All Forum Posts by: Robert Leach

Hi Jim,

My advice? Slow and steady wins the race. There is no "get rich quick" scheme out there that will likely ever do more than deplete your cash reserves meant to sustain you for the coming years. There are those who can and will help guide you through your first transaction but if that help comes with financial strings I would be extremely careful. While opportunities do exist, the competition in the market is stiff and more times than not you will be up against multiple bidders driving the price up for all but the most seasoned investors to a point of risky returns.

Knowing your market, understanding finish levels of comparable properties and past performance are critical factors in determining what your target properties will be. Decide what strategy you will pursue, "buy & hold", "flip" or a combination of both, which way you go on a property should in part determine the extent of rehab and the level of finishes you will need to complete in order to maximize your goals. 

Investigate topics such as business law which encompass the formation of an entity you may decide to operate within, landlord specific laws and guidelines, building permit requirements, lender requirements and the cost of money to name a few. Bigger Pockets is an excellent source but there is no substitute for instinct developed by your own due diligence.

Develop a relationship with an attorney, brokers, architects, home inspectors, contractors and insurance agents to get started. Notice the plurality of those mentioned. Never underestimate the value of those who can facilitate a need. Good luck!

May your bottom line always be above the water line!

Purely guesswork but based on the sq footage of each house your looking at $10k in prime & paint, estimate another $1k for light drywall repairs and assume you have 3000 sf in carpet roughly another $9k in carpet & pad. basically $20k for paint & carpet alone then factor in new faucets, p-traps and toilet seats another $3k, minor carpentry another $3-$5k, lighting maybe $2k. That said site unseen I would factor no less than $30k for a basic freshen up. As @Scott Steffek said, pretty tough to know anything on pure speculation but it is what it is. That would be my take on it, good luck.

As a contractor, I would much prefer materials supplied simply for my own convenience. We don't have to deal with the logistics or providing warranty work on items not up to snuff. We typically handle the material purchasing for the majority of our clients and yes we do mark up the price modestly to cover the added expenses of facilitating the selection & delivery of the items. That said, there are several pitfalls, some of which are mentioned in the previous posts such as delays due to materials not being on site when scheduled or materials shorted for owners who prefer to supply.

There is no right way or wrong way to approach it. If you feel comfortable handling all the purchasing, have the time to coordinate and be onsite to receive deliveries then I would say do that. 

If you have any living space below ground you will need at least one egress. If you are doing a rehab and are pulling permits I am sure the inspector will demand them. 

https://www.reference.com/home-garden/illinois-bui...

It doesn't cost $3000 for just the window. If you are talking about completely below grade then you will need a proper window well with a ladder escape which is likely what was quoted. 

I can do a bid early next week, pm me for my contact and shoot me a text 

My advice is this...never let a temporary change a permanent. 

pm me

I think $250k will be below his bottom but it's worth a shot. Siding and windows is a good argument that could get you down but if he is fully rented, time is on his side. Sure he wants to retire but I think he might feel insulted without some explanation first especially if he is financing the deal. My dad is of that era and fights for every nickle.

The fact is there are no sure bets. The building codes are in a constant flux and finding a contractor that can hit time lines while navigating city code is a challenge for most. We are busy and have been for years thanks to word of mouth and repeat business but I have to say the calls are coming in hot and heavy with poor work. That said, it is not always the contractors fault. If you are trying to cut corners on materials & finishes, skipping code requirements and generally hacking a house to squeeze out profit...my advice is to invest in the stock market and not real estate.

I personally have seen downtown high rise condos literally double in value after rehab largely because many are decked out like its 1985. Real estate in Chicago is not going away nor are it's values but looking for home runs is not the best strategy. I agree with @Vincent Incopero Renovo Financial is a good place to start, Call Daniel Rosen over there and he can at least have a look at the deal.

My advice is to buy neighborhoods not properties, as Trump would say extreme vet your broker, contractor and lender then decide what makes sense for your portfolio. If it sounds complicated...well it is and any mistake could cost you big. Best of luck to you brother!

Hi Dale!

Welcome man...my office is in Plainfield. Anyway best of luck to you on your voyage!