All Forum Posts by: Bill S.

@Mike B.

I was referring to a statement made on BP by an experienced investor in Chicago.

"Slumlords can make a lot of money there. They will ignore upkeep and soak every dime from the property. That is the business model that works best. But regular landlords who want to have nice properties, rent them out and keep them nice don't tend to do well there over time."

Honestly, it's been a while since I have been these neighborhoods so I am going off past experience and the advice I've gotten from friends. Sorry if I misinterpreted anything about the area.

Happy holidays!

Ashlee,

Friends tell me that foreign institutional money (specifically Shanghai) has been dumping boatloads of money into the southeast side. Word is that they've been taking a beating on fix and flip multifamilies. I'd recommend doing extensive research through the mls and county recorder before jumping in. Get an idea of the real story.

It's a rough area and it's important to understand that you will be a slumlord. There's several threads going on at this time about these war zones in Chicago. The common theme of all the advice is drive through the neighborhoods before you invest in them. It's a simple but critical suggestion to follow.

Good luck!

@Brie Schmidt great post! What is the detailed expenses of the 1k maintenance cost?

Education is an investment. Just like in REI your strategy and execution will determine ROI. As Eric and Joel said the key to your strategy is finding a major that will compensate you well. Check out http://www.onetonline.org/ and research your local market (major employers, major corporations moving in/out, etc.). Try to find something in demand in your area that can translate into some part of REI. Execution is grades, internship experience, etc.

Lending in REI and education are very different. Generally speaking in REI you need money to get loans where as in education you can't get loans if you have money. Give this serious consideration before making your decision. Besides, your beer drinking time goes way down once you start working full time so enjoy it man. Just don't forget about that execution;).

Be a part time real estate agent in the market you want to invest in. I'd say this can be mostly a weekend job if you offer representation as a buyers agent. It's a great way to learn the local market and get familiar with the RE transaction process.

If your goal is the acquisition of 15 homes you'd be putting roughly $33,000 (gross commission) into your pocket by representing yourself.

Godo point.

I called around and talked with several Architects/draftsman. I talked with one draftsman who has a relationship with a licensed architect that will review and seal his drawings as needed. Other posts on this site have done the same thing with success. This way you avoid having to pay an Architect labor rate for the entire blueprint.

Maybe its just me but the improved market in Chicago has got a lot of my crew booked out for months. Last years supply of consistent and affordable labor seems to be harder to come by or maybe I am looking in the wrong places. I figured I'd turn to BP and see if anyone has tradesmen available for jobs in the western suburbs starting the 1st week of November. I am in the market for a new carpenter (rough and finish work), plumber (rough and finsih work), and electrician (rough and finish work). Any reccomendations are appreciated.

I just finsihed a scope of work for a single family flip that involves rough plubming, rough electrical, minor duct work, a small section of load bearing wall removal, and a conversion of a haff bath to a full (along with a bunch of cosmetic work). I am meeting with the village this afternoon to see exactly what they will need for the permit application. I'm expecting them to require detailed drawings so I am in the market for skilled and affordable draftsman/architect in the Chicagoland area.

@Jerry K.

Solid video, thanks for sharing. You mentioned that you only bid on vacant land that hadn't paid taxes for the second time. Why?

@Brian Woods @Jeff Spicer

Thanks for the welcome. Hope we can learn from each other as we get started.