All Forum Posts by: Mark Shelstad

I'm guessing you will receive better answers if you specify if you are looking for permanent financing, rehab, or bridge loans. Also, I'm confused about your contradiction when you ask about " owner occ" and in the same sentence say " 2-8 units". 

Great - I appreciate your professional feedback. Thanks, @Manolo D. @Christopher Phillips My gut told me these viewpoints would prevail, but I had been warned locally that "many contractors" would be uncomfortable.

I'm interested in what to expect from the contracting community when I take over a project that is a half done total gut rehab/addition.  Rough inspections have been passed; next step is wall board. Will GCs have a reluctance to engage to finish the project even if they will be able to verify the quality of work done so far?

Ham- at some point I will invest in Milwaukee. Right now I have my hands full creating a good team here in metro Chicago.

Marc- I am not a long term owner here in Illinois. I am only a relatively green flipper. I do, however, have a long history of living in the Midwest and 30 years of professional experience in finance and investing. IMHO, Illinois is in a death spiral that is largely the result of the one-party progressive system that is well known for its patronage and corruption. Politicians here seem to have a never-ending thirst for revenue, but often enact legislation that drives away the source of revenue. A perfect case in point is the new Cook County beverage tax, or the silly minimum wage law going into effect shortly. Drive a few miles out of the county and shop there, or locate your business there - not a hard concept to understand.

 In contrast, Wisconsin has made tremendous strides reducing waste, bloat and taxes, and the results are starting to show. Over the long term, how can housing demand keep rents growing when the population net migration is negative?

The program is like any other insurance product. If you undercharge for the risk assumed, eventually it will bite you. In this case, the insurance fund has been argued to be underfunded in the past, so reducing the premiums charged was the exact opposite thing a prudent person would do it they hope for long-term viability of the program. A failed program will cost taxpayers.

Put in a ductless mini split system that is (hopefully) metered to each unit individually. Assuming a cost to install of $5,000 per unit and an annual energy cost savings to you now that tenant pays heat of $12,000 and a 9% cap rate, you would be about $98,000 ahead. (12,000/9%=133,000) May not need to build soffits for ducting everywhere either. I don't know this to be true, but I think there is a very good chance the manufacturer would finance it too. See: http://www.mitsubishicomfort.com/rebates-and-finan...

I know this is a bit late, but based on your "friends" behaviour, it sure looks like he is in financial trouble. Prior to filing suit, you might want to hire a good licensed investigator to do asset and lien searches on the individual and his LLC. Have them search every juridiction in which he has operated and has assets. He may be transferring assets to a new entity thus degrading the value of his personal guaranty. If he is really knee deep in sh*t, the investigator may find new tax liens on his assets indicating serious tax non-payment issues.

Greetings Lee, I'm fairly new to this as well and am focusing on the western suburbs of Chicago. If you'd like to compare notes and consider opportunities, please send a message. 

Be sure to max out your 401 k while still working if there is a company match. Typical is 50% match on first 3-5 % saved, so if you put it in a MMF with no market risk, you make 50% return! This is all subject to any vesting schedule, but it works nicely in your favor fairly quickly. More $$ to leverage when you retire from the pharmacy biz....