All Forum Posts by: Elbert D.

Well I would stay away from certain areas in Cal City and Dolton. Some blocks in those areas are pretty good and don’t have any crime. On the flip side,Some are high in crime. I’ll stay away from Harvey, Robbins and Markham and the majority of Riverdale. 

Some areas of Hammond Indiana and East Chicago is ok as well. But you have to really pay attention to the crime. 

@Larry Green how's it going. It depends on what your overall strategy is in real estate. I personally think if you don't have trusted sources in the other states your looking to invest that's going be trouble for you. Real estate is a very cut throat industry and to be honest many people can't be trusted. Since your kinda close to the Wisconsin and Indiana markets I would suggest looking there if you don't want anything to do with Illinois real estate. Northwest Indiana has some nice areas for rentals. But back IL......you're also missing out on some really good cash flowing deals. Especially on the south side of Chicago in certain suburbs you can get a SFH with a cash on cash return of 13-15%!!!! My point is.....there are problems with every state but you have to do your own analytics to know if something doesn't work for you or not, not just going by what people say(including me). Run some numbers of some homes in Illinois and see if they make great rentals(you might want to stay away from the MLS it's too expensive).

wow lol.....I’m laughing because this does not surprise me. It’s so many scammers that are getting into real estate every month from what it seems. One goes away and another pops up....So many fake lenders or lenders who actually screw you over.i have posted about my frustrations with lenders so many times on BP. With the exception of Lima One no one else really seems legit that I have had experience with. My partner and I are STILL looking for a good hard money lender and private money lender for future Illinois deals. 

I really wish there was some kind of ranking system here on BP. To rate HML/PML because lenders are screwing over so many people. I understand there is politics with doing this but I personally think it would mean a lot to newbie investors and experience investors who aren't familiar with the process of a particular company or person. Or could BP maybe add in a section somewhere on the forum and let us add companies and leave reviews about them. Is this possible?

@Brandon Turner @Mindy Jensen 

IMO, it comes down to if the seller feels like your screwing them out of how much they can really get for their propety. Also, it depends on if the buyer is actually getting a deal on the wholesale deal. The reason why some wholesalers get in trouble is because they try to hide things and get nervous about things. Im very confident in my deals for the most part. I run the numbers for the potential buyer so I know what ROI or CoC return your getting. I also, ask them what percentage and dollar amount they are looking for. So, when they tell me that and I give them a deal based on what they told me.....It should not matter what Im making. If I make 50k, 15k or 5k or 2.5k because the buyer is still getting a helluva deal and what they wanted. I also make sure the seller can get what they want as well(if the place doesnt need a ton of rehab and the comps come back ok) as long as your numbers make sense it should not matter what your making because your serving your buyer what they want. In my experience, its been very difficult in the midwest to make anything above 10k on each deal due to a lot of the houses I come across needing so much rehab and also based on the comps. There needs to be a market correction.

In summery: Wholesalers get in trouble for not running their numbers. Run your numbers correctly and if you need to lower your profit to satisfy your buyer(customer) then you should in order to be thinking long term. This is still a business and should be operated like one. Think long term. 

This is a single family home in a very desirable suburb of Chicago on the south side. It’s only a 20 minute drive to downtown Chicago, Illinois. This city is considered a very desirable place to live. The homes are reasonably priced, and  a great area to start a family. The taxes are also very reasonable and it’s in a very quiet neighborhood, on a cul de sac. Once this property is rehabbed, it will sell quickly, as we’re fast approaching our prime selling season. This home needs work, to make it a gem and a quick seller. We will complete the work with our licensed contractor. We are ready to start the rehab immediately. This home will make a great starter home for someone once its retail ready after its rehabbed! 

Property Specs:

2 Story Frame

Built: 1913

Nice deck on back of home

Porch on front of home

3 Bedrooms

1 Bath

Full Basement

Large back yard

On a quiet dead-end street

1080 sq. ft.

Taxes: $1,471.00

Purchase Price: $68,000.00

Rehab Costs: $67,500.00

Total Price: $135,500.00

ARV Range: $175,000-$188,000

Minimum Gross Profit:$39,500.00

Net Profit after all holding costs:$30,300.00 to $40,850.00

ROI: 21% to 27.45%!!!

