All Forum Posts by: Scott Forney

Hey Illinois BP investors! My wife and I just got started with our first rental property in a small town in central Illinois. 2 duplexes for about $45k per unit. We're new to the game, so I am soaking up as much knowledge as I can from this site and from books.

As we look towards the future, searching for new investments, I am getting more comfortable analyzing deals. 2 things that I have run into which creates obstacles for investors in IL:

1. Little to no appreciation

2. Insanely high taxes

People are leaving IL at incredible rates, and the state government has not made policies attractive for businesses to come or stay in IL. Thus, making our properties stay at the same price points. In most deals I have analyzed, the sales price of properties in down state IL are the same they were 20 years ago if not lower. I say down state because Chicagoland is it's own world apart.

On top of this, we have to plan on setting enough money aside for the property taxes which is as much as the mortgage payment.

Our cost of entry is low, and it is much easier to buy a property, but so is our neighboring states and your don't have to deal with high taxes and appreciation issue.

I want my money to work for me, and I also want to do a few deals closer to home, to learn and to get more comfortable, so I am reaching out to the local experienced investors here.

How have you overcome these barriers?

Are there areas where properties are appreciating?

People are investing here, so there is a reason. These are obstacles, not road blocks, but I just don't have the years of experience to know what outcomes to look forward too.

Hey everyone, hoping to get some perspective from experience investors about seller financing. My wife, @Amanda Forney, and I just purchased 2 duplexes in our hometown (very small town) and are ready to jump in with both feet, and continue to invest in real-estate. I love these multi-family properties, the risk of the property is spread across multiple units instead of just one. If there is a vacant unit, the other rents are covering the expenses while we are filling the unit. 

There is a four-plex in town that is owned by a local guy that I know (everyone knows everyone here), and I would like to approach him to see if he would be interested in selling the property. Property is in good shape, I am guessing it may be a little outdated though. If he is willing to sell, I would prefer seller financing. I can see that he purchased the building from his father back in 2003 for $70,000. I think $150,000 would be a fair offer to make, if he is willing to sell. The NOI on the property is about $2300/m, running the number on the rental calculator makes is look like a amazing investment for that price. Playing with the numbers it looks like $170k would be as high as I would want to go. the reason I am thinking of seller financing, is because our money is tied up in the recent duplex purchase, so once we replenish our saving then, I could consider refinancing this four-plex.

How have you approached others about selling properties that aren't on the market, and talk them into selling, especially when they are making them an income? What kind of contract would make it attractive for the seller, I am thinking an interest rate of 6-8%? A 5 year repayment plan with 30yr amortization? I don't want to be unreasonable, but also don't want to miss out on a deal by offering too little or too much. 

We're new to this, and learning so much everyday! 

@Nicholas Diazdeleon Hey Nicholas, my wife and I are new to rental and looking to expand. Based in Washburn, Woodford county

@Melissa Kirchhoff Great information, we live about 30 minutes south of LaSalle, we are looking to expand from our 4 units in 2021, sound like north is a good option, I'm guessing prices are similar.

@Timothy Harbison Hey Tim, my wife and I just bought our first 2 duplex in Washburn and was introduced to this site. Love learning about the different strategies for investing and always looking to learn more and pursue opportunities. Would love to connect with anyone in the area/region!

@Steve Sanchez Hi, my wife and I just purchased a pair of duplexes. Is the landlord group for Peoria on facebook or BP?