All Forum Posts by: John Clark

From where I sit, it seems that everything on the plans submitted in order to pull the permit has to be done. Your "intent" is irrelevant. 2019 building code is all that matters. The fact that something may have been kosher ten years ago is irrelevant. If it doesn't match today's code, it has to be changed. Comply with the plans you submitted in 2018-19 in all respects. End of discussion.

@Ray Harrell

Then what are you saying?

1. Was the permit issued for the prior work done? Yes or No. The fact that it was issued for completed work is irrelevant. Was it issued?

2. If the permit was issued, do you need the signature of an inspector to close the permit and state that the work was done according to code, and therefore should be excused as having been done without permit?

3. If # 2 describes your situation, did you call the buildings department to arrange an inspection? Yes or no? 

4. If with respect to #3 the answer is "No," why not?

"I was recently granted a permit for work that was done prior to my purchasing the building. However, the permit needs the signature of the new construction inspector."

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1. Did you contact the Buildings department to arrange an inspection? The permit allows the work to be done. The inspection says that the work done was done correctly. Are you trying to say that the permit will not be issued excusing the work without a signature? Sounds like an inspection issue to me.

2. That said, call Alderman Burke's office. Offer to pay $10,000 to Toni Preckwinkle's campaign. Problem solved. You'll have signatures out the wazoo. Just ask Alderman Burke. There's even people in Texas who will tell you just how important Alderman Burke is in Chicago.

Do you have 1 inch pipe coming from the main into the bbox already? You can't have 3/4 inch from main to bbox and then 1 inch from bbox to house.

Also, is the service line from the bbox to the main lead? If it is, replace it. Mega-expensive. 

Call around, get quotes, check BBB.

@Seth Coronis :

"because sky high property taxes plus a mortgage would cancel out any profit. "

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"Profit" is a misnomer, since after taxes, a corporation should be indifferent to whether it is financed by equity or by debt. Same applies to people. Depending on your appetite for risk, you make your equity/debt ratio.

If you can get a better return on something else as opposed to the mortgage interest rate, then invest in that something else. If not, maybe you should be the one making the mortgages, not taking them.

As was pointed out, returns on A/B properties is tough. Prices take it all in A/B neighborhoods. Try a C neighborhood and look at buying into a well-maintained 4 to 6 flat or a similar sized condominium. One of the things to look for in evaluating C neighborhoods is whether it has a niche advantage that gives you a steady stream of tenants. For example, buying within walking distance of Midway airport gets you airline and airport workers (Flight attendants, etc.). Buying in certain areas around colleges can get you students, or -- select wisely -- young professors just starting out.

Chicago is tough on AirBnB because each alderman gets to set the rules for his own ward, and so what was legal yesterday is not legal today. Condo boards frown on AirBnB and its ilk also.

"

Graham Stephan, a young and established real estate agent and mastermind of investing (who became a millionaire by age 26) said he brought a $5 subway sub to a fancy restaurant to avoid spending $80 tab. You could call it frugal, cheap, "bending the rules" - I call it innovative thinking to save that cash!

“You don’t have to deprive yourself to be successful, you just have to be smart about the things you chase.” - Graham Stephan

Compromise. He attended his friends dinner, was fed well, saved 93% in food costs."

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What he did was externalize his imposed costs of using the restaurant's facilities onto the restaurant. If I was the restaurant, I'd have given the party a charge to cover overhead for his being there. He was totally unfair to the establishment.

@Richard Sherman "I am much more worried about a 200 unit apartment building coming in down the street than only being able to raise rents 7% + CPI per year."

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Here in Chicago the politicians want to limit landlords to CPI increases only and force LLs to set aside ten percent of gross revenue for repairs and maintenance." Good news is that means we won't have 200 unit apartment buildings coming in down the street!

1. Don't buy in Chicago until after you find out what happens with the rent control movement. That will affect everything. Therefore the first avenue for figuring returns (revenue, cash flow) is up in the air. The second avenue (appreciation) will be hammered if rent control is enacted.

2. Chicago appreciation has been below the average for big cities since Christ was a corporal. Your second avenue for returns (appreciation) is not as good as elsewhere, and this is before you consider rent control's effect on appreciation.

3. Chicago is corrupt. That increases costs and puts even small jobs at the mercy of aldermen and other low lifes of similar ilk.

4. There is a huge overhang of luxury apartments (4,000 or so units) about to hit the market in 2019 and 2020 in Chicago. The upper middle income tenants will be sucked into those because of rent breaks. That will create a vacuum in upper middle income apartments, which will pull people up from below. Rinse and repeat. Make sure your neighborhood and market won't be affected.

"I cared, thus I didn't sign the contract. "

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Your "caring," and you, are irrelevant, and therefore cannot form the basis of a complaint against the agent. If the owner agreed to a commission that is the owner's business, not yours. No violation. no complaint. Know your place.

"Government needs to keep their hands out of the real estate business."

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That's wrong, too. Government needs to set up building codes that protect consumers, not enrich unions. Government needs to set up zoning classifications that allow denser building (three flats in areas designated for single family, etc.). Those things will increase supply, which will reduce rents.

Rent control is an absolutely asinine exercise of government power. Government does, however, have a big role to play in real estate.