All Forum Posts by: James Ihssen

You will definitely need some skin in the game to make this deal happen, no matter how creative you get.  With that being said, I would not be particularly excited about a 6.4 cap on a 100 unit multifamily, even with a large amount of capital improvements already completed...

It is good to think big though, there is nothing wrong with that.  I have always said that the problem is not with people hitting their goals, it is with people not setting large enough goals in the first place.

Kudos to you for thinking big!  

Jason, Sounds like a plan!  I am headed to a local coffee shop on randall in st charles this afternoon, but will be busy there.  I am in the area relatively often, so I am sure we can find time soon to interface!

Jason,  Congratulations on finding biggerpockets and the wealth of resources that it offers.  I have been investing since the late 90's and wish a resource such as this was available to me back then!  Do not get locked into 'analysis paralysis' as that seems to be a stumbling block for many new investors, especially in the 'information age' that we are currently living in.

Let me know if you have any specific questions! I am always glad to help!

@Jorge Leon  I would reconsider Illinois for a long term investment unless you can grab a deal with equity in place at purchase, maybe a value add type of deal.  Illinois is very expensive in terms of taxes and the future does not look especially bright considering the long term financial woes of the state in general.  

My properties' taxes are equivalent to an annual salary and they keep going up, squeezing my cash flow.  In other states my properties' taxes would be 30% of what they are now and while the rents are high here, they are not equally proportionate.  I cannot raise rents as fast as the local jurisdictions are raising taxes.  It is perplexing too because I remember there was a lag in tax assessments going down during the real estate recession but it seems like that there is no lag in taxes going up in this rising market.  

With that kind of buying power I would recommend not competing with the consumers for single family and 1-4 multifamily properties in this highly appreciating and highly in demand market.  I would look at auction properties where you can raise rents and add value, either with a 3-5 year exit strategy or even a long term hold.  

There are some interesting opportunities out there.  Let me know if you have any other questions. 

There are plenty of quality hard money lenders operating in the marketplace today. Right off the top of my head, Lendinghome, Lendingone, Lima One, FOAC, are starting points for fix and flip money. There are regional players everywhere these days find your local REIA or even their web site and go from there.

Best of Luck!

I have just spent some time reading over this thread and I want to offer my condolences to all those that have been deceived.  It is tough on the coasts for cash flow and I understand the enticement of the midwest, but you got to have boots on the ground there if you want to be truly successful.  Even if you find a local handyman on craigslist, pay him to take pictures and inspect things IF NOTHING ELSE.  Or at the Very minimum I should say.  

I understand the TurnKey concept but I also think that you are setting yourself up for potential failure by having 'all your eggs in one turnkey providers' basket.  Investors can find a solid realtor who usually has contractor, management leads, etc. in the local market.  I have learned that if you find a reputable realtor in the market you are interested in, that will go a long way towards building your team, and provide you with a means of checks and balances.  There were so many red flags with these guys, but of course that is looking in retrospect, with the high pressure sales tactics employed and the lucrative numbers, it is easy to to get caught up.

Think about this, if you have a independent and vetted management company ready to take over your management, they would be extremely vested in receiving it in rent ready condition, as long as they did not have a financial incentive to do the exact opposite in the first place.  Assemble a team in the market where you want to invest, and then find the properties.  By the time you have talked to your Realtor, Management Co, inspector, etc.  you will know what you are getting yourself into.   Best of Luck to Everyone!

https://www.biggerpockets.com/forums/520/topics/256873-lendingone--anyone-work-with-them-before?page=4

 Here you go!

https://www.biggerpockets.com/forums/520/topics/25...

Here is a good thread to read if you are looking to learn more ...

https://www.biggerpockets.com/forums/520/topics/25...

Here is a good thread to read if you are looking to learn more ...

@John James  The Tax Records are the assessor records available from the county.  Typically they show the last installment paid and all of that relevant data.  They also show the mailing address of the tax bill, and if that is different than the property address, then you know you have potential investor or absentee landlord or any number of potential non owner occupied situations.  

There are also database services that aggregate and sift through this data for you, instead of individually pecking away at individual property addresses at the county web site (Which IS a great way to learn and do simple research, btw), but when you are ready to aggregate the data and mine the county databases for specific pieces of information (eg. absentee owner, lis pendens, etc.) That is the Real Treasure!

Best of Luck!