John Casmon

From Condos to Multifamily Apartments with Shawn Good, Episode 160

Shawn Good is a second generation attorney in Palatine, IL, just outside of Chicago. He started practicing real estate litigation when a real estate broker in his building needed an attorney. He works with investors to protect them and close deals.

As an investor, Shawn owned two condos before exchanging them for an 8-unit building in Lake County. He shares how he transitioned from owning a condo to commercial multifamily, pitfalls of investing in condos and his plans to continue to grow.

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Key Insights

Started practicing real estate litigation because there was a real estate broker in their building who needed an attorney.
Owned two condos, sold and 1031 exchanged into an 8 unit
Things to monitor when buying a condo as an investment: bylaws, on-site management, budgets, reserves, association dues paid, meeting minutes, 22.1 disclosure (in IL)
Bought an 8-unit in unincorporated Lake County
Property was his friend’s grandmother’s property
Unincorporated = county oversees local municipalities instead of city/township
Signs new leases at his attorney’s office – adds more professionalism and sets the tone to build rapport
Biggest difference on commercial property vs. condo – managing logistics, landscape, snow removal, trash removal, rekeying, etc.
Operations for the 8-unit are exceeding rent projections
Make sure you have a skilled underwriter when reviewing multifamily deals

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Bull’s Eye Tips:

Most Recommended Book:

The Snowball: Warren Buffet and the Business of Life by Alice Schroeder

Most Recommended Digital/Mobile Resource:

Google Docs

Daily Habit:

Getting the Right Amount of Sleep

Apparent Failure:

Saw his health issues as a failure, but it provided gratitude and purpose

Wish I Knew When I Was Starting Out

That multifamily is an option