Expected Air Date: 10/25/18
What a day! What a City! Chicago Illinois, the third largest city in America and as you are going to hear in a few moments, the nation’s leader in Pumpkin Spice Lattes! Today we are going to focus on Chicago. We are going to speak with a leading realtor and a couple of leaders from the investor community there. And as a bonus, our bumper music is the big band song “Chicago” performed by the band named Chicago. Did you know they put out an entire Big Band album a few years ago? They surely did. It was their 18th studio album, released in 1995 and although I’m a fan of Chicago already, is one of the best things they ever did. But I digress…
Let’s visit Chicago…
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Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.
- FlipStarter Nov 2-3, Atlanta, GA
- Lunch with me every Wednesday.
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Topic: Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
email@example.com Tell us where you’re from!
- Curtis, Murphy, NC, “I have a neighbor who inherited his mom’s house over in Franklin. He doesn’t have the time or money to fix it up. He says it’s not bad, but his mom lived alone the past 15 years and there are several minor things that need to be fixed. He just wants it gone – he doesn’t want to rent it out and every month the payment just comes out of the estate. The loan balance is a little more than $83,000. It’s probably worth about $110,000. This seemed like a great opportunity until I listened to a few of your shows and learned some things about the numbers. Do you have any suggestions? I’ve been wanting to do a deal, but just don’t know what can be done here. (We asked offline and the payments are $476 PITI and the fair market rent is $750. The repairs to rent ready condition are estimated at $6500. Also ten years left on loan).
- Jessica, Boulder, CO, “I’m having a hard time getting my contractor to listen to me. I think it’s because I’m young and female. I can’t do anything about that. But what can I do to make him do things the way I want?”
Motivational Thoughts for the day
- It’s not about “perfect.” It’s about “effort.” And when you bring that effort every day, transformation happens. That’s how change occurs. Jillian Michaels
[0:16] The show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you flipping America is sponsored in part by American IRA
founded by investors for investors on the web at American Ira. Com,
and by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital solutions.com,
and now you’re sad flipping America guy Rodger Blankenship.
[0:49] Thank you Cathy hello everyone we’ve got a special different show lined up for you today.
[1:18] We’re zooming in today on Chicago and Illinois.
We’ve got the coming up in a few minutes we’ve got Michael Rosenblum a top realtor in the Chicago market and following that interview with him.
What we seek speaking with Phil Elms from urban rehabber urban rehabber. Com and then we wrap up with George kid is who is the president of the Illinois Real Estate Investors Association,
we are also next week going to bring onto the show Jane Garvey but we just needed to give her a little bit more time she is one of the,
founding mothers of real estate investing in the entire state of Illinois and in Chicago,
she was leaving a ria before they were called Ria’s and she will be joining us on a future show so we’re just going to focus on this area in the Midwest and see what’s going on.
And what will get that in just a moment but first we got some announcements and we got some news announcements announcements,
put starter is coming to Atlanta Georgia November 2nd and 3rd this is our event that is designed to help you get started in The Fix and Flip business.
[2:23] It’s your opportunity to come and learn from me the flipping America guy and one of the unique things about what we do is I guess I’m a national person now but I am maybe the only National person who personally attends all of his teaching events
you’re not going to hear some hard gun you’re going to hear me so we start on Friday November 2nd at 5 and we go to 7 and then,
Saturday from 9 to 5 you have the opportunity to do a VIP dinner with me on Friday evening it’s going to be 10 solid hours devoted to helping you start your own Fix and Flip business now look,
we don’t encourage everyone to just drop what you’re doing and start flipping houses like you see on TV but a lot of people want to know how to do it.
And if you want to know how to do it we want to teach it with integrity and so come learn from the guy that’s done it 800 times that would be me.
[3:10] And let me help you get started in your very own fixing for a business I’m still saying don’t drop what you’re doing don’t quit your day job but we’ve got a path and we can show you the path.
To starting a new career owning your own business and building personal wealth and a legacy if that’s what you want to do.
The sign up head on over to flipping America network.com right when you get to the main page there’s a link at the top of the page that can take you to the payment we may be running a special kind of running them in and out,
I think that we’re about done with the special so you need to get in there now I probably was 1 weeks ago it goes to full price and everybody has to pay full price and it’s worth it at full price but if you can get it on sale why not.
So flipping America network.com if you want to find us on social media look at facebook.com flipping America media
on Twitter and Instagram at flipping America also we’re on YouTube Ron LinkedIn we’re on Google Plus we’re on Hell’s were on Pinterest where on well who knows what all we’re on we’re on everything and
some of you don’t do the social-media thing that’s alright with us and some of you don’t even want to email some people like to call that’s okay we love,
hearing from you so feel free to call us with your message or your question call this number 404.
