All Forum Posts by: Marcin Talaga

I would say get your license, learn the PROPER way to buy and sell Real Estate, then ease into your wholesaling career. Even if you just want to wholesale, it wouldn't hurt to take the Real Estate courses, learn the basics, learn about all the rules and laws and ethics behind selling homes, etc. What a lot of sellers don't know is that even if you FSBO there are laws you have to follow that can open you up to litigation if you don't.

Olga,

I work with many investors that buy flips, tear downs, and multi unit investment properties throughout Chicago and the suburbs.  I currently am looking to expand my network of home flippers.  Are you currently looking for more projects for yourself or just for GC work?

Marcin

@EricM BRAVO!!!!  Great reply.  I'm tired of all the Illinois bashing too!!!  I'm still investing in Chicago and although it's hard to find "great" deals, if you are patient and on top of your game at all times, you can definitely land something.  I've looked at Indiana and Wisconsin and don't see what all the fuss is about.  The numbers aren't that much greater, there aren't that many more deals, and I personally prefer to spend a little more and be within a short drive to my properties rather than have to drive over an hour and a half to deal with building and tenant issues.  For all the talk about people leaving Illinois, no one ever talks about how many people are moving in.  I just read an article this morning that demand for apartments is still outnumbering units being built.  

@Florent Useini just be patient.  Don't force it.  Keep an eye out, make sure you have a good realtor actively looking for properties for you especially off market.  I spend a lot of time targeting off market owners that have owned their buildings for 30 years or more.  You have to be proactive to get the best deals.  If you want some help, let me know.

Marcin

Yes, you'll need to pay mortgage insurance on with anything under 20% down payment but as long as the rents cover your entire monthly expenses then its worth it to leave a little money in your pocket for the next property, or for emergencies.  I'd assume that if you'd borrow money for the downpayment from family, you'll probably be wiping out your accounts which is never good either.  

Jack,

1.  I personally would invest closer to where I live or plan on living long term, BUT I would keep an eye on Real Estate in other states such as Minnesota as I know first hand how you never know where an opportunity will strike.  With the tight market that we currently have, you should keep your options open and if a home run comes up in Minnesota, go for it, and if it comes up here in Illinois then go for it here.  

Regarding the taxes being higher for non owner occupants, when you buy an investment property in Illinois and you reside in it then you can claim the homeowners exemption which lowers your taxes a few hundred bucks.  That is probably what was meant there. 

2. Regarding the loans, if you buy and occupy the property as a primary residence, you can buy with an FHA loan and put just 3.5% down although I would recommend at that point buying with a 5% down conventional loan. I work with a great lender at Key Mortgage that can offer 1st time homebuyer assistance. PM me if you'd like their contact.

3.  How much you should budget for vacancies, reno and maintenance will depend on the deal.  Each property will be unique based on number of units, location, etc and I would suggest you find a Realtor to work with that has experience helping clients buy rental properties.  (PM me if you aren't working with an agent and would like to talk some more as I am a Realtor and investor in Chicago and in the NW burbs.)

4.  Stay away from "friend" loans!!!!!!!  It's never a good idea to borrow money from friends or family for that matter that can't easily be returned.  If you plow money like that into a mortgage and you can't easily get it back to repay incase that friend or family member needs it or demands it back, it can get ugly.  Buy with a smaller down payment but use all your own funds for the down payment.  

Marcin

Cześć Patryk,

You're already off to a great start as you're thinking about these things early in your career and doing your research!!  My advice to you is get a good job out of college right now, team up with a Realtor in an area you think you'd like to invest in, and keep an eye on the market as you build your downpayment and get things figured out.  If you'd like to meet up for coffee sometime or want to pick someone's brain a bit on investing, feel free to reach out.

Marcin 

If you have something that's a good thing, why mess with it?  Keep the properties you have if they are doing well for you and if you are unsure about the future of the area, use the income and equity from those to invest in a new area so that you are better diversified.  As the old adage goes, "if it ain't broke, don't fix it."

Good luck on your journey.  If you get into Dallas Real Estate, let us Illinoisans know how the market is down there :)

Marcin 

It's simply a lack of inventory.  Economy has improved, people have money to invest again, and the lack of inventory coupled with more investors in the market is driving up prices on multi-units.  Every decently priced multi-unit in Chicago is selling for full price or over with multiple offers!  Until inventory picks up it's sort of a crappy situation for most investors.

Just my opinion, but the way I look at it your always going to have some sort of debt.  Whether it's student loans, car loans, mortgages, credit cards, etc.  If you want to build wealth by investing in Real Estate it's one of those things you are going to have to get comfortable with.  As long as you plan correctly, balance your budget well, and are financially smart you should be able to invest in real estate while still paying off student loans or any other loans for that matter.  I grew up being taught to pay everything off asap, don't carry any loans, don't use credit cards, and then as I got older and started to invest and became self employed, I realized that you can leverage debt to your advantage to build a nice nest egg in the long run.  

Marcin