All Forum Posts by: Joe H.

Unfortunately what a lot of people are saying is right, you are screwed. 

In Chicago landlords have literally no rights. Your only defense is stringent selection criteria for tenants and to NEVER EVER EVER take a security deposit. The Residential Landlord Tenant Ordinance (RLTO) is supposedly there to protect tenants from aggressive landlords, but what it really does is protect deadbeats, gangbangers, and "professional tenants" while raising costs for everyone else. Thanks to the RLTO all tenants now pay an additional half month or so of rent every year because anyone who knows what they are doing does non-refundable move in fees with no deposit. If you were a good tenant you used to get your money back, now you lose it and the benefit of that cash goes to some rotten tenant who trashed their landlord's apartment and doesn't get stuck for a whole month's deposit. 

The real beneficiary of the RLTO is, of course, the attorneys. The law provides for virtually guaranteed and generous fees for attorneys at the landlord's expense. 

You seem to have a good attitude about this though, it sucks because it is real money, but real estate is a series of expensive learning experiences.

Go to Redfin, hover over Logan Square (the actual park with the monument).Turn off land, condos, and other so you are only looking at SFH and Multi Family. Note the giant freaking hole you are staring at. There isn't even anything on the MLS that is ridiculously over priced. Virtually nothing is even on the market within a 5+ block radius of the boulevards.

I agree it is depressing, then again I got in for $136k for a 2 flat plus non conforming attic apt in 2011 so I'm happy. Just did a 30 year refi at a $380k valuation which is still low compared to what it is actually worth right now, but it's a cash out refi so I can see why they are going to be conservative when handing out cash like that. My fortune on my buy and hold doesn't change the fact that I'm now almost done winding down everything else I had acquired in the area leaving me with only my primary residence left in that area. Perhaps liquidating was foolish given the trajectory in Avondale and Logan?

I'm familiar with the basics of FHA loans, but haven't worked with one directly in 5 years, so I've heard a lot has changed. When it comes to qualifying for a multifamily building, how does the FHA treat rental income? I know when I first acquired a property with an FHA loan they basically counted 75% (or something like that) of the income towards the income side of my DTI ratio. Also, do they base this off current rents or market rents?

I am an independant RE Broker and also a multi unit investor. I would share some tips on what I wish I would have known, but the list is endless! I started this when I was 22 in the bottom of the recession and have learned just about everything by trial and error. My #1 piece of advice is: "It's all about the price you pay for it" and the moral of that being BE PATIENT. It's easy to get carried away when you find a beautiful building that you think is a good deal, but if you tie yourself up too soon on a "good" deal, then you can't pounce when you run across a "great" deal. RE is an industry that tends to reward those who stay liquid and wait for things to fall into their lap. To that effect, a lot of brokers like to push their clients to buy as quickly as possible because, well, that's what makes us the most money. Resist that urge and that preassure. Keep your eyes open and remember there's always more fish in the sea.

I'm a broker and investor who is extremely active on the SW side. I hold my own license and work with a lot of off market listings. I also bring my experience as a rehabber and property manager to the table which is particularly helpful if you are looking at multi unit properties as an investment, I know your perspective well as an investor. Let me know if you want to grab a beer. 

I have been growing my business now for the past 5 years and have reached a point at which I can't continue to function unless I can delegate tasks to others. I am looking to hire one, maybe two, project managers who can help me run small construction jobs (primarily apartment turns) and also learn the day to day of my business. 

This is not a job for those who are unwilling to get their elbows dirty as I will expect you to not only manage my crew(s), but also pick up the slack and push jobs forward. I am looking for someone who knows a thing or two about construction or is at least handy with tools. If you've renovated an apartment before or worked painting houses during the summer in high school, I'm talking to you.

Ultimately I need people who can learn the business from the bottom up. I need help managing the dirty side of the business now, but as you learn how these projects are done, I want you to learn the business side of things. The ideal candidate is educated, but not above picking up a sledgehammer to knock down a wall. I will want your role to evolve until you get to the point that you can manage the back end of this business and potentially even justify being granted equity in it.

I will pay well and put you on salary. You will be put in charge of bidding jobs (with my oversight at first of course) and I will set up a bonus structure that rewards you for beating your budget and timeline. This is a rare opportunity for both salary and a quick learning curve. I've already got my next six months of projects backlogged, so I need someone to start as quickly as possible. We will be painting a $5 million mansion starting December 15th and I have two apartments to turn before then. If I find the right person, I'll expect you to jump right in.

I work nonstop and expect you to as well, but you will learn more about Real Estate working for me than anywhere else and make good money doing it. If work hard play hard motivates you, contact me.

PS: I am all about someone who is motivated and looking to learn. I will help you grow into whatever specialty you want whether it is property management, project management, brokerage, development, etc. I will pay for your Real Estate Broker's license after you put in 3 solid months of quality work.

I certainly had more than a layman's knowledge of the system, but looking back on it the answer is "I had absolutely no idea what I was signing up for". But that's OK because it was a learning experience through and through. What I did know is that there was a lot I didn't know so I was careful to be extremely involved personally in every step of the process and to regularly consult attorneys about each step. Ultimately that is what made the project a success, anyone can learn these processes if they are willing to go through trial by fire with a good legal team. At the end of the day you are everyone's hero for being the person willing to come in and clean up the mess for the bank, the city attorney, the city inspectors, the neighbors, etc. When you put yourself in that position good things happen as long as you keep pushing the project forward and are responsive to every challenge.

 I manage primarily in the NW and SW sides with my heaviest concentrations in Logan Square and Avondale on the NW side and West Pilsen and Little Village on the SE side.

I do have some properties on the South, West and North sides, but Ive contracted on the SW and NW sides because I think they have the most long term potential for both me and my clients.

Yes, I amanage and own quite a bit in Pilsen and Little Village. That's my favorite side of town.

Most of the best areas in Chicago are tapped out right now. Very hard to find reasonably priced product in Logan Square, Avondale, anywhere East of 90/94, Pilsen, Bridgeport, Humboldt Park, etc. Even East Garfield Park and Bronzeville are difficult places to find a deal now. Your best shot is going to be the fringes of these areas like Portage Park, Little Villlage, McKinnley Park, Etc. Little Village is a personal favorite of mine as I've hit a few projects out of the park down there recently. Then again, what am I thinking? Giving up my secrets, lol! The more the merrier though, I can't afford to buy up all the deals in the area anyhow!