A condo has become available that has one of the most spectacular views you will ever see of Chicago. This condo, located in Lake Point Towers, is the quintessential Chicago property. The building is the home of some of Chicago's best and brightest, it offers Chicago's greatest tourist attraction as a next door neighbor - Navy Pier. It also offers the very best view of the Chicago fireworks and Venetian Night.
Amenities include an Olympic sized swimming pool, an interior health club, a park, a grocery store, restaurants, 24 hour doorman, secure indoor valet parking, a duck pond, waterfall, and barbeque grills. This particular condo has a view of the entire south side of Chicago featuring the Field Museum the coastline going all the way to Gary. To the east you can see an uninterrupted view of Lake Michigan and it's the perfect place to see the annual Macinac races.
The condo has two large bedrooms, two bathrooms, hardwood floors, re-vamped kitchen with the best appliances, lots of closet space, and more security than most people have ever known.
The place will go fast - and it's priced to sell, so if you're interested, give me a call today!
Friday, May 25, 2012
Thursday, May 17, 2012
Getting Into Real Estate Brokerage
Years ago I planned to buy a convertible in the Outer Drive East
building. It was super small but at $150,000 it was all I could
afford. It had a fabulous view of the lake. When I went to get the
mortgage, the mortgage specialist told me to wait until I could find
a larger place because this place didn't have any re-sell value and I
would outgrow it quickly. I was a little surprised, but I realized
that he was right about outgrowing the space. I've always suspected
that he bought the place for himself to let his mistress stay there,
but that's my overactive imagination getting the best of me.
Years later when I did get my own place for real, it was much larger and really met all of my needs except one – it didn't offer a view of the lake. To be fair, the place I wanted doesn't have a view of the lake either now. New developments in the area have overtaken the spacious north view. But getting the place made me realize that I wasn't the only person who felt like getting a place to live was made much harder than it needed to be. Even a girlfriend of mine had joked that she wanted to write ''The brother's guide to home ownership” because no one told you the entire story upfront – they just let you discover each piece to the puzzle and it made it very frustrating.
That's why I decided to take the plunge and get a real estate license. It was about ten years ago that I took the exam. I was more surprised than the proctor of the state exam when she looked at me and said “Oh... you passed!” At that time, it was either pass or fail. The proctor either gave you a license or a list of the upcoming dates for the exam to take it again. I got a license. A few weeks ago I had to pass the real estate broker's exam to keep working in this field, as all real estate salespeople in this state were required to do. It was great to be recognized for my hard work and I intend to keep it going.
I think that you should find a good mentor who wants to show you the ropes. Don't take a job at a firm that ignores you or doesn't have time for you. In a down market, we had a lot of people who were doing their own thing even though we are required to have a broker monitor our actions. Put together a list of every single person you know and let them know you sell real estate. It took me a week to get through my phone book, but I had the added bonus of reconnecting with all of my friends and relatives. Never pass up a chance to get a client – you never know when it may happen. Get to know a neighborhood like the back of your hand and get to me an expert in that area. I've always wanted to work in Hyde Park and I do well there because it is my favorite neighborhood.
Put together a pit crew of appraisers, closing attorneys, mortgage brokers, and handymen. A good handyman is the hardest to find – once you get one, they find a regular job and can't work during the day. You need someone who can give an honest assessment of a house – is it a fixer-upper, or a money pit in disguise?
One of the great things is that you don't have any restrictions on where, how much, or, for the most part, what time you work. You can get real estate work out of the way anytime – letters, contracts, writing advertising, talking a client down from a ledge – all can be done throughout the day. Just treat them as you would any good friend. You are helping them with the most important purchase they will ever make. You'll be remembered and in demand if you give them an overview of what to expect and are prepared to point out the things they should consider in making their decision.
I would be remiss if I didn't mention that the most important thing is safety. Don't go into empty places alone. Let someone know where you are at all times – keep you GPS on, and don't meet a client at a remote location. Meet them at your real estate office and make sure the receptionist gets a good look at them. I recommend pictures, and get a copy of their ID and license plates. Always get their work location, connect with their mortgage broker and find out how they found out about you. I send lots of cards of e-mails and follow up. I don't recommend doing Open Houses or house hunting after the sun goes down unless you are going to a building with a doorman.
If you can do these things, you can be very successful – I wish you the best of luck. Call me if you need anything...
Years later when I did get my own place for real, it was much larger and really met all of my needs except one – it didn't offer a view of the lake. To be fair, the place I wanted doesn't have a view of the lake either now. New developments in the area have overtaken the spacious north view. But getting the place made me realize that I wasn't the only person who felt like getting a place to live was made much harder than it needed to be. Even a girlfriend of mine had joked that she wanted to write ''The brother's guide to home ownership” because no one told you the entire story upfront – they just let you discover each piece to the puzzle and it made it very frustrating.
