All Forum Posts by: Kevin Danikowski

@Jason Marcordes Thank you for the reply! I don't have specific questions, but I am looking for advice on what to look out for that I may not have thought, this would be the first deal of this type for me, and it's unique. 

Also, i've never had to control an association, so I don't know what to expect in this regard. What if doing condo deconversion requires buying out the Associations funds, or perhaps it only requires dispersal to the remaining parties owning condos in the building. These are things that if anyone could chime in i'd appreciate. 

I can't find forums on bigger pockets discussing condo package deals, so any insight possible would be appreciated! 

I'm looking at a deal to buy around 10 condos (in chicagoland all 1x1 / 2x1) where I would own majority stake in the Association and thus would have power over it. The cap rate is high (7-9) but it has been on market for nearly a year. 

I'm not sure why it's still available since it seems like a great deal, here is what I guess:

1. There are additional headaches when it comes to owning multiple condos and running the association.

2. It's not as "sexy" to own a bunch of condos compared to a 10+ unit building.

3. Financing is probably difficult since I'll need to go though a local bank and finance around 10 separate units (hopefully 20% down).

4. You can't sell them off as easily to owner-occupied since the entire building is non-owner-occupied

Can anyone give any insights on condo package deals with/without having majority stake in an association? 

Also, I'd like to eventually do a condo deconversion, thus having it as one multi unit building, any insights on condo deconversions ? 

@Shawn Bowen I know this is a bit late to revitalize this thread but you stated most of your business model is probate so i'd like to ask. 

I was reading about how it's ideal to target out of state administrators, do you find this necessary or does any probate do? 

Also, I had read that target people that passed within 30-45 days. However some probates start years after the passing of the person. Do you target probates that may have had the owner pass away years prior? Is there is a certain number of years you're willing to go back? 

Thanks @jykasnett ! Is this the method you would recommend in that case? Any additional advice?

In cook county illinois I found a property in foreclosure which has no heirs, and thus was given to the public administrator. Further, this property is in pre-foreclosure (~12 months) but has a decent amount of equity. I would like to know how to purchase the property. 

I have contacted the probate office but it's been a week and they haven't gotten back. Should I go out of my way to try to find the public administrators direct contact? Is it even possible to purchase this before it goes to auction in some future date? thanks!

Bump for @Marian Smith 's question

FYI something to add to that list is last market sale date 3+ years. Some of the "take me off your list" may have come from these people. 

I purchased the 10k program. I was able to work out a deal to make it sort of a payment plan. You should know the mastery program cost isn't really for the education to my understanding. 

If you want amazing education I would checkout the clever investor, the education is AMAZING, but the guy is a bit "fruity" and parts of the way he speaks is con-artist like, but it's better content than i've found anywhere else for the price of $297, including mastery to be honest. 

What you're actually paying for in the mastery program is the connections and onsite visits to properties in the area students and gurus are currently working on. For example, the group is constantly vetting local contractors, hard money lenders, private money lenders, title companies etc. Because they invest in bulk quantities, almost everything that can be discounted costs 10-25% less than it would to investors doing it on their own or outside the group. That includes contractors, labor, some materials, title insurance, lawyer fees, etc. THIS is worth the price if you're actually serious, because it's truly an investment with an ROI and also helps with risk mitigation (they use tried and true people).

One of the best parts education wise with onsite visits with properties where they asked us to generate cost estimates for the rehab, then we all worked through it together. They also have some convenient cost analysis sheets (but the bigger pockets app is better for deal reports...)

There are other programs. So the larger REI group in the area to my knowledge is named Renatus, or some variation of the word. They do better marketing and sell you on "we have over 100 hours of REI videos", but in reality better educators are out there for a fraction of the cost. And their program is basically a network marketing company because you get a 50% commission on anyone you sign up. But to my knowledge the fraction of their members that actually own property in the area is a joke compared to what I have seen at chicago cash flow (the mastery program). The pricing structures are about the same, 10k, 20k, and 30k plans. I haven't heard of an 18k plan for mastery, so I believe @Maggie G. may have worked out a small discount. 

When you pay for the higher priced programs for mastery, the team and gurus will essentially give you a deal if they find one and have one to share with the team (in order of who paid more most likely). I don't know if its the same for renatus. There is a low failure rate ~10% for those in the 30k plan (I asked them about this), but for the 10k plan (the lowest) the failure rate, defined as people who never ended up buying a property, is around 40%. For those 60% that actually went and purchased a property likely got an over 10K return on investment and have gone to purchase more properties (but i have no idea, I would just imagine this is the case). 

My own biased opinion, I vetted some of the educators in the area and online. The best education I found was from the clever investor, the problem is it's generalistic. For knowledge of the specific area here, I'd recommend mastery. If you're a go-getter, I think 10k would be sufficient, all you're really needing to pay for is 1. access to the discounts only mastery members get, this will pay for the 10k in 1-2 rehabs and be profitable then on. 2. you will get the ability to have one of the gurus vet your first deal. They know the area much better than anyone else that doesn't invest in the area, so you're paying for this localized knowledge. 3. paying for something like that partially helps make you accountable and partially increases your confidence. Many people never make a move, so paying for the program could be that difference (but other programs give this as well). 

Is it better to save the 10k for a downpayment on a property? This is a good question, and it depends on the person. There will undoubtedly be a steeper learning curve, and you'll probably pay that 10k learning the process. But no matter where you go, you'll be paying for the education, the hard way, or the easy way. The rest is up to you. 

Personally i'm a huge fan of Chicago cash flow, because everyone I met there seemed genuine. Also, looking at the rehab numbers, title company numbers, etc. from their "mastery member" discounts are pretty self explanatory. Good luck!

I have no incentive to write this message, just trying to give my honest opinion. 

- Kevin Danikowski