When brokers start telling you to look off-market for deals, you know it’s a hot market. But that’s exactly where Sean Morrissey is finding opportunities and advising clients to do the same. Sean runs a premiere property management firm in the western suburbs of Chicago. He has managed over 200+ properties and holds multiple accreditations from the Institute of Real Estate Management and the National Association of Realtors. On today’s episode, he shares why it’s important to understand the local legislation for rentals and why Chicagoland is still a good investment location.
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Key Market Insights
- Purchased first property in Hanover Park in 2003
- Owns a real estate brokerage in Aurora
- Got license to get access to MLS, not necessarily to become a broker
- Focus primarily with investors in the Western Suburbs
- Investing Boundaries: 294 Expressway (east), Dekalb (west), Algonquin (north), Joliet (south)
- Many villages require you to have an agent/manager if you live 30 miles outside of the village
- Aurora has a rental registration and requires an inspection that is stricter than housing authority
- Schaumburg, Streamwood, Naperville and others have restrictions
- Cities in Arizona and other markets have similar registration requirements
- Call the village and understand the rules of engagement
- Aurora requires multifamily rental registration as well – 8 or more units is $400 for the year, they need to get in 25% of the units
- Chicago is centrally-located; Illinois has more railroad tracks than any other state
- Chicago is considerably favorable for yield investing, compared to other markets
- Be sensitive to the compression and focus on the long-term yield
- Out of market investors still need to visit assets they are acquiring
- Best Cash-Flowing Suburbs: Aurora, Elgin, Joliet – all old manufacturing towns on the Fox River
Be sure to check out the #InvestThis Podcast with Scott Bower
Bull’s Eye Tips:
Winning Your Market: Focus on off-market deals
Tracking Market Changes: Crain’s, Mortgage Market Minute (Time on Market and Close Dates)
Daily Habit: Waking up at 5:30am
Resources:
Best Business Books:
The Value of Debt by Thomas J Anderson
Digital Resources
Tweet This:
“Call the village and understand the rules of engagement”
“Get clarity on your vision when working with an agent”
Places to Grab a Bite:
Connect with Sean:
Biggerpockets https://www.biggerpockets.com/users/seanrmorrissey
Website: https://chicago-realty-group.com/
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