All Forum Posts by: Sarita Scherpereel

@Michael J Scanlon you should reach out to the lender the buyer is prequalified with. I know some lenders will allow gifts from family members for the down payment. They might need a letter from the person the gift is from or I had one lender make the attorney write a letter. I agree with what has been said about Home Possible going into (almost) extinction which is why I say call their lender. AND make sure you have a back up lender that knows residential lending with Multi Units. Make sure they are location to Chicago!! I’ve had some bad experiences I won’t post here but a backup can’t hurt.

@Ivy Pierce thank you for sharing this! Please post any updates you might hear. You’re very helpful!

@Ben Petersen I’m a realtor in Chicago. To me, it’s the nature of this business and it’s something agents have to do. If I have the numbers to support what my client wants then I can make a case for value. If a seller can’t understand or see the bottom line then we wait them out. Patience is key. Nothing feels worse on the listing side than time. Waiting can be a great move when negotiating. It’s a big part of the game. If you feel like this was the only property out their for you than my methods would be a bit different. I always tell my clients if the offer is might be too low to get excepted or a counter but ultimately I have to write the offer they want.

Writing a rejected offer usually gets me more respect from my clients; than trying to save my clients (and myself) some type of embarrassment from being told no.

@Joseph M. That’s ridiculous. I’ve recommended many clients to Aaron Zimmerman. He’s very responsive! @Aaron Zimmerman

@Byron W.

Hi Bryon! I have three new buyers that bought in February. Their buildings had vacancies that they needed to fill right away- at the beginning of COVID. It took them most of March but they all found tenants. Two moved in at the start of April and one moves in next week. They had to price the rentals slightly lower than they would have liked to fill the vacancies and it worked. These were in the Northside but I think price is key everywhere. Tenants need incentive to move (unless they have to) If it seems like a good deal they will be more inclined to move. Best of luck.

@Yasmine Sitaras. Yes it is possible. I second what has been said. I also want to add, that I’ve clients do this based on work logistics changing. It can be a change of needing to work from home-needing a home office as result. Best of luck!

@Bernard Laureus What type of inventory are you looking at? I’m assuming 2-4 units since you say they are negatively cash flowing. Also what type of financing?

I agree with what has been said and want to add some input. 
You've done the research to give you language to understand transaction basics and the analyzing to understand basic ROI potential. You need to start seeing properties. Even if you want an off market/whole sale deal. None of the principles will make sense without getting a sense of property function and FULL potentials. Initial numbers are always deceiving especially when rental values are mostly under market value. You need to look for full potential and ARV. If you aren't looking at the property the initial pro-forma is just a taste of what the property could be. For me, that would be like judging a book base on the cover. Many multi units are over priced in the areas of Chicago (N/NW) I focus in. Once you start seeing properties you'll notice that. (I can't speak to the Chicago Burbs- there are too many micro economies out there).

I realize this might make me sound like a Used Car Sales Men but it's the truth! Seeing properties is part of the education even if you're years away from buying. Even by just going to open houses! It's all helpful. I've heard buyers say, they don't want to "waste my time" but it's never a time waster. Every property a realtor sees helps them with CMAs, pricing and ultimately inventory understanding. 

You're doing a great job! Keep it going. 

@Fred Watson Is this for a house hack? Or your second investment property purchase? That makes a big difference in understanding program qualifications.

@Jacob Pereira that’s awesome! I miss those Texas prices in Chicago! 😂