All Forum Posts by: Mark F.

@Daniel Smyth welcome and I agree with @Matt Lyons Rockford can be a tough area to invest in, especially if you are no local and hands on. Hell, I'm in Elgin and I say that LOL

Good luck to you sir however you decide to proceed.

@Christina Martinez - also be aware that the Illinois supreme court determined that a daily late fee is not reasonable. I had two different evictions in Kane County, my standard lease had a $25 late fee after the 5th of the month then $10 per day daily fee. The Judge struck down the majority of my late fees saying that imputing a late fee per day was not allowed and cited this case. My leases now have a standard 10% late fee assessed after the 5th.

https://courts.illinois.gov/r23_orders/AppellateCourt/2017/5thDistrict/5160153_R23.pdf

Just fyi for any landlords in Illinois.

Mark

@Andrew Lackey since you paid cash for the property, do a delayed financing and get all the cash back you put out for the purchase and closing costs, at that point you will have only minimal amount of cash invested toward the renovations, your cash on cash return will be based on $10k you invested towards repairs. 

The cash back numbers will be very similar (75% of $180K ARV is $135k) but your rates will be better since you are technically not doing a cash out refi.

Just a thought.

Mark

LOL

@Kevin Hill, reach out to @Joe Mueller he is an investor himself and ows Tanis Group Realty as well as had started Investors Title Services LLC also which focuses on working with investors and cutting out the middle man and added fees from places like Chicago Title, etc.

I know Joe personally, he and his companies are knowledge, investor friendly and a great resource. I have no affiliation with them, just an honest investors recommendation. 

https://investorstitleservicesllc.com/

Mark 

@Frank Grumeretz sending you a DM now and very frustrating to say the least with the draws on top of everything else. Renovo is local, based out of Chicago their draw inspection guy come out typically the next day and the fund are in my account the next morning at the lastest, sometimes even the same day depending what time he does the inspection!

@Frank Grumeretz thank you for the update and it sucks you had to go through that with them, I guess I dodged a bullet with the way my deal went down, but nonetheless it was frustrating to find out about the change after business hours the day before closing. The money they cost me will forever leave a bad taste in my mouth, unless they reimburse me for it, which I don't see ever happening but its a lesson learned. 

If you contact Renovo Financial I believe you will be pleasantly surprised how attentive, professional and quick they are. I have closed 3 deals with them since April and everyone on their staff is top notch! If you'd like the contact info for Eric Workman, the VP of lending let me know I can send it to you on here (DM) or a text.  

Mark 

@Michael Acheampong, it is the same 1 year residency requirement for any owner occupied financing, with the rare exception if the lender you are using has some odd overlay (lending rule) that the are adding to the mortgage but that should be less then 1% chance but worth asking your loan originator about before committing to a specific lender. 

The nice part of the OO strategy, if you don't mind moving every year or so, is that you can acquire a property with 3.5-5% downpayment, live in it for a year then convert it to a rental and do it again and again with with no limits other then the 10 personal mortgages limit imposed by the Feds.

@Michael Acheampong FHA requires occupancy within 60 days and to maintain occupancy for 1 year, after that you are free to do as you wish with the property including turning it into a rental. The loan paperwork will require you to sign an occupancy agreement indicating you will comply with these requirements.

https://www.hud.gov/sites/documents/4155-1_4_SECB.PDF

@Scott Harper, listen to @Jennifer Kinzle, she and I have worked together for a few years and she's never let me know. Reach out to her offline and she will help you find what you are looking for. Let either one of us know how we can help =) 

Mark