All Forum Posts by: Kenneth Garrett

I am assuming the rents have been assigned to you and you have taken over the lease agreement.  It may be month to month if there is no lease.  Cash for keys is a negotiating tool.  You have to decide whether paying two months rent for them to move out is worth it.  I've seen people pay up tp $3000.  If you have to evict them Illinois is not a favorable state for landlords.  The judges will give them plenty of time especially in the winter (welcome to the judicial state).  If you are in Chicago look at the Chicago Tenant/Landlord Ordinance violating this could cost you fines. 

Having family members could be an advantage.  I would want to know how long they have lived there and were they good tenants at one time.  They may just be milking the system.  Do not give them any money until all of there belongings have been removed from the unit.

You may want to check out the Chicago Creative Investors Association (CCIA).  They have a lot of good information on there website.  

It is easier to work with smaller banks (local) for these types of loans.  You may need to call around in your area.  The bigger banks are not as willing and the terms are not as good. 

Good Luck.

Cody,

I would look at commercial loans. I use them all of the time. Less paperwork, credit is not as critical and they look at the deal more than anything. Buy and Hold it works great. Will loan up to 75% of ARV. Buy low and rehab. You may need to be a little creative f there are other issues. My credit good but not great. I use private money to purchase and rehab the property. When I refi with a commercial loan it becomes an easier process.

 City-data is a great website.  It gives maps, demographics, employment stats, colleges in the area, hospitals, employers, crime rates as compared to state and national averages.  It is filled with a lot of information, usually too much.  Give it a try.

Greg,

I feel for your situation.  I have been an inspector for many years.  I can find things wrong on any house or building from the best qualified contractors.  If you have the inspection contingency it is there for your protection.  The inspector is your inspector and he/she works for you.  Explain what your situation is and I'm sure they can help you if necessary.  Do not ask anyone to do anything unethical but finding things on an inspection is fairly simple. 

Good Luck!

Miki,

It is so easy to analyze and never pull the trigger.  There are thousand of investors and why do some not pull the trigger on some deals while others do.  We all have apprehension because we think we will make a mistake.   You have to believe in yourself.    The most difficult deal is always your first one.  Once you pull the trigger on your first one the rest become easier.    

You need a mentor to hold your hand to help you get though the first deal.  Remember when you make an offer the worst think that will happen is they say yes.  Make sure when you make offers you have attorney and inspection contingency approvals so you can back out if necessary. 

Do your homework and analyze other deals.  I agree with some of the other responses, go to Real Estate Investment Groups to hear and learn there.  Just be careful, many of the groups have a guest speaker who is selling there education or coaching.  Just go and learn.   

Good Luck!

Russell,

Contractors/rehabbers have a great advantage with their expertise on the construction side.  I'm sure you will do great.  Good Luck! 

Hi Zak,

I am also in the Northwest Suburbs. I have 8 rentals all single family. In order to determine rental information I use multiple sources. Rentometer, Zillow and MLS (provided by my broker). Zillow has a rental manager for posting rentals. I have been very successful. My last rental in Crystal Lake was rented in 10 days. You have to do your homework.

I think it is critical to know your market.  Narrow down the areas you want to invest so you can become an expert in those areas.   Remember if you post a rental and it takes 60 days to rent, but if you had lowered the rental amount by $50 and it rents for $1400 you will be ahead of the game. I try not to be greedy or have to lofty of expectations.  If the numbers work then they work.  I try to rehab them at a higher level than most so it appraises well and I can get me money back out of it.  If you need help send me a note on biggerpockets here.  

Brandon,

The best advice that you can use is to educate yourself.  People go to college, trade schools and other education to learn about an occupation.  Real Estate investing is the same thing.  Track properties in your area.  Use Zillow, Redfin and/or other free sites to look what someone had paid for the property and if it sold 6 months later watch what kind of rehab they did.  You can learn a tremendous amount by watching others.  Look at property even if your not ready to buy/invest so you can get a feel for your market.   Fix and flip, buy and hold, wholesale etc are all strategies that you can explore while you are learning. 

Good Luck.

If your looking for asset protection then an LLC is the way to go. When you start developing a rental portfolio you want to separate yourself from your business. If there is a lawsuit and you are putting properties in your own name, then it is possible that your other properties could be exposed to the suit, and worse your personal home. You need to protect yourself. Yes, there is a cost to doing business but why not start the right way. Be safe not sorry. I'm in Illinois the second highest cost of obtaining an LLC next to California. Its well worth the money.