All Forum Posts by: Wendell De Guzman

JT, I agree with Joe Delia: Stewart Title is good. I have used them in a lot of deals when I was in Cincinnati.

Henry Kicera, what funding do you need? PM for details. I might know someone who might be able to help you.

Corinne Faivre, the highest loan modification we were able to do is 60% reduction in principal balance. This case you mentioned is tough.

One thing you can do is let the property go to HOA foreclosure and bid on it and get the property in the HOA auction. You will get a Certificate of Title. You can then fight the 1st mortgage holder. (I am assuming though you are not the owner and you are helping the owner...if you are the owner, then you need a different set of strategies. Also, it depends on your objectives for this property: do you want to keep it, sell it or just walk away from it without a deficiency judgment)

Dylan Gelbard, regardless of what is owed, if it's already foreclosed and therefore owned by the bank, you can make an offer BELOW what the loan balance was.

K. Marie Poe, I like your approach and I learned something new here today. Thanks! I will start implementing that with my shortsales from now on. My question there though is: can the lien holders come after you now that you are the new owner (because you have the deed)?

Can Jeff Lee utilize your technique? If so, what are the watchouts other than the lien holders coming after you?

John, I agree with Adrian Tilley. Use the non-foreclosure comps and the value of the property will be between $105K to $110k. Sounds like an awesome deal.

What is your plan? Buy-fix-hold or buy-fix-resell?

You can ask him the following:

Accounting
- what is your bookkeeping software?
- how do you store & track receipts?
- how do you track income and expenses? show me your record-keeping
- how do you invoice/bill tenants, contractors, vendors, etc.

Leasing
- what is your average leasing period
- what marketing do you use to fill up vacancies
- how many showings do you do every week per property
- what is your screening criteria
- what is your script when talking with prospective tenants over the phone
- how do you show a vacant unit
- how do you do a criminal background check
- do you check the applicant's credit history
- how do you verify employment
- how do you verify landlord/rental history

Eviction
- what is the eviction process in the counties where your properties are at
- when do you issue a late notice
- how do you talk with a tenant who has not paid the rent
- who is the eviction attorney he uses? why?
- do you listen to the tenant's sad stories or excuses and work a payment plan or arrangement or do you issue the late notice immediately and start the eviction process

Rent Collection
- how do you collect the rent
- how do you track late fees
- do you bill or invoice the tenant for their upcoming rent
- do you accept cash as rents

Repairs and maintenance
- how do you pay your contractors
- what is an emergency repair item to you
- how do you respond to repairs and maintenance requests
- do you keep a repair log? can I see your record?
- do you keep a maintenance log? can i see your record?
- how much does it cost to repair a broken pipe
- how do you unclog a toilet
- what is the usual cost of a unit turnover
- how do you discipline contractors so they do not overcharge you
- can i see a copy of your contracts with contractors
- when do you use licensed, bonded and insured contractors vs handymen

Tenant Relations
- how do you talk to a tenant who is late on the rent
- give me an example of a long-term tenant
- how do you respond to an angry tenant on the phone or in-person
- how do you keep good tenants from renewing their lease with you

Adam,

1) Based on your office building, the location & market list the potential tenants who will love your office building.
2) Seek out through LinkedIn people who work for those prospective tenants
3) Connect with those people and ask them if they want a newly renovated office space in Chicago
4) Email them with a professional looking package that sells the merit of your office building

e.g., say one of the tenants you identify is Procter & Gamble
Use linkedin to search for P&G people who work in their commercial real estate department (or people in charge of looking for office space)

Go for median price for your area. Target homes built at least 20 years ago and older.

Median price range equals most number of buyers for your rehabber and therefore, most rehabbers focus on the median prices.

Built 20 years ago or older means houses need repairs or renovation - ideal homes to wholesale.

Dan,

The formula that most investors use is:
Max offer = 65% x Market Value - Repairs
Max Offer = .65*$90K - $20K
max Offer = $38.5K
I would offer $25K as a starting offer.

I'm also in Chicago. Prices are still low here and it's one of the top 10 emerging markets in the US. But Californians...please do not invest here and drive up our prices, OK? (just kidding)

On a more serious note, before you buy here, check with the locals first (including me) so we can tell you which areas are good and which areas to watch out for.