All Forum Posts by: George G.

Hello everyone,

I own a multi unit 20 plus units and I want to convert to condos. This is not my area as I’m mostly a rental investor. I have a couple questions if someone has insight would greatly be appreciated.

My goal is to get a financial backer or get it funded. With that said I know deal structuring is all over the place and can be as creative as possible, but if I meet with potential investors or funding capital.

1. Where do I start with what I can present to them. And what should I present ?

2. Is there a “typical” or normal terms in partnerships?

3. Is there funding guidelines?

4. What are typical structures for condo conversions.

5. Does anyone have a sample proposal this would help develop a presentation or proposal.

6. Also, I’m in the Chicago market (in the city) anyone have experience doing this?

Any info would be great !! Also feel free to DM me!

Thanks

Well from my understand after attending one of these 3 day events this is my opinion.  This is my opinion only, typical sales pitch period.  They get you in there talk about how easy it is to do everything with their help but it will cost you to join chicagoreia.org I heard they had 3 platforms.  I'll break it down for you, if you have no experience I would recommend bigger pockets from the start go through all the podcasts that's a education right there.  The pro webinars are awesome with all the info you need to make it big.  (sorry don't mean to sound like a suck up on BP but the truth is the truth)

They are full on predators at this meetup meetings this is how it goes.

They have like 5-10 on there team they all speak and tell you how great it is and how you can make it big testimonials from everyone and their mother.  They have crafted a good program because of the money involved well thought out period.  Most of his information restructured he acquired from other people.

The reality is that almost less than 1 or 2 people actually use any of his programs to make money.  Out of every class he signs up about 20 people when I was there and these were the costs:

* $10k for the basic program they promise to help with basically 1 property they give you, if they don't want it you get it, because its not a big enough profit for them so you get scraps.

* 25K middle program they give you a couple of properties minor hand holding through their pipeline to keep you happy (maybe if you dont get burned and loose money on the deal) before they disappear

* 35K for mastery this is the big upsell they let you in the inner circle like church of scientology your paying to be their friend and they have to funnel you deals that the top guys don't want first so they feed you some deals to keep you happy and hold your hand. If you watch you can see all his people whispering secrets on who to go after the weak ones.

They promise all the resources you need.

My guess is for every 3 day event he does which is 2 times a year and all the people they sign up outside of that he profits nicely I would guess somewhere around 75+ people or more a year averaging 20K a person makes it a whopping $1.5 million dollars or more a year plus all the inside deals with banks, realtors,syndications and anything they can stick there hand in to get paid.  (that's the best real estate deal I have seen just taking peoples money for doing some classes for 2 weeks LOL.  No investing no nothing just BS people to believe you.

This is why I feel bad for these people, they push all the people who have no money literally 0 dollars to charge everything on credit cards clear out their savings or cash their 401k plans to pay for this.  I find this totally and without a doubt completely unethical and despicable.  Also, I find it unethical they keep all the good deals and pass garbage down to their disciples.  Most people don't say anything because they are embarrassed they were taken and done want anyone to know they got suckered.  I did talk to a few returning people and did say that they did do something with the information they got so that was good.  I believe the success rate of this program is less than 20% or so.  They have secret side deals with the lenders, realtors that pitch and preferential treatment for property.

If you want to learn just become a PRO on here I was resistant at first too but I gave in and after I saw all the webinars and info I knew I was in the right place.  If you want to join any GURU groups period, become a pro first here get all the info on here and then see if you think spending 20K on guru classes are worth it probably not after being on here.

I see others are telling people to stick it out, that's just simply not true.  The truth is that all neighborhoods change constantly half of Chicago has become gentrified from 20-30 years ago but there is still ton of bad neighborhoods that have NOT changed at all.  I can legally carry a gun in Chicago so I have no issues with my safety.  I will say many investors don't want to risk getting raped, robbed, and killed for some real estate equity. The people who bought in bad areas and got lucky that it changed I'm happy for them but if I was to tell a family member where to buy it would NEVER be in a bad area. Its not worth losing your life or getting hurt for some equity when gang members who carry guns are selling drugs in front of your building.  A property manager friend of mine got robbed at gunpoint collecting money and the funny part is he had concealed carry and froze cant shoot people in the back with the liberal mindset even when they are committing a violent felony you'll go to jail for murder now a days its sad .  If you think its worth the hassle and your safety stick it out not for me.   I have plenty of friends who do Section 8 in Chicago and I see the constant hassle chasing money evictions constantly even when they have decent credit and a good job his motto is "they all go bad on you sooner or later" .  Just some more insight on what I have seen working in the Ghetto for the last 30 years but hey if some cashflow and equity is worth your life that your choice.