[4:32] 369-1018 extension 1 is the national comment line and we welcome your calls and your comments.
[4:42] All right what other announcement I want to share with you we have lunch every Wednesday and we always have a good time and and here lately what
we’ve been more than filling up the room which is a good problem to have. I think last Wednesday by the time we got finished we had 35 or 40 people there and the room was Jam full and it was great and there were deals going back and forth
properties being bought and properties being sold properties being analyzed connections being made
and it’s just a beautiful thing that’s on Wednesdays at the Huey luey’s in Sandy Springs Georgia on Roswell Road if you’re in town visiting and you come in from out of town and you tell me you heard about this on the show and you just wanted to come to lunch
your lunch at Huey Lewis is on me okay,
glad to see you’re always glad to have people from out of town stopping by to have lunch with us the there’s no speaker or agenda the agenda is set by the questions that come with the people who are sitting around the table.
Okay let’s take a minute,
I think we got a minute and let’s do the news all right you know it’s that time of the year it’s that time.
When our country is reinvented as it is every year at this time by pumpkin spice lattes.
[6:05] That’s right the pumpkin spice latte is back and it’s all over this country and they’re being served up everywhere and I’ve got to be honest with you folks I’m not much of a coffee drinker still hoping for the Mountain Dew endorsement
I just don’t drink coffee and I’ve never tried a pumpkin spice latte so I can’t speak to you from experience but I do.
I want to give you this is one of the it more interesting top 10 lists I’ve seen these are the 10 best cities for pumpkin spice lattes.
You ready for this and you know when I look one of these top 10 list you know me I always want to get to the methodology behind it okay they have a methodology wasn’t just random selection and here it is they look for the number of coffee shops in each City.
[6:55] The online searches and hashtags for each City the average Yelp rating of all the coffee shops within the same city and the City
walk score because nothing says fall like a crisp walk with a pumpkin spice latte in hand so with that being said
coming from the Redfin real estate blog here ladies and gentlemen are the top 10 cities to find a pumpkin spice latte in the United States and number one,
and the sky were doing it today number one is Chicago Illinois it is the number one,
place to get a pumpkin spice latte according to the Redfin.
[7:36] Dot-com blog and the notable pumpkin lattes in Chicago or at osmium Coffee Bar Cafe integral La colombe a Soul Cafe hope all these places
in any of these cities number two,
is Seattle Washington number 3 New York New York number for Denver Colorado number 5 Boston Mass
number 6 Portland Oregon number 7 Louisville Kentucky of all places my hometown number 8 San Francisco California number 9 Minneapolis Minnesota number 10
Dallas Texas I guess you can’t get a top 10 pumpkin spice latte in Atlanta Georgia and you know what.
I am really okay with that because I don’t know what all the buzz is about that I know that they the pumpkin spice latte or the PSL is a big thing and here’s another thing that kind of intrigue me.
[8:34] Can you imagine how many coffee shops are in Chicago Illinois.
[8:39] That number is 583 and we really blew my mind is in New York 869.
How many coffee shops do you need and okay I can understand it is a convenience thing you want to stop at the convenient place and get a cup of coffee but I wonder,
how can that many coffee stores sell enough coffee just to stay in business and then after I wonder about that for about 1 and 1/2 seconds I realized oh that’s why coffee cost $7 a cup,
I get it because they want to keep the doors open of course.
[9:20] Also in the news and this isn’t the real happy thing but people are continuing to recover and dig out from Hurricane Michael folks let’s not forget you know the news headlines turns to other things almost right away after one of these disasters but,
we’ve had two major hurricanes hit the United States this year and people are still recovering still rebuilding and still digging out and,
I know a lot of you are riding in and are wondering,
unfortunately some of your not wondering what you can do to help your wondering what you can do to profit and I’m not going to say shame on you or anything like that but at the same time,
we’re not going to spend a whole lot of time talking about how to profiteer from these natural disasters there plenty of people who have that figured out in there already there,
but what I do want to say is I want to encourage all of you my dear friends and listeners to.
Just keep the the people in the coastal regions of Carolina and in North Florida there keep them in your prayers they have a lot
a lot of work and rebuilding ahead of them and if you choose to approach this process with integrity and can find yourself in a position to
rebuild and help with the rebuilding process and even if that means you make a little money in the process then more power to you I just don’t like the predatory type stuff that I’m seeing and we’re not going to,
do anything to encourage that here at flipping America.
[10:44] Another request we here at flipping America are interested in testing all of the apps that are available for use for Real Estate Investors.
