All Forum Posts by: Ian Dikhtiar

@Jonathan Klemm interesting, thanks for the input. 

>What are you doing specifically to help grow your client's online presence?
Well, that will depend on the needs of a client. I am still going through a research stage and looking for those gaps in the business property managers have. 

From what I noticed - only a handful of companies in my area I found to have a good website, well-managed social media accounts, and conversion-optimized strategies. I spoke to several people and the most common response I heard when asked how they acquire new clients was "through referrals".

As a landlord myself, I was never properly introduced to property management, and how I could take advantage of those services, and I personally know a couple of people who would greatly benefit from delegating most of the RE day-to-day problems to a third party, while they focus on more important things in their businesses.

I can definitely see the potential of helping property managers and management companies getting their ads right (PPC and display), getting their leads coming consistently with targeted traffic and optimized landing pages, getting their SEO right, build brands through storytelling and much much more.

I really like the feedback regarding having a good handymen available at all times, it looks like another angle that we could think about and find a solution for.

May I ask you a couple of direct questions @Jonathan Klemm? 

1. How much does one lead cost you and how much long-term value you are getting from one lead?

2. Who is your ideal client? (individual investors, large companies, commercial RE, etc). Who makes you the most money for the least work?

3. How do you acquire those clients? 

4. Where do you think you are missing out on opportunities, where if you pushed a bit - you could capture more businesses?

5. What in your business you would like to outsource and never deal with again?

Let's crack this!

Checked out my local Property Management companies in Chicago area - boy, it's a mess, no online presence for pretty much every company I analyzed. 

Property management folks, what are your pain points here? Where do you think you're missing out on opportunities?

I'm working on the new agency, we're going be helping out PM companies finding new clients and growing your online presence, but we need to know where does it hurt the most?

Leave your comments, let's make some $ in 2020 

@Justin Koehn Thank you so much, you are making a very good point here! I was thinking about some creative stuff and possibly will do just that. By the way, great tip about ADU, I came across a couple of buildings with it, now will look closely for it.

@Ali Hashemi I wouldn't be able to do that, I'm married and we have 3 pets. It's easy when you are single and you don't really care, tho and I think I would have done just that. Thank you, anyway! Also, why would I pick a 5% conventional if I can put 3.5% FHA? Is there any benefit for 5% one? And why would I pick 15yr mortgage instead of 30yrs? It's not very easy to have a 96.5% mortgage with mortgage insurance and still have it cash-flowing with 30 years, 15 years most likely will be highly negative cash-flowing, which is a big no-no based on what I learned so far.

@Charlie Price yeah, I have it working. For some reason, it was a browser issue and names never highlighted in a first place)

I actually decided to start with it. Found a very nice area (that I overlooked earlier, mistaking it for a bad neighborhood) with very affordable triplexes all over the place and already scheduled some showings this Saturday. I think it is actually the easiest way to start. The key is to have (or to force) at least 20K of equity in it that I can leverage later the same (or next) year because my main goal is not the first property, but the second one.

Thank you so much!

Hi, folks!

First of all, I am NOT a professional photographer. So if you are looking for one - you came to the wrong thread.

I have never done real estate photography and I don't really plan to do it on a full-time basis. I am just a guy with a camera who has nice gear and likes taking snaps on my free time.

With that being said.

If you are selling a house or maybe you just finished a rehab or you need some pictures of your property for any other reason - I will be happy to help you with it for absolutely free. I do not guarantee the high-quality content due to my lack of experience in real estate photography specifically, but hey, it's free anyway.

What's in it for me, you might ask.

1. Connections. I want to start investing in a real estate. And what is better than actually coming to the houses and talking to people who are in it for months, years or maybe even decades. I hope I can learn some first-hand wisdom from people who are active in Real Estate market and maybe one day I will use this knowledge or even find a friend.
2. Experience. I know that really good real estate photography requires some good techniques that I might learn down the road and will make it my side gig one day.

Other than that - I literally ask for nothing else. If you will want to cover some gas money or buy me a coffee - I won't say no, though ;)

Feel free to reach out. I can't promise anything on weekdays, but I might have some free time on weekends. Especially if you are located in North Suburbs and drive is not too far from Morton Grove.

