Archive for the ‘Condo Investments’ Category

Investing in Chicago Condos

Friday, July 10th, 2009

To say the least the economic news has not been the best in the last several months but sometimes we forget to notice some of the more encouraging trends that may be underway and why it may be the time for investing in Chicago condos.  That does not mean that we should minimize some of the sobering national economic news with consumer confidence down and the psychological worries about rising unemployment.  There are some genuinely positive developments with all this news.

Housing affordability has been the best in decades.  In many real estate markets around the country as well as the Chicago local market more households are now able to afford a median priced home than any time since 1970.  Most of this is due to an increase in household income and the continued decline in prices of homes being sold.  Right now most economists agree that the inventory of unsold condos is a huge obstacle, but inventories have been steadily declining over the last several months, which mean we are selling off the excess supply of homes.  Selling off the excess inventory will stabilize the market which bodes well for the economy in general.  When the economy is good and consumer confidence is high investing in Chicago condos may be the best in decades.

Another recent positive development which hopes to draw even more people to purchase a home or condo is Congress’s new $8000 non-repayable tax credit making investing in Chicago condos even more attractive.  This is available to anyone who has not owned a primary residence during the past three years.  The credit is equal to 10 per cent of the home’s purchase price up to a maximum of $8000.  You need to act now since it is available only for homes purchased on or before January 1, 2009 and before November 30, 2009.

The Chicago local market is poised for a small rebound in 2009 but then start a steady climb toward improvement in the years following.  The housing market has long been an indicator of economic boom or bust and today’s market is no different.  The housing market has always run in cycles, some short and some longer but there is always a rebound and this cycle is no different than those in the past.   There will not be as quick a recovery we have seen in past troubled economic times but the kind of steady growth expected will be what is needed to sustain a long term housing recovery.

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Investing in Chicago Condos

Saturday, May 30th, 2009

To say the least the economic news has not been the best in the last several months but sometimes we forget to notice some of the more encouraging trends that may be underway and why it may be the time for investing in Chicago condos.  That does not mean that we should minimize some of the sobering national economic news with consumer confidence down and the psychological worries about rising unemployment.  There are some genuinely positive developments with all this news.

Housing affordability has been the best in decades.  In many real estate markets around the country as well as the Chicago local market more households are now able to afford a median priced home than any time since 1970.  Most of this is due to an increase in household income and the continued decline in prices of homes being sold.  Right now most economists agree that the inventory of unsold condos is a huge obstacle, but inventories have been steadily declining over the last several months, which mean we are selling off the excess supply of homes.  Selling off the excess inventory will stabilize the market which bodes well for the economy in general.  When the economy is good and consumer confidence is high investing in Chicago condos may be the best in decades.

Another recent positive development which hopes to draw even more people to purchase a home or condo is Congress’s new $8000 non-repayable tax credit making investing in Chicago condos even more attractive.  This is available to anyone who has not owned a primary residence during the past three years.  The credit is equal to 10 per cent of the home’s purchase price up to a maximum of $8000.  You need to act now since it is available only for homes purchased on or before January 1, 2009 and before December 1, 2009.

The Chicago local market is poised for a small rebound in 2009 but then start a steady climb toward improvement in the years following.  The housing market has long been an indicator of economic boom or bust and today’s market is no different.  The housing market has always run in cycles, some short and some longer but there is always a rebound and this cycle is no different than those in the past.   There will not be as quick a recovery we have seen in past troubled economic times but the kind of steady growth expected will be what is needed to sustain a long term housing recovery.

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Investing in Chicago Condos

Wednesday, May 20th, 2009

Investing in Chicago condos can be quite fun in today’s market. There are mainly three areas that the deals are coming from forcing a huge buyers market, probably one we’ll never quite see like this again.

The first area we see a lot of people investing in Chicago condos is the foreclosure condo market. There are a ton of Chicago condos being foreclosed on right now.  The number is up 50% from last year, which was up a 100% from 2007.  It’s absolutely crazy right now with the inventory of foreclosures.  This is to the point that banks are selling their product sometimes at twenty and thirty cents on a dollar just to get rid of their inventory.

Who wins?  Everybody.  The investors investing in Chicago condos, the banks because they no longer have to manage the condo inventory and the condo associations.  Condo associations are having to deal with the burden of coming up with the additional monthly payments of units that are foreclosed on.  It’s really a tough situation for a number of complexes right now.  Just imagine a 200 unit complex all paying condo association fees.  Now let’s say 20% of those units are being foreclosed on.  That’s 40 units.  If you think this number is too high, think again.  This is happening all over the place causing associations to have to find alternative ways to make ends meet.  Can you imagine an association fee of $175 per month being absent from the association budget?  Now consider 40 of them. That’s $7,000 a month or $84,000 a year.  No association can handle this.