So if you would be kind enough to do this please email or call and give us a list of the apps that you use absent maybe in the App Store maybe web-based apps
apps that you used to develop property values we know that this is an ongoing challenge for non Realtors
to find the values and even if you are a realtor and have access to your local MLS if you’re looking at
investing in properties in another city or a different MLS then now you’re a little bit at a disadvantage so we like to know what you use in your business how do you make your business work
and probably were going to do another technology show and then.
[11:32] We are also thinking about continuing we had a lot of fun putting together today show on Chicago and we’ve got some ideas about how to improve on that format if you would like to hear about a particular City,
where do we go next we want to hear from you I’ll listeners so right or call,
and tell us what you’re using for apps in your real estate business and also let us know where you would like for us to explore next.
You can write to us and we just write two questions at flipping America network.com,
that’s questions of flipping America network.com now we’re sitting on a few questions right now I know we are going to get to them and we will do another show next week with nothing but questions
or maybe later on this week I don’t really know but
sooner or later we will get back to your questions and we kind of save them up and group them around topic sometimes but we answer every question that comes into the show
always have always will and so keep the questions coming and let us know what you think we’re going to talk about Chicago.
[12:52] Have you ever seen one of those Fix and Flip TV shows and thought to yourself I could do that or even better I’d like to do that.
But there has to be a way to get started that’s what we will do for you at flip starter what starter is our 8-hour course designed to give you all the information you need in order to get started in the business of fixing and flipping houses on Roger Blankenship,
the flipping America guy who is fixed and flipped more than 800 properties over the years.
I will share with you the tools I developed for use in my own business the strategies the management techniques and the systems are used to build a business that was flipping a hundred properties for year.
What would it feel like if you could quit your job and not only work for yourself but own a business that will ultimately provide you with more income and more free time.
[13:38] My goal is to train the next generation of real estate Millionaires and I want you to be one of them.
Find out more at flip starter event.com call Bennett and I attended Roger Blankenship split starter in April of 2018.
I thought it was amazing I put pages and pages of notes.
And I just want to recommend that you go to it because in my opinion the information that he gets on contractors alone makes it worth the price but that’s not the only thing that he talks about I highly recommend that you give to his foot starter it’s worth every.
[14:25] Michael Rosenblum welcome to the show I am thrilled to be here how are you I’m great man how are you doing in Chicago.
[14:33] No complaints the weather is fair and all is good except for the market right now,
yeah for those who are listening you can’t see what I’m seeing but dude you’re sitting there with a sweater on so it’s already sweater sweater weather in Chicago right.
[14:49] Yes but it’s not creepy weather where we got to get the heavy down coats out in the boots yet just a light sweater or a sweater is absolutely perfect all right
well I’ve already introduced you you know the audience knows you’re one of the top realtors in Chicagoland tell us a little bit about real estate in Chicago what’s going on there what’s happening with your mark.
Well our Market actually has been declining since Q3 of 2016 if you’re a seller our prices have been coming down,
and our inventory levels have been swelling down in the city so I work primarily downtown Chicago and the surrounding neighborhood.
I don’t go out to the suburbs so my discussion is specifically with you on the city cuz you know it’s interesting when the news gets out there and start saying yeah the whole Market is down well
boulware I mean not every neighborhood is down in the city.
You’re not every suburban area but as a whole the market has been sliding and we do see that over 2 million dollar,
that the over 2 million dollar category is definitely slow and stale,
and it’s crickets to get showings just like the marketing that we keep doing would you call it the luxury Market.
Absolutely in Atlanta Georgia where the show originates the luxury Market starts at about 750,000.
[16:15] Right where the third largest city
what’s interesting where the third largest city in the United States and yet our pricing is more reflective of is if we’re the 6th or 7th Market cuz you think about New York Los Angeles Boston San Francisco
DC Metro those are more expensive cities to buy in then Chicago.
Washington DC is in DC a little more expensive than Chicago to in Miami Beach.
[16:46] Absolutely we could keep going so you’re pushing us down the list so we’re actually a very inexpensive City,
being the third largest city of Chicago is constrained on the east by Lake Michigan but really there’s room for expansion out to the west and I guess the server was saved have been growing out there 400 years and they continue to
push out right do they.
[17:10] Without question I remember going to college in the 80s and Naperville is just a small town it is explosive it is like one of the most sought-after suburbs because of all the programs for,
kids in the families and whatnot but even Chicago has had its Renaissance since
the second Mayor Daley was in office I mean tremendous building started
in and around 1998-99 the whole creation of what was once known as Cabrini-Green in downtown Chicago where they filmed the TV show Good Times if you remember times.
