All Forum Posts by: Jeff Valentino

Hey @Frank Grigus Jr. Check with the broker and the agreement @Lauren Grigus signed since that likely matters most.  My question would be why should you have to compensate a brokerage if you are buying off market real estate for yourself? Let the seller know you are a licensed broker representing only yourself in writing and send it to the attorney and get it closed.

Message or call if you want to talk more.

Small world. I'm planning on opening my brokerage next year in Mokena or Frankfort. You can have a job and everything when you get your license @Megan Roche !😂😂

I'm going to defend Chicagoland again...at least until I move to TX, TN or something. :)

The market as a whole here is great. I know so many people including people from out of state that do very well in every type of investing I am around. Flips, rentals, turnkey and wholesaling. Rents are very strong, demand for inventory is still high, and gurus are in town all. the. time.

Some of the stats like IL loses a person every 4.6 minutes etc while true can be a bit misleading. 2015-2016 saw the state lose 37k people, more than any other state. However that is only about .3% of it's 12,800,000 of it's population. In 2009 the population of IL was also 12.8 million, so basically flat since the recession. However, I admit I checked states that have real estate license reciprocity during this recent budget fiasco!

Of course location matters, but the market here for the types of investing I'm involved with is doing great. 

Hi there @Cenddie Alaban I'm pretty sure I know the area of Tinley you are looking in. Here are a few points to consider-

It sounds like the current owner has it as an investment and doesn't live there right? If you plan on living there you will get a homeowners exemption on your property tax which will help your cashflow numbers. Especially with how high taxes are in Tinley.

So you trust your co-worker more than your agent when it comes to choosing people on your team? Can I ask why? 

Part of a good agents job is to make sure the transaction goes smoothly, and to take some of that burden off of you. Your agent should have multiple good recommendations that they have worked with in the past. It's much easier than just googling people and hoping you get a good one imo. 

Did your agent give you rental comps to show what you could get in rent? Did you see purchase comps to come up with your offer, or how did you come up with it?

If the owner is under financial hardship, that would explain why they took your offer so quickly. 

Hey @Sam Stout. Do you get the size of the Chicago market? It's massive. I am active as a broker and investor in the South Side of the City and the South Suburbs. For years I have been hearing talk about Chicago being like Detroit, how many people are going to Indiana etc. Of course some of it is true and are a concern if IL doesn't fix some things. Overall the market is still very strong with not many signs of slowing right now. In the Chicago PMSA I am still seeing steady increase in price and a steady increase in # of closed sales. This is happening while avg DOM and months supply are going down. That says growth continuing until I see a change in DOM,  months supply etc.

Of course it's all local. The suburbs still find affordable housing and both markets see multiple offers consistently. This is true of investor and retail sales.

No one is going to lend on income approach for a 4 unit, so why use it? Price it like a house. ARV-Repairs etc to make an offer. There was a clean 4 unit that looked like it needed cosmetics that sold for 265k, if you want to use that for as is value, but it sounds like this one is in worse shape.

So 304k (ARV) minus total repairs of 120k = 184k. If you only count the 1br buildout you'd be at 199k. Can you get it for that or less?

There are limits on how much you can use for repairs w a 203k loan. I believe it's 30 or 40k for a 4 unit. I have a good resource if you need it.

Hey there @Ben Ballinger.  In the last year a 4 unit in Worth sold for 265k (4 2br) that looked like it needed cosmetic only rehab and a fully rehabbed one sold for 304k (3 2br 1 1br). It looks like those are the numbers you used.

You think it needs 30k per unit rehab? Also you have a 0 down loan at 5% for 20yrs-is that correct? If those are correct, and looking at your expenses do you really think you need 10% for cap ex and repairs?

Anyway as you see it's tough to make those numbers work if it needs so much rehab. 

I come across off market rentals and occasionally fix and flips in the South and far South suburbs of Chicago. These are C to D areas but would offer high monthly cashflow with some making good flip opportunities. Section 8 is paying 1300-1400+ in some of these areas. Price ranges 30-50k.

If you are looking for properties and can close fast (preferably w cash) let's talk! 

Jeff

 Yikes! Yes I meant tenant.