All Forum Posts by: Syed Lateef

i had to Christine's post a couple times to try to understand whats going on . Note i am not backing Wendell at all. I never met the guy or intend to. I just question some stories i read about people being scammed. 

 This is my interpretation: 

Deal Structure

1. Credit partner- John Doe - 25%

2. Money Partner- Christine - 25%

3. Rehabber/Property Manager/Brains of Operation- Wendell 50% (maybe?)

- The intent was to to a lease to buy transaction (not sure why not just flipping it if thats what Christine wanted) but for whatever reason that was advertise.

- It seems like there was a pivot in the strategy. Perhaps market conditions. Instead of able to sell the property Wendell decided to rent the property and disburse proceeds from the cashflows on a monthly basis

- Christine is surprised about the expenses that occurs when renting a property, but thats how rental properties work. I have to pay for stuff that i never expected on my multifamily multiple times. 

- Wendell is keeping track of expenses and disbursing her with her share of the monthly net income. Where is the scam in that

- Christines assumption she would be out of this deal within 12 months. Sometimes things to work out to plan.

- Christine is on the deed of the property. When it gets sold at some point in future she will get her money back. 

- She mentioned foreclosing the property, but that doesn't make sense either. The bank can foreclose if the mortgage was not being paid, but it is being paid by the renter. 

- IMO you cant just ask for your money back whenever you want

- She might end up still profiting from this investment. 

- I question the "scumbag Wendell"  and the "pour soul" credit partner comment

 I dont see where the scam is here at all to be honest. I believe it was a change of strategy and the investor is getting documentation and reciving monthly checks of the cashflows. Shes on the deed of the property so if it seels she will get her money and portion of the profit. She is calling Wendell a scammer because she wants out and her money back. 

Sometimes real estate investing is not cut out for everyone

I apologize if i was harsh on my assumptions but you cant just ask for your money back. It doesnt work like that

 A great post right here @j scott ... even if its 7 years old

I skimmed through your post but the few suggestions i have are:

1. 1,900 for 3 bed 2 bath - is there a current tenant paying that lease? 1,900 is difficult to get. Make sure your comps are right

2. You and your partner will both have to occupy the basement unit if both are on the loan. I would highly recommend you get your own property and your partner gets his own property to leverage 2 low money down loans. The income from the property should help you get qualified 

@Kurt K. Thanks for coming out and shooting the pictures. Very unique point of view for my Chicago Property! it was very cool 

Kurt- I am interested to what you have to offer

My property is located in Jefferson Park

@Vijay PrabhakaranLets touch base. I am currently doing an AirBnb at my property. Its been a sucess so far, but yes i havent gone through a winter yet

A FHA loan must be on 1-4 units only. 12 unit property you would need commercial financing with 25% down

Very Cool. I was excited when i heard the Deed was showing episodes in Chicago- now i am even more excited to know @Mark Ainley is on it

I am in a similar situation as you. I bought a building 7 months ago and i am thinking about the next steps.

I would highly recommend Option 1. Do what you know works. Build your wealth. 

Try to explain to the wife to think of it like this. Say you lose/laid off your job how big of a detriment would be if you owned a home and a mortgage. On the other hand say you lost your job and had an house hack. Your tenants will be paying 

Perhaps get best of both worlds (option 1 and 2) and do a FHA 203K on a multi-family property so you get the experience of a rehab, plus a new building to live in

Try to find a place that makes your wife feel like she has her own home. Maybe an apartment building and a coach house.

I cant see my self buying a home anytime soon. I don't want to be a slave to my mortgage, maintenance, cap ex etc. Honestly, i rather rent an apartment then buy a home

Eric- I received best results from Zillow Network (hotpads, zillow, trulia). 

I took @Brie Schmidt advice on open house and it works great (shows there is demand and saves your time)

i did post on all the ones mentioned above. I would recommend to do the same. Why not get the most exposure as possible. Takes 10 min for each site max.

Happy to hear your project is complete and would like to see pictures and hear your story.