All Forum Posts by: Kumar Paj

@Saira Khan

It is amazing to learn that the shape of RE World is perfectly round.....

I've seen many many investors (including myself, up to some extent) saying that Chicago is not a good market, negative population growth, high taxes, tenant friendly laws and so on. With this in mind, many investors from Chicago are looking for investment opportunities outside Illinois. I spent lots of time analyzing other markets such as Northwest Indiana, Dallas, Huston, St. Lois etc. However, for most of these markets, you hardly cross 1% rule with CoC 12%-18% (Turnkey properties, with 20% down). I am sure local investors would be making more than this because they know the market and can do manage/rehab the property by themselves. After analyzing this markets when I look at my own portfolio, it makes me feel good about Chicago market and I ask myself why should I look for other markets when I can make much better ROI on my own backyard, in the area I know very well.

However, I've seen many domestic and international investors looking for investment opportunities around Chicago. I am sure they are doing so for a reason. 

This makes me think that we often don't recognize and appreciate opportunities in front of us and keep looking for something else. When it comes to selecting a market, we often got influenced by stories, perception, belief, attitude  and emotions. Bottomline is...there are good deals in every market,  we just need to find it and act on it......

@James Montgomery for very detailed information and analysis of local neighborhood level,  I use Neighborhoodscout.com. This is very useful especially when you are analyzing a property in an area very new and unfamiliar to you. 

@James Syed @fadel a. ...thanks

good to know that some lenders do not allow Series LLC...

thanks!

@Tanner Thoman thanks for your input.

@Joe Mueller....@Simon W. @James Syed @Derek Martinr

If I have a Series LLC in Illinois which owns multiple properties under separate Series, can I buy a property in another state (Indiana, which does not allow Series LLC) and put it under another series?? In other words, is it okay for a Series LLC to own one property in Illinois (e.g Series IL LLC) and another property under another series in Indiana (e.g. Series Indiana LLC)?

Will appreciate your inputs.

thanks

@Rahul D...I really don't rely on Zillow for property search since it is not accurate many times (it shows properties that are closed while ago). Zillow is good for analysis but not for property search. I am a licensed Realtor so obviously use MLS more often (includes HUD, HomePath, Huzu, HomeSearch properties). I tried Sheriff sale auctions but very time consuming, not sure if it is worth of my time. If you know the area and run your numbers correctly, you can always find a deal through MLS...

@Rahul D. Welcome to BP....you will find this very useful and helpful...

With regard to your question I will agree with @Reginald Pintang and @Dhru Das.

Definition of 'good area for investment' is very subjective because it can be defined based on multiple factors such as Cash Flow, ROI (for fix and flip), appreciation rate, safety/crime rate etc.

Of course it largely depends on your long term goals. I am bit conservative person and don't feel comfortable investing  in C Class area, including South Chicago. I've been investing in Western suburbs (Glendale Heights, Naperville, Wheaton, Bolingbrook, Plainfield, Aurora) and so far lucky to get reasonably good deals (getting more and more difficult though). With regard to multifamily, it is real tough to find a good one in B Class area. 

If you don't have much experience in RE, I will recommend to start with A or B Class area. First experience is very important because it will make you feel good about your deal and increase your confidence. If your first tenant or first property turns out to be bad, you will 'hate' real estate....

@Robert Blazer IV

I had very similar questions and talked to few experts, including my lender who is a big time investor too. How to acquire property really depends on your long term goals . However based on my research so far, I believe, it will be a good idea to buy a property on your personal name and then put it under LLC. This strategy works for me because I buy for cash and then cash out on 30 yrs fixed rate. Once it is settled, you can put it under LLC..no need to touch for next 30 years....Also, if you want to buy on LLC, it will fall under commercial lending which is completely different, bit difficult, and more $$ (you won't get 30 years fixed), I was recommended no to follow that route...(at least for now)

Would love to hear thoughts from other BP members on this...

@Linnea Minnema.... just wondering what PM company you ended up using and your POV about the same...

@Adrien C. @Ken Van Haitsma Jr...we are expanding our portfolio to NWI and looking to build a team of reliable and professional GC, Property Managers, Realtor and Wholesalers. I will appreciate any inputs on this side too.

Thanks

@Jeff Valentino... I am also looking for a reliable and experienced agent who is well familiar with Hommond area. I am looking for SFH and/or multifamily. Would appreciate if you can share some info.

thanks!