All Forum Posts by: Marshall Shen

Love it! Thanks for organizing Ryan!

My understanding is the notice of default must be public by law. Where can one find them?

2008 and 2020 are both years with unprecedented events that impact the economy, and hence real estate.

History repeats itself, so are some lessons learned.

For real estate investors who have lived through 2008, my questions are:

1. What have you learned from 2008 experience?

2. Looking back at 2008, what do you wish that you've done differently?

3. How are you applying what you've learned from 2008 to 2020? And how is 2020 different 2008 in your eyes?

Hi QuoVadis,

I'm an investor in Chicago as well and I would love to connect and learn about your experience in investment :)

I will send you a DM.

Thanks,

Marshall

That's extremely good info, thanks so much!

Hi BP community!

I'm a first-time Real Estate investor, and I want to ask about the best way to go about financing during this time.

I have a large cash reserve saved up, and I'm investigating a multi-family property currently listed in Chicago. Based on the deal analysis, it can generate a positive cash-on-cash return. So where I'm at is:

1. wait out longer for the price to drop, currently, I want to wait out at least to end of Q3 2020.

2. extend additional line of credit, or mortgage to make myself financial able when I'm ready to execute on a deal

What do you think is the best approach forward from an investor standpoint?

Thanks in advance, and hope everyone stays healthy and safe!

This property is not in Chicago, IL. But in Urbana, IL. It's 4 hour drive from Chicago, and a college town.

Based on your experience, is it worthwhile to look around Chicago area, like Oak Park, for example?

Thanks for the feedback!
 

Hi all,

I have done some deal analyses and received useful feedback from you all! First of all, I want to say THANK YOU for all the mentorship, I have felt a lot more confident about real estate investing.

As the next step, I will want to understand my options for financing and get pre-qualified for loans.

Before that, I want to share some lessons with the community.

Deal analysis is the first step and a crucial step towards rental RE investing. Given the numbers add up, there are additional steps such as home inspection, and offer negotiation. But, let’s build our real estate investment practice one step at the time, and use this uncertain time to improve rather than sit-and-wait.

• Before diving into detailed analysis, use 1% rule to quickly evaluate deals
• If a property passes 1% rule, then look deeper
• When focused on cash flow, focus on annual cash-on-cash return
• Have a thorough estimate on investment cash
• • Please include closing cost, the % varies by region
  • Adjustment % of downpayment
• Monthly expense = monthly operating expense + monthly mortgage expense
• For mortgage expense, use established mortgage calculator (e.g. PMT in Google sheet)
• Have a conservative estimate on monthly operating expense
• • Assume 8% vacancy rate, which equates to 1 month per year
  • For elder buildings, use 10% as CAPEX rate, 4% newly built.
• Use rentometer to have a proper estimate of the monthly income.

Michael,

Absolutely agree, until the pandemic passes, I don't intend to make any solid investments. I'm doing "homework" now to understand the college rental market better. Thanks for your feedback!