[17:48] Also for the younger people they might think we’re ancient saying that but that was an area that
actually started in 1942 as part of the u.s. turbine and renewal act it was subsidized housing of housing for people that worked along
worked in the factories along the river and subsequently then they started to put up additional housing and everything started to transition and,
you found that it became more of a low-income but subsequently where I’m going with this point is that
they decided to go ahead and take this tract of land that just
was completely but it up to the most expensive area of neighborhoods of the city and and begin to transform it and in that transformation which really started in 98.
[18:43] They created this area called River North
which is deemed the River Gold Coast and it is populated with just grade A fluency now,
and it has homes that are more expensive than what you can find in the Gold Coast which for the longest time was sort of you know
DDD luxury area of downtown Chicago,
so it’s interesting the convergence of what’s occurred in the last 20 years in Chicago
what’s going on with high-rise Construction in in residential condos and apartment buildings being built,
resting because we’re at a standstill even with the residential and everything new in gleaming and and she can gold in they their sales are definitely down.
And that’s just across the city based on this whole luxury Market we don’t have many high-rises downtown that are going up where we got that $500,000 price point,
basically what we’re getting is we’re getting.
That million plus because what they’re doing is they’re building larger Apartments like for instance in River North which is maybe 15 blocks off Michigan Avenue.
[20:03] Which I’m sure you’re familiar with and dad of course is the main shopping Avenue Global Brands whatnot.
You basically have families that have not wanted to go to the suburbs they want to raise their kids in the city it’s actually located in a great Public School District and so you see three four
bedroom homes with family rooms going up in these apartment buildings so they are condos when I’m using the word home I mean condos
but their large condominiums or apartments and that’s where the change has occurred
downtown it will be interesting to see what happens in 2019 because all the inventory that’s not moving right now,
downtown is going to swell into our market for the spring of next year which actually begins around the third week of January.
[20:59] And you’re probably thinking who shops in the winter,
everyone shops after the holidays cuz and you’re smiling because January and February people are looking then no contract in March till close 60 days later they want to be in for the warm weather.
Right foot let’s talk about this little bit because I get a lot of questions here into the show about seasonal decisions with regard to real estate investing.
And so tell me you know what I tell people is that the market Isabel curvy peaks in the summertime and it goes down in the winter but now here in the South anyway,
we use experience our experiences between Thanksgiving and Christmas we can sell houses because families are moving but what’s it like up there.
It mean oh I guess in the Frozen North.
[21:46] Enterprise in North well first of all we’re definitely not living in igloos but here’s the great thing you know this city has so much to offer but we actually see two markets
our Market actually Begins the third week in January and it goes till the end of May and that is when more transactions occur in downtown Chicago than any other time of year okay that’s good
yeah very interesting now you’re going to be surprised
right around Father’s Day it slows down and it stays slow in the city with transactions until about Labor Day.
Which you would think in the summer when it’s warm everyone would be out shopping no but they’re doing everything else then.
Right after Labor Day we became what we call our fall market and it usually goes until around Thanksgiving.
December and the first few weeks of January our slow time because you know of all the different holidays that are observed by different denominations and what not but that’s kind of how our Market works now
the suburbs are a little different I’m talking primarily about the city cuz they’re busy in the summer for people that are relocating
which respect to starting schools and stuff and you would think that in the city 2 but
you know that Mark it’s a little different but this is the primary market so when people say when is the best time to sell a home in downtown Chicago,
it’s any time between listing the third week of January.
[23:14] And it rides through till the end of May you know we always say real estate is local and this isn’t it,
perfect illustration of the need to get connected with a local realtor who can tell you the market so if you’re an investor and you’re going to spend a couple of months rehabbing a house you need to be buying that house in the fall,
so you can be ready to go to market in January.
[23:36] Correct and I have a few clients that are doing that right now they’re actually renovating properties in luxury buildings and they’ll be ready for sale
the beginning of March which is perfect for the season okay you know life is more than real estate Michael I really appreciate your time today and I know you got to get on to some things but.
You are the author of a book not about real estate but about something else entirely tell us about your book.
Okay well the book is entitled happily ever always and.
It’s the way we all should live so I suppose how apropos for a real estate broker to write it.
[24:14] It’s been marinating in me for many many years and the book is actually about helping people live in a mindset of Happiness not misery because I believe that everyone deserves to live happily.
Always and this whole idea of happily ever after is sort of policy cuz if you think of the word after.
It’s sort of ends where always is endless,
what’s interesting about my book and what makes it different and why it hit number one in the spirituality category on Amazon and number 9 in the category of job hunting on Amazon is because,
actually prompts the reader to answer questions at the end of various chapters which allows them to awaken their own minds and become self-reflective so in essence they become their own book.
