All Forum Posts by: Shamar Gregg

@Andrew Freed Yes, this was my primary residence for 2 years! So i did in-fact avoid capital gains! Thank you! 

@Eudith Vacio Thank you Eudith! I finally took a birthday trip one year later lol 

I bought on the border of Austin and Oak park. I knew this area was up and coming in reagrds to sale price and plus it was a 4 unit. I did do an FHA and lived in one unit.

Thank you! 

@Marco Ragudo The LLC comes later on. You can only get it from an FHA to an LLC once you refinance the property. and sure, i'll send you a message!

@Declan McManus

Hi Declan, 

excited to see this post as it brings back memories of when I was 23 years old and bought my first 4 unit in Chicago 1 year out of college. So I think I may be of some help here! Feel free to reach out to me to expand on anything i've highlighted below. 

-Do you recommend any loan officers or real estate agents in the Chicago area who have experience creating successful outcomes for people with goals similar to mine?

So in regards to successful outcomes, it is more so on the real estate agent to negotiate the perfect deal to benefit you the buyer (tax prorations, credits, etc). Lenders just need to provide you with the best rates and the agent should be able to do the rest. You have 45 days to run your credit with as many lenders and it counts as one credit hit. Therefore, you're able to check with different lenders for the lowest rate possible. 

-Considering the five finalist cities I named in my second paragraph and the context provided, am I mistakenly choosing Chicago? I know the other cities have pros, and I'd love to buy property in them someday too. I'd be more interested in why Chicago is the wrong place for a buyer with a strategy like mine.

Personally I am an advocated for Chicago. The city just has the qualities others are not able to replicate. Price per unit, population, year over year appreciation, new development. Honestly too the cashflow here is none that i've personally seen at the price point! 

-Do you have experience in the Chicago market or a situation like mine? If so, I'd love to hear your perspective on what I shared, your venture, and anything you think I may need to consider.

Answer above

-What is your opinion of my outlook on the real estate market in general?

In general, I think if the deal makes sense then its a great time to buy. Cash flow is your top priority and if its cash flowing then go for it. I believe if the rates drop, everyone currently waiting is going to be in for a huge surprise because the competition will enter the market once again causing prices to rise! 

@Marco Ragudo My best advise to you is to start with the basics and figure out what strategy you want to go with first and stick with it (house hacking, hard money, partnership, etc). From there you can then figure out your financing options (FHA, 203K, Hard money, etc). Once those two things are accomplished then you can further target and narrow where you would like to purchase. I'm more of a youtube kind of guy and I often recommend others to do the same. Give you a more visual perspective and show real life people that are doing it. Good luck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $410,000
Sale price: $590,000

Identified with strong potential for appreciation over a short time by pushing rents ($3000 profit after mortgage paid). After rents were pushed, building appreciated from $410,000 to $590,000 in two years. Sold and reinvested (reinvesting still) capital.

@Marco Egurvide

Haha, I can assure you they're legit! My advice though, make sure you read through reviews thoroughly and measure the dimensions of what you're purchasing. They also have a pretty good refund/return policy as well! 

@Mary Ciccarelli

As you stated, everywhere will be different based on property size and type of furniture. For a 2 bedroom, 1 bath (823 sq) apartment, it cost me a total of 5K for all supplies to get it up and running (2 beds, 2 mattresses, TV, couch, etc). I started a business account (discounts!) with Wayfair and that's where the majority of the things came from. Hope this helps! 

@AJ Satcher

I would say first figure out a strategy and then lay out the right foundation. Based on your circumstances, you're definitely eligible to complete a BRRRR. If you go to a hard-money lender for example, you can put 20% down as a first-time investor and complete a fully funded rehab. Once your rehab is done, you can refinance the deal and take the initial downpayment amount out and maybe even some more if you got the equity (point of a BRRRR). Best part? You can do it again and it doesn't affect DTI because the properties can be purchased under an LLC (not on personal credit).

Hopefully, this was helpful. There are numerous ways you can go around initial limitations. 

@Najeeb Mohammed Welcome Najeeb! I currently invest and work in the real estate market all over Chicago! Always happy to provide insights and connect!