All Forum Posts by: Michael Facchini

Typically it's not an issue to get a home inspection done in Chicagoland with a good inspector in that 5 business day period.  The attorney review period can be extended too, however 14 days is not common here.  7-10 maybe, unless you've had an inspection and issues arise that require a specialty contractor to come in and review further.

Hi Nelson, happy to help! 

1) As @Lumi Ispas mentioned, it's about $550 to start an LLC yourself, which is pretty easy to do. One thing to keep in mind though, if you're going after conventional, residential financing then LLC's are not allowed. This would technically violate the Mortgage agreement and a lender could call you on it if they find out.

2) Depending on where and what you buy, this can be $500 to $750.  Careful of the low end.  Real estate attorneys are under-paid if you ask me, and you get what you pay for at $500.  I recommend John O'Leary if you're buying around the Chicagoland area.  Great guy, responsive, easy to work with, and very experienced.  I will send you that contact info.

3) For a SFR, depends on size, as @Lumi Ispas said above.  Any inspection worth anything though should be closer to $400.  The cost can go up greatly from there, but I suspect for an investment property (and taking guesses on what price range I suspect you'll be targeting) should be no more than $550.  I recommend John Bruner and will send his info.  Once you find a property, negotiate and go under contract, you then enter attorney review period (typically 5 business days).  During this time is when you conduct a home inspection and negotiate resolution to any issues.

4) Having an experienced broker that knows the areas you're looking at is key.  Chicagoland is a very competitive market right now, and very much a place where you need to be tapped in to compete.  Even if you lived here it's highly advised that you find a top agent, and then with you being out of state it's even more critical. 

Hope that helps! 

Plymouth Title is fantastic. Been working with them for over a decade, and they go above and beyond. Happy to make a connection if you like....

Hi Nathan! Lots to talk about here and a bit too complicated/long-winded by email and blogs, but the gist is that there are options for rehabbing a 2-4unit outside of FHA 203k (namely if it's going to be a primary residence). Then on the SFR construction side, that often requires at least 15% down, closer to 20%, or up to 25%. This depends on project size, location, and specific details, as well as borrower financials and "resume". If you have owned & managed property and/or rehabbed, we like to see that and it helps when deciding what your financing offer might look like. I agree that starting with a multi-unit as a primary residence and then down the road looking at ground-up construction is a better way to go vs construction right out of the gate. Hope that helps and happy to chat anytime!

Congrats on this smart decision John!  This is exactly what I did a couple years out of college  and it allowed me to live close to free.  I still own that property and it's one of my best real estate investments to this day.  I suggest looking at some the areas that are on the "fringe".  These are areas that are starting to turn over but aren't fully gentrified yet.  I also recommend finding a fantastic real estate agent. In this competitive market, their guidance is invaluable in finding the right property, negotiating the contract, and bringing the deal to fruition. If you'd like some names, let me know. 

As for doing research on your own, the problem with Zillow is it doesn't gold all the listings (typically 70%), can be outdated by 2 days to 2 weeks, and can be inaccurate at times. For 100% of the listings that are real time and accurate, and to avoid solicitation, I recommend downloading Home Scout in the app store. If you decide to do this, PM me and I'll give you a VIP code so it's free. 

Hope this all helps!

Welcome Leslie!  Happy to help however I can :-)

Chicago has been getting a ton of action with outside investors. There are so many suburbs and neighborhoods to choose from that provide a solid investment and suit different objectives. Multi-units are my focus right now, and I'm not the only one. In my 16 years I haven't seen this much activity in the multi-unit market.

Yes, you should be able to obtain another FHA loan as long as you are relocating for a job and the new primary residence is more than 100 miles from the previous primary. You might also look at conventional options too, as there could be 5% down options via Freddie Mac, depending on the area/census tract. If you're looking for a loan officer down there, PM me and I can make a recommendation. All the best!

Got it. So, if you aren't going to move in within 60 days of closing, technically it's an investment property....which on a multi-unit requires 25% down. Then comes the concern of down payment. This scenario gets a bit more complicated. A few ways to go about it and tough to get it all out on this thread....

Hey Jim, happy to help here! So, I want to better understand your reasoning and concerns, but in general I don't think a bridge loan is necessary or the way to go. It's just more time, effort, and another step that likely doesnt serve much of a purpose. Do you own another property now that you're trying to sell? Or what were your thoughts on the benefits of getting a bridge loan vs going right into a conventional or FHA loan to purchase the property?