All Forum Posts by: Sarita Scherpereel

Join us for a Real Estate Investor networking event! At our October meetup, we'll be joined by Eric Workman, Managing Director at Renovo Financial. He'll walk us through different financing strategies his clients have been using to make the most of their money in this challenging market. This meetup is perfect for those seeking clarity on financing after graduating from House Hacking and owner-occupied loans. Eric's clients use a number of loans, including fix-and-flip, rehab, bridge, commercial multi-family (up to 30 units), construction, and add-value loans. He'll walk us through various projects and answer any questions you throw at him along the way.

Doors open at 6:30 pm for networking. The discussion panel starts at 7 pm.

📍 : 2211 N. Milwaukee Ave. #100, Chicago, IL 60647

Drinks will be available for attendees to purchase. Food can be purchased next door at Beautiful Rind. OUTSIDE FOOD WELCOMED! 

Real estate doesn't have to be scary! We want to remove the fear of investing and leave you with the tools and knowledge to leverage your assets and scale up. Sarita has helped numerous house hackers and investors purchase investment properties in Illinois. The one thing that will inevitably come up with every buyer is nerves. There is a lot of uncertainty in investing. The endless hypotheticals will give you analysis paralysis. Unless, you know how to navigate the market, properties, and the transaction. By attending our meetup, you will learn how to make more educated decisions and let go of your nerves.

@Krunal Patel @Julin Shah I've been at bigger brokerages- @properties and Compass. Small investor centered brokerages are typically better for the types of training you need- for investing. Bigger Brokerages are centered on transactional agents that don't handle complicated transactions or buyers with growth strategies. It really depends on what your individual goals for your licenses are so to what would best serve you.

In my career, I have found bigger companies to be helpful. I was always a full time agent and at bigger agencies I found teams to be on that helped as I grew my business. However, where I really learned to scale, grow my network and ACTUALLY LEARN THE BUSINESS was at a smaller brokerage on an investor friendly team. I had a mentor, clients that needed immediate help and that helped me make money quickly. As I was full time, I had to catch what I ate and needed that databased to do so. What I brought in (at that time) was not enough for my financial goals. After a certain point, I didn't need the team or brokerage anymore. I created my own team and now I'm known as an expert in the field. 

Really, the biggest benefit of smaller companies will be better commission splits, desk fees, low marketing costs, etc. Every place is different. You should take the time to speak to a few places before finding a good fit. Again, it really depends on your goals.  

I think it depends on the market the property is in. If you're in an area that has a lot of college students then you might want to think about ways to create the standards you need to fell comfortable with this. Especailly, if you're doing a rent by room situation. That will capture the attention of more people who need co-signers.

Hi @Julin Shah @Mark Ainley and I would love to chat with you! I will send you a DM so we can set something up! Congrats on passing the test! 

Most properties in my market are sold as is or with very little seller credits. Are you stepping over a quarter to pickup a dollar? 

Oh definitely. Unfortunately, so many buyers are not working with agents that talk to them about reserves and capex planning. We host a monthly real estate meetup and we have people that come to that all the time and complain about what they didn't know. It's tough. Buyers want to be in an area that makes sense for them and risk a lot to get there but it can be shortsighted. The 5% down programs help get them into the deal but they need a plan for what comes next. 

We had several lenders in the Chicago market that offered off the shelf financing with 10% down programs. That helped fill the gap between FHA and 20% down programs. However, the FHA buyers were by far the worse in the Chicago market. The 5% down program has helped equalize a lot that volatility. The issue in Chicago is our unique 2-4 unit inventory that is still more approachable in price compared to other big city markets. We see a lot of out of state and country investors here. One thing that is really important to remember about Chicago is that is has many different subeconomic markets in it. People on BP make vast generalizations about "Chicago" but there's a so many areas, neighborhoods and communities that falls under that name. Each have different ROIs and characterizations on "good" investing.

Buyers are willing to pay more in the North side of the city. Especially if the building is less than a 15 minute walk to the train. They gouge prices. Location gouge the price. Good 100 year old buildings in that market also creates a strong sense of urgency with buyers with 5% down. It's just so different than the COC return of the south or far west sides.

Are you looking to use owner occupied financing?

Yes, being creative is so important. But that really depends on your budget. In some markets the permit process to convert/create addition living areas for income is rather expensive. In fact, it can be just as expensive as buying another building. It's important to understand the loans that will help this in your market. Like a construction loan for example. 

Also, don't overlook the simpler ways of adding value like adding a washer and dryer to a unit or other amenities a deal might not have. Definitely ask your local experts their insights into your market. 

Another big item of difference between the two products is the FHA inspection. 5% does not require a secondary inspection for the product. This seems to be the biggest hurdle for seller's to risk when looking at FHA offers. Even thought I've rarely seen items get flagged...it's still a risk.