Chase Foreclosure is a one stop shop program designed to serve all your needs as an investor. I went through two deals with Chase before deciding it's not worth the frustration. We were new at the real estate game but willing to learn fast and work hard.
I do not believe all the homes are foreclosures as I've seen some of their advertised homes on other sites that are not listed as foreclosures. The purchase process for both properties went smoothly enough but Chase charges 3% commission when you buy from them, therefore they don't gain anything by selling you a discounted property. You make the money when you buy a property, not sell it. The purchase price and ARV is solely based off their General Contractor's scope... and their list was never accurate. There will always be major items added on afterwards. There were many cut corners to make the ARV numbers look high but it might cost you more in the end to correct them. For both properties, major items were left off that should have brought the price of the home down.
The numbers of their advertised ARV and/or profits are inflated. Their profit estimate does not include closing costs, bills (gas, electric, water, insurance), maintenance (mowing & shoveling), and their highly recommended extra services such as staging (between $1,500-$3,000) and quality control ($450). I opted out of staging and quality control for both deals. Quality Control seemed rather unnecessary to me as I was able to personally visit the properties on a regular basis and had the time to speak directly with the general contractors. Any issues we had were mostly blamed on the fact that we chose not to use their quality control.
One of the major issues with the company is that between everyone involved, the investor is odd man out. There is no counsel. Everyone covers for each other but no one is looking out for your own interests. I did not trust that anyone had our best interest at heart. There is also a lack of communication between all the parties.
The cost of renovation for both homes were overpriced for the service we received. When I went through the final itemized list, there were items charged that were never done. For a 900 sq foot home w/ small attic, we were charged $5,000 for paint. We ended up not painting the attic space but the final price didn't drop. We were charged for a cleaning service that never happened and I had to clean up the place myself. There was paint splatter left on the new vinyl floors. With the second flip, the vinyl floors were installed incorrectly and they were already chipping. You are charged for yardwork when nothing noticeable is done, apart from the mulch which is a separate charge.
Going back to cut corners- The contractors try to work without permits as much as possible, with Chase's knowledge, permission, and direction. Inspectors from 2 different cities/properties caught the contractors working without permits. They try to persuade you that it will save you money but obviously the investor is the one who pays all city fees and penalties.
The photographs done for both homes were not up to par for the price I paid. The quality was poor and the angles should have been better thought out. I would have taken the pictures myself on my professional grade camera if I knew the results.
I'm the beginning I had decided to go with Chase because I liked his phrase, "Don't worry, I get you in and I will get you out." We only came on top with our first deal because I fought for myself and Chase decided to raise the price of the house for our troubles. My second deal was a total flop with out of pocket losses. (His numbers were bad- not only not made profit but also lobs a lot out of pocket) with the Chase group everyone make money except the investor.
I will never invest with
"Chase Foreclosure" or "Chase Real Estate" again and would not recommend getting involved with this group. You are much better off doing it on your own.
Here is the info of my last property I flip with Chase so you can see for how much it was reduced.
22150 Chappel Ave Sauk Village IL read more
