All Forum Posts by: Jai Sookhakitch

@Account Closed Hard money lenders care more about: Credit history, Income, and experience. If you have a decent fico with no experience you should be able to get funding. Especially if the deal is good.

Hope this help

@Gilbert Dominguez can you send me the details on your building

[email protected]

email me the details.

[email protected]

@Mike Chubb

I notice a few things about this deal. Comps of rehabbed properties with more bedrooms are selling 173k on the high end and are 30% above zestimate? What this tells me is that the train tracks aren't the main reason it hasnt sold. 190k is unrealistic and thus why it's probably sat on the market. 

You need to do a few things. find out their true motivation for listing. if it's "just to see what I can get?" or "I need to downsize" those typically are wastes of time. No amount of nuero linguistic programming can make it a deal if they have no motivation.

To find out what your max offer is, run comps on the subject and determine your AFTER Repair value. subtract all the closing costs , holding costs, and rehab costs then add your necessary profit. Being a strong rental property is only deemed a NO BRAINER if you are over 12%cap in an nice area. 

Hope this helps you make your offer.

Good luck.

@Phillip DunbarWelcome to BP! It's a great place to connect with like minded individuals and most importantly learn. You can find eveyrthing you need to know about investing here. This place would put guru's out of business if people would realize that you don't need someone to lecture you to learn. 

drop me an add, lets connect feel free to email me when you find your first deal.

@Rosa Weatherly I really hope you haven't paid a dime to the "college". I want to warn you about prepaying for classes with any guru's. They teach you things you can find right here on bp through networking and digging. They also can flip junk properties on you without properly walking you through the deal. 

I know Englewood first hand and unless you live in the neighborhood, know a great property manager and contractor I would steer clear of any war-zones for your first deal. Your better off heading north to Winthrob Harbor or west to Elgin for cheaper houses. 

Gang war zones like Englewood attract high crime and poverty. This means if your house is open at anytime or unoccupied you will have metal stolen and wires ripped. Also if your going to gut the place and flip the home, home prices in war zones do not increase. It is strictly a rental area.

my suggestion is to find an experienced rehabber or investor, joint venture on a few deals and hedge against the risk. You can lose everything almost over night and so many newbies lose money on their first deal from newbie mistakes.

Hope this helps, shoot me a bp message or email if you need any further help.

I know first hand that hedge-funds are actually creating programs where they find RENT TO OWN candidates, they help them select the house and then the hedge funds buy and rent the property back to them. This is letting them acquire properties higher than most investors and reselling above market value. 

Let me re adjust your model, 

$100,000 sales price

-41,000 purchase price

-41,000 rehab cost

-12,000 other cost

-----------------------------

= $6,000 profit

Purchase 41k + 41k rehab +12k = 94k COST

Resale of 120k + Int% because they are now funding the loan.

They collect a non refundable option and keep the property if the buyer defaults.

@Sid Franklin 

Interesting discussion going on here. For this I would suggest investing strictly only in Chicagoland. The city economy is well diversified and the GDP is larger than some countries. We have over 400 major headquarters downtown of fortune 500 companies (worldbusinesschicago.com) and tech guys are considering making us a tech hub. I don't believe a tax increase will be turning us into Detroit. Detroit's home prices dropped because they had there entire economy based on the car industry. Detroit is a ghost town because of off-shoring not tax hikes. Secondly, ALL landlords will gradually increase rents to hedge against the tax increase. However, there is a chance that you may negatively cash flow if you're barely scraping by with a property. You can prevent that by, buying WELL below market value and performing enough Value add to property Cash out refi with a decent Cap rate. Based on this article in USA today 

http://www.usatoday.com/story/money/personalfinanc...

We are still well behind New Jersey as far as property taxes go. Unless all 500 fortune companies leave, I would doubt heavily that Chicago is the next detroit. Hope this helps.

Source:

http://www.worldbusinesschicago.com/economy/

@Neil P.

I would consult a real estate attorney, before this issue escalates. One of the best things you can do as an investor is surround yourself with a strong team. 1.Yourself 2.Trust Worthy GC's 3.Reak estate Attorney 4. Accountant 5. Property manager. A good team will help you with any legal questions and reduce the risk of losing money. Once you have a go to person for each, any issues can now be handled swiftly. 

Good luck,

@LaRon PhillipsBeing in 2 cities can definitely prove to be an issue. First thing's first figure out if you would like to do value add or buy and hold cash out refi. Once you've done that, you can locate Joint venture partners that have experience in either and negotiate some sort of agreement where they present the deal, manage the work, and report back to you. If you need some suggestions, don't hesitate to message me.

Good luck.