All Forum Posts by: Nick Patterson

Hi!

1) Hyper Focus on what you want.  (Neighborhood, type of property)

2) Make offers

Once you do that everything else will come.

Good luck!

Ever heard the story of the farmer in Africa who heard of great wealth from diamonds, he only needed to find them.  So he sold his property and spent the next 50 years searching every dessert in Africa.  Finally broke, sick and depressed he died.

Back at his old property the new owner was planting a tree and found a diamond, in fact there was a river of diamonds floating down a stream...

Moral of the story, there are diamonds in your backyard.  The grass is not always greener.

$600K for a gut rehab in west Pilsen, yes.  That is way too high.
How much work needs to be done?

We recently purchased a few 4 flats in Bridgeport for $225K that needed a full gut.

How far west are you?  West of Damen?  Close to the pink line?

check out Dave Lindhals books "Multi Family Millions"

I think that is what you are looking for.  Racine is a great market for multi's

For the RE exam, look in the app store for Real Estate test prep.  There are few programs that have thousands of old test questions.  Great study guide.

I've found in RE investing making offers and working at it every day is the trick.

Hi

I would advise staying close to home. There are tons of deals in Joilet, Bolingbrook, etc..
Save money on gas and have more control.

@Thomas Franklin that was a great answer.  

I'm assuming FHA due to the fact you want to live in the property. Forming the LLC and quit claiming is your best bet. The lender might have a due on sale clause since the ownership is technically changing hands, but 99.99% of the time you will probably be fine. The cost is $612 for the LLC and your attorney will probably charge you $300-$400 for the quit claim.

The market is crazy now, there is a lot of stupid money. Plus at 2-3 flats I dont know how anyone makes any money. Look at only 4 units and keep on placing offers. MLS is really your best bet, just keep chugging away.

For 2-4 flats your best option is the MLS. The national association of Realtors states that 88% of these properties are sold on the MLS. In addition, it gives you comparables quite easily. I would recommend using a Realtor or better yet getting your license for your own access.

Logan Square is virtually impossible, look at Avondale or surrounding areas.

Im very familiar with Bridgeport,  looking right now there are 12 multi units under $400K.  Mostly 2 flats, which are also impossible to get good cash flow on.  

Sorry, this wasn't much help.  

There are two problems in life.

1) not enough money

2) too much money

We are in the process of shopping for new lenders.

Currently we are acquiring a 6 unit building in need of full rehab. ($350K)

I am looking for referrals to lenders that offer construction financing at 80% LTV.
There are tons of banks that offer 75% (Chase, Marquette, Wintrust, etc..)

Really need to find the one with 80%

Let me know if you have anyone.  Thanks!