Chicago Foreclosure Flips Case Study 22-Nov-2011

Chicago 2 Flat in Belmont Cragin for Under $100,000

More Great Multi Unit Deals? CLICK HERE!  Lots of multi-family properties in Chicago’s
Portage Park, Albany Park and Irving Park neighborhoods.

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If you’re looking to buy a fixer upper here are some rules to follow:

• Pick the right location! Watch this foreclosure case study…see where Investors having success. here
• Know Your Stuff
• Make sure you consider the time and cost associated with doing a rehab…Check out this easy-to-use estimator Click Here!
• What are your financing options? Check out some options hereThere are some incredible properties to fix and flip at –>http://ilbankhomes.com

If you are planning to buy a home, watch the videos below to find out what you need to do to get your credit in shape, so when you’re ready to buy a home you can qualify for loan approval.

The video series below will teach you all you need to know so when the time comes,  you will be ready.

Please share this course with anyone you know that can benefit from learning how to better their credit for years to come!

Credit Course Video 1

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With the state that our economy is in, there are more and more foreclosure properties coming to the Chicago real estate market daily. Of course, this can be very tempting for homebuyers as people can sometimes get properties for 30% or even less on the dollar.
If you are thinking about buying a foreclosure being prepared and knowing what mistakes to avoid could be the difference between a foreclosure bargain or a money pit!
Below are some areas to be aware of before making any serious offers.

1. Put Emotions Aside When Considering a Foreclosure Property: When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.

Too many buyers will think that they found a slamming deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2. Estimate The After Repair Value: Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make:

• Is this neighborhood a desirable location and how are crime rates?
• What schools would be available for my kids or future buyers?
• Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
• How long do I plan on living there and how could that affect things?
• What type of appreciation should I expect?

3. Get Preapproved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!

4. Get Professional Help: Not only should you seek the expertise and of an experienced Realtor, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Estimating what it will cost to rehab a foreclosure can be tricky…take a look at this estimator, it can save you thousands! CLICK HERE!

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure.

Therefore, we encourage you to give us a call today at [866] 892-7226 or contact us to get started. Our agents have years of experience assisting other clients with buying foreclosures for their next home or investment property. Discover how we can help you to make a smart and profitable investment as well!

What good is investing in Chicago real estate if you don’t have the cash or financing to purchase the many real estate deals that are available? Check out these sources to see some of the options that are available to you.

Conventional Financing

There is the conventional route, This is a source that can be considered up front when a property is in considerably good condition.  Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.

If one of your strategies is to buy, hold and rent, then using banks may be a safe bet for some of your investment properties.  This is a source that can be considered up front when a property is in considerably good condition.  Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.

Therefore, you may need to spend a little extra time searching for those diamonds in the rough.  Traditional financing is extremely favorable, because you can usually get some of the best interest rates, terms and closing costs when approved.  The process certainly will take longer than using cash buyers or hard money lending for example, but it can be worth the wait.

Hard Money Lenders

If your flipping a Chicago home or need to do major remodeling work to a home that you will later refinance, then you may want to consider building a relationship with a hard money lender.  It is advisable to shop around to at least 2 or 3 in your area when possible to see which terms you find to be most favorable.

These loans will come with much higher interest rates (typically 12% or more), points and some type of balloon payment near the end of the agreement.  Hard money may be offered for 6 months to a year while the repairs are made, until the home is ready to be sold or refinanced for better rates.

It is important that investors are prepared to either rent out or lease-to-own their property if perhaps the home is unable to sell on the market quickly enough.  Also, newbie investors beware!  Flipping houses can be more difficult than it may seem, and you must have a solid plan in place so that you are not forced into a tight financial situation.

Private Lending

Before ever considering this option, it is strongly encouraged that you talk with a local attorney that specializes in SEC policies.  Laws can vary on a state by state basis, so it is important that you have a good understanding of those guidelines before building any relationships with private lenders.

However, when done correctly this can be a powerful resource available to you, that doesn’t require credit checks or adhering to all the strict guidelines enforced on mortgage companies.  Private lenders can be nearly anyone who has access to the necessary funds for your purchase (i.e. your doctor, friends, family, or investor club).

Typically private lenders can receive anywhere from around 9% and up for their investment, which is secured by the property and can be a great investment for them based on today’s rates.  Loans can be negotiated on a property by property basis so that each investor only funds the deals that they are comfortable with.

With these 3 examples alone, you may have all that is needed to start funding Chicago real estate deals.  Therefore, take action now and begin building the relationships and networks of lenders that you will need in order to start investing.

Looking for a good Hard Money List to purchase? Click Here!