@Zack Karp yeah, that's what I'm feeling too. I just don't want to stay in my analysis paralysis state for too long and would rather jump onto something, that might not be "the best deal ever", but where I could just at least start.  

Greetings, folks

On my path towards my first purchase that I hope to make one day in a near future, I wanted to ask experienced investors in Chicago area an suburbs a couple of questions and I would love to hear your opinion and maybe share your experience with a complete rookie in a business.

1. What do you folks think about the current Chicago market (the city itself) for BRRRR strategy?

I've been running numbers, even on the properties I can not afford in any near future (unless I find a partner), and I haven't seen too many good houses that can be BRRRR'ed. The math just doesn't add up that well. I've been as pessimistic about my ARV and rehab estimate costs as I could be and it just doesn't add up unless you drop the safety margin (then everything becomes great and super cash-flowing, LOL). Now, I'm not talking about high-crime areas. I understand that there are a TON of possibilities, especially with Section 8 program, but I do not really want to start with it. I might be misunderstanding something and missing out on great deals. Would love to hear stories of successful brrrr in a city in anyone has one.

2. What about suburbs and further areas (like North Chicago, Aurora, Elgin, etc.)

Any luck there? It also looks like a great market, especially with a limited budget. But it is still very hard to me to get even an approximate ARV on those areas simply because of the lack of experience and that's why my calculator breaks my hopes every time with loses instead of a profit.

3. (Not really BRRRR-related, but I would love your opinions on it) Am I looking at the wrong place?

Should I be going all-in knocking on peoples doors with my offers without knowing what I'm really doing? Or should I play safe and stick to my real estate agent (who's awesome, by the way, would highly recommend him to anyone interested) and just go full MLS trying to catch up with a people who have the instant cash right away to grab all the good deals?

I've been extremely passionate about investing, so I can break out of the endless job cycle and start making difference and helping other players in this wonderful game and I would ABSOLUTELY appreciate any opinion and advice from the community. I know that really successful investors don't share their secrets with strangers, especially in a local market, however, there's still a chance, isn't it?

Also, you must pardon my messed up English, not my first language)

Thank yall!

Hi, folks!

My name is Ian and I am a beginner investor who is looking to step into the game.

I am looking for an experienced investor who could mentor me through my first BRRRR deal(s), especially on a rehabbing part. Would appreciate any help. I am located in Morton Grove and looking to BRRRR my first investment property somewhere either in west suburbs of Chicago or in Waukegan/North Chicago areas.

Please, reach out at 224-260-1590 if you are willing to help out a rookie!

Thank you, all!

Justin,

Thank you for an extended reply!

Yes, definitely it makes sense what you're saying. My mom understands all the risks and she proposed it herself. I just sat down with her today and explained how lease options work and how BRRRR works. In the end of the day, as R. Kiyosaki says - "The biggest risk a person can take is to do nothing". Looks like we are on a same page with her on that.

>Don't forget to include all closing costs, possible holding costs, and any other sale related expenses that you might need to cover BEFORE you can get it rented.

Yes, you are 100% correct on this and it makes the idea of 20% down even less ideal - I would need some money to cover the costs and unexpected expenses, which leads to either more sitting and waiting until I save more money or dropping down the target price even less. And in a current Chicago market - I don't see a lot of even relatively good houses for less than 200k. Everything below 200k are either in the areas won't produce a lot of cash flow or just require a lot of work. 

And that's why I am leaning more and more towards BRRRR it all the way through without putting almost anything down. Because I don't want to wait another year when I fell like I'm already several years late to the game, lol. It might become just the matter of finding a mentor who can help me through my first couple of deals.

How do you feel about BRRRR?

Also, very good point on contractors and handy-men. My hands are growing from the wrong place anyway, so I will absolutely need to find a professionals on this.

Anyway, thank you!