[25:08] And it’s just been incredible I’m humbled by the amount of attention that it’s getting it’s a dynamic read although I
probably say that cuz I’m the offer but the author but I keep touching it up myself I think I’ve read it probably a hundred times wow okay well,
alright so besides going to Amazon and looking for your book Michael Rosenblum happily ever always where else could people go to find out more about you.
They can go to the website happily ever always.com and as we were discussing
you know being one of the top 30 brokers in the city of Chicago and doing over a thousand transactions and 400 million in sales as an individual it’s it’s wonderful to be able to help.
With the knowledge that I’ve acquired over many years other that was a plug I suppose but it’s okay hell I’m humbled by it
I’m humbled that my business is actually very much referral-based that’s good and it’s investors in Chicago you welcome working with investors right.
[26:20] Positively I’m working with two now that I told you that are renovating condos and luxury buildings in getting ready to go to market.
March 1st myself.
Alright good so investors in Chicago you can contact Michael to talk about representing you in the city and also
pick up a copy of his book happily ever always Michael Rosenblum thank you so much for joining us today on Flipping America.
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[27:41] Larry Lucas and I’m a student in Rogers.
Mentor program and I’m happy to say I’m working on my very first house we see this house gilding.
[27:56] Maybe $70,000 in profit but flipping America mentoring program is the only one that includes.
Financing your debts so the mentoring program does exactly what.
The contracts to do Rodger and Andrew the other fellows in the team Tony have been super in providing oversight and guidance flipping America.
Has been the.
Vehicle that is allowing me to achieve my dreams and become a real estate investor.
[28:48] And we’re back on Rodger Blankenship Philip Elms is going to join us in just a minute he’s the founder of urban rehabber that’s Urban rehabber. Com he’s been in Chicago a long time and it’s been teaching real estate investing and doing real estate investing for,
a long long time great experience great wisdom this is Phillip Elms coming up Bill Allen’s walking to the show.
It’s like a Rodger glad to be here man we are glad to have you were talking Chicago today and you are with the urban rehabbers that may not get the name right I’m sorry I should have Urban rehabber.
Astro Sign up ahead and go ahead and Google that you found it at 20 years ago tell us a little bit about what it is you do.
[29:34] I start out in real estate.
I did my first rehab in 1973 just to give you an idea okay love you in a while and backgrounds.
That better be the current century I was try my hand at wholesale.
Sean Peter houses to the great unwashed but they would invariably would come back or two months later 3 months later pretty much on their knees having been stripped very nickel live.
Owning an uninhabitable house and wondering what to do next so I started holding a monthly Saturday morning meetings.
What should I was in a couple months to retrieve lost going to check on a life of their own as a coaching program and I continued with an order.
Well the deal was I won’t sell your house if you don’t participate in the country I mean why I just invite people to get into trouble because.
And those days I was nearly 20 years ago the majority of houses we were doing or board us they’re pretty rough.
[30:52] And a new one of these lovely Suburban split Ranch as you see on cable television these days.
Handsome young women with sick words that their side we are. We’re down the neighborhood.
And Circo pretty comprehensive repair and fix up.
That was sort of thing that these folks simply knew nothing about and I’ve been doing it for a while so we end up going to problem-solving and also kind of advice on financing.
Marketing in old Russian.
Bernard pretty quick and I was teaching courses in seminars at their request and then write down to write down to the summer at which point I started started to segue into.
I’m producing my first video now which was going to take these classes I’ve been teaching.
[31:50] Criminal video format which hopefully will go very far field I know all of your listeners would be greatly,
I’m sure we would yeah and in a few minutes I’m going to have you give us information on how we can get there I’m sure we can find it Urban rehabber. Com but now you’re talking about,
you’re teaching people how to rehab houses but you preferred still even though you were the teacher in the master at this you still prefer to just wholesale the house to them.
Well I didn’t I did that quite happily write down until the great surprise of 2000.
Late 2007/2008 life which point of the idiots are out their bidding against me starting to take their houses that I was
comfortably buying for $40,000 and they were building it up to 45 then 50 and 55 than 60 and Lord knows who song it to him because my marching band,
I’m not sure that they had a margin left when I’m done with that purchase either I dropped out
with my own rehabbing and the continue teaching my classes
okay so you do you teach rehabbing I am assuming that you’re going to cover the hiring and supervising in the firing of contractors and some things about three having process.
[33:16] I got my real estate broker’s license in about.
1972 or so after broker and a developer new construction major rehabs and so forth.
All right down to write down 1995 to 2001 I took on a giant killer project for stripping down
trying to regroup regroup small-scale rehab for my own purposes and then founded
goodbye students and other people participate in the program a billion dollars worth of neighborhood revitalization
Southwest side of Chicago nice okay what I was getting at with a question though was it it sounds like you teach,
entire warp and woof of fixing a flipping houses not just the rehab part you teach.
