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All Forum Posts by: Eddie Egelston

Eddie Egelston has started 7 posts and replied 121 times.

Post: What is taking everyone so freaking long???

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

@Greg H. that is a good point. I am trying to stay out of lower prices ranges for that very reason.

@Ritch Bonisa Very good insight Ritch thank you for sharing. You sound like you are able to run a pretty tight ship. Do you mind sharing some timeline examples of recent projects? e.i. "2000 sqft house, cosmetic rehab took 3 months" etc

@Perry Farella good points, the permits thing is pretty scary to me. I have heard Gurnee is a nightmare. I spoke to a HML who said his average loan in Chicago was running about 9 months from purchase to sale. Are you seeing that too?

Post: Why Not Pay Fortune Builders?

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Where to start... After reading your post this product sounds like 1/2 dozen others that I have already heard about.

It sounds like the $100 might have been well spent, because it got you and a friend to start thinking about financial freedom and opportunities. 

The "tips" you picked up are nothing more than what I have read in $20 "Rich Dad" books I picked up on Amazon... and BTW the whole Nevada LLC thing has been contradicted by every attorney I have ever mentioned it to.

If the program can pay for itself after "a few flips" -wow that is a lot. "A few flips" just to break even is no small task. I mean if a flip is $25,000 profit a few flips is $75,000- how long does it take you to make that much usually? Flipping houses is not a magically lucrative job, it is real work.

I would guarantee the info you would receive with this program is nothing more than you could find on this website, plus a few books. The networking opportunity that program provides, that can add value, but again networking with the right people is something you can do for free!

The ideas and info are not worthless, but they are practically free from other sources.

Post: Does a room need to have closet to be considered a bedroom?

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

The answer is irrelevant. The appraiser is there to determine fair cash value. How much less will a potential buyer pay for the house, now that one "bedroom" does not have a closet? And now, how much more will a buyer pay now that the kitchen is bigger. No big difference either way.

BTW a simple google search says appraisers do not need to see a closet to call something a bedroom.

Post: A RE newbie looking to invest in Rockford, IL

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Hi Chidi-

I will not pretend to be an "expert" in Rockford. (I live about 45 minutes east of there)

My first question to you, is why Rockford? Unless you know something I do not, there is likely no potential for appreciation. I have shown property in Rockford, there are some "slumly" areas, pardon the expression. I haven't looked at prices recently, but last time I checked there were houses selling for the price of a new Chevy.

Maybe tantalizing, but surely there are better areas nationwide!? Also as others will chime in, being a landlord of "C" or "D" class areas is tough enough. You want to do it as a newbie from 2000 miles away? WHY? haha

Post: Please rate my unique business model

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

@Nick Patterson you are right, I guess what I am describing is not terribly different than Redfin, from my perspective.

@David Faulkner I think what you are describing is what any good agent would be doing for clients for free anyway. As an agent it is always best to have a consultation with a buyer first before showing houses. I would plan to do that for free, with a flat fee model just to be sure I am not wasting their time.

@Chris K. you bring up a good point, I did not even calculate what that model might equate to in an annual salary. I suppose it is irrelevant because as a buyer agent it is tough to stay busy during working hours anyway. Showings and writing offers tend to be more weekend and after-hours type things. IF I ever tried this, it would be while also taking normal listings and flipping houses.

@DL Martin I hear what you are saying haha. I think you missed my rationale; it's not that buyer agents are worthless or inefficient. It's that my buyers are doing nothing but wasting my time while ensuring I am not paid for the time spent. As others have said it's likely a combination of poor qualifying on my part, mixed with some amount of bad luck- I hope its much more of the latter. Going through that stuff makes my mind wander on a better way.

Post: Materials contributed to flip tax deductible?

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Yep

Post: Looking for someone who can guide me on completing my own BPO

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Do you have a good idea of who your buyer will be? Investor/builder or Mr & Mrs Homeowner?

If it's the investor, all that matters is what can be built on the lot. Look at the sold new construction, and work backwards to find the amount that makes sense to spend on the lot.

If it's Homeowner buyers, the buildable lot comps carry more weight. Homeowners will care more about your surrounding lots and view. A builder won't care as much because he figures he can make the house nice enough that anyone will buy it.

Zoning of course matters, so if highest and best use is 2 family buildings, can you build that on your lot? The previous structure does not effect value, but zoning does.

It sounds like you should compare yourself to other sfh 6300 lots. Corner lots are nice when trying to get a higher appraisal, because bigger is better. But for true market value, most buyers value privacy of an interior lot, not the size of a corner.

Bigger and nicer lot: Homeowner. Smaller and crappier lot: investor.

My 2 cents.

Post: Building new home, what will I be taxed of I sell immediately?

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Best advice is talk to an account.

That said, my novice opinion is that you won't pay taxes, assuming you are selling the house for as much as you paid for it. (If it cost $400k for the land and the building, and you selling it for $400k or less, there is no "profit" and therefore no tax.)

Also my accountant once told me the IRS did grant him an exception to the "2 years minimum" thing because of a divorce. I would think the untimely death of 2 family members would also qualify, but I have no experience with this. Only IRS can say for sure.

Post: Auction.com using a hard money lender

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

@Andrew Holmes That is interesting thank you. At what point do you discover that you can in fact use financing? After you have won an auction or before? Do you have cash to fund if the financing does not go through?

Post: Auction.com using a hard money lender

Eddie EgelstonPosted
  • Residential Real Estate Broker
  • Crystal Lake, IL
  • Posts 124
  • Votes 93

Sorry to dig up this older discussion- my understanding is that 99% of Auction.com listings are "no financing, cash only" and therefore a hard money lender or any other lender is not possible.

@Andrew Holmes are you saying you have closed on an Auction.com "no financing" sale using a lender?

@Brian Erlich there is a hard money lender I know, Barnett Capital based in Northbrook IL, that will assist buyers at the foreclosure auction. The lender will require a 50% LTV at the sale, and I don't even know if they offer that outside of the Chicago area.