All Forum Posts by: Joseph Konney

@Regina Bailey

The problem with Certified mail is the tenant has to sign for it. Typically, they know it's bad news if they are getting certified mail, and will not sign for it as that proves that they have been informed. 

You might consider giving a notice to the entire building that you will be doing a walk-through on a certain date to check the condition of the property - you have a right to maintain your property and access all units if they are home or not with proper notice.

Also, make sure that your notices have a person named as UNKNOWN OCCUPANTS listed. Otherwise, if your tenant's boyfriend is in the house when they come to evict, he can say he is a tenant even though he is not on the lease, and then you have to start this 3-6 month process all over again. 

If you know where the tenant works (perhaps from their rental application or a neighbor or facebook), you could serve the notice elsewhere. 

Lastly, if you represent yourself, be prepared to block out several days for court appearances, no matter if the tenant shows up or not. 

Shelter Insurance has significantly reduced rates to peers for this area for my client and I's commercial multifamily policies. If you want my agent, PM 

@Kristin Vegas - If you are buying in Chicago proper, be sure to become familiar with the landlord tenant ordinance which is specific to the city. https://www.chicago.gov/city/en/depts/doh/provdrs/landlords/...

There is a good stock of multifamily housing just west of the city if you are looking for a more suburban feel with better schools and policing while still being able to get to the Chicago city center within 15-20 minutes. 

If you are considering house prospecting sight unseen, I suggest to use an investor centric broker who has experience with detailed virtual tours and rehabs. For reference, my tours of a single family home usually encompass 200-300 photos. 

Chicago and it's suburbs are notorious for multifamily zoning and illegal units issues. Particularly with an FHA loan, you might find a home where the parcel is zoned for 2 units, but has 3 units which is legal-nonconforming... but then your loan officer will only count two of those units of rent to qualify for the loan because one is nonconforming. In Chicago, many times on the MLS there is a garden or attic apartment listed as a 3rd unit on the listing, but when the zoning certificate comes back from the city, it will only specify two units. That would put you at a huge risk if it were ever to be inspected by the city as they would likely force you to de-convert that unit.

Most suburbs here have city inspections required prior to the sale taking place, Chicago proper does not. 

I have some strategies to BRRR quicker than 6 months if you are looking to move quickly. Feel free to reach out.

@Asim Purses sometimes the value engineering solutions aren't discussed enough... if there are minimal shattered sections, and the main concern is trip hazards from the sections becoming offset, you could shave/grind the concrete where it is offset and replace sections that are badly shattered. A handyman is more than sufficient for the grinding. 

@Tom Jordan

Here's a start: 

1. start a buyer's list (or use existing from company)

2. various forums

3. daisy chain with a wholesaler to tap into their buyers

4. reach out to brokers who sold similar property in the greater area

5. reach out to owners who have similar property in the area (particularly recent buyers)

If the commercial space is < the residential space and there is no more than 4 units total, this could be a good option for an FHA/conventional buyer. If there is 5-6 units, possibly some could be combine and it would still be good for an FHA/conventional buyer.

@Christian Anderson - If you have no assets to tap into, you are going to need to find partnerships with those that have capital, or do some hustling to earn the liquidity needed. Another thought would be to get a property under contract at a very attractive price and that could be some equity you bring to a partnership. However, you'd be in quite a vulnerable position as you wouldn't be able to close without a partner or reap any benefit without assigning the contract to make a spread. 

For HML, you will likely need more than 10% down without any experience or partner, plus closing costs (which will be high using HML), and then you still needs funds to start the rehab work (lets say 10-20K) before your renovation financing becomes useful.

@Judson Heess - if there was no real estate broker involved in the transaction, nothing to initial/sign on that last line. As you have no records or reports of issues, there was nothing to initial on the top line. If you can prove that you gave the tenant a copy of the LBP guide, you're gold. I agree with the above that it is not likely to stop or pause an eviction. Usually tenants don't even bother to show up to court for my cases... and if they do, they would almost certainly not get into finer details like this unless they had an attorney.

There are attorneys that specialize in evictions and will likely give you the best rates. They will also ensure you don't forget to dot an i or cross a T and have to start all over again. DM if you need a referral. 

Hi @Abbas Mamdani - multifamily is definitely the way to go! I have 30 rental units in the area. Happy to hop on a call if you would like to discuss. 

@Matthew Meizis - I have some templates that I have used personally. Best option is using an attorney to at least review the documents. Feel free to reach out in DM and I can share. 

Get some general terms together that you and the seller agree upon and then have your attorney figure out the best way to make that happen. 

A lease with option to purchase at a specified price is solid. Usually you pay a fee for the option and then record it against the property so that the owner can't sell over your interest in the property. This is usually a short term play, maybe up to 3-5 years.