All Forum Posts by: Michael Garcia

She is still living there and has for the last 27 years. She wants to move to Vegas with her friends and not worry about managing a property. 

I don't know for sure but...27 years, owing 276k and Vegas...Sounds like someone likes to play the tables with their home equity.

There are also some comps in the area for the last year where a 4 flat sold for 425k which of course the appraiser didn't use. There are also two other buyers willing to the cash shortage. Which makes me believe that if I had to offload it I could still get the purchase price back. But considering that this area is on the up and up and wanting to hold on the it because it is a cash cow I think it will appraise much higher in the future.

I've got a property in Chicago that I'm picking up for 276K. 4 Units currently renting at $1150 for three units and $950 for the garden Unit. It's a beautiful brick and Lime Stone 4 story building with a 4 car garage. The seller owes exactly 276k on the property and doesn't want to short sale. She has other offers but is under contract with me. Appraisal came back at 242K. My family is giving me some 25k to cover the shortage. 

I still want it. The cash flow is awesome and I'll buy it with FHA. I like the building so much I will probably live there for a while and if I leave... big money.

BTW average rents for the 3 bed 2 baths of which I have 3 units is $1300 in this area. But my units need a little renovating for all that.

So with mortgage, taxes and insurance we are looking at about $2100 for expenses and with the whole building rented as is we are at $4400 gross rents.

DUN DUN DUNNNNNN!!!   What would you do??

Hey Everyone in Chi-town,

I'm in the Hyde Park / South Shore area. Does any one know of meet ups or REIA's that are specific to this area of Chicago? Not that I wouldn't go to any of them. I just want to be able to network in my area. If you don't know of one there which one would you recommend?

Is it true 203K loans are always a 1% more on interest rate? I've got to loan officers one says he can get me a 4.25% interest rate and the other says that that is impossible and ithat the other loan officer is quoting less just to steal my business and last minute before closing, hike up the interest. Any expertise on this subject?

HUGE 203K ISSUES!!!!
After 4 months of working this deal, the lender drops this BOMB on me "you need 73k in funds after closing" WHAT DO I DO???

I'm guessing I need a new lender and I'm going to have to find him/her in the Chicago area. The property is 125k and I was going to do 140k in renovations. They're saying to shrink my renovations but then the property might not be worth buying.

Man guys,

Busy doesn't begin to describe how I've been. I digress. Scope of work is…

Move a couple bearing walls

Hang 1/4" drywall on all remaining walls

Update all bathrooms (4) and kitchens (3)

All new electrical

Forced air through out the house (3 flat, 5500 sq. ft.)

New Roof

Washer/Dryer in each unit (hook ups needed)

Refinish hardwood Floors

That's most of it. Got anyone that would come up with good prices?

In actuality, I have a contractor who comes highly recommended and has been known to do great work. My problem is that I never got any other bids done. Which I know is a definite NO NO. So I wanted to see if anyone could recommend someone that they knew would give competitive rates to make sure I'm not getting had over here. Just trying to do my homework.

Does anyone have any recommendations for a good General Contractor that will work in the South side of Chicago?

Firstly, Thank you all for the comments

Secondly, I'm really just upset about the fact that I ponied up another 5k. However, I did my research and there's really nothing in the area for that price so I'm confident that it's a good buy.

@Bryan L. While it does go against my principles to go higher than my original offer I realize that it's still a good buy at that price and I'm coming in with and FHA 203K loan haha. So I'm really worried about great investors such as yourself.

@Mark Ferguson your right I really don't want this one to get away if I can avoid it. And I'd rather have a last chance.

@Jennifer A. Your right. Can't let my feelings get in the way. I'm just so eager to start my first deal and I've been working at it for a couple of months. Seems like that carrot keeps getting further. I'll just have to let it go if it doesn't make sense.

Again, thank you all so much for your comments. I feel ready to go to battle now lol

I put in a bid on an REO last week. The bank just came back today with ... "Please be advised that we have multiple offers on this property. The seller is looking for your buyers best and highest by no later than 5pm tomorrow"

I've got to say I'm pretty pissed off about it. I already put in my offer. This is just to get all the bidders to bid higher. How do I even know they're not just blowing smoke? Is this even legal? Do all REO properties do this? and yes this is my first deal so I don't have a clue

Well I'm trying to pick up my first deal and even though I have a good job it seems like if I want a 3 flat I can only get a 100k but if I get a 2 flat I can get 225k easy. And then I can't seem to find anyone that wants to do a 203k which is what I'm interested in. Any suggestions? Or could anyone refer me to a Loan Officer who could pull off such a deal in the Chicago area? Thanks