Profit From Rentals
ProfitFromRentals.com, LLC (PFR) was founded in 2010 with the intention to purchase distressed residential real estate, rehab, lease, and subsequently sell turnkey cash flow properties worldwide. PFR has an A+ rating with the BBB since 2015 and is nationally recognized as a top 10% real estate turnkey cash flow company in the United States having successfully acquired and/or managed over 1,000 residences and continues to expand into diversified and profitable business opportunities the newest venture called the Cash Flow Investors Series (CFI).
Currently the founder of PFR Justin Ericsson in partnership with Willem Young have created several acquisition funds that are actively sourcing and underwriting undervalued and/or distressed real estate to acquire, rehab and sell or hold for significant profits. We are seeking new capital in the form of high yield debt to continue to grow acquire and rehab additional properties to meet our growing in house buyer demand as well as market demand. Our focus is three markets. The A, B and C market as described below under Chicago Market Overview.
Cash Flow Investors has recently been granted access to purchase properties directly from the National Community Stabilization Trust via Cook County and are purchased off-market. This Stabilization Trust was established to allow select buyers off-market access to Fannie, Freddie, HUD and other large banks participating in the program. Cash Flow Investors is one of only a few for-profit companies with access to this channel of properties in Chicago.
In addition, our long lasting relationships with banking institutions across the United States, trustee buyers, national REO organizations and short sale experts, are instrumental in providing PFR a consistent flow of properties that fit the time tested specific criteria of our business model when being considered for purchase. During the acquisition phase, PFR utilizes its own proprietary due diligence software and methodology, enabling the analysis of many assets quickly and efficiently, thus getting a leg up on the competition.
This venture will benefit from having an in-house construction company with over 50M in construction experience. This Construction company, PFR Construction LLC is a licensed construction company in good standing employing all trades in house. This as well as a proprietary pricing matrix and software to manage the jobs allows for excellent quality, timely and on budget work.
PFR is widely recognized as the largest 2-Flat investment company in Chicago which presents numerous opportunities to acquire substantially discounted properties on a weekly basis. PFR has purchased and rehabbed hundreds of buildings and has connected with thousands of real estate professionals across Chicago including many local and national banking institutions. This depth, breadth and dominance in PFR’s micro-communities allows for quick and decisive action to acquire investments that generate exceptional profits. Additionally, PFR has formed long lasting relationships with localized niche lenders that allows for creative financing solutions not readily available to the investor market. Combining these strategic elements is the key competitive advantage for CFI.
About ProfitFromRentals.com (CFI’s Marketing Brand)
ProfitFromRentals.com (PFR) provides turnkey multi-unit properties to passive investors seeking above average cash flow. We pride ourselves in identifying homes in opportune neighborhoods and renovating them to maximize marketability while minimizing ongoing maintenance expenses. Our approach allows us to attract more responsible tenants, resulting in reduced turnover. Our professional property management and tenant management services result in a seamless process from purchase through the holding period.
Our long lasting relationships with banking institutions across the United States, trustee buyers, national REO organizations and short sale experts, are instrumental in providing PFR a consistent flow of properties that fit the time tested specific criteria of our business model when being considered for purchase. During the acquisition phase, PFR utilizes its own proprietary due diligence software, enabling the analysis of many assets quickly and efficiently, thus getting a leg up on the competition. This software was contracted to financial service institutions allowing them to evaluate property values for over 98,000 properties during the last eight years.
At PFR, our mission is to rehabilitate and revitalize Chicago neighborhoods, while at the same time providing stable turnkey investments for our investors and property owners. Our value proposition is that by being highly selective and disciplined in our approach, we provide greater cash-flow than that of comparable priced real estate investments in other markets. Currently PFR owns or actively manages over $44,000,000.00 in cash flow properties and has sold or brokered over $31,000,000.00 in the last 36 months.
CHICAGO MARKET OVERVIEW
Chicago was recently named the most profitable large markets for house flipping by Realtytrac within the past 12 months.
Chicago is world famous and the third largest metro area in the United States with the fourth most economically powerful city in the world with over $460 billion in output. The second largest Section 8 housing program (Chicago Housing Authority) services Chicago and over 55% of all residents rent versus buy compared to 35% in most major cities. The rents relative to the purchase price of the homes are very high relative to other areas of the country making Chicago the top choice for rental investments. Savvy investors are swooping into many of the largest and most internationally recognized cities such as Chicago to buy rental properties therefore prices have started to rise quickly as more institutional players enter the marketplace.
Currently CFI buys properties in three location classifications and two asset types. The three location classifications are defined as
1) Chicago’s North Shore suburbs which are A+ locations such as Glenview, Northbrook, Skokie, Niles, and Morton Grove. These communities contain higher priced homes in the range of $200,000 to $400,000 single family homes which are predominately affluent white neighborhoods with excellent school systems. PFR over time has realized new investors seeking investment properties out of state want a choice of different investment locations that produce high, medium or low rental yields. The lower rental yield investments typically have the high appreciation potential. The North Shore suburbs offer lower rental income but higher appreciation potential therefore CFI will acquire approximately 10% in these Class A locations in Chicago’s North Suburbs.
2) Chicago’s South Suburban markets are B+ locations such as Country Club Hills, Hazel Crest, South Holland, Lansing, and Olympia Fields. These communities are lowered price homes compared to the North Shore homes with prices ranging from $85,000 to $250,000 and are predominately single family homes with a mix of black, hispanic, and white neighborhoods. The crime rates and schools are better than Chicago’ inner city therefore investors are attracted to these communities offering lower priced homes, higher rental yields, and better neighborhoods. The average investment property in the South Suburbs will generate to CFI’s end buyers 15%+ cash-on-cash returns therefore CFI will acquire approximately 50% in Class B South Suburb locations.
3) Chicago’s south side metropolitan market is CFI’s primary investment location offering B- and C+ communities such as Auburn Gresham, Washington Heights, Chatham, South Shore, and Bronzeville. These locations are directly south of downtown Chicago and offer high yield cash flow which is achieved primarily with 2 to 4 unit apartment buildings. PFR has sold 100’s of buildings in these locations over the last six years with sales prices ranging from $150,000 to $330,000 for the larger apartment buildings. The average investment property in the Chicago’s south side will generate to CFI’s end buyers 19%+ cash-on-cash returns therefore CFI will acquire approximately 40% in Class C+ locations.
Director of Construction