All Forum Posts by: Keith Schellhardt

Does anyone have any recommendations on which Foreclosure sites provides quality information for the St. Louis, Mo. and Madison/St. Clair Counties in Illinois? I've used Foreclosure.com in the past but would be receptive to trying something else............thanks!

I was able to meet with the owner of the property and through ongoing dialogue I was able to determine the following:

1. Property is close to being foreclosed upon
2. Owner has large tax debt that needs to be paid off
3. Just went thru divorce
4. Is actually one of the tenants in the building
5. Has supposedly gone thru Chapter 13 Bankruptcy

Any further thoughts on what my approach should be?

I noticed, on several occasions the following posted under profile names:

Under Investigation by BiggerPockets

Please explain what this means, entails and what act must a member/company perform to have this action taken against them.

It was said earlier "Any reputable contractor carries GL insurance". I would also add "wise" to it. GL insurance to cover work performed in Illinois/Missouri only cost between $800 - $2,000 annually, depending only classification and coverage. Why any contractor would choose not to have it , is beyound me.

For those of you who subcontract work, make sure that you also get a copy of the subs GL certificate and WC, if applicable.

Illinois Requirements

Property management activities that involve general administration, like contracting for property maintenance (garbage pick-up, etc.) and paying general expenses (utilities, etc.), do NOT require a real estate license. Serving as an accountant for association dues also does not require a real estate license.

Only those property management activities that involve a conveyance of real estate by contract or lease require a real estate license. Accordingly, property management activities that require a real estate license include: showing a unit for sale or lease, negotiating lease or real estate contract terms, maintaining security deposits, rent payments or earnest money deposits.

Still searching for Missouri information. Anyone out there that knows the answer........please forward.[/b]

If the rents were $1700 each of the units then it would have already been sold. How do I know? Because I would have bought them and I am the least experienced person in the marketplace.

Hopefully, this is being posted in the correct forum.

Question - In order to provide turn-key property management services in Illinois and Missouri, what are the guidelines and licensing requirements?

I've heard that if you work for a licensed RE Broker then you do not have to be personally licensed to perform all of the duties.......correct????

It is my understanding that the leases are currently on a month to month until property is sold. The only items that tenants pay for are their own utilities, not to include water, sewer and trash. Expenses reflected in my original post include these items, plus common area utilities, taxes and insurance.

Maintenance cost are not provided as current owner hasnt made any repairs for several years or tenants had absorbed these cost. Original post reflected approximate reapir cost needed.

Trust this helps.

It was requested to provide rental income on each unit versus overall income and I dont understand how that has a bearing on doing the math, hence thats why I am here to learn.

Okay, here it is:
Apt #1 = $360 mo.........could go to $410
Apt #2 = $345 mo........could go to $395
Apt #3 = $330 mo........could go to $380
Apt #4 = $360 mo........could go to $410

Comm #1 = $515 mo.....could go to $565
Comm #2 = $415 mo.....could go to $465 [currently vacant]
Comm #3 = $400 mo.....could go to $450 [currently vacant]

Any additional info needed?

Have a property that I am currently interested in but really am not educated in understanding investment properties. Here's the deal:

7 unit building - 3 commercial and 4 apartments
1 commercial unit is occupied and 2 are vacant
All 4 apartments are occupied

Current income = $1,910 monthly
If other 2 vacant commercials rented then income = $2,725 with the potential to increase rents across the board by $50.00 each unit

Expenses = $1,000 monthly

Asking price = $235,000.00
Repairs needed = $25,000 - $30,000

What would be a fair offer?