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How Much Would You Pay For A 1 Bedroom @ 655 W. Irving Park, Chicago, IL?

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Calling all investors...Park Place Towers.

How much would you pay for a 1 bedroom condo at 655 W. Irving Park, Chicago, Illinois?

Despite the great proximity to Lake Michigan, the building is experiencing some distress in the form of delinquent owners who have and are being foreclosed on. But then again, what building isn't experiencing problems?

Recent listings on the MLS indicate asking prices of $135,000 to $145,000 for conventional sales.

How about $70,000?  or maybe even $85,000?

For one Cherry Picker client, this is going to likely be a great investment.  Is it going to be you?

 

Michael Hobbs, September 1, 2011

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Hey Chicago Cubs Fans: MissFortune May Bring Opportunity

Wrigleyville RooftopChicago Cubs / Wrigleyville rooftop / Lakeview Baseball club

Possibly the owners of 3633 N. Sheffield, Chicago, Illinois 60657, which was going to foreclosure auction / sheriff sale last week, have taken the right step to secure a buyer for their distressed asset. 

Here's the update: the sale foreclosure auction sale was listed as cancelled/rescheduled which means that maybe, just maybe, another buying opportunity could arise in the near future.  What happened was the owners of the real estate filed a last minute bankruptcy to halt the foreclosure sale in an attempt to buy time.  While only the course of time and legal action will determine if this was the right strategy, generally, it only delays the inevitable.  So Maybe Miss Fortune will shine up upon them or maybe it will shine upon your, a future prevailing owner.

So, hold on Cubs Fans, there maybe yet another day to bid on a wrigleyville property.

 

 

Michael Hobbs August 31, 2011

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Chicago Foreclosure Investment Highlights For August 2011

foreclosure

Eager real estate investors in Illinois, properties were found in Chicago, Evergreen Park, Bartlett, Dolton, Country Club Hills, Austin, Grand Crossing, West Loop, Goldcoast, and Bronzeville at excellent prices at real estate foreclosure auctions in Cook, Lake and Dupage Counties.

Cherry Picker Investments, has a proprietary database which identifies all distressed properties in the metro Chicago areas, including Cook County, Lake County, Dupage County, Kendall County, Kane County, McHenry County and Will County. Because these properties are distressed (notice of foreclosure has been filed), most of them eventually end up at a foreclosure auction. Due to the huge backlog of foreclosure cases, the immense volume of data to track, as well as the unseemingly never-ending judicial process of foreclosure in Illinois, Cherry Picker Investment clients benefit by sorting through all of the clutter to identify the best real estate that meets their investment criteria to bid on and own.

If these properties had not been purchased at the foreclosure auctions, then the properties would have gone back to the bank / lender and become bank-owned properties. These properties are not short-sales and they are not deed-in-lieu of foreclosure situations. Once the property is returned to the bank / lender, then the property typically gets listed by the bank's designated Realtor(s) as an REO / Bank-owned MLS listing.

For experienced, cash-ready real estate investors, foreclosure buying is an excellent strategy to employ alongside working with an experienced Realtor for properties they find on the MLS and in the private market (such as short sale, bank-owned, and estate sales).

"There were 19 properties bought by investors in the past week and we expect a large increase in buying opportunities as the slowdown due to robo-singing begins to lift," said Bardan Azari, Cherry Picker Investments.

Foreclosure Success for the week

4068 S. lake Park #3, Chicago
1541 Southgate, Bartlett
500 W. Superior #1501
9117 Richmond, Evergreen Park
933 E 142nd, Dolton
971-981 Old Indian Trail, Aurora
4236 186th, country club Hills
5411 N. Winthrop, chicago
1731 N. Lorel
9605 S. Wallace
121 Stanley, Park Ridge

Michael Hobbs

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Is $40,000 Too Much Per Unit For Buena Park / Uptown?

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Looking at the world with the eyes of a child, a wise saying quoted by many and a pretty good approach to foreclosure investing.  Just when you think that multi-family properties are not being foreclosed upon in Cook County and Chicago, there comes another building this week at the foreclosure auctions.

