I have been a Real Estate Investor at PGN4 for almost 13 years. Both at PGN4 and as a member of our local Real Estate Investment Network (REIN) here in Cook County, IL, I have had the chance to compare experiences with other investors. In reflecting on some of the experiences I have had that reinforced my decision to become a real estate investor, my experience with Kia, a landlord from Elmwood Park, IL often comes up. That particular experience always reminds me that I, and my team, really can make a positive difference in the lives of property owners.
Kia’s Struggle
When Kia contacted us at PGN4, her first words to me were, “My life is falling apart!” She explained that she owned five rental properties in Elmwood Park. She was also working as the property manager for all five properties, and none of her renters were paying on time.
Between the time required to contact the renters over and over again about late payments, check on and try to complete needed repairs – of which there were many, and keep current with all the paperwork, Kia had no time left over for anything else. She felt like everything was spiraling out of control and had no idea how to stop it.
She said she had found us on a web search and had seen that we buy houses for cash in just about any condition. She was a bit skeptical that we would buy her properties in their current condition because some of her renters had caused damage that she just couldn’t afford to repair properly. Kia told us she was just “over it” and wanted to see if there was any way to get out of her situation quickly and with enough money to start over on a different path.
The Process
We scheduled an appointment with Kia to meet with us the following week at our office to discuss her options. After our conversation, it was clear that Kia was in over her head and just wanted to be rid of most of her properties. She tearfully told us she had inherited the properties from her uncle and had originally thought it would be a great source of income for her, but it had not been at all what she had expected. She told us she felt like she could handle one of the rentals, which would provide some income for her, but did not want to deal with more than one.
Kia had already notified her tenants that she would not be renewing their rental contracts, and they were nearing the end of the allotted time to move out of the properties. Three of the renters had already moved out but had left the properties filthy. One had even left broken furniture and other items behind, which Kia had not been able to clear out yet.
We then scheduled a time to inspect the properties and met again to share our inspection results with her. We reassured her that we would even take care of cleaning and clearing everything out of the properties. The property Kia decided to keep and continue renting required quite a few repairs, but they were not significant or overly expensive. With the money from our purchase of the other properties, she could hire the right professionals to make the necessary repairs. We provided additional information to her on some helpful resources she could access that could make managing even one rental property more successful.
Kia confirmed her decision to sell the remaining four properties and officially accepted our offer for those properties. Because we fund our purchases ourselves rather than through a bank or other mortgage lender, we were able to have the money to Kia within 3 weeks. The day she received payment, she was in tears again – this time tears of relief. That was the day I knew that my team and I could make a difference and help people through their ugliest situations.
After the Purchase.
After completing the purchase of the four rental properties from Kia, we began the process of clearing, cleaning and, making repairs. This part of the process took several weeks but would have taken much longer if we had not had our network of experts to call upon. Our general contractor kept things moving at a consistent pace and all repairs and remodeling were expertly completed.
People began contacting us on two of the properties before they were even ready to be listed. They saw the signs we had posted at the homes and called to get details. Because we were contacted during the process of remodeling the homes, the soon-to-be-new-owners were even able to choose the colors for the interior paint and were ready to close on the properties as soon everything was completed.
We decided to keep one of the homes as a rental property since it was located near the college campus where demand for housing was always high. The timing was perfect. We were able to complete renovations two months before classes started back up at the college, and within just weeks of being listed for rent, it was filled.
The fourth house required the most extensive renovation and took much longer to complete. The entire kitchen and bath had to be torn out and flooring repaired in those two rooms and the bedroom because of water damage from leaking pipes. But within 8 months of our purchase from Kia, it too was ready to list and sold within 60 days after listing.
Being a Real Estate Investor
Yes, I became a real estate investor to make a living – -a good one. And yes, we made a profit on the sales and rental of the homes we purchased from Kia. And yes, Kia also benefitted in a significant way – and not just monetarily. She received a fair price for the properties taking into account the cost of the clean-up and repair that would be necessary before the homes could be occupied again. But we were also able to help Kia get out from under an enormous burden – one she no longer wanted to shoulder. And that is a huge part of why I do what I do – everyone walks away a winner. Everyone benefits.
