advice: Buying older property—inspection issues with multi-unit homes - #2 - 09/13/08 02:11 AM
Especially with older homes or multi-units, you should expect that a good inspector may find a LONG LIST of repair issues. Some of those issues may be what we call MAJOR items, the rest a ‘laundry list' of items a handyman could repair.
Lists for Major Contractor jobs and Handyman jobs will appear in our next blogs.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Buying older property—inspection issues with multi-unit homes - #1 - 09/12/08 02:03 AM
For multi-units the work needed over 5-7 years is typically even more: 50K or less could be called LITTLE/NO work, 100K SOME work, and 150K GUT REHAB. For condo's and town homes, many times the repair list is much smaller, but now even that is changing. In some sections of the city the earliest condos or town homes were first sold 15 years ago or more-and now or over the next few years will need major renovation (new kitchens, baths, flooring, heat, etc.).
See future blogs for more information.
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advice: Buying older property—inspection issues with single-family homes - 09/11/08 04:55 AM
For older single-family homes in the city, we typically find the range of work needed over the next 5-7 years runs on a range of: 50K on the light end, 75K in the middle, 100K PLUS at the high end:
 
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Credit History: its impact is now includes INSURANCE -- #4 - 09/10/08 04:11 AM
Recommendations:
Do a credit check on yourself once per year to stay on top of your credit scores and take the appropriate steps to improve your credit history and lower your homeowner's insurance rates.  The three major credit bureaus who can provide you with information on your credit history are:
•1.      Equifax  (www.equifax.com)
•2.      TransUnion  (www.tuc.com)
•3.      Experian  (www.experian.com)
 
I can also set up a free consultation for you with my preferred lender to evaluate whether re-financing is also an option.
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advice: Credit History: its impact is now includes INSURANCE -- #3 - 09/09/08 02:50 AM
If you need to repair your credit, keep in mind that:
•·        You are not alone.
•·        You have legal rights.
•·        You can do it by yourself without paying high fees for an attorney or credit repair clinic.
•·        Nobody's credit is too "poor" to repair.
•·        The first step is to set a budget and stick to it.
•·        The second step is to cut up all or most of your credit cards.
Recommendations on what to do will follow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or … (0 comments)

advice: Credit History: its impact is now includes INSURANCE -- #2 - 09/08/08 01:11 AM
According to Fair, Isaac & Company (a provider of consumer credit scoring models and formulas, www.fairisaac.com) insurance companies assess and weight these factors:
 
If you have a good or great credit scores, it is likely that your homeowner's insurance rate will be lower.  If your credit scores are sub-standard, you need to do two things: (1) work on repairing your credit (an excellent book: Credit Repair, by Robin Leonard & Deanne Loonin); and (2) shop around for different lenders and different homeowner's insurance providers.  You can also lower your rate by raising your deductible amount.
More information will follow.
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advice: Credit History: its impact is now includes INSURANCE -- #1 - 09/06/08 03:04 AM
Unless you have recently purchased a home or refinanced the home you're currently living in, you may not be aware that insurance companies, not just lenders, are now looking at credit scores.  According to the Insurance Information Institute (a non-profit organization, www.iii.org), insurance companies have learned that a person's credit history is an accurate predictor of risk.  Lenders also, of course, look at a person's credit history, but it's interesting to see that they do not assess the same factors as insurance companies.
More information will follow.
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advice: Lender Basics: Six Frequently Asked Questions - #5 - 09/03/08 12:27 AM
Here is another FAQ about lenders.
5.  When a lender looks at a residential contract, what does he/she look at?
Lenders zero in on:    (1) the sales price;    (2) down payment amount;    (3) closing date;    (4) seller contributions, looking for anything that might indicate an inducement to sell, which is illegal;    (5) special provisions, such as other buildings on the property; and   (6) whether it's investment property or not.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Lender Basics: Six Frequently Asked Questions - #4 - 09/02/08 02:16 AM
Here is another FAQ about lenders.
4.  What are the main types of loans?
All of the numbers are subject to change, particularly Maximum Loan Amount.  Use these numbers simply for the purpose of comparing the different types of loans:
 
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Lender Basics: Six Frequently Asked Questions - #3 - 08/30/08 02:38 AM
Here is another FAQ about lenders.
3.  Why do credit scores vary?  And what do lenders like?
The three major credit bureaus are:  Experian, Equifax and TransUnion.  Credit scores will vary from bureau to bureau because each bureau puts different emphasis on different factors. Credit scores are calculated using a scorecard that allocates points for each of the above factors; however, lenders do not get to see the entire scorecard, all they see are the final scores.  FICO scores can range from 300-850.  Here's how lenders typically react to FICO scores:
  
