All Forum Posts by: Jeffery M Raju

@Jermaine Johnson I'd love to join the conversation as well! I have worked with several real estate funds and other asset classes too.

If your goal is to build a real estate portfolio for passive income, I'd start with figuring out how much capital that you can afford to invest or you can raise to buy the type of property you would like to have in your portfolio. If it takes a lot more money than you have or can raise to get that property, then adjust the strategy. Build up cash flows and equity in lower sub classes like B/C neighborhoods and/or do a BRRRR using hard money. Start taking small steps with your goal in focus and the process will show you what is possible for you and where you might need to adapt.

If you're from Tinley Park, you're relatively close to a lot of popular cash flow neighborhoods in the south suburbs where we have invested/done BRRRRs.

To be 10000% sure - you can order a zoning certification from the city for about $120 which will tell you if it's legally grandfathered as 3 dwelling units. RS3 is two-flat only but that only refers to the number of stories of the building and not unit configuration.

https://www.chicago.gov/city/en/depts/dcd/supp_info/certificate_of_zoningcompliance.html

What condition is the property in? 20% (~$8K+ per year) for maintenance and capex seems high unless you're foreseeing a good amount of repairs needed. Make sure you get a professional home inspection before you buy to help identify repairs to invest in (or identify dealbreakers). Adjusting for that realistically will significantly change your pro forma returns. 

Also I wouldn't try to make the numbers look better by self managing and backing that out of your expenses. Even if you do self manage, pay yourself the property management fee so it's always in your budget. If after a while you end up buying more properties and place a PM, you'll already have accounted for that expense. Self managing would be good learning experience, but proximity is a factor in terms of how much time and energy you want to spend doing that.

I'm not a customer of PFR, but after working with and learning from Justin Ericsson over the last 3 years, I can speak to his character and passion for his business.

About 4 years ago a few friends and I partnered together to learn about and invest in real estate. At the time, we were all about 25 years old and had no idea what we were getting ourselves into. We spent the first of those four years networking with other investors through meet-ups, visiting/evaluating deals, and meeting general contractors and real estate agents. We even eventually secured a hard money line of credit…a lot of common things beginners do to learn the real estate business. We weren’t getting a lot of traction finding the right deals or direction for our business at first, so I sought more expertise through an alumni mentoring program run by some friends in a business club I was part of at DePaul - this is how I was introduced to Justin.

Since meeting Justin, he has helped us and mentored us in countless ways; both in business and in life. From a business perspective, he’s taught us everything we know about turnkey investments and trained us in his processes and business model. First, from giving us an opportunity to gain meaningful experience by letting us manage one of his own rehabs, to later getting us started on our own deals. He was always there with support, direction, and advice - free of charge. Not to mention discounts and resources through his own vendors and relationships. He’s done a great job of showing us the way and letting us learn on our own while helping us avoid the major pitfalls. After working in such close proximity with him and learning how he built and operates his business, I know how much he cares about the quality of his product and PFR’s reputation as a top turn key provider. We're trying to build a similar business with the same principles of quality and integrity we learned from Justin.

Besides all the tremendous things he’s taught us about business and real estate over the last few years, he is an extraordinary and genuine person. It took a while for us to really get to know him on a personal level, but knowing him has truly has been an inspirational influence on my life. I felt the least I can do is share our story and our experience of knowing and working with Justin/PFR.

I’m happy to answer any questions about this post on my experience.

Hello BP Community!

My partners and I are new real estate investors trying to evaluate different wholesalers. Additionally we want to tap into the network and see who's out there that has an established process and proven ability to find the best deals. 

What's the best way to compare them/vet them/find them?

3 partners and I have teamed up to begin investing in real estate. We've secured financing in addition to our capital and we are searching for fix and flip opportunities primarily in the north and west suburbs of Chicago.

We're interested in networking, potentially exploring JV opportunities, and meeting wholesalers or other professionals knowledgeable in the acquisition process.