All Forum Posts by: Jerry S.

Alright, I've been lurking for a while, read a bunch of books, listen to dozens of BP podcasts, and killed hundreds of hours "researching" my market online.  At this point, I really don't think there's anything more I can learn without DOING.  So here's my plan with deadlines.  Please let me know if you think I'm missing something.  And feel free to ridicule me if I don't follow through with this.

1.  Reach out and schedule a conversation with an asset protection attorney (by 11/4).  

2.  Talk with my bank about a loan pre-approval (by 11/11).

3.  Contact three small local banks/credit unions to see if they offer better rates/services (by 11/18).  

4.  Apply for mortgage pre-approval and/or home equity loan (by 12/2).  

5.  Write out tenant screening policies (by 12/9).

6.  Draft lease (by 12/16).

7.  Write out move in and move out plans/policies (by 12/23).

8.  Prepare to make an offer (set aside funds) and open accounts for new business (by 12/30).

9.  Talk with my insurance adjuster AND reach out to three real estate agents who invest in my market (by 1/6). 

10.  Hire an agent and view a potential property (by 1/13).  

11.  Make an offer (asap).

Hi Carlos.  I'd suggest two things: (1) listen to episode 19 of the Bigger Pockets Podcast with Tracy Royce, she's a short sale professional/expert (I'll add a link below); and (2) find a real estate agent in your area that specializes in short sales.

I love the idea of you buying a short sale, I just think you'll need a professional to help lead you through the process.  Good luck!

https://www.biggerpockets.com/renewsblog/2013/05/2...

@Stephany Trombello - Thanks! I do love the area. And I'd be open to a BRRR type investment, but not for my first property. I want something that only needs basic cosmetic fixes (upgrade a kitchen/bathroom, new paint, etc.).

@Chris Carollo - Thanks! LaGrange and LaGrange Park is on my list of possibilities, but it's in Cook County, which I kinda wanted to avoid for my first property. I live in DuPage...so I kinda wanted to keep things simple for the first property. Plus, I've heard some horror stories about Cook County evictions. 6+ months to get a tenant out...no thank you.

@Edward Wodziak - Thanks. I will check out Aurora. Though to be honest, I'm not a huge fan of the area. But maybe I need to just get over it.

@Edward Wodziak - Thanks.  I will check out Aurora.  Though to be honest, I'm not a huge fan of the area.  But maybe I need to just get over it.  

@Chris Carollo - Thanks!  LaGrange and LaGrange Park is on my list of possibilities, but it's in Cook County, which I kinda wanted to avoid for my first property.  I live in DuPage...so I kinda wanted to keep things simple for the first property.  Plus, I've heard some horror stories about Cook County evictions.  6+ months to get a tenant out...no thank you.

@Stephany Trombello - Thanks! I do love the area. And I'd be open to a BRRR type investment, but not for my first property. I want something that only needs basic cosmetic fixes (upgrade a kitchen/bathroom, new paint, etc.).

@Jeff Nobleza - All great questions!  I'm working on all of it.

@Justin Stanfield - Howdy! (I lived in Houston for a few years.)  Thanks for confirming my suspicions.  I appreciate your feedback.   

In my experience, people rarely enter into a formal mentor/mentee relationship.  In other words, you don't walk up to someone and say, "hi, could you be my mentor".  Instead, you're really looking for a professional relationship where you both gain some value from each other.

I'd recommend you join your local real estate investment club.  There's plenty to choose from, just run a Google search and go to a few meetings.  Strike up a friendly conversation with some of the other members and, when the opportunity presents itself (and it will) freely offer your time to help someone with a current project.  

You might offer to stuff envelopes for an upcoming yellow letter campaign, or drive to a property and take pictures, or pick up a hammer and help with a rehab.  The point, is that you're giving your time freely FIRST.  Give, give, give, and then ask for something in return...although you most likely won't have to because they'll be asking how they can help you.

Do this for a month or two and I PROMISE you'll have a worthwhile mentor.  Good luck!

Hello Bigger Pockets people.  I'm a newbie investor with zero rental properties to my name.  I've read both of Brandon's books (and listened to the audiobooks) and I'm also slowly working my way through the podcasts (#83 with Marcia Maynard is my fav).  

It seems like a big reoccurring theme is how important it is to know your market.  So, I've started looking for mine by driving around and doing some online market analysis. 

What I want:  A duplex or triplex within 30 minutes of my house that generates $200 per month per door in cash flow.   

My first target area is Downers Grove which is located in the western suburbs of Chicago.  Below is what I've found online.  My conclusion is prices are too expensive compared to the average rents.  I'm thinking it be a better use of my time to look at nearby less affluent towns.  

Please let me know what you think.  I would really appreciate any guidance/criticism you're willing to throw my way.

• County: DuPage (evictions relatively quick based on my own prof exp).
• Population: 49,715 (2014, 2% increase from 2000)
• GreatSchools.org Scores: 10-7 (mostly 9s and 10s);
• CrimeReports.com: 59 sex offenders; last month 25 violent crimes and 60 property crimes.  Most incidents in the southeast of town. 
  • City has 73 police officers 
• Median Household Income: $81,000
• Median Home Price $345,000 (2013)
• Average Unit Price DuPlex/TriPlex: $222,205 (ouch that's high)
• Median Gross Rent: $1,136 (from City-data.com).
• Average Rents:  $900 for 1 bed, 1 bath; $1200 for 2 bed 1 bath; $1350 for 2 bed, 2 bath (based on postings on Craigslist & Trulia)
• Median Real Estate Taxes: $5,650 (1.8%)
• Unemployment: 3.6% (Sept. 2015, trending downward)
• New Construction: 76 permits issues in 2014, average cost $402,300 (steady increase in permits over last 5 years)
• 3 Starbucks in town (more in immediate surrounding areas)
• 4 large hospitals in town

Don't remove them.  Keep them in place until you get the opinion of a trusted (and licensed) contractor or a structural engineer.  I highly doubt someone would go to the trouble of installing steel beams on the roof unless there was some underlying issue. 

The sarcasm in this thread made my night.  Thanks all!