Why you being so nosey Shirley in recent years I’ve been emphasizing in this applies to your.
Flippers you are probably doing mostly cosmetic work that decision to go into this business.
[34:32] As you’re not here in Chicago on site to call themselves investors even though perhaps their intent might be to flip houses right on that they made a decision.
To go into the marketing business and the housing a little houses are simply their products.
Which I don’t get and most folks don’t get it they just figure they go out there and find a house and they fix it up and buy George and cute little,
real estate agent down around the corners going to sell it for him lickety-split going to make all this money you’re going to go out and do it again well it might work in some markets sure doesn’t work in Chicago you got to be.
You got to have your own marketing program if you conscientiously invest in Pursuit and maintain that will be the life of your business.
very good yes and we have a little fun here on the show you know the show is called flipping America I made my bones flipping hundreds and hundreds of houses Georgia over the last night
the song I Don’t Know.
[35:39] I don’t think I’m people about the choice of words that they use for the time we all realize here that what you really,
and if you’re flipping houses is you own a very profitable of lucrative business.
You’re not really an investor until you’re involved in passive income but that’s good to know that you teach the entire process you teach people then how to how to.
Basically find them fixing fundament flipping.
[36:04] Oh I like that can I borrow that you can yes you can have that Welch give me an idea,
I highly recommend this whole first of all.
[36:24] Hopefully you have some understanding of what your marketing program might be about because I think they have to start that marketing program the day they decide to go in the business very good.
I will get a telephone call Phil I’m so excited I just finished my first house you know anybody who wants to buy a house
cancel it was at that point
so they missed that somewhere in the preparation and then your face goes blank,
she won’t watch a bunch of about sexually so I suggest you them,
none of my inventions Business outline of a business plan is almost all over the world and I got a friend you should be a big 8 accounting firm.
[37:21] Adapter to use for my real estate activities start.
Chicago blind you shoot a walk through and think through the whole process.
Visualizing how their first years got to go and plugging some numbers in solving some problems up front before they ever hit the bricks.
So there we go on you working with contractors the surprises that you get there you never the marketing of course of the class of its own right real estate dealing.
[37:57] Is that is really an important part of Illinois if you go to get Contract rights on the house.
all you have to do is go out and find a house tell your investor to go look at the house that they like it buy it and then maybe Papa a thousand dollars on the side.
Next to the dumpster behind belly against against the law in Illinois.
What you can sell his contract rights and so there’s and then that has a limited range of documents,
Oregon Illinois each incident is worth it is worth to find $25,000,
what kind of spoil your whole day yeah you don’t really want to be practicing real estate without a license if that’s what you’re doing in some states that is a felony.
[38:57] That well I don’t know why but they sure like those,
she knows a lot of time talking about the goofy stuff that goes on and under the guise of real estate investing but I really want to talk to you about Chicago what’s happening there in your hometown.
I guess it’s going down well interesting RC cars Chicago.
For one thing we we hit the skids after other parts of the country East Coast West Coast Southwest so bored.
that’s the point where we had 10,000 properties at any point in time Chicago.
There wasn’t all over for Real Estate that maybe this is the best buying opportunity they would have in their life.
Some folks found $10,000 that we were half asleep and 35 to 45 for.
8 months before going in.
[40:21] Relate to relate going out their neighborhoods in Chicago probably never felt the recession.
And I’m going to let you my call Gold Coast near Gold Coast neighborhoods and upper scale suburbs right.
The inner city.
[40:40] I mean Westside and Southside.
And that’s kind of a another good reason to think seriously about it because there’s no shortage.
And are subsidized housing in Chicago.
Which is guaranteed.
And that’s a wonderful opportunity.
Why don’t you hold the property for a year or more.
[41:48] We did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[42:00] Peter Faulkner here I send it a one day flip starter training session led by Rock.
[42:08] Amazed to see what has happened in Rogers Live from the last $15 plus years.
[42:46] You never know what’s around the corner but you can be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living will
LegalShield is a prepaid legal service for individuals
businesses for a low monthly rates you get comprehensive legal coverage law firm of professionals with a variety of issues and provide advice whenever you need it.
Protect it for a number of legal issues and assistance with common legal need just go to Rodger b helps. Com right now to sign up that’s Rodger b.
