All Forum Posts by: Tyion Bridgeman

I don't think wholesaling is unethical. I just think wholesalers add very little value, usually don't know anything, and inflate the cost of real estate.

I have to agree with the general consensus here about Dolton. How close are you trying to be to Chicago. I’m a broker in the college town of Bloomington-Normal and I would love to discuss why I think it’s an ideal rental location with you.

You can’t ask the current owner how much they pay for insurance?

It seems like wholesaling as a licensed real estate agent is essentially a net sale which is illegal for a broker to do in most states. I would talk to your local board to make sure it wouldn't put you in danger of losing your license. 

Here's one thing I recommend instead of lowering the cost. Offer a 1k extra buyer  agent incentive if the home is sold in the next 14 days. It will work trust me. The buyers agents will do all the selling for you and it will be cheaper than a 5-10k price reduction.

Hey Naeem, 

I know I'm in the minority here, but I don't believe you should shy away from these neighborhoods at all. The cash flow in the areas you describe can be immense and there are many ways to mitigate the risk. For one, tenant screening will be very important to you. Take the time to make sure you are renting to qualified responsible tenants. There are definitely plenty out there. Secondly if you want to rid yourself of some of the hassle a trick I heard from a friend who was house hacking, is to not let the other tenant know you're the owner, You're just another tenant who the owner hires to fix things every now and then. Set up a payment system with a degree of separation and communicate through email. That will give you a little less hassle when you bump into them on the way to work in the morning. 

P.S you should skip the 2/3 flats and go straight to a fourplex. They still qualify for all SFH benefits and for a little more work you have 25% more ROI. Also the more doors you have the less any one thing going wrong affects your bottom line.

I'm bias, as I'm from the west side of Chicago myself. 

@Libby Baugher This is counter intuitive because I know rei even though I don't have my CCIM designation, searching for a realtor that has this designation is a sure way to ensure you get one that has a knowledge of real estate investing. 

@Jay Hinrichs I believe Scott Meyers is the Self Storage Expert you're referring to.

Your realtor will hate you if your out just making lowball offers every week. Not only will he hate you eventually he's going to stop returning your calls. Lowball offers just don't work. They antagonize the sellers so they are less receptive of any future offers and they hurt your agents reputation. Real estate is about relationships and reputations. Don't ruin yours with this.

@Guy Yoes

Yep, as long as you it in the lease you can have any rule you want, as long as said rule doesn't discriminate against a protected class. In your situation with no written lease it would be impossible to enforce any band of the sort.