All Forum Posts by: Vincent Incopero

@Jimmy M., here's a link that answers a seeming exhaustive list of questions regarding the ordinance. 

https://lcbh.org/laws/residential-landlord-and-tenant-ordinance-rlto

@Tony Rodriguez - Too sticky/risky IMHO/professional opinion as there too many variables here and opportunities for you to get half of what you want in return for twice the headache/heartache if you are dealing with tricksters/grifters. 

Wife can get a hold of Husband if you have a pile of money to distribute to the two of them. Husband needs to join in the execution of the agreement and the receipt of the funds which should state that all personal property left behind is considered abandoned once they vacate. For what it's worth, in IL, filing an eviction is the slowest way to get this done. The value of the time that you will be deprived of possession during the pendency of an eviction is FAR GREATER than the attendant costs of a cash for keys workout. 

Lots to unpack here.

1. Zoning and the number of dwelling units are not necessarily one in the same. You can convert a property that is zoned as multi into a single family residence and this is becoming more prevalent in up and coming areas. Indicia of multiple units are utility meters, water billing records and ingress and egress points. An architect with significant experience in the Chicago area would be a good resource initially. 

2. Listing information is deemed reliable but not guaranteed, meaning that you have to do your own due diligence. I suggest you engage a lawyer sooner than later. 

3. Lender's determine the number of units based on the appraisal and how the property is marketed for sale. Lenders do not pull permits or perform any real due diligence. 

4. If the long play is that it be a multiple unit in the end,you would be wise to make the contract contingent on the seller providing you with a 2 unit zoning certificate at closing. 

203k is going to have 90 day seasoning requirements. Bottom line is that you can't make it happen. Call the buyers loan officer and ask them to confirm the seasoning requirements. Time to cut bait or find a cash buyer or an experienced investor who has a line of credit or access to hard money. 

There wont be a number 2 in your case, and you will refer to yourself as the sole member-manager. 

@Ingrid J. you get what you pay for. Attorney's (SHOULD) bring value to the transaction. The title company employees are not attorneys and cannot advise you. @Glen Friedman's advice is prudent and @Jhon Restrepo's experience is just one of the MANY reasons you PREFER to hire an attorney even when it is not the norm/customary practice. Better to close with confidence and certainty that to follow the lead of a 3rd party who has no ethical or fiduciary obligation to you. I have represented many investors who were conducting business from abroad or outside of their home state and I know that they have slept better knowing that they had someone who is licensed, trained, experienced and INSURED in their corner making sure that things were done properly, the first time around. 

@Jay Kumar, you can write in a simple, 20 word or less, "rental" contingency (in Paragraph 38 of the MulitBoard 7.0 Contract/or by attaching a rider to any of the Chicago Association of Realtors Contracts). 

In addition, your agent should be able to request the rules and regs from the Listing Agent before or after Contracting or while negotiating to find out if there are any such prohibitions, caps or restrictions. 

Lastly, in our home state of IL, most form real estate contracts have a HOA contingency that can serve as an escape mechanism if you find out, after contracting, that rentals are capped, prohibited etc.

Talk to your attorney if your agent isn't 100% sure how to carve out this contingency. 

@Susanita VanGood @Andrew Yu - Here is an example. Modify the language per your particular situation. 

AUTHORIZED SIGNATORY RESOLUTION of XXX, LLC

THE UNDERSIGNED, being the Manager and Members of XXX, LLC, an Illinois Limited Liability Company ("LLC") whose purpose is to own, acquire, manage, pledge, lease, develop, operate, buy, sell, exchange, borrow, finance, refinance, and otherwise deal with real estate, personal property, and any type of business, as the Members may from time to time deem to be in the best interest of the LLC, does hereby agree and consent, in writing, in lieu of a meeting, to the following action and direct that a copy of this consent be filed with the Operating Agreement of the LLC:

RESOLVED, that PERSON as Manager and Member of XXX, LLC, and PERSON 2 as Member of XXX, LLC, collectively or individually, shall have the power to execute an and all documents that are necessary to own, acquire, manage, pledge, lease, develop, operate, buy, sell, exchange, borrow, finance, refinance, and otherwise deal with real estate, personal property, and any type of business or undertake any other action in furtherance of the purchase of the desire real estate, personal property and any type of business transaction.

FURTHER RESOLVED, that any and all acts heretofore taken or documents heretofore executed and/or delivered by any member of this LLC in furtherance of this transaction approved by this Resolution are hereby confirmed and adopted as the duly authorized acts and agreements of this LLC to the same extent and effect as if this Resolution(s) had been adopted prior to the taking of any such action or the execution and/or delivery of any such documents.

            IN WITNESS, WHEREOF, I have hereunto set my hand and seal below, to this Resolution this _____ day of MONTH, 20XX.

XXX, LLC XXX, LLC

  By:     _____________________________                                _____________________________

              PERSON 2                                                                 PERSON

              Member                                                                    Manager and Member

@Sarah K., you might consider an ibuyer platform like roofstock.com if you are having difficulty finding local interest in the property. 

@Igor Ogiyevych most ibuyer platforms are the same (Xome/Hubzu/Auction.com/Hudson&Marshall). No inspections, no access, and tight turn around times for acceptance. Often times, the information provided on the ibuyer platforms regarding occupancy are inaccurate and it is a violation of the terms of the Contract, which can result in the Seller canceling and retaining your earnest money, if you attempt to make contact with the former owner or current occupants prior to closing.