4236 N. Broadway, Chicago, Illinois.  Based on preliminary conversations, today's auction activity is either going to be a sleeper or another packed-house event.  Based on some preliminary research, the property is managed by a well-known firm in Chicago, the units are being actively marketed for rent and there was no known problems (emphasis added here) as there's always issues with a building, but they are hardly disclosed by a seller, much less a foreclosing bank, but cash-flow is cash-flow.

So, is $50k too much to pay per unit for Buena Park / Uptown, if nothing else you can chill at Bar on Buena til you figure out the answer or drown your anguish for not being ready.  You decide or better yet, be informed, be a Cherry Picker client and be a bidder.

Michael Hobbs August 25, 2011

 

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Will A Mini-Refinance Boom Drive Up Prices?

refinance

If you have not noticed or if you have turned a deaf ear to the mortgage market, interest rates are at 50 year lows.  So, what does that mean to you?  Well depending on your situation, either absolutely nothing or a whole heck of a lot.  For those of you who either are not in need of reducing your interest rate on your mortgage or you are nearly paid off on your mortgage, the interest doesn't really matter.  For those that are looking to buy or actually can afford to refinance, then this could be a mini-stimulus for your monthly budget.

What does it mean 'actually can afford' to refinance?  Simply put, with prices down approximately 30% or more in many areas, nearly anyone who purchased in the past 5 to even 10 years may be dealing with a situation that their house is worth less or a lot less than what it was purchased for.  AND, if leverage was used in the transaction (aka mortgage) then the mortgage could be greater than the current market value.  In those situations, it is conceivable that a refinance cannot occur because they are 'underwater'.  Granted, just because the numbers may be at out of balance, doesn't mean that a refinance can't take place.  It just means that some assistance may be needed in the form of a government program.

As it relates to the limited number of buyers who can actually afford to buy at this point in time, yes, cheap money breeds buying.  In general theory, buying can have the effect of putting upward pressure on prices in a normal market.  Unfortunately, real estate markets are not normal right now (distressed real estate, short sales, foreclosures, deed-in-lieus, bank-owned, etc), so there tends to be more supply potentially available or currently in the market than can be absorbed.  So, despite the buyer's ability right now, and low interest rates, there is no foreseeable strong trend towards rising prices....not at least until the supply of properties available declines at a greater rate than the pace of buyers is buying.

So, no, the mini-refinance boom is not going to drive up prices...at least not in the Chicago and surrounding suburban markets.

Michael Hobbs August 24, 2011

 

photo: equityrefinancedirect

 

 

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How Much Is Too Much For A Busted Condo?

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Possibly you know better than I do.  It is not every day that a 98 unit busted condo deal comes to the foreclosure auction in Cook County.  Then again, this was not a typical property.  Maybe it is a sign of the new normal.  Maybe it is just a sign of two sides that could not come to agreement.  Nonetheless, for the first time in months, the room where the foreclosure auction was held, was nearly packed.  There were suits, there were plain-clothed stalkers, there may have even been a banker or two in the room, not too mention some funders.

No matter how it came to be, it happened.  A larger busted condo deal, formerly a multi-family property, whose conversion to condo, at the price tag of $14 million and counting didn't materialize.  Venter & Associates is the latest developer to experience the hatchet.  After taking out a loan in excess of $15 million and then defaulting on it, with a delinquent balance exceeding $16 million, the bank, First Mutual Bancorp of Illinois, called it quits in April of 2009.

Granted, time has passed and until this week, the property had not.

That was, until this week.  By anyone's standards who likely knew less than the winning bidder....with a debt of $16+ million, very few, if anyone saw the opening bid coming in less than 1/10th of the total debt due.  Can you say ENGLEWOOD, GARFIELD PARK, AUSTIN....but not BUDLONG WOODS.  The opening price was slightly more than $1.5 million and after about a quarter million in bidding, the winning bidder departed at $1,550,000 per Bardan Azari of Cherry Picker Investments.

"While I have no idea what the inside of the building looked like, it sure looks like someone got a good deal, especially at nearly $16,000 a unit," said Mr. azari.

