All Forum Posts by: John Clark

"He promised that he could get things done in two weeks, and can start fairly early. . . . A feedback that I got from another local investor is that this guy . . . can be a bit sloppy . . ."

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Slop kills time, so this guy's two weeks is out the window. You are  going to live in the unit being remodeled, and no doubt rent it out in the future, or maybe sell the building.  You get sloppy work and are aggravated while living there, and it reduces your rent/sale value later on, or you blow your "two weeks." Worst case scenario is that you blow your two weeks AND get sloppy work. He also doesn't have much experience with jobs your size. So # 2 is out, period.

Choice is # 1 or # 3. Let's look at # 1: He's got experience with jobs your scale, and gave you a reasonable time time. Your con is: "He seems to be a bit disorganized, and could be a bit wishy washy. I wasn't able to get a good breakdown of the estimates between labor and costs. " As others have pointed out, however, labor/materials costs are irrelevant, you're just looking at total price. So your con boils down to "he seems a bit disorganized."

Now look at # 3: Has the most experience with jobs your size, willing to introduce you to his network, and you might get his flooring option down by some unknown amount. Your major con is: "Feel like they were not as thorough in terms of scope of work when visiting the apartment."

Questions:

A.  Is downgrading # 3's flooring options going to reduce his price to the amount of #1's estimate?

B.  Can # 1 introduce you to his "connections and resources?"

C. Is the difference in introduced "connections and resources" between # 1 and # 3 worth the extra money?

Decide those for yourself.

Then also consider the red flag you have for # 3; he wasn't as "thorough in terms of scope of work" as # 1 was. This leads to the question of blowing budgets for "extras" that you thought were included. As others have noted, you need to have a fairly detailed scope of work in your contract (which isn't line item costs, but details the items), and a budget for contingencies (e.g., installing a new toilet, what if soil stack needs replacing?).

Subject to your decisions, I would go with # 1.

@Steven Lowe is absolutely right.

@Frank Serrano -- My question is: Why are you only looking at the North side? You'll get better/more pickin's on the South side. Follow the Orange line and stay within easy walking/commuting (bus) distance to the Orange line and you'll have better chances of finding something where the numbers work. Ditto the Green and Red lines although they can be spotty.

Be wary of AirBnB or other short term rental situations as a way of making your numbers work in Chicago. The aldermen aren't all in AirBnB's pocket yet (later, to be sure), and you don't want an aldercritter banning STRs in his ward after you've committed to the property.

Work the numbers with three long term rentals, and see how high you can push the rent quickly, 'cuz rent control is coming to Chicago

"I have an office building that they claim in worth $7.8m. Realistically it's not even worth 1/4 of what they claim. Seems like a random number, its so far off from market value. This never made sense to me. Any ideas? "

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Get an appraisal and fight the evaluation and the taxes. All starts with an appraisal. You will need to provide your rent roll and your deferred maintenance issues/expenses to get a proper valuation.

Remember, just because there's a large jump from one year to the next doesn't mean the property was over-valued. Berrios artificially suppressed commercial property values and over-valued residential. That's changing. You may have a situation where the new value is closer to reality than the old one was. That's why you need the appraisal.

"What a moron. Stay away from keyboards"

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Sez the guy who can't be bothered to read the rules.

I am sure that the ordinance has a general remedies clause, so if a specific remedy isn't provided, that would apply.

I never found reading the contract, or law, first, to be ridiculous or useless. Maybe that's just me.

Oh, and when I read said law or contract, I do so for comprehension. Works wonders.

"If they are making noises at 5 am, talk to your neighbour and remind her of the quiet hours set by your landlord. "
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I disagree only because my understanding is that the neighbor has already been spoken to. Send written notice to the landlord to enforce the quiet hours or you will consider  him in breach of your right to quiet enjoyment of your demise. Back it up with a REAL doctor's diagnosis of the problem (nobody less than a bona fide MD) that your daughter is suffering and why. Tell him as part of your written notice that if it is not cured immediately, you will move out in 60 days That gives him 30 days to cure and you 30 days to move out.

If it doesn't stop, then move out.

Above all, don't blame the woman's cat. I hate cats, but this sounds like normal behavior for a cat, so you can't expect the cat to conform to your pecadillos. You CAN expect the landlord to enforce quiet hours and non-harassment rules and laws.

Have you read the Chicago Residential Landlord and Tenant Ordinance? It's on the web.

"Recently did a search and found the taxes (up til 2 years ago) was paid
for by a finance company, then they quit paying them. I tried to find
info on this company to possibly buy the house, or at least find out more
info. Found out this company was merged with CitiFinancial. Cant seem
to get a hold of anyone with a clue. "

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You're looking in the wrong place. Ownership goes with title, not who's paying the taxes. Go to the recorder of deeds office. Look at the chain of title. The last DEED TITLE holder is the person you should start with. Taxpayer is a red herring.

1. Cash means cash. Not "I've got some money in the bank and a good credit score, so I know I'll get financing."

2. If you are going to wholesale, say you are going to wholesale. Don't be coy and don't lie.

3. Don't put gimmicks into your offers like $1.00 down and crap like that. All you do is waste people's time.

4. Always give potential investors/banks real, accurate, estimates for rehab, repairs, cash flow, vacancy rates, your experience, etc. Don't try to rope them in and then pray that it works.

5. Don't whine. Give it your best shot, but remember, the VAST majority of investors fail. Go in proud, leave proud.