All Forum Posts by: Matt B.

Originally posted by @Benaiah Savage:

@Matt Bucklaew wouldn’t 20k be enough to get started?

Yes you could. The point I was trying to make was that unless you already have a substantial nest egg, then you're just constantly losing and spending money and lenders won't like that

Originally posted by @Benaiah Savage:

Hello to any Chicago realtors. I am a young man looking to try to find investment property anywhere in Chicago, but specifically on the southside. I am really new to all this research. I have been looking throw some of the posts to figure out and understand some of the real estate jargon. I have already made a post and was suggested to start off with a single family unit. Even with that suggestion I do not know where to start besides getting employed. Can anyone in the Midwest give a starter some advice?

Unless you just have 100k sitting in your bank account, I think getting a job is your first step. While you do this you can read through the forums and listen to some of the podcasts. This website has just about everything you need information wise.

Another step you could take would be reaching out to an agent in your area (or the area you want to invest in) but out of respect for their time, I'd suggest having a rough idea of what it is you are looking for and in what market. The agent will also likely be able to refer you to other people who can help you, like lenders, contractors, attorneys and more. 

Hope this helps and best of luck! 

Hello BP Community, 

Just reaching out to any managing or sponsoring brokers located in Chicago or the west suburbs of Chicago. License was just renewed, and CE has been fulfilled for this year. If you or someone you know may be interested, dont hesitate to send me a PM, I'll be happy to answer any questions for you.

Thanks & Happy Investing!

Looking for some suggestions on wholesale friendly title companies in IL 

all help is appreciated thanks

Large marketing campaign ( SFH & Small Multi-family 2-4 units) was recently started. Am starting to get feedback and am reaching out to all BRRR & flip Investors here on BP that are looking to invest in Illinois

If you'd like to fill up your pipeline with more dealflow and are looking for good deals, then I welcome you to EITHER send me a private message here on BP expressing your interest OR you can just 'like' my post, and I will personally follow up with you.

Originally posted by @Salvatore Spano:

My investment in London is very safe, the property has been let continuously for the last 13 years, but I am not achieving more than 3.6% cap rate at present.

Some things worth noting, Cap rate is not only a measurement of expected returns you can make, but it is also a measurement of risk. In down-town Chicago you will find commercial buildings with a similar cap rate of 3% - although it's not much in terms of return, it also doesn't really have to be marketed and the Vacancy rate/expenses are practically nil. Like your place in London, you will always have a tenant.

Conversely I've found properties in Detroit that offer upwards of a 20% Cap rate. This is seen as a significant risk because these are in run-down neighborhoods with foreclosures as far as they eye can see. Squatters wouldn't be surprising either. Although you could buy the properties for pennies on the dollar and make a great return (in theory) the chances of having quality stable and long-term tenants here is rather unlikely.

Did your realtor know that it was a 1year lease that ends in Feb? If they knew and told you otherwise in order to get a sales commission then they may be liable for misinformation/misrepresentation.

In terms of doing DD I think its just better to check things out yourself or have a trustworthy team that you can share the workload with.


Hope things work out

Originally posted by @Michelle S.:

Can you invest in Europe and get finance in US? What types of finance? 

It would be difficult to find a bank to provide this kind of financing, I did hear about a guy from Hong Kong who inquired with a friend at the local HSBC, they then reached out to a US based HSBC that provided him with the financing for his US based investment (even though he had no other assets or collateral with in the US) but this sort of situation is far and few between. 

Try speaking with a private or hard money lender. If you have US based assets or collateral they could just put a lien on that instead of your oversea investment. This also requires some searching for the right lender.

Originally posted by @Jonathan Roach:

Ever since the onset of COVID, I have become fiercely interested in personal finance and then specifically in investing in real estate.  I do have one major hurdle, I live overseas (active-duty military).  Not looking to re-invent the wheel, I have seen of few other posts of others who have accomplished this feat.  I would like to see if those have any big pieces of wisdom or pitfalls to avoid as I look to buy a rental property via video chat. 

Investing overseas is possible, but you need a system in place. there are number of questions you should ask yourself before jumping in headfirst. 

- are you buying in that market because you are comfortable with it or because the numbers makes sense?
- are renters in that market paying rent? could you afford the property if they fail to pay rent? (new policies due to covid about evicting tenants)
- If you are doing this from overseas, who will help you purchase the property? does this person know what to keep their eye out for?
- can you get the financing?
- do you have a management in place?

If you are new to real estate it would be good reach out to an agent in that area who has experience with investment properties. If you mention the city name is this thread, it will set off a keyword alert for a number of people in the BP community who are also working and investing in that area, they may be able to help you out further.

Best of luck

if you are paying all cash and want to know the cash on cash return for a rental, the formula is 

return = monthly rent ÷ total cash investment × 12

example, you buy a house for 100k and rent it out for 1000/mo

1000 ÷ 100,000 = .01

.01 × 12 = 12% CoC return

if you include property taxes, management fees and other expenses into the equation you will get a more precise answer