All Forum Posts by: Elbert D.

a correction is going happen.....when???? I don’t know and neither does the people who claim they are experts. Everything is over price and housing is tight everywhere yes. But what if there is no correction until late 2020???? People have been predicting a correction since 2015. 

Landlords should still be pursing cash flowing properties. Flippers should be a bit worried only if they get caught in the mist of the crash during a deal. Since it would throw off the ROI numbers. But that's one deal. Smart and experience fix and flippers will bounce back and be back to flipping.

@Sarah K. wow......Im so sorry your going through the headache of this......but I tell fellow investors(landlord owners) and flippers everything is a learning experience within real estate. There are going be times you get smoked and you want to just cry but it just taught you a lesson of what not to do next time.....As @Bob Floss II and @Jeff Burdick mentioned I'll look to sell the property ASAP.Dont listen to these other people such wholesalers(who normally give incorrect ARVs) and have a really experienced realtor provide for you solid tight sold comps. Save your time, energy and effort and allow them to do it. Sold comps take awhile to do. REAL comps apples to apples within the previous nine months. 

 As Jeff mentioned these websites such as Zillow are nomrally incorrect. Rather its a little or a lot, you want accurate comps. See what those comps are and factor in closing cost for getting it closed and the realor's commission as well. You want all your numbers to be accurate. The market here in Chicago is  weird right now with many things being Waaaaaaaay overpriced. Im going assume since you put funds into the unit that its "move in ready"? because a potential buyer will want to know what repair cost they need to factor into their budget. Know who your targeted buyer is....if your looking to get as much money as you can your buyer is normally going be a retail buyer. If its a investor you might end up getting much less than what your looking for. Please reach out to me if you have any questions.

for you fellow BP investors looking for fix and flips. The Midwest is definitely a place to look at. It’s not as expensive as most of the West and East states. The problem now is more and Moreno people want to flip......and there’s only so many houses to go around.....and there’s only so many houses that aren’t overpriced or where the house isn’t beat to h e l l. So the basics of economics apply to fix and flips. 

This is a single family home in a very desirable suburb of Chicago on the North side. Located in Northfield! Prime real estate township. It's about 20 minutes drive to downtown Chicago. This city is considered a very desirable place to live. A very income area. The homes are on the higher end side and the neighborhood is beautiful and very well kept. There are many attractions for a family to do in this area. There are many grocery stores, restaurants, movies, schools and parks. Very family-friendly area. Once this property is rehabbed, it will sell QUICKLY, we are in prime real estate selling season and this is a prime real estate location. This home needs work, to make it a gem and a quick seller. This rehab is a high end rehab and must be done by a licensed contractor and permits MUST be pulled.

PROPERTY SPECS:

2 Story Frame

Built: 1958

2 car garage

5 Bedrooms

2 Bath

Full Basement

Large back yard

2612 sq. ft.

Taxes: $11,821.00

Purchase Price: $300,900.00

Rehab Costs: $150,000.00

Total Price: $450,900.00

ARV Range: $595,000-$605,000

Minimum Gross Profit:$114,000.00

ROI: 23.2%to 25%!!!

REPAIRS NEEDED

Rehab Cost = $150,000.00

This is a gut rehab, please reach out to me for a detailed description of the rehab spec sheet

1.New stainless-steel appliances

2.New kitchen – Counter, splash board, cabinets, floor etc.

3.New bathroom – New vanity, faucets, flooring, walls etc.

4.New windows

5.New floors

6.Paint entire home

7.All new fixtures

8. All new roof, soft, fascia and gutters,

9. New furnace converted to HVAC

10. Finish the basement

11. Sand and stain floors

12. Fix plumbing issues

13. Garage work on the roof

It will take approximately 6-8 weeks to complete the rehab. We will be installing upper end fixtures throughout the home. This will help you get top dollar for your property. The house will be ready to go for a quick sell.

TERMS OF SALE

This is a cash sale only.

The information listed above is to the best of our knowledge.

