All Forum Posts by: Jesus Santoyo

Interviewing Brokerages comes down to your preferences. I would recommend speaking to friends in the industry to get an inside look at how things operate. Different commission splits, training opportunities, and environment are all pretty big factors, personally. Every Brokerage is different, even within the same company.

As far as mentors go, I have found this to work best if organic relationships with seasoned agents occur. You'll find different people have very different approaches or understanding to the industry, knowledge base, integrity, etc. Finding people with similar mindset/ business belief is a good way to figure out who you want to learn from.

Some of the best advice I heard years ago, by an agent at the time, was "don't become an agent, unless you already have a job". There is a reason for an 80%+ attrition rate in the first 3 years for agents. Also, investing and being a licensed agent are very different businesses. I'm juYea st speaking real talk, as I see it, not trying to discourage!

Good Luck in your new endeavor!

Thank you, Nathan.

Definetly great bits of information.

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Chicago, Illinois

Quote from @John Warren:

@Jesus Santoyo you should connect with @Joshua Jones. He is my go-to lender, and he has helped so many folks I have worked with in these kinds of situations.

John- Awesome. Thank you!

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Chicago, Illinois

Quote from @Joe Hammel:

I'm pretty biased towards Metro Detroit for obvious reasons lol.

HOWEVER, I do personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years.

So I do practice what I preach, and it works pretty well.

Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

There are 2 types of people who dog on Detroit..

1. People who don't actually own property in Detroit

2. People who did it wrong and weren't able to execute.

If you do it right, it’s statistically the best market in the country for cash flow.

I cash flow $100k a year off 23 doors and have built a ton of equity in a short amount of time.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-10%+ (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those.

We have found what works and repeat it as much as funds allow. Detroit is known as the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

Here is a picture of my portfolio...

@Joe -Enjoy your YouTube video and I'm looking forward to part 2.

I completely agree with you about Detroit's very good submarkets in the area that have really good rental income flowing.

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Hi All.

I hope I can get some feedback from you all

I work and live in the city of Chicago but am hoping to move to WI or IND in the nearby cities of Michigan City, Kenosha, or Racine just due to the slower pace lifestyle it will provide- I will keep my job in the downtown area and will commute however, not sure if I will qualify for an owner occupant financing due the distance of my future home and my workplace- Do you guys know if there are mileage restrictions? Can anyone out there who has done or is currently doing something similar share any advice?

1 Vote

Chicago, Illinois

Hey All,

I just got my real estate license for the state of IL in the Chicagoland area. I am currently still working a W2 FT Salary Job as a District Manager in the Food Industry.- Seeking advice on how to pick and choose how to initially pick your first mentor/team/workplace as a RE newbie. I do have a bit of experience as I PM two of my investments(1 out if state) and am currently house-hacking a third-

Do you guys have any good advice on asking the right questions when interviewing RE Brokers when applying for your first job?

Any advice will be greatly appreciated -

Thank you, All!

1 Vote

Chicago, Illinois

Quote from @Dan Nelson:

While opinions on the "better" real estate market varies based on your preferences and investment goals, I think their are many markets that make more sense than SoCal. For example Chicago - the market I am in -has more affordability compared to many areas in Southern California. The city's lower cost of living and real estate prices can provide investors with more accessible entry points and potentially better cash flow opportunities. The economy is extremely stable with diverse industries like finance, technology, and manufacturing and Unitrd Airlines and McDonalds. SoCal has historical property appreciation and high demand for housing but much tougher laws and zero chance for cashflow.

Chicago tends to offer affordability, geographical diversification, and potentially better cash flow opportunities due to its lower cost of living and real estate prices and rent control is illegal in Illinois.

I am focusing on Chicago because it is the area I represent and know the best but I prefer the fact that it has both cashflow potential and future appreciate at a much lower starting price.

Man, as someone new to investing- started in 2021

my first property was a 3 unit househack - I pretty much live for free the second one that I purchased was out of state in the Warren, MI area is a great cashflow property but knowing what I know I would have used the 20% and done another househack after the first year instead of rushing out of state. I will advise you to househack at least one time and use that money and time you have to define the market you want to invest.

1 Vote

Quote from @Carl R.:

It’s been great - grossed over 100k last year, and gets $8k per week in peak season. It’s a nice place though - sleeps 12-14 and has a big pool and a hot tub and is close to the beach.

You are right about location - you need to be very careful, as within the city limits of NB there is a STR moratorium and the mayor hates short term rentals. I think that is helping those of us just outside the city limits.

Hi Carl,

Looking into the area-interested to chat with you and know more about the area.

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Alex

Crains Chicago News recently posted a great article on how Chicago compared to other bigger Metro Cities are now house rich. https://www.chicagobusiness.co...

As someone who sells and buys Chicago properties, what are your thoughts on our local markets? What neighborhoods are you currently investing in...

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Chicago, Illinois

Hey Zach,

Would love to know how your real estate journey is going in Kankakee.

Did you buy a house hacking unit?

What area in Kankakee? I am from Chicago and would love to look into this area.

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Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $365,000
Cash invested: $18,000

4 Unit property - Househacking

0 Votes

All Forum Posts by: Jesus Santoyo

Jesus Santoyo has started 7 posts and replied 48 times.

Post: Brand New Real Estate Agent Advise

Post: Owner Occupied Financing

Post: I'm Planning To Buy A House Out Of State early 2024 (any suggested states to invest?)

Post: Owner Occupied Financing

Post: Brand New Real Estate Agent Advise

Post: Invest in backyard(Socal) or go out of state?

Post: STR in Michigan City, Indiana

Post: May 2023 Housing Market

Post: New investor - Kankakee, IL

Post: North Lawndale, Chicago IL