All Forum Posts by: Garrett Pearson

@John Warren "Most of my investors here in the Chicago western suburbs use the 5% down conventional loan, which is my personal favorite loan for the BRRRR strategy. Because it is conventional, it allows them to pick up more beat up properties that are better for the quick turn around. Also, it is less expensive in terms of PMI, so once you own the property if you end up not wanting to refinance you will be happier in the long term." 

Investors are able to get 5% down conventional loans? or does it have to be their 1st property and not designated as an investment property?

@Solomon Morris Congrats!!! Sounds like a great deal. Sometimes a good deal looks almost impossible out here so it is always nice to hear a good success story. Thanks for sharing. 

@Solomon Morris Would you mind sharing the details on your deal and what part of town your investment is in?

@Polly Feeney I see that we are in the same boat and are looking at a similar strategy. I am new so I'm still learning so I can't confidently say that it doesn't exist but I am having a difficult time finding BRRR opportunities in Chicago especially at the price point mentioned even in C- housing. Disclaimer: I am using the MLS to find deals. You may have a better chance with cash because you may find some good wholesale deals. Best wishes to you.

Garrett good luck to your success. What is your current strategy? The first deal will always be a learning experience.

@Frank Patalano The current strategy is searching the MLS and Hubzu. I am on a couple of wholesaler's buyer's list. This is not working so well. I am now considering looking into foreclosures and preforeclosures i.e your yellow letter suggestion. The one problem I may have with working the preforeclosure market is that I am considering take the state exam for RE License in the next couple of months. I haven't really looked in to what type of conflicts if any working preforeclosures as a Licensed Agent may create. I need to look into that. My goal is to start by flipping and/or BRRR to increase my capital so I can focus on buy and holds. Oh btw, I am also listening to David Greene Long Distance Investing to see if that is viable option. Do you have any experience with and/or opinion on long distance investing?

@Frank Patalano First let me applaud you for starting this thread and faithfully engaging with all those who are replying. I would imagine that you had no issue that this thread would get this type of response. Thank you for your ideas. I guess my current strategy is a pretty easy path or so I thought. I agree it is time to roll up my sleeves and do the grind work which normally have more profit potential. I really wanted to get my first deal under my belt to make some money while I develop a more targeted strategy. I guess nothing comes easy no matter how many times you read on the internet that it does. Thanks again. I look forward to posting my success.

@Frank Patalano For me, it is lack of inventory/good deals. The Chicago market seems to be pretty dry. I originally started looking at MLS about 6 months ago and there were a few good deals at that time. I wasn't ready but now that I am, it doesn't appear to be a good source right now. Most wholesalers are looking for cash buyers. I have seen some full gut rehab but have been reluctant to take on such a large project as a first timer. Too be honest, I really need a new strategy. Trying not to get discouraged.

I have heard the horrible stories about how long and exhausting negotiating a short sale property can be. If the property is listed on the MLS and says that "* * * SHORT SALE List price is approved by Lender" does it means that if I make a offer at the list price that the offer would/should be accepted within a reasonable time?

@Janine Kelbach I don't have a template but I do suggest when you get one that you only use it as a guideline. One of the things that I have read over and over again that these owners get some many of these letters and/or postcards often with the same language that there is no reason for them to any read yours. You will need to do or say something that will set you aside from all the rest.

@Jimmy Deringer You mentioned you all use several membership. Would you recommend any of them?