All Forum Posts by: Jason Bindra

Idea may be anecdotal. I consistently rent this home up in Michigan. In the winter months, the owner is open to short term monthly rentals at reduced prices(closer to monthly rents than transient) as long as property is empty before spring/summer.

@Tom Keating: In primary markets, SBL guidelines state that loan can go down to $750K+. Wanted to find out how realistic is a $750K+/80% LTV in a primary market like Chicago area? Or 1M+ is the norm. And a more technical question. What constitutes the boundary limits of a primary market like Chicago. I.e. Gurnee?? Kenosha??

1. Run comps on multifamily in the area to get the Cap Rate. 2. Calculate what would be your stabilized gross based on rental market. Use quick rule of thumb for 45-50% expenses to get to perceived NOI. 3. Calculate the ARV with above two. Multiply by .7 or .75 and deduct conservative rehab/holding costs. That's the max you want to spend on acquisition.

It's a tale of two cities. Maywood can be a hit or a miss. Areas near Melrose Park are C+/C- with the rest of it straddles from C-/D+. This is where you can get chewed up and spit out if you don't know what you are doing. At a macro economic level, it lost out on a few new developments. Bellwood is a notch above. Same areas near Hillside shopping complex(Target, Holiday Inn) tend to be B- whereas the rest of the town is a solid C+. Has seen a lot of action in past 12 months from flippers. And on the macroeconomic level, a couple of things went in its favor. http://www.chicagobusiness.com/realestate/20170608/CRED0701/170609884/heres-where-flippers-were-busiest-this-winter RPM Suburban, R&D Realty etc have a decent base out here.

Another shout out for Lucid. Have used them twice on the buy side this year. Drop me a PM and I can give you my preferred agent's name on Gary's team.

All things being equal from a valuation/ROI perspective, I would always go for the bigger building. Apples to apples, it has less capex & management cost due to consolidation. Also, in 1M+ loan world, you can leverage non recourse loans and rates tend to be as attractive as conventional.

Yes you can. Sum total of loans cannot be more than 50% of vested balance or 50K whichever is less. Onus is on you to make sure that you do not cross the 50k line as your employer has no knowledge of your other solo 401k.

Dennis Tierney With almost all of my liquid assets(stocks) being in retirement accounts, I have been exploring the possibility of using SDIRA/Solo 401k. That said, superficial research at this point has only unearthed lenders that would cover 60-65% LTV at the max. Is that the norm or 75%+ is available in the market?

If you have the address, look up past sales in the area with 5-10+ units. NOI is relatively hard to find but gross rent is an easy metric to nail. With it, you would have a fair idea of Gross Rent Multiplier (Sale price/Gross Rent). Use the same multiple for your analysis to arrive at the potential price.

All things being equal, stocks and real estate have provided same returns over a large period of time. Stocks tend to hover around 8-10% annual return over last 25-30 years and so does Real estate at 2-3% leveraged 75:25. With the right setup, you can practically avoid paying taxes with real estate but stocks come in at a respectable second with long term capital gains. Stocks are more volatile than real estate but also more liquid. Outliers/home runs tend to be bigger in stocks. Even with appreciation in CA/NY, it can't beat riding a FANG stock all the way to the top. On the other hand, base hits are a lot easier Real estate/value add opportunities. In all, stocks can help build wealth faster under right conditions but real estate is a more predictable way of building/maintaining it. RE is another asset class. Like any other investment, for average risk profile, do not over allocate.