Q: | How do I get started on selecting a property?
Q: | Do I need to give Elite a prequalification letter?
A | Yes. We need to know that you can qualify. Any prequalification letter from a lender showing that you are qualified will suffice. If you are a cash buyer, we would need to see a copy of your most recent bank statement showing liquid funds in the amount equal to or greater than the property you are looking to purchase.
Q: | Can I use my own lender or do you have Preferred Lenders?
A | You are free to use your own lender, but we strongly encourage you to use our Preferred Lender. Our lenders specialize in working with investors and more importantly investors purchasing properties from Elite. The process is more efficient and our lender is more familiar with our business than any other lender. Using an out of state lender often times has challenges and creates delays during the closing process.
Q: | Can Elite help make property recommendations based on what my property preferences are?
A | Absolutely. The more we know about your goals and strategies, the more effective we can be in helping you select the best property for you.
Q: | What happens after my property is reserved?
A | Once your property is reserved, we gather your information and we issue a purchase contract. The purchase contract is a standard Illinois Association of Realtors contract. Once the contract is signed you will then send in your Earnest Money Deposit into our Attorney.
Q: | How long does the closing process take from the time I sign a contract until I own my property?
A | Depending on the status of construction when you first contract the property, this process could be as quick as 30 days if the property is rehabbed and ready, or it could take as long as 90-120 days if it is not. The typical time for a loan in today’s world is 30-45 days. So if the property is ready and you are using traditional financing then this would be most applicable to you. If you select a property that is still in construction and needs another 30-60 days to finish, then you would need to add that time to the 30-45 day loan time. Cash buyers can close as quick as 10-14 days.
Q: | Do I need to get a Property Inspection since your properties are already rehabbed?
A | This is your decision. We do a series of internal inspections to ensure all mechanical systems are working and the property is functioning correctly before tenants move in and/or the building is sold. Since we have to manage the property after we sell it, we are highly incentivized to make sure the building passes all inspections. We are perfectly fine with accommodating a property inspector that you choose and have several that we can recommend if need be.
Q: | Do I need to come to Chicago to view my property?
A | No. This is not necessary. More than 50% of our buyers purchase sight unseen. Given today’s technology and information on the internet you can find out mostly everything about your property utilizing technology. We are always welcoming and can accommodate you if you decide or wish to come to Chicago.
Q: | If I own properties in other states can I still buy from Elite?
A | Yes. There is no restriction to the amount of homes you can buy as long as you are qualified.
Q: | What is the industry standard down payment for an Elite property?
A | Single Family properties are 20% down and 2-4 units are 25% down. Most lenders require an additional 5% down once you own 4 properties.
Q: | How do Real Estate closings work in Chicago?
A | Illinois is an Attorney state, which mean that typically buyers and sellers each have their own attorney. Most of our out of state buyers do not hire an attorney and we set up the closing for them by using a mobile notary who come to their home, place of business and sign documents.
Q: | How much are my closing costs estimated to be an Elite Property?
A | The typical amount is 3% of the sales price.
Q: | Does my property come rented at the time of purchase?
A | Most likely it will not be rented at the time you close escrow. We sell most of our properties before the construction is completed and therefore it takes some time administratively to process, screen, approve and pass inspections. If the property isn’t rented within 60 days of closing the property, we start paying the expected NET rental income of each unit for any vacant units. This is VERY unlikely, but it is there for your protection.