All Forum Posts by: Ray Harrell

Also in Chicago not only do you have Amtrak, but the CTA rail and Metra rail and all of their operations positions. Not to mention it's a great city, especially in the summer.

Hi Andrew I'm a landlord in Chicago. What information do you need?

But that's only if I purchased at the $243K. The reason I thought they were structuring equity as down payment is because the comps in the area are only $180K. I just joined the creative financing forum. Real Estate is difficult for working class people.

Then what does it mean?

Hi everyone. I found a deal where the seller has found a bank willing to finance the property at the asking price of $325K. It's a 7 unit building 90% rented. On the materials sent to me, it shows that the financing terms are:

Equity    25%   $  81,250

Debt      75%   $243,750

Does this mean the buyer (me) can use the equity as the down payment so i can do this with "no money down"? Stabilized cap rate is $17%.

If they are GREAT tenants, consider rehabbing one unit, moving a current tenant into that unit, then rehab their old unit, move someone into that one, etc. You can split the cost of the move or absorb entirely, or just let them do it themselves. U keep a good tenant, maintain your occupancy, and don't have to return securities. You will have to assign new leases, and tenants have to have utilities changed, but they would have had to do that anyway.

Where do you find a lender willing to give you 100%, much less 100%+?! Do you have to get into rehabs in order to get those deals?

Also, if the tenants aren't complaining, honestly, why bother until they move? If they are Section 8, however, you may have to do repairs in place. You could also wait for one vacancy, and then shift tenants around.

If you're getting a loan an appraisal will be required.

My point was that it's not JUST bout money. I wasn't doing actual calculations, but if you get rid of a good tenant to raise the rent $200, and replace him with a bad tenant costing you $200 a month in service calls, repairs, time, is it really worth it? Of course good screening can mitigate SOME of this.

When my rent was lower, I did things like replace lightbulbs in the hallway, make adjustments to the door closer to keep the door from slamming, installed a new peephole because the door installer painted over it with stain, picking up paper in the yard. I bought my own toiler auger when a plunger wouldn't work, replace my own igniter on the stove. Once my rent went up, I began to make service calls and complaints and have them come change hallway lightbulbs and outdoor lightbulbs.

And that was just for $75 increase.