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[43:52] I’m Rodger Blankenship and we’re back I teach people how to make money in real estate the shows flipping America in my guest right now during this segment is Phil Elms with
urban rehabber urban rehabber. Com and he can teach you the entire process and he specializes in Chicago and Chicago area and hopefully as a result of this call maybe he’ll brought out a little bit and not
sure I hope to help that make that happen for you,
but I’m I’m just fascinated by the things that were talking about and I want to know talk to you a little bit about what’s going on in the market right there in Chicago metropolitan area
Neighborhood Center increasing in value on that neighborhood so maybe that’s why.
I think Chicago is more stable number still as I mentioned still coming out of a bit of a truck now the neighborhood is it got hit hardest.
It almost transferred,
you’re almost recovered the value that they had prior to the recession so Western complain about if you can buy it and fix it because you know how to do that.
[45:01] I mean it’s as good as leopard is you put your money on the table.
And by virtue of your entrepreneurial intervention you restored value which means there’s been a bump in.
The value of what you paid for it and what you put into it it may have occurred within 2 to 3 months.
And if you could do that let’s talk when I get well I love you go to it I don’t know where else you where else you can get there.
[45:37] Quick bump in value inn by dealing with the stress real estate and then that’s one good reason to love.
One of my little Rodger isms that we put out on social media from time to time is you can’t add value to your stock portfolio by adding a bathroom.
[45:54] I got better at borrow that one okay yeah you can man feel free to look what do you think is happening
you look into 2019 and you look at you know over the Metropolitan Chicago area what do you see for the market there and then I want to go back
I want to come back around to your mentoring program get people into it.
Sales have been turned sluggish in the last in the last 2 months and then like the pundits and seeing the stock market.
Anderson Noel now don’t you know folks worried about X-rays and they’re worried about the change of administration in Chicago.
Why are you might as well some of that might be true but we deal with such margins.
Who cares if the interest rate goes up tour for 6% becomes what 3 to 6 months.
And all it is is a premium over interest would be paying anyway to any hard money lender.
Maybe paying 69% to a hard money lender and the end of it so that goes to 12% well.
[47:20] I’m done that’s just being 3% more than maybe 1 or not to be.
That’s not going to bring you the bank and if you’re deaf.
[47:32] We think alike you and I I’m really glad we found you okay so people need to come and sign up to to take your mentoring course,
you just need to go to Urban rehabber. Com,
that’s Urban rehabber. Common sign up today Phil Elms thank you so much for taking time today to talk with us and inviting us a little bit about what you do and in the Chicago Market we really appreciate it.
Amanda I appreciate your work that you’re doing which of the Illinois Real Estate Investors Association
welcome to the show will thank you Rodger it’s a pleasure being here really appreciate you taking time to reschedule to be with us today we’re talking about,
the market in Illinois we’ve been talking about Chicago with some other people but let’s talk about southern Illinois right now the first smoke a little bit about who you are
budget first rental house in 1993 and you’ve been investing ever since and you founded the Illinois Real Estate Investors Association and over the years I assume you
gathered up a lot of information lot of experience and maybe made a mistake or two.
[48:42] If you want to hear about mistakes I’ll take the entire interview Greater St Louis area with real estate right now,
right now good deals are getting hard to find because a lot of people have been to the guru seminars.
And they’re paying way too much which is driving up the price cuz every time I’m a guru seminar comes through your town.
A lot of people go to those interviews and go to those programs and a lot of money and they spent all their money buying.
Courses and programs at the seminar so then they don’t have any money to work with so they tell him to go be wholesalers in contact your local Rita yeah.
Let’s talk about the real estate market so you there the market is tight there there are limited opportunities but there are still opportunities right.
Whenever a city comes in and decides that they’re going to have landlord licensing or.
Crime Free Housing the older landlords panic and sell.
Oh yeah because they weren’t best landlords and.
[50:04] That create opportunity to build wealth because when you get people that are scared of regulations scared of the government.
They selling you get a better deal.
[50:15] Okay yeah well you know there’s always opportunity right one of the things that we say on every shows keep your eyes open there’s opportunity everywhere.
And we’re also seeing out-of-state buyers snapping up property in Illinois.
Okay because if you live in California a 3-1 on a slabs worth 300,000.
Buy one here for 30 to 40 and put a couple bucks in it and get 700 and 800 a month rent or you can.
Yeah and you know we have a lot of listeners in California who right in with those same kinds of concerns and questions and I had a couple guys from Indianapolis on the show who sell TurnKey rentals to those California investor.
So we’re glad to make the connection form.
I’d be glad to help somebody out with that okay they needed it because I’m also an insurance agent I am sure those California,
okay is good that’s good to know now George you’ve also got a couple of courses that I want her listeners to hear about because you are a buy-and-hold guy and you’ve mastered some techniques hotels a little bit about your courses.
