All Forum Posts by: Ed Matteson

I've done lots of fix and flips in Chicago with PM and HML. The cost is only high relative to the size of your margin. I think of the money cost as part of my budget, and if it works, I do the deal if it does not fit inside my budget I pass. The real issue here is that the deal is tight. The project that costs $80K plus $30K rehab is in the Cash space for many investors, which is likely why the property is priced at $80k instead of $60K where the finance costs would work. The low-cost deals go bad quickly on an unanticipated roof or furnace, and $30K rehab feels somewhat light. All this said if you need a partner let me know.

These type of lenders will often have a prepay penalty too. It's usually not awful somewhere cascading down from 5% year one, 4% year two, etc.

Both are individual SFH loans, not blanket or portfolio. I cannot recall the exact IR from memory but the terms were decent.

I’ve done deals with both of these lenders with 30 year amortization. Both naturally were priced more than a regular bank, as expected. There are in some cases some hoops to jump as to how you can hold the property, in my case one of them had to be in held by itself in an LLC. Lima was a real challenge closing my last deal but I’d give the m another whirl as it ultimately did close.

All County Property Management in Northbrook

If you google fix and flip loan, you will get a full range of private money lenders or hard money lenders. There are also some here on this site.

I have some property on the border of Crete. The town does not have inspections so that's a plus, it's in Will County (better than nearby Cook), and the stock is fairly diverse.  If I were a resident I would like the somewhat isolated location of the town but it seems far from many major employers, that is unless your tenant works at one of the many warehouses nearby. 

I exclusively use JM Contracting for all of my Chicagoland work. PM me for their contact info or you can find them on Facebook. You'll find lots of photos of my projects on their site too.

I like certain south side chicago neighbourhoods like Hegewisch and Mount Greenwood. I'm doing a rehab, rent and refi deal in hegewisch now. $71k purchase, $15k rehab, $1,300 month rent, ARV $125-130k brick 3/1, taxes $2,200. In my mind that's a pretty decent deal, albeit harder and harder to source. East chicago is right next door.

@John Warren , I agree that's a fair price for a BoR. Even with the uncertainty surrounding Illinois' financial future and coupled with the recently announced Cook County suburban tax rise, I think it's still a great investment area. There is a decent tenant pool either market or govt. subsidized in the 'burbs. I think I see the war zone Cook County areas declining, but there are many areas on the rise. In the suburbs of CC there are service industry jobs, healthcare jobs, tons of warehouse and related jobs moving in. I'm not having any trouble getting $1,200 + in any area for a SFH. I have some as high as $2700.