All Forum Posts by: Eric S.

Hello Fellow Chicago Investors,

Chicago has moved to a new online system for their water bills, and has deleted all of their old data.  I now have huge errors on 3 of my accounts.  I used to have a special attorney who would handle water department issues for me, but he has retired and I no longer can even ask him for a referral.  

Anyone know an attorney or individual who handles these huge water department mistakes?  In the past, I have had absolutely no luck handling them on my own.  

Thank you!

hello lenders,

i was wondering what programs exist for investors to cash out refi from a land contract? how long after entering into the land contract can an investor cash out, and what LTV is allowed? also, what reserves and credit score are required?

If the property is rented, what are the requirements to use the existing rental income towards DTI ratios?

Please help!

Hello BP Nation,

I want to take advantage of a new construction deal, so I am forced to sell 5 of my buy and hold properties. I have owned these properties for the last 6 years, and 4 of the 5 are rented to long-term tenants. I have put together a true no-money down deal.

Purchase prices: All around 100k

1st mortgage: 75% Private lender mortgage.

Will only lend to a business entity.

Must have a 650+ credit score.

20 year term between 5-8% based on credit profile

3 point loan fee (I can pay this for you!)

The more cash reserves you have the better.

2nd mortgage: 25% seller financed mortgage

I am originating this, and we can get creative. I was thinking interest only at 1% for 5 years, and then 30 year at NO INTEREST! If you want me to pay your loan points and/or part of your closing costs, I can do that, but I would want to recoup that over a reasonable term. Basically, we can work out whatever you’d like to do.

I also have a management company I use and am very happy with in place at 7% of the rent amounts. Taxes are low, and insurance can be transferred over to you. I only pay about $35 per month for insurance. I can give details on that later. I will also advise you in management and can even recommend contractors etc. if you need them. I want you to have a positive experience with these properties.

I want these to cash flow for you at least $300 per month. Some will be more, and one will be much more. I am not giving out the addresses at this point because I don’t want my tenants being disturbed. If you are interested, send me a message and we can start a conversation. I can negotiate any part of this deal that you would like. I want to create a win/win here, and hopefully we can work out a deal!

Eric

Hello Chicago Mortgage Brokers/Bankers/Financiers,

I am getting ready to market a 4 br, 2 ba SFR buy-and-hold in Chicago. I want to offer a seller 2nd, and am willing to offer up to 40% to make the purchase more attractive to an investor. Purchase price would be somewhere between $100-125k. Rent amount would be $1350 a month.

Does anyone know of any funding sources that will do this type of loan, and how much would a buyer have to put into the deal?

I want to have financing options available for when I am ready to market the deal.  

Thanks!

@Ernie Purnell  You are only allowed to charge a maximum of 50% of one month's rent as a move-in fee.  If you charge any more, the courts will interpret it as a security deposit, whether you have claimed it as a move-in fee or not.  

I have not had good luck suing tenants for damages.  The courts are EXTREMELY tenant friendly, and basically side with tenants on all counts.  It is laughable.  Even when you do get a judgment, it is even harder to collect it because you have to go back through the court system again.  

I have had the best luck sending a list of damages to the tenant and letting them know that if they do not make arrangements for them to be paid, I will forward them to a collection agency that will report to all 3 bureaus.  A lot of times, that gets the tenant to either make payments or settle.  When I do forward to the collection agency, I have received payments from tenants who want the claim off of their report.  

Chicago's laws make me very careful who I accept as tenants.  It is much better in Chicago to have no tenant than a bad tenant.  

Great deal for a fix and flip property with low money down.  House is a 5 br, 2 bath bungalow style with a 2 car garage.  rehab is estimated at 40k-50k, and basement has 7 foot ceilings, so can be finished to add 2 additional bedrooms and another full bath. Hardwood floors under carpeting in most rooms. large kitchen. Great area, great block.  Broker owned.

Terms for land contract:

purchase price: 55,000
purchase will include seller financing via land contract with the following terms:
$2500 down
$500 doc fee
1.25% per month interest only
buyer pays insurance, adds seller as additional insured on builders risk policy
buyer pays taxes, all utilities paid for by buyer
1 year pre-pay, max term 3 years
buyer agrees that purchase is for investment only and will not be used as primary residence.
upon acceptance, buyer agrees to fill out brief application for financing, can provide own credit report to avoid a hard inquiry
warranty deed provided by seller
title insurance paid by buyer if desired
title search provided by seller

no disclosures provided by seller

My name is Eric and I have been a rehabbing buy-and-hold investor since 2003 on the South Side of Chicago. May 1st I will be done with a great rehab project for either a local or a remote investor, brand new or experienced. I originally bought this to keep since I rehabbed and own the house next door in 2008. The home is a 6 br, 2 ba or a 5 br 2 ba with an office. There are no bedrooms in the basement, which is unfinished. I can provide up to date pictures upon request.

I will begin marketing this house for rent May 1. I have another 6 bedroom house in a different neighborhood that rents for $1850, so I am expecting rent to be anywhere from $1650-$1850.

Morgan Park is one of my favorite neighborhoods to invest in. It is quiet and safe with mainly single family homes. A huge new mall, Marshfield Plaza, as well as Morgan Park High School and the home of the Jackie Robinson West baseball team attract tenants. I own the majority of my investments here. This 5-6 bedroom is very rare in this neighborhood, and would make a great related living situation.

Taxes are $1806 per year, but are incorrectly assessed and will be appealed. I will help you get insurance on the property. I have done a lot of research on insurance coverage in the last couple of years, and have a lot of options.

I am offering a 1 year builder’s warranty on the workmanship, and I am willing to manage the property for free for 2 years. I am also willing to share my network with you if you are interested, as well as help guide you over the 2 years if you are interested in my assistance. As fellow investors, we would be working together to maximize profits and retain great tenants.

After May 1st, I will be working on a very similar project right around the corner. This property will have similar numbers.

I have had a great experience investing on the South Side, and I look forward to sharing that with another investor, whether near or far.  

@JJ Conway

I use www.rentrecoveryservice.com

They have done a great job for me.  Let me know if you have any questions.  

Always make your decisions based on numbers, not on personal pride or a desire to teach someone else a lesson based on what you think is right or wrong.  I have made that mistake before in chicago and learned the hard way.  cash for keys works.  i never let a tenant get away with trying to steal from me.  i always report the debts to a collection agency, and that agency reports to all 3 credit bureaus.  future landlords will see that collection and question the tenant about it, and many times tenants have paid off debts because they didn't want the debt on their credit report.  

I will send you a PM.