When an investor comes along and buys up a foreclosed condo in Chicago, he not only gets a great deal but the condo association now has a paying member again.  Usually the new buyer will have to get the association payments up to date.  This is very common.  For instance, let’s say the guy that was foreclosed on owed $175 times twelve months. That’s $2100. If he was to buy the foreclosed condo from the bank at $55,000 they may make him pay an additional $2100 to bring up the association bill.  One way or another, the association has to be brought up to date.

Investing in Chicago condos is at a peak right now. The buying game is on with a lot of players in it.  It’s good to be in the real estate business right now.

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Housing Statistics in Real Estate

Saturday, May 9th, 2009

Housing statistics can be used for a number of purposes when you are buying or selling property. An experienced real estate agent can help you to interpret these statistics and assist you in comparing them. The statistics that are available cover a diverse range of topics that relate to housing. These statistics can help you in making important decisions regarding purchasing a residential property and they are a valuable tool if you are able to interpret them and use them to your advantage.

A real estate agent can furnish you with the housing statistics that you request and they can help you to interpret them. Depending upon which statistics you are looking at, it is always best to compare them to previous versions of the same statistics. Your realtor can inform you of any trends in comparing the data and help you to understand what it means directly in relation to your circumstance. You can use these statistics to help you decide upon a location to purchase property or in making improvements upon your existing residence.

You can search for useful information on a various range of subject matter. You can find out what the cost of living is in specific areas, housing statistics by region and structure type, and homes sold by region. You can also find reports detailing remodeling costs, and new housing characteristics and trends. This information may be helpful if you are selling your home and you want to make some improvements in order to increase its value and make sure that it is competitive with other properties for sale in your area. You can also take a look at the State of the Nation’s Housing, which is an annual publication that provides a housing market overview and general housing statistics including remodeling costs, which may be helpful if you are wavering between moving or renovating your current property.

There are also housing statistics that offer information on financing and mortgage information. You can find reports detailing mortgage delinquencies, foreclosure rates, purchase applications, and refinancing. This financial information is also important in helping you to decide upon a location to purchase. There are also producer price indexes which outline the costs of building materials. These housing statistics can be very helpful to both buyers and sellers and can assist them in making important decisions. A real estate agent can help you to interpret these statistics and make sure that you are using them to your advantage.

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Investing in Chicago Condos

Friday, May 8th, 2009

What a time be investing in Chicago condos.  I’ve really never seen such a frenzy of buying recently.  The deals are just crazy.  Foreclosures kicked this whole thing into gear and I don’t see getting out of this buying phase for another three to five years.

Investing in Chicago condos can be a ton of fun if you know what to look for. I’ve seen condo properties going for $10,000 that originally sold for $260,000.  Just take a moment to reread that last sentence.  It’s true.  There are condos today that can be picked up for literally $10,000.  It’s insane!  I really don’t see an end in sight right now based on all the foreclosed condos out there.  The more inventory a bank has, the more they’re discounting the condo product.

If you’re a Chicago condo investor looking for opportunity in today’s condo market, start by calling an OwnACondo.com Realtor.  They can help weed through all the inventory, to eventually funnel you to three-to-five of the top condos in Chicago to invest in.

Investing in Chicago condos starts with how to finance the condos.  You can search the Chicago MLS all you want, but in the end, you have to know what you can afford.  Typically,  a condo that you’re buying to live in will need a down payment of approximately five percent.  Not the same for a Chicago condo for investment.  Investing in condos is much different because a bank knows you’re more likely to walk away from a condo investment than your own condo you live in.  They make you put down much stronger of a down payment that the norm.  In a typical transaction involving condos that are used for investment purposes, the banks will normally require 20%-25% down.

Once you understand how much you need down and you’ve figured out the area you want to buy the investment condos in Chicago, the next step is how do you manage these investment condos.  Are you going to handle all the rental calls and maintenance calls?  Do you need help managing?  If so we can recommend an affiliate company of OwnACondo.com RE Management out of Oak Brook, Illinois.  They’ll handle all condos, whether it one or a thousand, they have the team to service it.

Investing in Chicago condos is absolutely gone nuts lately.  Now is the time to consider buying your dream condo!

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Condo Investing

Monday, November 3rd, 2008

Some people live their lives in the faraway, perfectly packaged land called history.

Others share the opinion of legendary Chicago Bears player and coach Mike Ditka, who once commented  “The past is for cowards and losers.”

We’d like to think there is neutral ground, a place where history’s experiences can be drawn upon to possibly help cope with the situations we face today. With that in mind,  check out this article recently posted on the Fox Business news website. It was written by the former chairman of a major investment firm. You might think he’s talking about today’s tough times, but the article dates from 1974!

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Condos and Billionaire Warren Buffet

Friday, May 9th, 2008

In our blog entry of Friday, April 18, we included an interesting quote by Warren Buffet about the potential benefits of being contrary to the market. When others are selling, he has found it’s a great strategy to buy. And it’s not just because he’s rich that he can do this. It’s likely that this type of thinking is how he became successful. 

