Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: George Skidis

George Skidis has started 18 posts and replied 796 times.

Post: Fix & Flips in the greater Chicago Area

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

Look up the Chicago Creative Invesment Advisors club in Chicago/Lombard. It is run by Jane Garvey.

Post: Do I sell it all and call it a day??

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

First issue. If you sell a unit, you will pay capital gains tax. The calculation is basis Sales Price - (Purchase price + Repairs and Renovations - Accumulated depreciation) = Capital Gains. So, imagine you purchased and rehabbed a unit, and today you have $200,000 in it. But you have owned it about 13 years and have taken $100,000 in depreciation on your taxes reducing your basis in the property to $100,000. 

Example: You are selling at $275K so 275K - 100K depreciated basis = capital gains of $175,000.  If you are in a 20% tax bracket that gives you a tax bill of $35,000 for that unit. Can you afford to do that 100+ times? Do you have any accumulated tax losses you can use against this gain?

Getting in is always easier than getting out. 

So now it is time to get a list of contractors and handymen to lift some of your burden. An when you sell only one building at a time. Start with your least profitable.

Post: Concern with structural issue on a house under-contract, what I should do?

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

I am not an attorney and do not play one on TV. When submitting an offer only you can look after you. The c

  1. Mortgage contingency: This clause specifies a window of time in which the buyer must obtain financing to purchase the home. If the buyer doesn’t obtain a mortgage by that deadline, they can withdraw from the deal without penalty and the seller can find a different buyer. Buyers should always include this contingency in their purchase agreement. Even on a cash deal
  2. Title contingency: This “provides the purchaser the right to obtain a title search and raise any objections to the status of the title to the property, which must be cleared by the seller in order for the purchaser to close on the transfer of title. This ensures that you’re going to purchase a property that has marketable title without defects.
  3. Home inspection contingency: This clause involves the window of time the buyer has to get the property professionally inspected. The Inspection helps ensure there are no serious issues, such as a leaky roof, a faulty electrical system or structural defects.  When the property has defects, and the seller elects not to repair or remediate the issues which are raised by the buyer, the buyer can terminate the contract.
  4. Sale of a prior home contingency: This protects buyers who can't make two home payments
  5. If the buyer needs to sell their current home by the deadline indicated in the contract, but they cannot find a buyer, they can escape the contract,”
  6. Appraisal contingency: This safeguards the buyer by stipulating that the property must appraise for the indicated sale price, at minimum, or the contract can be nullified. This is because banks don’t like to loan money to borrowers for a house that costs more than it’s worth. This clause may also indicate that the seller can opt to reduce the price to the appraised value.
  7. Insurance contingency: This clause stipulates that the buyer must apply for and obtain property insurance on the property. If they can’t get the necessary insurance, either party can withdraw from the contract. This is often requested by either the seller or the mortgage lender.

You can also make up your own clauses. Just get them reviewed by your attorney.

Post: Can a Husband and Wife with Separate IRAs Both Lend on the Same Property? If So, How?

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

Call Carl Fisher at Camaplan for the answer. That is what his company does.

Post: A masterclass to help landlords win in court without the expense of a lawyer

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

In Illinois and Missouri if you have a business entity in place such as an LLC, partnership, S Corp or C-Corp you cannot represent yourself in court. The reasoning is you are not the entity and would be practicing law. Friend of mine owned the property in a land trust but managed it as a sole proprietor. The judge looked up the tax bill and told him he needed an attorney.

Post: Bought My First Investment in 2018 and Looking for my Next!

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

Check out the Chicago Creative Investors Association (CCIA) run by Jane Garvey. They are up your way.

Post: Investors in the Chicagoland area

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

Join Jane Garvey's group the Chicago Creative Investors Association. They meet in Lombard plus zoom meetings. The group is a Chapter with the National Real Estate Investors Association.

Post: Insurance carrier recommendation for LLC named insured

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

As a licensed agent I have two companies that I know will do this. If you ever do business in Illinois give me a call.

Post: Newbie Real Estate Investor

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

In Chicago you should check out the Chicago Creative Investment Advisor. or Chicago CIA. It is run by Jane Garvey one of the smartest investors I know.

Post: I'm Starting a Short Term Rental Property Management Company

George Skidis
Posted
  • Rental Property Investor
  • Belleville, IL
  • Posts 838
  • Votes 512

Since 1993 I have seen a lot of property managers fail. They grow too fast and don't have enough staff. Something happens and the event destroys their reputation and credibility. The worst was when a Property Manager's daughter and daughter's spouse were trusted with the bookkeeping. In a short time, they started embezzling from the clients. The kid wasn't even smart enough to create fake service invoices, 

Landlords who join a local REIA talk to each other. Not hard to get in. Even easier for word of mouth to ruin your business.

In Illinois, Property Managers MUST be licensed realtors with a couple of years' experience working for a Real Estate Agency as a property manager. There are ways around this but not worth the risk. The owner can make you an employee of their company or trustee of the land trust. When you are an employee, you cannot collect and deposit the rents into your management account.

So starting out you should go to work for a large property management firm and nail some serious experience. Learn how they do it and figure out how you could do it better.