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IWP!, flagship product is Chicago's premiere real estate Investment
magazine. Entitled Invest With Passion!, it is the tool for investors and professionals in the
Mid-West. The publication seeks to grow it's market share by providing
powerful information designed to build the reader both as an investor and a
person.
Since it's release in January of 2006, the magazine has been well received and
continues to gain momentum and support. The education, information, and
networking opportunities for the real estate investor has been long neglected.
No More!
The time is now and the momentum is building.
It's Happening!
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REHABBER’S CORNER
DONE EATING ELEPHANTS
A Kinder, Gentler Rehabber Emerges
By Scott Rubin
They say tough times call for
tough people. I just finished gutting a one and a half story home in
Chicago's Lincoln Square. We tore off the roof and added a full second
story and a 2-story addition with a basement. I love the planning, the
process and the progress. It's a lot of work, a lot of time and a lot of
money. I love the challenges.
In a time when selling homes is
often like selling ice to Eskimos, most offers are coming with a string of
contingencies. For instance, the buyer must sell their house first but
the buyers buyer has to sell their house first and so on - it is time for
this rehabber to learn some new tricks. Setting aside a business model
that I was passionate about and understood for something that I really
don't have experience with has caused me a great deal of stress and as
much as I don't like to admit - FEAR!
I have been stuck in this rehab
loop for so long now with big, elephant-size projects that I have had
little experience applying my creative acquisition and exit strategies
(i.e. lease options, subject too, rentals, etc). Having spent many tens of
thousands of dollars on my real estate investing education, some wise
person - my mentor, or possibly a Buddhist monk - would say “the knowledge
is inside you - you must apply it.”
Attempting to do this alone, as I
have frequently done in my rehabbing past, would bring up many confidence
issues or lack of confidence issues. The knowledge is inside of me. The
experience is not. Knowing I don't have to do this alone, I am joint
venturing with a couple of investors who can help me take that leap of
faith. I will get back to basics in the rehabbing. For now, no more gut
rehabs, additions and removing load bearing walls. I will be doing some
kitchens and bathroom replacements for lease options and more cosmetic
rehabs to prepare properties for rentals. My fellow Chicago investor and
friend, Rob Barron, would say “make it livable and watertight”. Walking
through several of his rentals I saw firsthand what that meant. He is a
pro at that.
For all of us rehabbers out there,
it's important for us to remember, or better yet, believe that we are real
estate investors first and rehabbers second. Rehabbing for an investor is
really just a means to an end. It is what allows an investor to take a
property they acquired and apply an exit strategy. As a developer, I
created unique homes that emanate quality, sophistication and are
“Allergen Reduced”. I had one exit strategy in mind - retailing to the 5
Star Property luxury home buyers. This was a great exit strategy for a
developer, but not for a real estate investor.
During times like these where this
economic climate is difficult for builders and developers - being an
educated, experienced real estate investor would have put me at the top of
my game. In the IWP! issues ahead, I will share with you my experiences as
I transition from developer/rehabber to investor/rehabber.
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Scott Rubin is an active investor
and founder of 5 Star Property Solutions, Inc., 5 Star Reconstruction,
Inc. and Allergen Reduced Homes, Inc. For more information, he can be
reached at 847-579-4830 or visit him on the web at www.a5starProperty.com. |
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