I wrote the ins-and-outs series of real estate investor so the ins-and-outs of tenant screening screening.
Starts with the application.
[51:40] That’s the first movie Addiction process a good application so we go from how to take a good application how to inspect how to.
[51:50] Process your resident before you spend any money.
[51:54] We also recommend rent perfect for a tenant screening because it’s a nationwide criminal history search and residence address and things of that nature.
So that’s the course that we talked about tenant screening then we have our leases were included in our ins and outs of Lisa’s is the black belt lease.
Can we teach you little tricks like number number one if you’re going to have an application that’s 20 pages long they will not show up without true.
If you have the shortest possible application at the open house for however you going to greet your future residents they will fill it out and give it to you.
[52:36] You can always go back with the 20-page question or later if you think they’re qualified.
Yeah alright so the last book is fiction which talks about.
25 day notice during a 10-day notice and it varies by state cuz some states your 3-day notices and then a 30 day notice how to properly deliver those notices and the steps of the eviction process.
They’re kind of generic through the state I mean they varies from Southern Illinois to Northern Illinois by.
[53:13] 180° sometimes so you got to be specific where you’re actually doing business right okay now how would our listeners access these books or courses send me an email.
Two Georges at IL REI a dot-com.
[53:36] And ask them to get information about them we can do it through PayPal over the phone no credit card.
Or they can go to our website become a member and then ask me more questions okay I already.
Alright so George just got a couple minutes left what do you think about the 2019 what do you see when you look in your little crystal ball about the market and what it holds opportunities for investors.
And the real estate market as a whole icy trickle-down prosperity.
[54:11] Okay all right now the jobs the economic growth were sitting across this country.
[54:18] Are not going to hit some of the hardest hit areas of the country weather at the st. Louis or downtown Chicago.
That’s going to trickle in that area is that they can charge it by and hold and help and when those people get on their feet have a place to sell them.
Whether it’s a lease option by the way your cat your captive so many a year with leap that lease options there’s some legislation now with the seller finance foolish and trying to get that cap raise the 20.
It was free and what if you’re in a position to make people home.
Or provide them housing as that trickle down economics prosperity it’s the inner cities you’re going to see massive profits.
[55:12] Do you see the demand in this in you know your Market there in Southern Illinois in St Louis to see the demand for Real Estate increasing saying same.
Slacking off currently losing residence based on two big issues.
The corruption in Chicago and the corruption in the state capital.
Driving a taxes we have an unfunded pension plan issue that’s going to Cripple the state financially.
[55:48] That’s going to bring down real estate prices for good homes that investors can snap up and rent to the people that can’t go.
It’s the upper echelons that are going to flee the state the people that are making the hundred thousand two hundred thousand a year,
law real estate taxes or personal taxes they can move to a state with no income tax which would be wonderful.
[56:15] They’re going to move out of Illinois and go to States for that is available but many people in the under $100,000 a year income chat.
Cannot afford to but they’re going to need good quality house certain areas in this country the housing sockets old it’s crumbling.
[56:35] In East st. Louis parts of Chicago.
[56:40] We actually have an entire County in Southern Illinois Alexander County that dude has some other issues doesn’t even have a grocery store have to drive out of their County to get to a grocery store.
What do Army Corps of Engineers dredging the Kaskaskia River the Missouri River and they’re going to be building a new Port Southern Illinois which is going to create jobs.
The two largest employers in the state of sin Southern Illinois or Scott Air Force Base and Southern Illinois University.
[57:11] As long as those to stay I don’t see any real change in the need for housing down.
[57:17] Okay so that they need for housing is going to be there but the inventory you think there’s going to be more inventory next year.
I think there’s going to be more inventory or lesser price and if we can stamp those up being a good position.
Rented Section 8 rent it on a private Market Reddit to special needs housing what do we have to do get it on it rented because if you’re not in that position you’re not Cash 4.
All right George Geddes with and your email is George
at-il REI a.com you can talk to George and get the books and the CDs from the man who knows the rental game like very few others George skittish thank you for joining us on the show today we appreciate it.
Rodger it’s been my pleasure but you know what that music means it means we’re at a time and we’ve had a lot of fun today talking about.
What’s going on in Chicago in Illinois and focusing in on an area and see what’s going on there.
If you have questions about real estates in two questions at flipping America network.com and will be back again in a couple of days folks until then.
Keep your eyes open.
[58:52] Jillian Michael said it’s not about perfect it’s about effort and when you bring that effort every day transformation happens that’s how change occurs.
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[59:31] You’ve been listening to flipping America real estate investing for everyone if you have any questions about real estate send them two questions at flipping America network.com,
listen three times a week on stations across the country or on the flipping America app free in the App Store,
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