All Forum Posts by: Edouard Pierre

Hello all, 

I'm looking to purchase my first personal BRRRR deal in Chicago and I'm a real estate agent. Here are the specifics:

Property Type: 2-flat sold via HUD. (First Floor: 2bd/1bath & Second Floor: 3bd/1bath)

Listing Price: $299,900 - very good/competitive price

Closing costs: $7200 

Commission as "buyer's agent": $5800

Taxes: $4,582 with no exemptions for the moment 

Repair Cost: $15K

Rental Income for 3bd/1bath: $1300-1500 (Chicago's rental market is skyrocketing)

Insurance: $3000/yr

Mortgage: $2000 including insurance/taxes

The basement can be finished and the rentable 3bd/1bath could duplex up into the massive unfinished attic. These are both expenses that I have not put together or factored in yet, however they're a possibility in the long run. What other things do I need to factor into my calculations at this point or how/which calculator do I use on BP to analyze this deal?

Thank you!

@Jeff Morelock - That's what I've noticed more often than not. Was wondering is some people added an addendum to their offer documents

@Russell Brazil- I agree with you. I just recently lost out on a $46K deal and had offered $51K. The nature of my question actually stemmed from the idea that maybe another investor had used a sort of escalation clause to get their offer accepted over others. I guess we never really know besides the final sale price after it closes. 

@Jackie Lange - I'm just getting into the cold calling, driving for dollars, and various other methods to get my leads. 95% of my residential real estate sales are expired listings, so getting on the phones is my preferred method. 

@Neil G. - Completely agree. 

Thank you all for your input!

I think it's safe to say most investors get frustrated with loosing out on properties when "highest and best" situations occur. I know that in residential real estate transactions/offers, the buyers are able to put in offers similar to this:

"My client is offering $290,000 with 20% down, however he is also including an escalation clause and will pay $1,000 over the highest offer up to $300,000"

Do any of you use this same tactic? I would assume it's a legitimate way to offer on properties, but is it possible to do so with REO properties?

Thank you!

Eric is correct. A neighborhood can change from one side of the street to the next. It used to be more drastic in certain neighborhoods. I.e: I grew up in Bucktown in the early 90s when my parents bought their SFH for $90K and is now worth $800+. Western Avenue used to be that street back then when you'd walk on the east side of it and cross over to the west and it was a drastic change of scenery (that change how now been pushed way farther west)

I own a 3-flat Greystone in Lawndale and hoped on the impact of the new Rush Hospital campus to impact the area far quicker than it has (recession halted everything). There's now a lot of construction going on but the area is still one that has it's problems. 

Avondale, Humboldt, UK Village and Portage park has been hit hard with investors but hey...there's always a deal to be found. I just viewed a property today for a client of mine in West Logan/Hermosa. Owners purchased for $98K 4 months ago and now is new to the market at $419K. 

Hello fellow Pocketeers,

I'm new to the forum. I'm a real estate agent. I own several properties. I live in Chicago.

That being said - I would like some insight as to how much information is too much (if possible) when working with investors as their agent. I'm also curious what should an agent provide their investor clients.

I am in love with the rental and flip calculators here on BP and have been using it non-stop to analyze deals for my personal use. Would it be recommended to show/send my investor clients the PDF version of the results from the calculator? What are the key documents and pieces of information that should be sent to an investor client? My usual analysis is a simple NOI, market trend graphs of the neighborhood in comparison to the overall market in the city, comps, and some other documents depending on the potential purchase. What I'm getting at is that I do not want to overwhelm the investor with an onslaught of information...however is there such a thing as too much information?

The investors I usually work with (for now) are looking at 3-15 unit multifamily buildings in up-and-coming neighborhoods. The values usually range from $550-$3million and all depends on the particular client. I want to be excellent at guiding my clients into purchasing a great property. Any and all advice is very much appreciated. 

Thank you!

- Edouard Pierre

@Nickbritton At the moment what I'd like to do is help potential clients find and purchase their own spaces. Once I get more well-versed with the system I'd like to own them myself, however as I'm only 1 year in the real estate world I am not able to get a loan for another year (2yrs of 1099s). I have one very serious restauranteur that is currently looking for spaces and doesn't have someone to help him find them so this contact would be a great starting point in my opinion. 

Hello BP Community,

My name is Edouard Pierre and I've been in the real estate as a broker for the past year. I manage a couple of rental properties here in the city and am looking to expand quickly. Prior to working in Real Estate I worked as a Photojournalist and before that I working in the restaurant/bar industry. I'm looking to grow, learn and meet great professionals on this forum/platform. Thank you in advance for any and all of your advice and hope to contribute as much as I possibly can. 

I've been a real estate agent in Chicago for just about a year now and have focused my energy on residential sales/purchases. Prior to working in real estate, I worked a lot in the restaurant industry here in Chicago (bartending/serving) and have come to know many successful restauranteurs. 

My question is the following: What would you recommend be my first steps to take to really dive deep into this sort of real estate?

The "advantage" I have, in my opinion, is that I have a very good idea of what spaces would fit a good restaurant or bar and I also have the potential client base (or can find it). What I don't have any clue about is how to analyze a good deal, find places that aren't on the MLS, and lack the knowledge in regards to the whole process. I understand that this is a vague description of what I'm looking to get into but hopefully it starts up a conversation so we can all pitch in. Thank you very much!