All Forum Posts by: Reginald Pintang

Hi Brendan,

Welcome to BP! Keep us updated with your search. People are looking for as much info as possible. Share what you learn. Good to see another Chicagoan. 

Good luck in your endeavors.

Bank short sales are the banks way of recuperating as much as possible and minimizing losses. When the bank gets an appraisal to value the property. If a buyer offers too much, it may not be accepted because the bank may not believe the buyer will qualify for a loan for the offer amount. This may be the case. If the offer is too high for the appraisal, a large down payment may be needed. If the bank has a slightly lower offer but the numbers make sence and its a cash offer. The bank may take the cash offer because they just want the bad loan off their books. When a bank repossesses a house they must withhold 8x the loan amount. Meaning if they reo a house with a bad loan of 100k, they must withhold 800k and not lend it til the loan comes off the books. So the bank must weigh the cost of hold the house, not lending on 8x that amount, vs. selling quickly for a loss. Whichever losses them less money is what usually dictates the banks decision. 

Correct me if I'm wrong. I could be mistaken but this is my understanding when talking to asset managers and loan originators.

Just so everyone knows. The $2500 is broken down like this: 

Deposit: $1850

Inspection and eval: $650

So, the $650 everyone is taking about is correct. But the $1850 is a good faith deposit. To be returned after the first deal and will never be asked for again in any other deals with them. Almost as an incentive to get a deal done. The only cost on any deals after the first is again the $650 for the inspection and evaluation. 

Just an FYI.

Hi Steve,

First of Congrats on the child and soon to be wife!  You have come to a great place to learn. Great community here at BP.  

As you are new investing, you want to start by deciding what kind of real estate investing you want to focus. What do you want to get out of your investing? Decide that, and it will help you decide which strategy of investing you may want to pursue.  

Now that you have an area to focus upon, learn as much as you can, as fast as possible. Clearly define goals that will get you from where you are to where you want to end. Daily, weekly, monthy, yearly, 5 yr, and 10 yr goals. Review these goals and track your progress. As the 5 and 10 yr goals list should be short. The more frequent lists (daily and weeky) should be longer list. Try to create habits in your daily life that will propel you to your goal. Just starting out, it may be listening to a podcast on the way to work (I also listen to podcasts in the shower and as I get ready), or searching the mls for 20 mins, just to get a feel of the markets in your area. These habits can be great ways to start as you are working 2 jobs. Little tasks can add up to big progress. Figure out what you can do as time permits in your schedule.  

As you learn, try to identify your shortcomings (we all have them). In the future you will be adding employees to your team and those who are strong in your weaknesses will add tremendous value. Because at some point you will want your business to be a well oiled machine so you can have what every person wants... To be able to enjoy life on your terms. All the fun stuff.  Time with kids and family. Travel the world. Post replies on BP, etc. To be able to do what you want, when you want. 

I hope some of this will be helpful. Good luck with marriage, the child, and all your endeavors. BP is always here for any questions. 

And I'm sure someone will post the BP ultimate beginners guide (can't find it right now). Someone always does. Yeah, we're that kind of a community.

GO BP!

Hi Rahul,

Welcome to BP! Great place!  There ARE so many right answers to your question.

I feel that you can find profitable flips in any almost any area with proper marketing, due diligence, and proper project management.  With higher prices comes more money invested into a deal, but with the possibility of higher profit margins.  Due to the demand for that area, one may save money in resale time over a less desirable area. Making the area a feasible investment market. More risk but possibly more reward. Jus something to ponder.  

As for the rentals. As Jimmy stated, it really depends on your goals.  What would you like from your investments? Cash flow, high appreciation, ease of management, etc. Higher end areas with higher property values will attract more quality tenants but will usually offer little cash flow. But equity will raise faster as debt is paid down due to the higher appreciation of the property.  So in time as rents rise, cash flow will raise because debt is being paid down. 

The adverse is apparent in lower end areas. You may be able to acquire a property at a low cost, fix it to put some sweat equity into it. Allowing you to charge a higher rent for the area.  The rents should be offering a nice cash flow, but due to the area, you may not see fast appreciation.  But you may be able to do two of these houses for the price of one in a much better area.  But your tenants may be less favorable than the tenants in better neighborhood, making property management more difficult. 

I believe start with the areas you know and expand from there.  I always track areas with good school district because people are always trying to get their kids into those areas. So if a tenant leaves, another is sure to come shortly. Parent hate to move their kids too. Making a pairing for long term tenancy once they are in your property. 

Good luck in your endeavors!

Hi everyone,

I wanted to inform you all the first meeting is tomorrow 3pm Saturday, May 14, 2016 at Avalanche 6317 Dempster St., Morton Grove, IL 60053. Avalanche is located on the SE corner of Dempster and Ferris. Anyone is welcome. Hope to see you there. We will be scheduling another one very soon due to the high interest and short notice.

Herbert,

Message me your contact info.

please anyone interested, message me your contact info.

Hi Dan,

Please send me your contact info and I will put you on the list. 

Absolutely Thirumalai,

Message me your contact info.