All Forum Posts by: Martin Neal

@Bob Green No I haven’t yet. I was waiting to hear bank from this one bank but I will be if I don’t like their response.

Hello everyone,

I need some help. I am in the Chicagoland area trying to do a BRRRR Strategy and having some problems with the lender, First Midwest Bank. I'm being told that the maximum amount of the refinancing loan will be the purchase price from two months ago BASED ON Delayed Financing Exception.

Purchase Price: 42K Rehab Cost: 23K

She advised this was Fannie Mae lending Guidelines and there is nothing she can do.

"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html

I would like to get as much out as possible and move to the need deal. I use HELOC to fund this deal.

Can anyone give me some advice on how to proceed ?? Thanks in advance.

Does this meet up still ongoing?? I looking for one to go to.

Property Address: 5751 W. Division Chicago, IL 60651 

Listing Agent:

Tamika Neal, Broker

Century 21 Affiliated

Description: Shopping strip for sale in high-traffic area on Chicago West Side for $550,000. Strip contains 5 units (two churches, one restaurant, one convenience store) and one vacancy. Average monthly rental rate for occupied units are $1500/ month. Vacant unit average monthly rent is $2,500. Each unit has been recently updated, including individual gas meters, newer roof and paved parking. Net leases on all units, with owner responsible for water, taxes and insurance. Lease expiration dates range from 11/30/2018 – 4/30/22, with a 5% increase per year. 

Financial Info:

GPI = $103,620/ year

GOI= $68,439

OpEx = $28,745

NOI = $39,694

Cap Rate = 7.2%

PSF = $1.31

Contact Info:

Tamika Neal, Broker

Century 21 Affiliated- Lincolnwood

[email protected]

847-477-7782

Hello BP, I am coming toward to the end of my first flip property (so many lessons learned!) and the contractor is dragging his feet to finish minor repairs (light covers, clean the home, minor corrections, etc.). The biggest hold up is the vinyl siding being installed in the cold winter here in Chicago. The contractor says it’s too cold but siding companies told me they could and would install in the current weather. I don’t want to do a “coming soon” without a picture of the front of the house. Without knowing exactly when this property will be completed, ready for sale and how long it will take to get an offer, I was wondering should I leverage this property (I used HELOC to fund this property) and start looking for the next flip or should just wait until I sell this property first??

Hello BP, I am coming toward to the end of my first flip property (so many lessons learned!) and the contractor is dragging his feet to finish minor repairs (light covers, clean the home, minor corrections, etc.). The biggest hold up is the vinyl siding being installed in the cold winter here in Chicago. The contractor says it’s too cold but siding companies told me they could and would install in the current weather. I don’t want to do a “coming soon” without a picture of the front of the house. Without knowing exactly when this property will be completed, ready for sale and how long it will take to get an offer, I was wondering should I leverage this property (I used HELOC to fund this property) and start looking for the next flip or should just wait until I sell this property first??

Steve McGovern Thanks for the feedback! I will get started on this and PM with more later!

Hello,

My wife is a realtor and just got her first commercial listing. It's a 5 unit shopping strip in Chicago on the west side, with one unit available to lease. 

What does she need to know/ advertise to inform investors and attract buyers? I know that she needs to know the CAP rate but what else??

Here's what I know about the listing:

Sale Price: $550K

Four Units: Occupied and Leasing for $1500

One Unit: Open for Leasing for $2500

Taxes: Approximately 17K

Tenants pays all utilities except water

Any and ALL feedback is welcome. Thanks in Advance!!

Great job!

Welcome to BP! Any Chicago related landlord questions, feel free to ask!