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All Forum Posts by: Mike B.

Mike B. has started 8 posts and replied 377 times.

Post: Looking for window contractor in Chicago

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349

Just sent you a pm. I'd be surprised if you could beat the pricing.

Post: Wholesale problems today

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349
Originally posted by @Justin Badillo:

@Mike B. I’m taken back by the flak wholesalers get and which I understand. But from my early point of view is that there are different routes, some harder than others, and some wholesalers who are genuinely in the market to help people professionally. Utilizing all people incorporated in real estate. As for me I wish to be as well informed as possible but I am still expecting to make mistakes along the way, like all beginners. I’m very happy I made this topic because now I can see what to avoid and what to focus on.

What would you say is the best way for a wholesaler to approach you when offering a property?

Thanks again for all your input.

 Honesty goes a long way. Try and find an experienced investor to shadow so you can see a project develop from start to finish. Offer him/her your labor to pay for the eduction. Network. Talk to some local GC's and ask what their pricing is per sq ft. There's no way of knowing if you have a deal if you don't understand that key component. Go the extra mile. When I send out a property, I offer to do the rehab at the price stated in my email. If you're not in a position to run a project, have the ability to refer a GC that will do the work at the price you stated. Offer additional value.

Do all of the due diligence on the property as if you're the one buying it. No surprises for the end investor. Look up building violations, zoning, etc... everything you would want to know if you were spending your own money on the project. Reach out to local HML's so you can refer funding sources. Try to solve every possible problem before you present the property.

It's been my experience that investors will put you to spam or stop opening your emails after you send 1-2 bad deals out. Your name is everything in this business. Quality will rise above quantity.

Best of luck to you and if you have any questions along the way, feel free to pm me.

Post: Sticky situation on short sale transaction

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349

You have to present the second offer. Your duty is to your client, not any of the buyers. The fact is, the original buyer could have raised his offer the $10k and not left the opportunity for someone else to come in and get the property. 

Post: Wholesale problems today

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349

Barrier of entry is the biggest issue in my opinion. You can wake up tomorrow and deem yourself a wholesaler. No education, no property under contract, no buyers, etc... but you get the same title as someone like me who took the time to get a real estate license so I can understand comps and value. Someone who has personally GC'd hundreds of projects. Someone who understands construction numbers and the importance of a contingency allowance. Someone who knows which neighborhoods should have a budget for security and have those costs reflected in the offering...and most importantly, someone who understands that the end investor needs to make money for the machine to work. 

Unfortunately, most of the wholesaler stereotypes are well deserved.

Post: Rehabbing Chicago Real Estate

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349
Originally posted by @Jim Vani:

@Jonathan Klemm - We travel nationwide for Commercial projects, while for Residential we stay in the Chicago market. Residentially we've been north of 290 in Chicago and have stretched out into the burbs. North up to Highland Park, west to Lombard and south down to New Lenox. We work on single and multifamily along with some mixed use properties. Appreciate the networking group recommendations. I will definitely check them out! What type of properties to do you rehab?

@Mike B. - I've been keeping tabs on my local market and have seen some good opportunities. I've also assisted clients in rehabbing as their GC which has given me the itch to get back into the space on a personal level. Looking to network and build or join a solid team to BRRRR and/or Flip with. Being new to BP I thought to put the feelers out here and see what would come from it. I see you have helped others with your services. Are you currently rehabbing or assisting others in the process?

 Yes, I'm wrapping up a sfh gut rehab de-conversion in Albany Park and stabilizing a new client's portfolio that was a victim of terrible property management. I also just got control of a contract for a multi in North Lawndale but I'm still deciding on whether to close on it myself or wholesale the property. If you have any questions or need any contacts, feel free to reach out. I'm always happy to share resources.

Post: Rehabbing Chicago Real Estate

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349
Originally posted by @Jim Vani:

Anyone have experience rehabbing in the Chicago area? I'm a contractor w/ a background in finance looking to join meetups and make some connects

 Hi Jim, I have a lot of experience rehabbing in Chicago. Do you have any specific questions I can help answer?

Post: How to Deter Squatters?

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349
Originally posted by @Jay Hinrichs:
Originally posted by @Mike B.:
Originally posted by @Jay Hinrichs:
Originally posted by @Mike B.:

I've rehabbed over 180 units on the south and west sides of Chicago. Security is always our biggest issue. Things I've tried...