Today Bill Dominick, one of our Condo Specialist Realtors, sent along an interesting e-mail containing a baker’s dozen of additional, interesting quotes from Mr. Buffet, who clearly knows a thing or two when it comes to investing and building wealth through real estate.  

We offer the following quotes strictly as food for thought. Warren Buffet is not offering investment advice to OwnACondo.com website readers, nor are we suggesting that anyone bet the farm on generalities posted here. Real estate investing, like swimming naked, is always done at your own risk. But that’s the legal disclaimer we are obligated to provide. If you’d like more information about purchasing a condo for your residence or investment in this current market, be sure to contact us at 866-696-2266.

Enjoy!

13 QUOTES FROM WARREN BUFFETT (TRANSLATED)

1. “Only when the tide goes out do you discover who’s been swimming naked.”

Translation: Keep plenty of tools (investing techniques) in your tool belt so that you can adapt to a changing market. What worked best in 2005 doesn’t work best in 2008. Today, we’re seeing first hand that those with only one investing strategy are taking a beating. 

2. “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” 

Translation: Today’s market fluctuations are your friend because they’ve scared off your competition … other investors. They’re also your friend because the fluctuations have caused there to be a flood of motivated sellers. And as any savvy investor knows, buying from motivated sellers is the only way to make it in this business.

3. “Our favorite holding period is forever.” 

Translation: To build true long-term wealth, you must buy and hold properties.

4. “Risk comes from not knowing what you’re doing.” 

Translation: Those who don’t know how to properly analyze, enter, and exit real estate transactions think today’s market is risky. Those who fully understand the intricacies of creative real estate investing continue to participate and profit.

5. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” 

Translation: Now’s the time to buy. In real estate and in life, it’s almost always best to act opposite to the crowd.

6. “Wide diversification is only required when investors do not understand what they are doing.” 

Translation: Naive real estate investors are putting their money into stocks, bonds, and savings accounts right now. Smart investors continue to invest in real estate, and they’re picking up more bargains than ever. 

7. “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” Translation: If you’re concerned that you cannot sell for full value, then buy lower – at about 60% of value – and sell lower –at about 90% of value.8. “We will reject interesting opportunities rather than over-leverage our balance sheet.” 

 

Translation: Sometimes the best real estate deals are the ones you don’t make.

9. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” 

Translation: If you’re going to hold a property long term, it’s far better to buy a wonderful house at a fair price than a dump at a bargain. 

10. “A public-opinion poll is no substitute for thought.” Translation: Most Americans think that now is a risky time to get into real estate investing. Do they know more than you? Most likely not. Only a handful of Americans know the specific techniques for profiting in today’s market. And that’s because they read blogs like this, they buy real estate investment courses, they attend their local investor meetings, etc. Most Americans get their “investing tips” from the daily media. There couldn’t be a worse source. Do you think journalists know how to wholesale houses, do short sales, take over a loan Subject 2, etc.? I think not. 11. “The most important quality for an investor is temperament, not intellect… You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

 

 Translation: Don’t worry what the masses are doing. Follow the advice of successful real estate investors, and use their techniques to profit in today’s market.

12. “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.” 

Translation: Every deal must work on paper before it will ever work in real life.

13. “I really like my life. I’ve arranged my life so that I can do what I want.” 

Translation: Remember, that’s what real estate investing is all about. Arranging your life so that you can do what you want to do when you want to do it.  

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Thinking Of Chicago Condo Investing?

Sunday, November 25th, 2007

You’ve probably heard the old saying: “The majority of America’s millionaires made their fortunes with real estate.”

Stock market tycoons and Internet Einsteins notwithstanding, real estate remains the primary investment of choice for longest-lasting wealth building.

And that’s whether you’re a Donald Trump-in-the-making or someone looking to help secure a future for yourself or your family.

Perhaps you’ve been thinking about a real estate investment but have your eye on the current market situation. Ups and downs are part of any market.

Or, perhaps you understand the cyclical nature of the market and are ready to take advantage of a buyer’s market and purchase an investment rental property, but are unsure of the responsibilities of being a landlord.

A Master Lease program available at three outstanding properties makes it easy.

Currently, at these very desirable properties, you can purchase a one- or two-bedroom condo (depending on location) with a standard down payment and make cash flow on that investment every single month for two years.

You’ll have no tenant worries of any kind. No notices. No repairs. No maintenance. No rent collections. No calls. If the tenant moves out, suddenly or scheduled, you’ll receive your full monthly amount, and the re-rental is handled for you.

Where can you find these outstanding investment opportunities? At three properties exclusively represented by OwnACondo.com: Darlington Court Condominiums in Crystal Lake, Illinois, Briarton Place Condominiums in Glen Ellyn, Illinois and West 55th Street Condominiums in Chicago.

Contact OwnACondo.com today at 866-696-2266 to get started!

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