All Forum Posts by: Tom Shallcross

@Adam F. - feel free to reach out if you need local attorneys. I'm not sure of the exact dollar amount, but I believe if the grantee quick claims the deed for under that amount you avoid the transfer tax. So you quick claim it from your name to the LLC for $10 and avoid the transfer tax. We've done this multiple times and it should not be a costly endeavor.

Now the other consideration is your lender. You are technically going to be out of compliant with them. Many people do this and as long as they keep paying the lender nothing happens, but just understand your risks as they may be able to call the loan for whatever reason. Again I am not an attorney, but you should speak with one on this. 

No, it's episode 329. 

@Gary Stark - feel free to reach out. I also focus on the Northside and have used a decent amount of the local/regional banks here on commercial side.

@Daniel Cullen - we just recorded a Straight Up Chicago Investor Podcast with an investor who did his first househack in Blue Island. He does a good job laying out the pros/cons and issues he's had with the city. It will air October 10th. 

@Regina Bailey - agree with all the above and cash for keys, but you need to talk to her to make that happen so that's your only focus right now. Here are some options to try and get the line of communication going.

Simple enough, try calling her from other cell phones, not just yours. Leave a 5-day under the door along with a note stating you need an open line of communication to figure out a payment plan that works, or will be forced to start the eviction process. This won't count as serving her, but should hopefully get her attention and potentially get her to call back. As @John Warren mentioned, your lease should state you are allowed to enter the unit with 48hr notice so post the notice on the door, text and email so you have all documentation and then show up 48 hours later. Show up on Saturday, evening, whatever it takes, as the problem will only get worse with time. 

Getting the convo going has to be your top priority. Some tenants also just skip town so ensure she is actually living there. You can even leave the paper in the door jamb, if it's still there several days later it likely means no on has opened/closed that door. 

Once you do have communication lay it out very simply. "I understand you have some challenges, but I either need to get paid, or I'm fine with you just breaking the lease and leaving. If you are not going to do either of those, then I'm forced to go through the eviction route as you've left me no choice. I'm willing to work with you, what do you want to do?" Let her feel some percieved form of control and figure out your next move from there.

Don't start with a cash for keys offer. Hold it close to your chest for leverage and if she chooses the eviction route or fails to adhere to the payment plan offer it one time with a shot clock. 

"Listen if you're out by the end of the month, I'll forgive the debt and give you $x for moving expenses. One time deal and have to be out by that date. Let me know, otherwise we'll continue down the eviction path." Too many investors offer it up haphazardly and get taken advantage of. 

If you have to evict in Chicago, don't cut corners, and hire an attorney. 

@Diana Tran - @Mike Kehoe has had massive successful setting up systems to invest remotely. I'd look to hook up with him, and you can also hear a summary of it on episode 275 of the Straight Up Chicago Investor Podcast, I'll DM you the link. 

@Nilusha Jayasinghe - agreed with everything @Paul De Luca stated. One more item is the zoning variance in Chicago is no gimmie, and even if you do get it upzoned, it will take months to get it upzoned. From there you can submit plans/permits, and from there you can begin your rehab. So it's a long road before you have any income coming in from that garden and there is absolutely no guarantee it will ever even get upzoned. 

If you truly are dependent on legalizing the garden unit, there is a lot of risk involved in this equation. 

@Andrea Evans - Chicago is truly block by block, yet also has a population the size of Boston, Denver, Milwaukee and Nashville combined. Parlay those two facts along with the ins-and-outs of tenant-friendly RLTO, and you will need to fully commit to be successful. Scrolling through the MLS and using high-level rules of thumbs like the 1% rule or whatever won't do you any justice here. Thus lies the opportunity.

There are plenty of people doing fantastic things in Chicago and making a lot of money in the process here, but none of them are half-committed. 

@Martin Madelaire - as @John Warren mentioned, via Chicago's RLTO, oral agreements still need the same notification as written agreements. The other comments on this thread may be correct for their part of the country, but in Chicago, you need to abide by the RLTO which states  "(h) "Rental agreement" means all written or oral agreements embodying the terms and conditions concerning the use and occupancy of a dwelling unit by a tenant." 

Here is the city's page that outlines the RTLO, and has a link to the complete document: https://www.chicago.gov/city/en/depts/doh/provdrs/landlords/svcs/residential-landlord-and-tenant-ordinance.html. 

Get with a Chicago-based real estate attorney that understands the RTLO and see if you fall under any of the exclusions. Otherwise, follow the appropriate steps and likely work cash for keys in a parallel track. 

@Elmurat Bavlankulov - BP Events lists a good amount and as @John Warren mentioned we keep a running tally of events at the Straight Up Chicago Investor website. Feel free to DM me for additional info.