Renting vs. Owning Condos - 07/31/08 08:42 AM
Although some renters believe that renting is "maintenance free," they are actually paying for maintenance in their rent - whether they need it or not.  Renting offers you no equity, no tax benefit, and no protection against regular rent increases.  If you're paying rent, you're really just paying someone else's mortgage.  Let's compare: In this example, it might still cost $300.00 more per month to live in a condo than to rent. But when you consider that property you OWN appreciates, but property you RENT doesn't, and when you consider how rents are likely to grow over time, we think you will … (0 comments)

EFFECTIVE Property Searching -- # 27 - 07/30/08 10:14 AM
Does this all sound a bit tricky? We think NOT - as long as you have the help of a good lender and a good realtor. And, as far as working with Chicagoland2to4Flats.info, we are pleased to tell you that all our services to you are FREE (we only get paid if you buy and then 100% of what we get paid comes from the seller)
On the other hand, while our services to you are free, we will ask that you HIRE US, meaning that you agree to work exclusively with us for your purchase (as opposed to having multiple … (0 comments)

EFFECTIVE Property Searching -- # 26 - 07/29/08 09:33 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
7e.  Overall, here's a standard to shoot for: if you do all the homework listed here and drive-by's, you shouldn't need to see the inside of more than 6-8 properties if going non-owner occupied or 10-12 if owner-occupied before putting an offer in.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 25 - 07/28/08 08:54 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
7d.  You should also be aware of what we call EXIT STRATEGY (which means to consider the time frame you will need to hold the property and the amount of work you will need to do in order to sell it for a profit).
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 24 - 07/26/08 07:07 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
7c.  If the existing listings don't fit the bill, then you must learn to play the new listing game. Here the rules are different: 1 in 5 new listings will be so hot it flies off the market, and so here it is the most AGILE investor who wins.
More hints on how to do this will follow.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 23 - 07/25/08 08:28 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
7b.  20% of the listings out there will probably be worth going to see-they are the wheat, not the chaff. Your goal must be to hone in on the 1 in 5 truly worth your (and our) time.
More hints on how to do this will follow.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 22 - 07/24/08 09:58 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
7a.  Go inside only those properties you think you might want to buy. The point is that you need to get quickly get to properties of highest potential-and not waste time on the rest.
Hints on how to do this will follow.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 21 - 07/23/08 09:19 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
6c.  In addition, using the Chicagoland2to4Flats.info Property Analysis Spreadsheet, you should conduct a careful financial analysis. Only by examining many listings will you get good at seeing which ones are the best.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 20 - 07/22/08 08:21 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
6b.  If you know a neighborhood and the market extremely well, this stage can be completed at home. But, for most investors, drive-by's are a key part of this step.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 19 - 07/21/08 09:23 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
6a.  Now you're ready to go see listings. But, before you ask for any showings, your job is to rule out 80% of them.
Hints on how to do this are in following posts.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (2 comments)

EFFECTIVE Property Searching -- # 18 - 07/19/08 10:56 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
5.  Get pre-approved. We are pleased to have Guaranteed Rate, the Midwest's largest independent residential mortgage lender, as our lending partner. They have an expertise in the 2- to 4-flat market, a wide range of products, and an ability to help you intelligently pick the right loan. BRIAN WEIS is our contact; his direct phone is 773-290-0591.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 17 - 07/18/08 09:28 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
4b.  By the way, even Commercial property (5-units plus) generally only break even on a pre-tax basis (unless you put more than 20-25% down). In other words, even for larger property, it's not about short-term Pre-Tax Cash Flow; it's Tax Shelter and Price Appreciation.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (2 comments)

Sandburg Terrace, 25th floor view looking north - 07/18/08 09:24 AM

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EFFECTIVE Property Searching -- # 16 - 07/17/08 09:50 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
4a.  Establish realistic cash-flow expectations. Remember, unless you put a huge amount down, the PRE-TAX CASH FLOW is never large on a 2- to 4-flat. Probably the TAX SHELTER will please you more (your tax advisor can help you understand exactly what's involved). But even the post-tax net may not be that large. For most investors, it's the third factor - PRICE APPRECIATION versus the small amount invested - that ‘seals the deal.'
Visit our website to read more about Chicago multi-family … (0 comments)