I can solve this problem for you: First install protected bright lights for security and night time drug activity deterrent. The reason they hang out by liquor store is they are selling loose cigarettes and drugs. Second install actual cameras on the outside facing all areas around so people can see your recording them. They don’t like to be on camera they may try to break them but replace them. Then contact your police district in Chicago ask for community police office fill out a citizens request form to have attention paid by the police tactical team and patrol to be out on the lookout for gang activity. Review your video if you start to see a lot of drug activity call the narcotic section ask if they want the video or make copies give it to the CAPS office tell them you would love to allow them to use any vacant apartment to conduct drug surveillance so they can build a long term investigation. When you see them loitering call the police every single day I know it’s a pain but report them drinking, selling loose cigarettes, and drugs. Eventually the police will get tired of calls and start to arrest them. Also let the police know you are willing to sign criminal complaints for trespassing, drinking, or any other crime you see. Since I’ve been in Chicago my whole life and have been dealing with that same issue it take consistent hard work at first but you will eventually start to see them dwindle. If you don’t get rid of them you will get bottom of the barrel tenants and have nothing but issues. One huge lesson we have learn in real estate today? Location ! Location ! Location !

Does anyone know what the standard salary or compensation for mortgage loan officer for residential and commercial? I understand they vary but is there a standard? I got the impression 1 % commission was about average with no base pay.

I pretty much hate using all realtors period most are just talkers. I wish we could just use lawyers to review deals. In my experience realtors fall in many categories from part time agents that have no buyers other than show listing off the MLS and have little motivation to luke warm agents just handling the calls and showing the property. I now work with a real hustler of an agent not because I cant do it myself I have my license, but if you want a real working professional you have to look for them they are active with foreclosures, distressed property or what every niche your looking for they are there. I got a 3 unit for sale and she brought 3-4 buyers even before the listing goes live next week, That's a professional realtor who has a client base of buyers and they trust her for good deals or she can bring them to you. I pay 5% but for all the work and time as you accumulate property owners should focus on the properties not have to worry about showings, contracts, constant phone calls ect. only the small time operators do everything. As a business once you get over owning a few building you need to focus on what you do best and usually most investors know and understand the business of finding the deal, crafting the deal, crafting the finance, management of property, repairs, maintenance, exit strategy, long term strategy and problems arise when you have more property that need to be handled. I find the more property you accumulate you need to learn to delegate and find people that are with you not against you. For example: I used a realtor one of the highest grossing agents in Chicago he was a super great guy likeable showed up to showings took some time to look for properties and send me listing ect. I STOPPED using him because after 4 years and many deals of him making money, Not one time did he every bring me a deal not one damn time and I made him probably 75K last couple of years he thanked me by doing the basics. How are you supposed to find deals when your team is not on board? My new realtor will literally call me anytime and say I have a deal! It may not be the deal for me or meet my criteria but I have someone on my team that actually is on my side working with me to progress. I work with this model in all aspects of real estate. I don't need a lender that's giving me a hard time not willing to work with me to figure out the best financing options. I need a can do attitude and I think to many people they don't want change and find someone better or better fit. This has made my life so much better and less stressful so I can actually focus on bigger and better projects. I'm in the process of a real estate syndicate and it helps when you have people around you helping you reach your goal.

GG

Can you post the links for the sub groups that offer this syndication want to start one here in Chicago.  

Well, I called auction.com and confirmed my suspicions that the person filed bankruptcy isn't always the homeowner its address listed on the bankruptcy, so I think that would be less of a response rate as well maybe barking up the wrong tree don't want to waste money on marketing will have to figure a way to cross check ownership for better response rate.  

So I'm using a service foreclosure.com that provides people who file for Bankruptcy here in Illinois how do you go about finding out if they want to sell the property?  I know Chapter 13 usually people keep the property renegotiate the terms but chapter 7 is this a buying opportunity? Can I call the bankruptcy attorney direct and ask them to ask their client if they want to sell? Or do you guys send yellow letter or try to contact the person? Any advice would be awesome.