Ep. 23: How to Invest in a Suburban Market with Ben Walhood

Ben Walhood is the President of the Chicago Area REIA, the largest non-profit real estate organization in Illinois. He is also an investor operating predominantly in the western suburbs of Chicago. He fixes-and-rents residential properties in working class neighborhoods. He has been interviewed by CNBC and the Chicago Tribune, and he has been a featured guest on the BiggerPockets, Freedom Real Estate Investing, and Best Ever Real Estate podcasts. Today he shares how he navigates the western suburbs and has found his niche along I-355. Key Market Insights House hacked his first place in college, 3 bed, 2 bath for $150k Invested in Maywood as his first deal Was a neurosurgeon sales specialists before becoming a full-time investor From a small town in north Dakota, downtown Chicago was a foreign thing for Ben Looks for working class neighborhoods (looking for hvac, ladders Uses the 1% rule 33,000 a year, $1,000, 100,000 Target areas: Interstate 355 – straight west of Chicago, north and south 10 miles; Bloomingdale, Wheaton, Liles, Darion, Bolingbrook, Western Corridor Avoids Cook County due to the tenant-friendly laws; first tenant did not pay rent for 9 months Like diversification of markets in western suburbs Elmhurst is popular right now for new construction, Bolingbrook has cooled off, but saw a strong resurgence after the recession Chicago Area REIA (CAREIA) is one of the few non-profit REIAs and is volunteer run Watch rents to see where demand is headed Focus on return on equity, not just cash on cash Finishing up a 6-unit in Bloomingdale, with the BRRR model Bull’s Eye Tips: Winning Your Market: Know your market – know sales, rents Tracking Market Changes: Boots on the ground, attending meetings Daily Habit: Write out goals daily on white board Resources: Best Business Books: Tools for Titans by Tim Ferris Digital Resources Google Hangout Monthly Email Updates   Tweet This: "Focus with a product or geography helps you avoid the shiny object syndrome" "If I have a property in a village that is blowing up, I can sell, if not I can hold for rentals" Places to Grab a Bite: Mariano’s – https://www.marianos.com/   Connect with Ben: LinkedIn - https://www.linkedin.com/in/ben-walhood-a84b8bb/ Webpage - http://www.goapexrenovations.com/ Leave us a review and rating and be sure to check out more info at TargetMarketInsights.com.