EFFECTIVE Property Searching -- # 15 - 07/16/08 08:22 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3h.  In addition, we would point out that, especially if you choose 100% financing, you may be investing very little of your own cash into this purchase. The funds you might have invested are now available to help you take care of the building. And we can even help you get up to a 2% seller credit at closing to help you have the funds you need to manage the whole transaction.
Visit our website to read more about Chicago multi-family homes: … (0 comments)

EFFECTIVE Property Searching -- # 14 - 07/15/08 09:51 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3g.  Does this seem daunting? We can offer this hope: most investors view the first loan they take out as a temporary loan. That is, their intent is to refinance the property in as short as one year so as to let the building pay for its own updating.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 13 - 07/14/08 08:41 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3f.  Here is the last of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
And then there is the PORCH.' Virtually NO porch built before 2007 meets the new code-and there is no grandfather provision. The city can't ask EVERYONE to rebuild their porches-but they will be asking some to!
Visit our website to read more about Chicago multi-family homes: multi-units with two or more … (0 comments)

EFFECTIVE Property Searching -- # 12 - 07/12/08 11:19 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3e.  Here is more of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.  http://www.chicagoland2to4flats.info/
… (0 comments)

EFFECTIVE Property Searching -- # 11 - 07/11/08 11:24 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3d.  Here is more of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (2 comments)

EFFECTIVE Property Searching -- # 10 - 07/10/08 10:28 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3c.  Here is more of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (0 comments)

EFFECTIVE Property Searching -- # 9 - 07/09/08 09:55 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3b.  Here is more of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (0 comments)

EFFECTIVE Property Searching -- # 8 - 07/08/08 09:04 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3b.  Here's a the start of a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (0 comments)

EFFECTIVE Property Searching -- # 7 - 07/07/08 11:58 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
3a.  We will also want to help you clarify and set a focus on property condition:
[insert EFFECTIVE Property Searching 001]
 
We say "Little or No" work, but - trust us - few 2- to 4-flats in Chicago truly need NO work over the next several years. Here's a chart of typical costs (add the numbers and you'll find 50K on the light end, 100K in the middle, 150K at the high end):
Visit our website to read more about Chicago … (0 comments)

EFFECTIVE Property Searching -- # 6 - 07/05/08 11:35 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
2d.  If you see a rent amount listed but NO security deposit or lease term, then the rent may just be an estimate (often overestimated). For Section 8, we typically see 800-850 for a 5-2-1, 950-1000 for a 6-3-1, and around 1250 for a 8-4-2.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (0 comments)

EFFECTIVE Property Searching -- # 5 - 07/04/08 02:10 PM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
2c.  Be sure to watch for illegal units (e.g., 3 units described on a 2-flat listing sheet); you may still want to buy the property but we will never recommend renting anything illegal. (We think it often makes sense to duplex.)
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (2 comments)

EFFECTIVE Property Searching -- # 4 - 07/03/08 08:02 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
 2b.  ‘Mechanicals' (roof, heating, etc/) are the ‘bones' of the building. Unless a listing says ‘rehabbed' or specifies what is new/newer, you should assume OLD mechanicals (it won't say "old roof," but if it says nothing, the roof is probably very old).
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (4 comments)

EFFECTIVE Property Searching -- # 3 - 07/02/08 08:03 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
We will help you learn to intelligently read listing sheets. Here are some clues:
2a.  What's the difference between ‘new', ‘newer', and ‘updated'? ‘Newer' and ‘updated' are NOT new! A newer kitchen may be 7-10 years old! Rehabbed' or ‘Gut rehab' may be misused, but should mean all is new.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
… (0 comments)

EFFECTIVE Property Searching -- # 2 - 07/01/08 11:12 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
1.  First, analyze and compare all neighborhoods of interest. Under Sales/Demographics at our website, we provide 10 years of price appreciation data and detailed maps of each of the 77 areas you can print. The "60% more detail" tab will let you register for our exclusive private client reports. And the Chicagoland2to4Flats.info ‘Magic Map' property search will let you quickly overview many areas-to SEE what different areas offer.
When all is said and done and you know several neighborhoods to investigate, ask … (0 comments)

 

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