• Buyer pays 100% of closing costs which includes title company fees and escrow
• Buyer will receive taxes prorated to 100 percent and free and clear title
• Please do all your inspections and due diligence up front before contacting
• The first investor with a signed contract and $1500.00 earnest money gets the deal
• This is an IRA Qualified investment

CONTACT DETAILS

Phone:  773-401-7321

Email:

Please contact me for questions, comps, pictures and more details.

almost nothing in a decent area in Chicago and the suburbs fully rehabbed. In Indiana you can get a moderate size(1500 sqft) home rehabbed for $200k

A degree isn’t necessary for building a business in real estate....neither is one for being s realtor......the closest functional degree is economics but even that is fluff(minored in economics) most of what is in these college degree programs is all theory. 

If you want a good degree excluding real estate get something in engineering. 

Lol well I would like to know which title company your using to close? Also do you factor in those closing and holding cost when your flipping? that actually kills a lot of ROI percentage when I'm doing the numbers for a fix and flip. Also depends if your realtor charges you the full 4,5, 6 or 7 percent commission as well. Add in the taxes that you pay for holding it, title company fees and I always add in a cost of miscellaneous ranging from 1-2k and those are holding cost. 12k in fees for a 180k is a bit high. You might want to ask your realtor a "favor" sincerely your doing volume.

@Thien Tran hows it going. You made a good choice to pursue real estate! I figure I'll chime in since your looking into Chicago. What @Matt K. stated was correct, the property taxes are high here and in certain areas the prices are high as well.....but based on the current market conditions for real estate all over the world......Everything is much  higher than normal. There are still great deals in Chicago, they are just getting harder and harder to find. The cash on cash returns vary from 10- 14.5% so it just depends on the property and the area. Im very sure invest in California is getting tougher and tougher as well and thats why your choosing to invest in other states......your honestly making a great choice, because if I lived out there I would do the same. 

Also, consider some areas in Northwest Indiana its right next to the Chicago south suburbs and offers great cash on cash returns. I would honestly recommend you have a property manager(a good one and trustworthy one) manage your properties. Its well worth it for out of state investors like your self. Please let me know if you have any further questions.

@Renata Miyerov Hello, how are you. I would recommend a good property manager wherever you choose to invest. I know New York is extremely expensive and probably offers low CAP rate and Cash on cash returns. I would suggest looking into Chicago and Northwest Indiana. Some investors would tell you to run away from Chicago due to the propaganda told by the media. Truthfully, there are some things wrong with the state such and its mostly politics(how the government is ruining things). Chicago is truly a beautiful city and has a lot to offer. There are only maybe 4 areas I would not recommend to investors...... There are several areas in the city of Chicago and its suburbs that offer very good returns for potential landlords. Cash on cash return rates vary from 10-14.5%! Some of the taxes on some properties in certain areas make absolutely no sense and those are the ones that hammer the CoC return.

Northwest Indiana is the little brother/sister of Chicago and some areas are really nice to invest. The CoC return is very high in certain areas ranging from 12-18%! The taxes are generally lower than Chicago and if anyone is living close to the borders of IL they are about 45-75mins away from downtown Chicago.

As far as turnkey properties.....I have never truly seen a property that needed no work. There were always little things that needed to be replaced/updated when a property claims to be turnkey. Things such as the wall outlets, new light fixtures,  etc......Also, you will be paying almost retail if not over retail price for a property marketed as turnkey as oppose to you buying something that needs to be rehabbed. I have several close relationship with general contractors that are licensed, insured and bonded in Illinois and Indiana. They do great work and can be trusted(although I still watch them lol). Let me know if you have any other questions about investing in the Midwest.

I think he will provide a slight bump to the economy in California. But California is already a tourist state and did well even though the lakers were terrible last year(Kobe fan here). The bigger lost will be to the Cleveland economy. But I think it’s a strategy to make the value of the team go down a little until Lebron retires and Dan Gilbert(I think Warren buffet owns part of the team still) sells partial or the entire ownership to Lebron. I wish Chicago got a big name player. They will Be terrible next season as well.