All Forum Posts by: Jorge Leon

I have been buying and selling for a few years now, I see my competition killing me in terms of acquiring properties. I'm missing some quality bird dogs and I'm looking for successful strategies on how to acquire these. I do work with some wholesalers, but their fee really cuts into the profits (I don't blame them). In this industry, people keep their leads a secret and I can't really blame them. Any advice would be very much appreciated. 

Hi y'all, we are buying a 4 unit investment in Chicago for 430k, conventional loan with 30% down. I just got quoted minimum coverage from state farm for a $900,000, is this common?. Monthly payment is $450, more than we would like to pay. Can anyone recommend the cheapest insurance quotes in Chicagoland? Someone in another forum suggested asking for a quote with 80% coverage, I am waiting to hear back from the state farm guy. Any suggestions greatly appreciated. 

Thanks everyone. 

Hi all.

My parents are looking to purchase a 4 unit near their primary residence. 3 of the units are rented and one is vacant. The tenants have the right to stay until their lease ends correct? At which point rent would negotiable if they want to renew? The reason I am asking is because the units seem to need some work, and although we are not in an immediate hurry, we would need them vacant for that, we're just looking at our options. 

Also, it is my understanding that rent being currently paid can be used to calculate whether their DTI qualifies, is this correct? Can we ask the listing agent for information regarding how much they are paying? Would they provide payment history for use in loan qualification? Any advice would be appreciated.

I can’t express enough how much I appreciate all of your replies. Just with this info here I have enough to research for a few weeks I’m sure. I took the cap rates with a grain of salt and as many of you have said I will double check the numbers, especially the expenses and see if it makes sense. Also, as some of you mentioned, investing in smaller units has crossed my mind. Other than the mls, where could I look for better deals?

I might sound like a noobie, but what do you mean by expense ratios? Are you referring to cap rates? And elaborate on what you mean where property might go? I do know how to find current property taxes in the city’s tax website. 

Hello all. Member of my family are cashing out on an industrial real estate investment that they held more than a decade. We will be under contract as of this week. In order to defer some of the capital gains, we are looking to reinvest in rental properties. We own several other 2-4 units in the city, and as for myself I have flipped a couple of different single family homes in the city, I also used to sell homes for an investor/flipper (without an R.E License). We are not new to the game, but the undertaking we are considering is definitely out of or real of experience, maybe even our comfort zone. Regardless, we are looking to move on this and I am in the beginning stages of mapping this monster out. What are we getting ourselves into? I am already looking into property taxes, Property management and Cap rate comparisons. Any advice and direction would be greatly appreciated.

Here are the two properties we are looking at.

https://www.loopnet.com/Listing/7329-N-Honore-St-Chicago-IL/21891991/


https://www.loopnet.com/Listing/5317-N-Hoyne-Ave-Chicago-IL/21935181/