All Forum Posts by: James Ihssen

RARE Side by Side Duplex Available in the Highly Sought After Oswego #308 School District! This property generates significant cash flow with Long Term Tenants in Place! This property features NO deferred maintenance and is Turnkey!! Just sit back and collect the rents!! Tenants pay ALL UTILITIES and Lawn/Snow. Each Townhome style unit has 3 bedrooms, 1-1/2 baths, eat in kitchen, a spacious living room and a large laundry room. Each side has its own fenced back yard as well as an oversized 1 car garage. 27 W Anchor is occupied by a LONG TERM tenant that just signed a new THREE YEAR lease which expires in September 2020. Out of respect for the existing tenant this unit can be scheduled for viewing by serious buyers only. 29 W Anchor has a TWO YEAR lease in place beginning November 1st. Photographs are of 29 W Anchor which has been freshly painted and recently updated. Both sides show well and are in great shape! Come take a look at this great investment and start making money today!!

Hey @Richard P., good talking to you on the phone earlier this morning.  From a private lending standpoint, I am sure they will cover the rehab costs although since it is private money, it is basically whatever deal you negotiate with the private lender.  

Personally, I do not finance the rehab costs as I find it to be tedious and not worth the extra costs involved.  Not everyone can fund their own rehab costs though.

I do not like paying for draw fees and lender inspections and all that is associated with funding rehab costs.

Now If I was intending to rehab a larger multifamily property that may be a different case.

Good Luck with your move!

Hello there, I may be misinterpreting the question asked by @Richard P. but typically for buy and hold, private money would be used for the acquisition phase (the 'buy' of the buy and hold) and then you would transition into long term money as an exit strategy for the original private money loan.  

If you buy with equity or create equity through rehab, you can have great success with this strategy, using other people's money to build a rental portfolio! (I often feel like I am just shifting money around, but getting houses out of the deal!!)

IF, alternatively, you are referring to private money for investment, it gets a lot more complicated.  You are talking more of a long term type of partnership.  I have done partnership deals with investors on short term flip deals, but would vet a partner a lot more closely on a long term deal.  

I guess the only advantage to a direct partner for long term investment would be to scale up quickly, if you have the experience and team in place to make it happen and they have the financial resources.

I am not sure I would consider such an arrangement to be honest.  I love owning 100% of my own rentals and having 100% control.  It would be hard to have to ask someone, or get approval for, an expenditure for a property that I own (or co-own). 

Hope that Helps!

ILLINOIS TAXES Can Be a Real Deal Breaker!! It varies greatly from County to County.  I am always concerned from a long term buy and hold standpoint, especially thinking towards the future.  My average property taxes are 3-4k for each of my rentals, average value 160-190k each, rents are 1600-1800 as appropriate.

I avoid many areas around me that are low priced but high taxed, with no real end in sight considering the state of our various forms of government.    Good Luck!

@Syed Ahmed  Hey there, did you ever figure out financing for your properties?  I am working on a portfolio loan to free up some equity for more acquisitions.  I will not touch anything other than 30yr fixed loans for my rental portfolio.  

The KEY I have discovered is Seasoning.  That will make a huge difference in your acquisition strategy.

Best of Luck to you!

I  have successfully used and continue to use FOAC for my acquisition as well as my 30 year loans.  I did two 30 yr loans with them a few months ago and will have at least three more to close before eoy.  

The process was smooth and painless, communication was easy.  The appraisals could have been a bit higher but that is not on them and it did not affect me anyway due to my high equity positions.

Any questions let me know.  

I would say it pays to be a Realtor! Just having direct access to the MLS for research and data mining (owners, tax recrods, past sales, etc etc) purposes is priceless.

If you want to be a Subject Matter Expert in your local area for Real Estate, the MLS is a valuable tool!

I am not even referring to using the MLS to buy and sell properties, which is how most people think of it.

A research tool for your business.  Direct from the source.

Of Course you can buy off the mls, although it is fierce these days trying to pick up deals.   

CASH Buyers Love Sheriff Sales, but even there the landscape has changed over the last few years.  Hedge Funds ducked out, there was a lull for a while, which was great for me, and now everyone is there it seems like, with some cash buying up everything. 

--

Regarding workflow, podio is powerful but has a steep learning curve.  

I currently am using STREAK, which is integrated directly into my gmail as a chrome extension.  I use it for tracking my brokerage properties, various types of leads (potential tenants, buyers, sellers, investors, etc.), flip deals, offers & workflow on my investment properties.  

It is easy to setup and is free!   There is a paid version that is inexpensive that is more feature rich as well.

I do not work for them I am just passing on some good tidbits!

Good Luck on your Endeavors!

Welcome!! There are great opportunities and resources here on BP.  I would suggest that you take advantage of them.  Best of Luck to you!

I used to manage those apartments on Reckinger back in the early 2000s.  Ownership has changed hands a couple of times since then.  I would recommend plenty of diligence.  I have considered those but they would need to be much much lower for me to bite, I am a value add player these days.  Good Luck to you!

Auction.com is basically marketing the properties that are coming to sheriff sale in your area.  

One huge plus many people do not realize is that you can usually grab a preliminary title (o&e) report from their site on these sheriff sales.  This is a huge advantage to have when bidding on a house more or less sight unseen!

If you have an 'in' you can get that information from a title company, but it is tedious (for the title company) pulling title on properties you may never own week after week after week.  I have referred many deals to many title companies over the years, so I have access to that information, but it is not always easily accessible to everyone (well, before auction.com).

On numerous occasions I have been at the courthouse pulling up auction.com on my tablet to check out preliminary title on a property I am considering bidding on.  Very Very Helpful!!

I am sure that Auction.com is getting paid for their service and that is why they add them to their marketing @Wayne Brooks, it is just another stream of revenue for auction.com leveraging the existing platform that they have already built.

I have also seen houses lately hit auction.com barely two months past the sheriff sale (now as REOs), but they are pre mls and auction.com does not charge a buyers fee (no co-broker involved), I have bid on a number of those (usually tracked by me from the pre foreclosure stage), but never overpay so someone always outbids me lately on these open platform auction sites.

Good Luck to you!!! @Keith Behney