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advice: Lender Basics: Six Frequently Asked Questions - #2 - 08/29/08 01:02 AM
Here is another FAQ about lenders.
2.  When dealing with borrowers, what concerns lenders the most?
When dealing with borrowers, lenders' main concern is risk.  Lenders proactively manage these risks by requiring four things from a borrower:
  A.  Down Payment - statistics have proven that borrowers who put down 10% or more unlikely to default on a loan.
  B.  Excellent Debt to Income Ratios - borrowers with high debt and low income are a high risk because they are using too much of their income to pay their current debt; e.g. credit card debt, car loans, and so on.  … (0 comments)

advice: Lender Basics: Six Frequently Asked Questions - #1 - 08/28/08 12:00 AM
Here and in following posts are FAQs about lenders.  I hope they are helpful.
1.  What's the difference between pre-qualification and pre-approval?
Pre-qualification is a simple process. The buyer is asked specific questions about their income, assets and liabilities.  Based on this information, they are provided with an amount for which they may qualify. This process can be done strictly on a verbal level or electronically over the Internet. On the other hand, the pre-approval process is much more involved.  The borrower will provide proof of income, assets and liabilities and this information will be verified by the lender.  Because of … (0 comments)

advice: Deciphering the Listing sheet: All That Glitters Is Not Gold – #7: 2-to4-flats - 08/27/08 01:09 AM
What to Watch For, with 2- to 4-flats:
In general, be aware that it is very easy to make a multi-unit building sound good on paper-we always recommend drive-by's before setting up showings!!!  Secondly, watch for estimates of rent; (if there is no lease date or security deposit listed, any rent listed is probably just an estimate). Finally, be sure to watch out for illegal units (e.g., 3 units described on a 2-flat listing sheet); you may still want to buy it but should have your eyes wide open.
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advice: Deciphering the Listing sheet: All That Glitters Is Not Gold – 6 condos - 08/26/08 01:14 AM
What to Watch For, with condos:
A gut-rehab should mean that everything is new, including the kitchen and bath. Walls and room sizes may have been adjusted to allow for a second bath, in-unit laundry, new heat/AC, etc. The price may be higher, but-theoretically-everything from the mechanicals to the finishes is brand new and wonderful.
A mid-level conversion describes a project where some amount of updating did occur but less than a full gut rehab. Mid-level conversions are lower in price and often have a VINTAGE look- perhaps ideal if on a tight budget and in the property inspection we can … (0 comments)

advice: Deciphering the Listing sheet: All That Glitters Is Not Gold – 5 - 08/25/08 03:22 AM
What to Watch For, with all properties:
4.  "Updating needed" or "As Is" or "Needs Decorating" or "Lots of Potential" almost always means that a LOT of work is needed. ‘Move-in ready', on the other hand, often means a little work is needed.
A special point for condos to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Deciphering the Listing sheet: All That Glitters Is Not Gold – 4 - 08/23/08 03:01 AM
What to Watch For, with all properties:
3.  Some listing sheets are heavy with FACTS (like hardwood floors, cabinet kitchen, tall ceilings, etc). "Lots of light" might make a listing sheet sound great and mask the fact that NO updating has been done. A cabinet kitchen might be 30 years old or more; hardwood floors 100!
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Deciphering the Listing sheet: All That Glitters Is Not Gold – 3 - 08/21/08 11:31 PM
What to Watch For, with all properties:
2.  ‘Mechanicals' (roof, windows, heating, electric, plumbing, etc.) are important, especially for single-family homes and multi-units. If NO mention is made, unless the sheet says a gut rehab was done, you should assume they are OLD (a listing sheet won't say "old roof," but if it says nothing, don't expect a new one).
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Deciphering the Listing sheet: All That Glitters Is Not Gold -- 2 - 08/21/08 07:28 AM
What to Watch For, with all properties:
1.  You'll see the terms: ‘new', ‘newer', and ‘updated'? What's the difference? ‘Newer' and ‘updated' are NOT new! A newer kitchen may be 7-10 years old. Put a new countertop in an old kitchen and it's been updated. Sometimes the terms ‘rehabbed' or ‘Gut rehab' are misused, but at least theoretically they should mean that everything is new.
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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advice: Deciphering the Listing sheet: All That Glitters Is Not Gold -- 1 - 08/20/08 03:08 AM
We'll set you up with all listings that fit your price, size and neighborhood goals-and ask you to pick which properties to go visit. But therein lies a dilemma... how will you know which ones to prioritize on? It's important to understand both what the listing sheets DO say and DON'T say in order to take, say, 50 listings down to perhaps 20 to drive by and then the 10-12 best to see.
We will follow with some "What to Watch For" guidelines.
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advice: Five Principles in picking listings to see – Conclusion - 08/19/08 12:21 AM
As a rule, once we've seen the best 10-12 of the current listings, you now have to wait for new listings as they come out. You should expect 1 in 5 to be a so great a value in terms of price it's likely to disappear from the market almost as fast as it came on. In other words, to ‘play' the new listing game, you must be prepared to move unbelievably quickly. Agility and quick decisions are the critical elements to success here.
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