All Forum Posts by: Kath Marie

Does anyone else find it ironic that the criticism of undercutting sellers is coming from a HARD MONEY LENDER!!? Lenders that prey (in many cases) on uneducated investors! High points and high interest. 

Seems like only a VICTIM would choose such a loan. There's no way anyone in their right mind would pick such a dark and treacherous path for financing options. Unless that was the most suitable option for their needs and their current situation.... hmmmm... 🤔🤔 

Wait. Nope. HML must be a scam. Have you seen all of the complaints on bad lending practices? As well as all of the LO's that have been criminally prosecuted!? That must accurately depict the rest of the hard money lending industry. Has to.

Read the contract that you and your seller signed. Should be a section that explains EM and the deposit instructions... 

For the sake of yourself, seller, and any potential buyer. Use an attorney. If you don't know where or when to send a contract and EM then you Probably shouldn't be trying to do deals yet. 

@Sandruny Fortune only you can answer that question. 

Do the math and see if you're willing to take the risk. You'll need employment to get financing. Figure out what you need to do to get a property financed. 

@Farhan Khan most areas short term are fine for buy and sell as long as your numbers make sense. "What parts of Chicagoland are best for investing?" Is a very vague question. Depends on your budget, your contractors ability, your target ROI, do you want to deal with BS municipalities and heavy inspection processes, do you want newer SFR, are you ok with 100+ year old SFR, and so on. There are dozens of suburbs that are great for purchase/resale and regardless of what happens there will also be opportunities (comes down to the price).

Chicago has cranes up everywhere. Construction is ramped up. I know a few big developers and project managers for the big builders. They're not slowing down. 

China trade war will (already has) continue to affect material pricing on many components of a remodel. Material cost will go up if tariffs are left as is. 

Short term it's fine. Long term who knows (as can be said about every state). 

Those who say chicago land is not investable due to violence is like saying Beverly Hills is a dump because of Compton. Crime exists in the bad pockets. I don't invest in the bad pockets. 

We are a BIG business HUB in the Midwest. 

Not sure what that self education taught you over the last year. But yes... yes you should have some savings.... 

That being said there are many low down payment options for owner occupant loans. HUD offers one that's $100 dollars down through an FHA loan. Combine that with a seller credit and you could be going to closing with VERY little out of pocket.

Good luck and keep educating!

You've already wrote the inspiration you need. Your words "I need to leave corp America ASAP". 

Let that inspire you to get where you need to be. 

I will be the cynic here. Sounds like a nightmare. No thanks. 

My two cents for what it's worth -

Theory does not translate to reality. **** happens. All the time. 

Your cash flow estimates will probably be too high. Not to mention once it starts building your expenses will grow dramatically outside of the scope of the actual unit (payroll, banking, accounting, legal, office, and such). Let's use even a simple task: 

1,000 units is 1,000 leases. Most leases are 1-2 year leases. Let's assume 1.5 years avg. Thats 660+ leases per year. 260 business days in a year. About 2.5 leases that have to be signed daily by all parties (credit/background/application/move in coordination/proper utility transfer). 

Foolish to plan 7 years ahead with such a specific goal (has to be 1,000 units).  Markets constantly change. Technology constantly changes. Bubbles, crashes, company relocations, macro Econ, micro Econ, marketing platforms, airbnbs, lead generation tools, and so much more. How can you possibly know today how to make the correct plan for 7 years from today?

Slow it down. Get 20 units. See how you like it. Make proper adjustments, changes, and continue if It suits you. Learn your markets, make wise decisions, gain experience. 

Rentals are great for the mom and pop who want to sit on a handful of them for retirement. They're terrible Investments for scaling and building big business out of. Logistics are terrifying. That's why hedge funds sucked at it (they have unlimited resources btw).  That's also why buffet didn't buy single family homes. 

Also per a basic calculation on time left till your 40 and how many units you want you should have of already purchased 8 properties since starting this thread. 

Much better,faster, easily scalable ways to make a few million yearly in RE other than being a landlord. 

But enjoy the ride. 

;)

If they're going under contract in 12-24 hours then your "low cash offer" will never see the light of day. Submit offers but put time and energy into situations where it's more likely to get accepted. Sending 100 low ball offers or seller financed offers on already competitive MLS deals is looking for a needle in a haystack (not to mention that most agents will NOT want to work with you). Maybe one day you'll find the needle but your time is probably better spent elsewhere.

When you go in with your cash offer do you actually have the cash to back it? If it's from a HML source then it's not an actual cash offer.

Ummmmm I think you need to provide some more context. This community will gladly help you but we need to understand the question... 

What do you mean by sell the same? Same price? same market time? same sales process? same paperwork? what area? what sizes??......

KEEP IT!!!! :)