(P.S. How do you tag people in it with "@"? I'm kinda new to the website, couldn't make it work yet)

Benjamin, 

Thanks for replying. Yeah, FHA multi-unit is not the worst idea. It is just hard to find a cash-flowing building in an Chicago area where I don't get shot, raped and then stolen in same time. There are absolutely dangerous areas in this beautiful city. But all other neighborhoods either too far (and I'm working in downtown) or with a really negative cash flow.

Ibn, thanks for the replying!

You are saying to look at a personal residence in around $80-100k range, but that automatically means it won't be anything near 2-units or more, so it would be a regular mortgage. That means I will be using my money, I could save and use later, for paying off this mortgage. Isn't this a definition of a liability?

>Also, condos/town-homes are fine.

Yeah, I guess you are right here.

>Lastly, I would not recommend taking any money from your mother

It's not necessarily taking it from her. She wants to step in as a partner and she understands the risks, so she could put down-payment money, I would put my time and effort into everything and then we split the profit.

What do you think about BRRRR? Maybe it would make more sense to find a mentor and use that 50 grand and get whatever needed to cover the difference and just BRRRR it? By doing that I won't be risking my own money too much. And also this strategy looks so good so it actually worth spending time on it.

Hi, folks!

After tons of hours of reading, watching and listening to everything real estate investment related I decided to finally get my first investment property. However, I still cannot decide what should be my first one, maybe someone has an opinion on it!

Gonna try to put my financial situation as short as possible!

1. I'm 25 years of age, married and have 3 pets.
2. Currently renting a really nice single-family house in a very good Chicago suburbs area from my relatives for $675/month + all utilities (basically we don't pay any rent, just taxes, and insurance)
3. Have a good credit score of 750+, no debts and a good salary that allows me to save ~$2,000/month
4. Have $3,000 in savings
5. My mom has ~$45,000 in savings she's willing to put on a table and do a partnership with me

That's where I'm at financially. Now, the options I see so far is:

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Buy a rental single-family with a conventional loan and put 20% down, while I stay in the house I'm currently renting. My limits as of today are around $50,000 which means it's either $250,000 for a good-condition home or $150,000-$200,000 that need some work.

• Pros: A lot of houses on the market; only 1 tenant (or a family); some cash flow; We can stay in a best possible rent situation in a very good neighborhood;
• Cons: If vacant - all the mortgage and taxes on me; renting in A and B areas with high rent might bring much more demands for maintenance for every little thing

cash flow if occupied (with savings): $250 from rent - $675 from what I pay + $2000 I save every month = $1575

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Buy a 3.5% FHA-loaned multi-unit. Approximate price is $375,000

• Pros: a lot of equity gained; if cash flow is positive after I move in - I can live for free and will have even higher cash flow when I move out; if one apartment vacant - it's not that bad
• Cons: almost no houses on a market; from those that are active right now - either too expensive, in a bad neighborhood or in a very bad condition; almost no 3- or 4-plexes, but a lot of duplexes, but if another apartment is vacant - all payments are just on me; I don't care about myself, but I will need to move my wife from a nice place into a crappy apartment, pardon my French; most of them need work and probably won't pass FHA standards

cash flow if occupied (with savings): $150 from renting + $2000 I save every month = $2150

cash flow if vacant (with savings): -$2500 mortgage and taxes + $2000 I save every month = -$500

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 Buy a 20% down conventional loaned multi-unit. The maximum price is $250,000. Must require no work simply because I will have no money left.

• Pros: I don't need to move out; some equity might be gained;
• Cons: Almost impossible to find a cash-flowing duplex for this price. A lot of available are in neighborhoods with 35% vacancy rates, but in good areas - there are none.

cash flow if occupied (with savings): $500 from renting + $2000 I save every month = $2500

cash flow if vacant (with savings): -$1,600 mortgage and taxes + $2000 I save every month = $400

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I don't really want to deal with anything that needs work because I don't have a team yet and most likely it will be a mess if I jump straight into it

Aslo, I don't want to deal with condos or townhomes because of the HOA, association fees and all the rules that my tenant might be breaking and I will be responsible for it

Do you guys have any good suggestions? Will be happy to hear your thoughts on it!

Thank you!