All Forum Posts by: Shannon Mogilinski

Jonathan, thanks for getting everyone to vent on this topic. It is a much-needed dose of reality. Investing is hard, a grind, and you can't quit your full-time job in two months. People sell hope--thus the lottery and I guess now REI. A realistic view of the markets and of those offering advice is really needed. So many experienced people jumped on this topic because it is troublesome how many are spending lots of dollars on the hope of REI without the realism of it.

Hi John--I'm in Kane, DuPage, Cook, McHenry counties...

Yes we use to do the same as Kevin w/Sherwin.  But I recently upgraded and used a local designer who has given me full sets of interior colors and exterior colors so we can properly design each home.  $1500 and now i am set with multiple color pallets.  Worth its weight in gold.

Anyone flipping or investing in the Chicago burbs, we have a small bigger pockets meet up coming up next Wednesday--reach out and I can give you details...

Remediate--you will have liability if you do not on the rent or resell.  Use Service Master or similar in your area.  They will give you the work list of what was completed, provide pictures, and usually offer a small warranty.  Also they can use a moisture meter on the outside of the drywall which is huge to understand the extent of what you are dealing with.

The GC in me can't help asking did you scope your sewer line?  Like $500 to do by me if not. Definitely I'd do it on this project and get the remediation before I sign.

One more thing, once you get the lawyer involved if needed--they are cheaper than you think for this--you can disengage with the tenant which is marvelous.  You are the power player so use your power to hire others to handle this. 

Hi Cherilyn--I have done this:  Face to face visit (hopefully you feel safe or take someone with--if not a call).  Honest conversation about them being able to afford the property and expressing it appears they are struggling.  Use the compassionate side (trust me I know this is super irritating).  Incentivism them to get out of the house--we have offered full deposit return (obviously that is done day they leave--draw it up if you need to so they are comfortable).  Other times we have hired and paid for the movers (careful here too).  I can tell you in 25 years I have had one eviction.  Pay them to get out--it will ALWAYS be cheaper than an eviction if needed.  INCENTIVISE their exit of the property.  At the same time, talk to multiple lawyers in your area--your area--that specialize in evictions and are in that court room ---your specific areas court room--all the time.  Pick one and get them involved NOW.  Interview a lawyer just like anyone else.  If you end up serving them on the eviction, offer a bonus to the server to get it done in 24 hrs so it gets done pronto--best of luck

Hi Riley--Thanks for the insights.  That is my world so where I am thinking to stick as well.  Did a bit of research this year on seasonality for our market which I believe will be helpful.  

Lawyer up--anything else is wasting time

Hi Shayan--Here is the thing...when flipping for me, the class of neighborhood, location of property in that neighborhood, and amount of renovations really matters.  I'm in Chicago burbs.  I only flip in A class hoods--low crime, great schools, desireable properties.  I do not buy the bi-level house on a busy street facing a factory!  I design the homes and build my budget with that in mind.  My ARVs are also reflective of those factors.  If you have not yet, try building your financial model with this in mind.  

Play with your numbers and see what a deal that works for you looks like. Worry less about the "rules" and the financing right now, and try running models that meet YOUR financial goal. It is ok to make $30K on a deal--just watch your risk. Have an exit strategy on the property--I sometimes do not because of the price of the project--but it pays to consider this for sure. Do the homework on a DSCR option as part of your original analysis.

Thats the other thing--yes you may carry more in costs, but your risk profile on an A class hood is much lower.  If you already do this, than like me, it is a lot of screening properties (40-65 per month at about 3-4 offers from that) and patience.

Watch the ARVs right now as a lot of us are in a declining market--do not rely on anyone else but yourself to really provide the ARV. If you can't see the ARVs--took me a year to really see--do more homework and watch the area you want to be in very closely. Track other flips in that area if there are any. My biggest two cents is no one should flip unless they are the best at estimating ARV in their room--better than the appraiser, agent, lender--when that happens, your deals will fall into line. Best of luck!!!