 

Michael Hobbs August 23, 2011

 

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Chicago Foreclosure Investment Highlights For August 8-12, 2011

gavel

For a number of clients of Cherry Picker Investments, parcels of real estate in Gurnee, Evergreen Park, Elk Grove Village, Glendale Heights, Chicago, Midway, Edgewater, and Grand Crossing were acquired at foreclosure auctions in Cook, Lake and Dupage Counties which are sure to improve their overall profitability.

Cherry Picker Investments has a proprietary database which identifies all distressed properties in the metro Chicago areas, including Cook County, Lake County, Dupage County, Kendall County, Kane County, McHenry County and Will County.  Specifically, because these properties are distressed (notice of foreclosure has been filed), most of them eventually end up at a foreclosure auction.  Due to the huge backlog of foreclosure cases, the immense volume of data to track, as well as the unseemingly never-ending judicial process of foreclosure in Illinois, Cherry Picker Investment clients benefit by sorting through all of the clutter to identify the best real estate that meets their investment criteria to bid on and own.

If these properties had not been purchased at the foreclosure auctions, then the properties would have gone back to the bank / lender and become bank-owned properties.  These properties are not short-sales and they are not deed-in-lieu of foreclosure situations.  Once the property is returned to the bank / lender, then the property typically gets listed by the bank's designated Realtor(s) as an REO / Bank-owned MLS listing.

For those real estate investors who are ready, willing and able to strike while the opportunities are profitable, foreclosure buying is an excellent strategy to employ alongside working with an experienced Realtor for properties they find on the MLS, (such as short sale, bank-owned, and estate sales).  Given the challenging and competitive nature of finding great investment opportunities, and the cumbersome and meticulous process of sorting through so much information, Cherry Picker Investments consistently provides the competitive edge that investors need to be successful in foreclosure buying and investing.

"Although the activity was lighter this past week the purchase prices were appealing.  We expect an increase in activity as the number of cases from Robo-signing resume their path of foreclosure now that many of the wrinkles have apparently been sorted out," said Bardan Azari, Cherry Picker Investments.

 

Foreclosure Investing Success in Illinois for August 8 to August 12,  2011

Week Ending Aug 12th:
4835 S. Marshfield
153 Fullerton, Glendale Hts
2469 W. Balmoral
6941 Morgan, Gurnee
1637 N. Spaulding
9305 Sacramento, Evergreen Park
1075 Florida, Elk Grove Village
5834 N. Saint Louis

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Rahm vs. Foreclosures

foreclosure

Last week, Mayor Rahm Emanuel announced the Micro-Market Recovery Program which is focused on foreclosures in an attempt to stabilize hard hit Chicago neighborhoods. “Through close collaboration with Chicago’s non-profit and community organizations the Micro-Market Recovery Program will stabilize and sustain local property values on a community level,” said Mayor Emanuel. “This program will move Chicago from a house-by-house approach to a community-focused strategy, which will do a better job of protecting residents from the devastating impact of foreclosures, and will have a positive impact on our neighborhoods.”

The program will start in Humboldt Park, Chatham, Chicago Lawn, West Woodlawn, Auburn Gresham, West Pullman, Belmont Cragin, Englewood, and Grand Boulevard. These neighborhoods are highlighted because of the significant number of foreclosures and vacancies,

In 2010, more than 10,500 foreclosures were completed in Chicago, up from 20 percent the year before. An estimated 95 percent of the properties are currently vacant.

The press release noted that the John T. and Catherine D. MacArthur Foundation will provide between $15 and $20 million through loan programs that should leverage additional private capital for a total of up to $50 million.  The MacArthur Foundation will work with the Chicago Department of Housing and Economic Development (HED) to design loan products that specifically address the need to stabilize the targeted communities.  Other not-for-profit financial institutions involved with the micro market Recovery program are Neighborhood Housing Services, LISC, Community Investment Corporation, and the Preservation Compact. Discussions with community organizations are ongoing; strategic plans will be released in mid-September. The first interventions in the communities will take place in October.

Michael Hobbs August 22, 2011

 

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