All Forum Posts by: Sam Amir

Hi BP,

My partner and I are talking to an older gentlemen (in his 70's) about selling his property. He's motivated to sell because his wife and kids are in a different country and he's looking to move closer to them. I checked property records and he owns the property outright as of last year. I was wondering if anyone had any creative financing strategies when dealing with older owners? 

Seller financing is an option, but if I was as old as he is...and to be blunt...I'd want as much cash as possible because I might croak soon! He was also a little hesitant on the idea of seller financing when we mentioned it.

Any ideas would be much appreciated.

Details on the deal:

-Would be a package deal, 1 3-flat and 1 SFH. Both properties are next door to each other.

-Phenomenal location

-We have about 10%-15% of purchase price in cash

-Condition of the property is well-kept, owner has a sense of pride. Would not need much rehab, just some light TLC

-He's a damn good negotiator (I can tell!)

Thanks,

Sam

@Zulf H. the others have pretty much covered the different ways to find listings, but you are right, it's dry right now. Local REIA clubs you should check out:

-Chicago REIA

-Chicago Creative Investors Association (CCIA)

-Redevelop U

Be wary that most of the meetings they will have someone come in and pitch a product, but hey, that's the game. It's still worth it to go and check out. They all meet pretty frequently. Hope to see you at one of these!

@Art Maydan you're right, I misunderstood the meaning of "dwelling unit". Thanks for pointing that out. My lease did not have any specific information on garages which I thought meant it wasn't covered.

And just an FYI for anyone else who doesn't know the definition of dwelling unit...“Dwelling unit” means a structure or the part of a structure that is used as a home, residence or sleeping place by one or more persons who maintain a household, together with the common areas, land and appurtenant buildings thereto, and all housing services, privileges, furnishings and facilities supplied in connection with the use or occupancy thereof, including garage and parking facilities."

Read over the city ordinances here, I know I am again!

Hey Mike,

Nice work on hosting a monthly meet up. That's a great way.

My thoughts:

1. Use BP of course! - You have a Pro membership, go ahead and throw out your deal to the marketplace part of the forum and see who is interested. Besides that, offer value and befriend people who are doing what you want to do. They don't have to be local of course. You'll find that most people on BP are like-minded and understand that relationships are essential. Produce a win-win situation always.

2. The MLS - I've not done this yet as I'm working on getting my brokers' license, but basically find out what properties have been bought with cash in your area. The investors who bought that property may have more capital to invest. Get their information from public tax records and try some direct mail marketing campaign/ good ole' door knockin'.

3. Get to know commercial brokers in your area, prove that you're not a tire kicker, and attend their parties. There'll be investors at these parties and hopefully after a few beers, you may find a new partner.

4. Lastly, whenever I host events or network, I make sure to put aside my agenda and try to fulfill the person in front of me's agenda first. Whether that's trying to find them a referral for something they need or giving them an opinion on a deal, whatever. Being genuine and authentic is what I think strikes you apart from allllll the other people trying to do the same.

Good luck!

Congratulations! Finally found my daily dose of inspiration haha. 

So...you going to give us details on the deal? ;)

@Jonathan Davis I would stay away from downstate. IL is in a bit of a pickle as far as it's finances, which is an understatement. Chicago and upstate (Lake County) are keeping the state alive. Most jobs downstate are manufacturing/blue collar which is hurting right now. 

Indiana is a good alternative as well. If you believe in Chicago (and can afford it!), try to invest around the area. Maybe start in Indiana with a good deal, get leverage + capital and come to Chicago afterwards? 

Regardless, the important thing is to get started. Good luck!

Hey Alexander, 

Not really sure what you're doing exactly but what we do is make a brochure giving a brief overview of the property, strategy for financing and exit and then ROI's for the investor. PM me if you're interested in seeing an example, I just finished a draft for a deal we're working on currently that I will be pitching soon.

If you want to learn how raising money and all of this works, check out Michael Blanks podcast. It's gold.

-Sam

Hey Erik! Calculators are definitely nice tools. I would urge you to learn how the methodology of the calculator works before you just start using it.

Unfortunately it's not just as simple as the 2% rule or the 50% rule or we'd all be rich ;). But they are good general rules of thumb. As @Alex Brookbank explained above, COC is a useful tool and I would encourage you to read this book, (it's like my RE bible) to learn others. 

A lot goes into analyzing a MF deal, and I can only answer a general question with a general answer. If you can give us details on a specific deal, we can analyze it for you and people can show you their thought process. You can also head over to the 'analyze my deal' part of the forum and see real deals being analyzed.

Good luck!

Agreed with @Jesse M. I have garages on my property so I've added that the tenant is liable for any damage they do to the garage as an addendum. Be careful though, laws are weird around that. 

Check out this example garage lease if you need it. Read the terms and conditions especially

Honestly, there really aren't any secrets that you aren't aware of. The way most people find off-market deals for cheap is by networking, knocking on doors, sending letters, looking at foreclosures and auctions.

So, 

-Go to REIA meetings and start meeting people. Don't meet people to use them, but to actually genuinely meet them

-Drive around and look at dilapidated properties. Find the owner through public records. Send letters. Knock on that door

-Grab your local newspapers/magazines/online site and look at foreclosures in the area

-Lastly, attend city development and planning or townhall meetings. Get involved in your community. When people ask what you do, say you're a real estate investor. You'd be surprised how many people have an aunt or uncle that's trying to sell their property.

Good luck my man, deals are out there, you just gotta hustle