Alarm system: After 30 seconds upon entry the alarm would set off an ear piercing sound that you can hear from a block away. They ended up stealing the unit and threw it by some railroad tracks (the unit had a gps)

Attack dogs: They worked well for me other than the mess they created, but I had a friend that had two dogs shot during a break in so I didn't want to be a part of creating an environment for that scenario to take place again.

DAWGS Board up: They were incredibly affective as @Jay Hinrichs said. I used them for about 75% of the buildings I renovated. I only had one property that was able to get burglarized using this security. It was a frame building and they cut a man sized hole through the side of the property. I still highly recommend them. 

House Sitter: I use house sitters at the end of the project. You can't get an inspection passed with the metal screens still up so I hire a man to live there until I can exit or get it rented.

Yup takes a very tight outfit to work in those areas..  when I first started funding this stuff on 02 I started in Detroit and learned all sorts of their techniques to keep houses from getting stripped.. It just so sad that one has to do this to protects one's properties when your taking those great buildings and renovating them..  

I agree. I got hit in the head from all directions in my first year working in tough neighborhoods and honestly, it still happens from time to time. Anyone who is seasoned working in these areas has a contingency for their construction and an even larger contingency set aside for the "unexpected fund".

can you imagine an out of state investor who reads the BRRR book and trys that there in your area.. :)

 lol yeah, the numbers ALWAYS look fantastic on paper. The biggest problem is when they steal just enough to set you back a month but not quite enough to be worth the insurance claim.

Add to that, Realtors that intentionally mislabel neighborhoods. If you're out of state investing in these neighborhoods, you better have a 3rd party "boots on the ground" to watch your team. It's one of the reasons I'm never at a loss for work, but unfortunately, 90% of the time they find me after the damage has been done.

Post: How to Deter Squatters?

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349
Originally posted by @Jay Hinrichs:
Originally posted by @Mike B.:

I've rehabbed over 180 units on the south and west sides of Chicago. Security is always our biggest issue. Things I've tried...

Alarm system: After 30 seconds upon entry the alarm would set off an ear piercing sound that you can hear from a block away. They ended up stealing the unit and threw it by some railroad tracks (the unit had a gps)

Attack dogs: They worked well for me other than the mess they created, but I had a friend that had two dogs shot during a break in so I didn't want to be a part of creating an environment for that scenario to take place again.

DAWGS Board up: They were incredibly affective as @Jay Hinrichs said. I used them for about 75% of the buildings I renovated. I only had one property that was able to get burglarized using this security. It was a frame building and they cut a man sized hole through the side of the property. I still highly recommend them. 

House Sitter: I use house sitters at the end of the project. You can't get an inspection passed with the metal screens still up so I hire a man to live there until I can exit or get it rented.

Yup takes a very tight outfit to work in those areas..  when I first started funding this stuff on 02 I started in Detroit and learned all sorts of their techniques to keep houses from getting stripped.. It just so sad that one has to do this to protects one's properties when your taking those great buildings and renovating them..  

I agree. I got hit in the head from all directions in my first year working in tough neighborhoods and honestly, it still happens from time to time. Anyone who is seasoned working in these areas has a contingency for their construction and an even larger contingency set aside for the "unexpected fund".

Post: How to Deter Squatters?

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349

I've rehabbed over 180 units on the south and west sides of Chicago. Security is always our biggest issue. Things I've tried...

Alarm system: After 30 seconds upon entry the alarm would set off an ear piercing sound that you can hear from a block away. They ended up stealing the unit and threw it by some railroad tracks (the unit had a gps)

Attack dogs: They worked well for me other than the mess they created, but I had a friend that had two dogs shot during a break in so I didn't want to be a part of creating an environment for that scenario to take place again.

DAWGS Board up: They were incredibly affective as @Jay Hinrichs said. I used them for about 75% of the buildings I renovated. I only had one property that was able to get burglarized using this security. It was a frame building and they cut a man sized hole through the side of the property. I still highly recommend them. 

House Sitter: I use house sitters at the end of the project. You can't get an inspection passed with the metal screens still up so I hire a man to live there until I can exit or get it rented.

Post: Can Property Management Cos offer guaranteed rent?

Mike B.Posted
  • Developer
  • Chicago, IL
  • Posts 428
  • Votes 349

I know of a company that was offering one year rental guarantees with their "turnkey" properties. They essentially added a year of rent to the purchase price and fed the buyer's money back to them over the course of that first year. Majority of the units were never rented and it became a huge issue for the buyer in year two. That company is now bankrupt.