REPAIRS NEEDED

Rehab Cost = $67,500.00

The property has already been gutted out and our contractor is ready to move on rehabbing this property. As we said before, the last deal fell through because of a lender. We can start the rehab the day of close. We can also send interested parties the detailed scope of work upon request. Here is a list of major repairs we will be doing. This home will be practically new when we're done!

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

10. New central air unit

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 on the market during prime selling season.

TERMS OF SALE

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

Elbert Dockery

Phone: 773-401-7321

Email:

*Please reach out to me for more information regarding comps, and pictures

@Joseph M. yessir and overall just delivering what people want. Supplying the demand is what any successful business and businessman or businesswoman does. The same goes for fix and flips too, the market is the retail buyer since they are the one buying a home thats all fixed up and aesthetically appealing. 

LOL i never seen a home or any kind of real estate that was truly turnkey to be honest, it always needed something even if its a couple of small things....Your right about development and building large scale apartments but thats commercial real estate and development. Most people usually have partners and vendors on deals like that to work together to make it happen. Commercial real estate in general is a higher barrier to enter compared to how easy it is to enter residential. 

Overall, I was trying to make others aware of how there are other industries besides real estate that provide equal value if not higher than real estate. But the key factor I was trying to explain is to become a business owner and make deals or partner on deals with others. I would think for example partnering with Exxon or BP, developing some kind of product or service OR partnering with a small company and selling the product or service to them will yield a massive amount of revenue and profit for that person(LLC or Corp) running their business. Combine the real estate skills with that type of business dealing....the results = WOAH!/super wealthy.

@Joseph M. and that was my point. Those barriers to enter in those industries are much higher. Which also means less competition. Real estate is a high risk industry as well. Look how easy it is to enter. It’s so many people that get into it thinking their going make so much money. Then when they are in they are sadden by the results or how hard it is. No matter what avenue they choose within real estate. Things never go smoothly. There’s always hiccups. Well atleast in every transaction I been involved in. 

Any business is very hard to be successful in. As you said those other industries can net you a lot of money if you know what your doing. The core concepts of business applies to all industries. Market, marketing, sales, customer service.  For me, wholesaling and flipping has definitely opened my eyes to becoming a better businessman overall. It’s very hard work but I can translate some of those skills to any industry that I choose to start a business in. Focusing on your market(buyers) and their needs and becoming very valuable will lead to success. If your giving people what they want and building relationships, it’s very hard not to be successful. 

wow. There’s been some great thoughts shared in this thread. I don’t want to repeat what others have said already but I really like what @Joe Splitrock & @Steve Vaughan said. Those two hit it on the head of how I feel on this subject. So....my question is besides real estate how can everyone that posted in this thread get wealthy besides real estate? There are only so many good deals for a flip or a good rental property(that’s if you do your numbers correctly). I’m not the one to rain on anyone’s parade but it’s the truth. How is everyone going scale their real estate goals to get wealthy with just real estsate?theres also only so much land available.  I would think there needs to be another industry that you must start doing business in besides real estate in order to get wealthy. Industries such as healthcare, agriculture, oil and energy will be here to stay. 

That’s not to mention the competition of the big guys like the hedge funds and the super wealthy and their companies I.E. Warren buffet that buys up great deals and in bulk all the time. The law of economic always applies to any business and the more saturated(buys and sellers) something becomes the less effective it is in the future. 

Redesign the iOS app completely, I dont want to be a complainer but its extremely buggy from a software standpoint. Also its almost no point of using it as oppose to getting on biggerpockets.com 

I would like a PML and HML rating system. This may not happen because I know you guys may not want to burn bridges, but there are so many of them that are not good at all.

I also 100% agree with discounts from rentometer and other landlord/property management software.

@Alex Landau how’s it going. I see your from New York. I notice many New York investors looking into the Midwest for investments. Can I ask what made you look into that area? I know that area extremely well. Some blocks are quieter than others but overall there is nothing around to push up the growth of the area like Connie stated. 

I can show you several areas that have better cash on cash return numbers as well as areas that are a bit more quieter. PM me if you want some assistance or have any other questions about areas in Chicago.