
• Rental properties in the pilot zone are subject to further regulations
  • If a purchaser purchases a rental property and uses any public funds in the purchase, then the rental property shall be maintained as affordable housing for no less than 30 years.
  • Landlords may not evict for any other reason than serious, or repeated violations of the terms and conditions of a lease or occupancy agreement, otherwise defined as “just cause eviction.”
• Penalties
  • Any person who violates the requirements set forth in this ordinance shall be fined, not less than $200 nor more than $1,000 for each offense. Each day that a violation continues, shall constitute a separate and distinct offense, to which a separate fine shall apply.

@Annette Eck - check your lease, in Chicago 48 hours notice is required.  It is against our rules to let buyers go without an agent, but it is their buyer's agent that should be present.  Your landlord's agent would have no idea they didn't come with.  I would absolutely talk to your landlord, here is the city it's customary for both agents to be present at all showings.  

Just last week we did get an administrative adjustment for the zoning.  The alderman refused to even talk with us about the situation or consider any spot zoning.  So we had to prove the unit was existing for more than 20 years but providing public records and voter logs and getting neighbors to sign statements.  

Now we have to submit the plans and apply for a permit and have an inspector come out to review the conversion from 30+ years ago

This multi-family property offers an unbeatable combination of space, location, and investment potential. Whether you're looking for a spacious family home with income-generating possibilities or a pure investment opportunity, this property deserves your serious consideration. Don't miss out on the chance to own a trophy property in one of the most sought-after neighborhoods. Schedule your viewing today and prepare to fall in love with your new home or investment property! 

Boasting an impressive 3, 972 square feet of living space on a 33 x 133 lot, this legal 4-unit property has an annual gross income of $134, 460 a year. RM-4.5 zoning potentially allows for expansion opportunities in this prime location. The owner has lovingly restored and maintained the vintage character of this timeless Greystone while making modern updates. With its multiple bedrooms and bathrooms, this multi-family home presents an excellent opportunity for generating rental income and never has a vacancy. The Lakeview area is highly sought-after by young professionals, students, and families alike, ensuring a steady stream of potential tenants. Whether you choose to live in one unit and rent out the others or utilize the entire property as a rental, the possibilities for creating a lucrative income stream are substantial. 

Unit 1F is a 3-bedroom duplex down with 2 bathrooms currently rented for $4, 590. It features 1 bedroom on the main floor with 10-foot ceilings and original woodwork with inlay floors and restored iron glass in the living room. The expansive renovated kitchen features endless quartz counters and built-in pantry and updated bathroom. The lower level has 7'8 foot ceilings and features two additional bedrooms including a large master bedroom with walk in closet. The large, updated bathroom has heated floors and includes in unit laundry. Unit 1R is a 2-bedroom apartment with 1 bathroom and long term tenants currently rented for $1, 975. Unit 2F is a 2-bedroom apartment with 1 bathroom with long term tenants currently rented for $1, 950. Unit 2R is a 2-bedroom apartment with 1 bathroom and an updated kitchen and bathroom that is currently rented for $2, 690. All units have 10-foot ceilings with inlay floors and restored original woodwork. 

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Potential expansion opportunity in the basement as over half of it is currently used for utilities and tenant storage rooms and it has a ceiling height of 7'8. Updated plumbing and flood control system installed 3 years ago. Common laundry for the remaining three units is located in the basement and leased out. Each unit has its own gas and electric meter with HVAC and the owner pays for common service which includes one hot water heater for all units. 

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@Julin Shah - I may be looking to add to our team.  Send me a DM

Don't forget to join us today with Sam Sharp to talk about rates and what is going on with the market at 11am CST today. As a Chicago realtor working with investment properties it is critical to understand what is going on and how the rates affect our business.

This event is FREE and will be recorded and sent out to all registrants, please register at : https://us06web.zoom.us/meeting/register/tZcqdeysrz8jG909PBt...

@Jonathan Klemm - yes it will be over zoom and recorded.  Sam will talk about the rates and what is impacting them, that is more of a national discussion.  I will talk about what I am seeing in the Chicago market and how rates are impacting that.

Join us Tuesday 8/20 at 11am EST for a discussion about the market and what is happening with rates with @Sam Sharp

We will be discussing the Chicago market for investors, loan programs for house hackers, and what has been happening with rates and market predictions.

Of course I am going to answer...

1. I would say along the Kennedy from Belmont to Lawrence is going to give you the best ROI so also expand your neighborhoods to Irving Park and Albany Park

2.  The 5% down is really a game changer because you can use it multiple times and it has a renovation loan option.  The issue is rates of course, but I think we are going to see them go down shortly. 

3.  I can run comps for you

4.  If scaling is your priority I would be open to location, buy on cap rate, and use the 5% down program to move every year.  The issue is once you move on to the next you cannot refi for a lower rate unless you have 25% down