That's why I decided to take the plunge and get a real estate license. It was about ten years ago that I took the exam. I was more surprised than the proctor of the state exam when she looked at me and said “Oh... you passed!” At that time, it was either pass or fail. The proctor either gave you a license or a list of the upcoming dates for the exam to take it again. I got a license. A few weeks ago I had to pass the real estate broker's exam to keep working in this field, as all real estate salespeople in this state were required to do. It was great to be recognized for my hard work and I intend to keep it going.
I think that you should find a good mentor who wants to show you the ropes. Don't take a job at a firm that ignores you or doesn't have time for you. In a down market, we had a lot of people who were doing their own thing even though we are required to have a broker monitor our actions. Put together a list of every single person you know and let them know you sell real estate. It took me a week to get through my phone book, but I had the added bonus of reconnecting with all of my friends and relatives. Never pass up a chance to get a client – you never know when it may happen. Get to know a neighborhood like the back of your hand and get to me an expert in that area. I've always wanted to work in Hyde Park and I do well there because it is my favorite neighborhood.
Put together a pit crew of appraisers, closing attorneys, mortgage brokers, and handymen. A good handyman is the hardest to find – once you get one, they find a regular job and can't work during the day. You need someone who can give an honest assessment of a house – is it a fixer-upper, or a money pit in disguise?
One of the great things is that you don't have any restrictions on where, how much, or, for the most part, what time you work. You can get real estate work out of the way anytime – letters, contracts, writing advertising, talking a client down from a ledge – all can be done throughout the day. Just treat them as you would any good friend. You are helping them with the most important purchase they will ever make. You'll be remembered and in demand if you give them an overview of what to expect and are prepared to point out the things they should consider in making their decision.
I would be remiss if I didn't mention that the most important thing is safety. Don't go into empty places alone. Let someone know where you are at all times – keep you GPS on, and don't meet a client at a remote location. Meet them at your real estate office and make sure the receptionist gets a good look at them. I recommend pictures, and get a copy of their ID and license plates. Always get their work location, connect with their mortgage broker and find out how they found out about you. I send lots of cards of e-mails and follow up. I don't recommend doing Open Houses or house hunting after the sun goes down unless you are going to a building with a doorman.
If you can do these things, you can be very successful – I wish you the best of luck. Call me if you need anything...
Sunday, November 20, 2011
How Should We Handle Foreclosures?
Once again, here is why you need schools and children need a good education to help learn how to function in society. In my day we had Societal Economics - the class taught how to buy a house, select a used car, create a budget, pay your bills, invest for retirement.
Would you rather have an abandoned lot next to you or a home that is either being rented to a family or sold to a family at a price they can afford? Maybe if we hadn't inflated the prices of these homes to begin with, we wouldn't have so many foreclosures - in most states there are more foreclosures than homeless people - it's an incredibe tragedy.
Chicago has strong building standards so I know condition is not as much of an issue here. In other states maybe you should demolish some homes - but who takes the loss - does the bank absorb it - and pay for the demolition of the property that they sold for hundreds of thousands? Wouldn't it make more sense to set a better price and sell or rent the place so that it can fulfill it's original purpose? If homeless people can be trained to re-enter the workforce and find gainful employment and get a real home - won't that be better than a massive field of empty lots across the country and an endless stream of people pushing shopping carts full of junk?
This article was taken from MSN.COM
Should we tear down foreclosures?
The case for demolition is compelling, as long as the foreclosed home's location and condition justify taking it down. If a rehab is not worth it, bring on the bulldozers.
Many of them are vacant or abandoned, and those homes attract squatters, rodents and/or criminals. Such homes often get stripped of appliances, pipes, windows, doors and other materials.
They quickly become a visual blight on a neighborhood. They rapidly decline in value and require money to pay taxes and upkeep, which can outstrip the return from a potential sale.
As they go, so goes the neighborhood, with homes nearby also losing value. As the neighborhood goes, so goes the tax base, lessening the revenue to the municipality where these homes are.
And in today's economy, there are plenty of unemployed Americans available to do the demolition.
'2 main considerations'
The above might not apply to every home in foreclosure, but a familiar real-estate mantra can be the guide to choosing which homes to demolish: location, location, location.Add one more thing to the chant: condition.
"Two main considerations go into the decision to bulldoze a property: market condition and property condition," said Rick Sharga, who was the senior vice president at RealtyTrac, an online marketplace of foreclosure properties, before he recently left to become the executive vice president at Carrington Mortgage, a financial-management company.
"If you are located in a down market where there has been a loss of jobs, population or both, then there is no one to buy the properties," Sharga said.
RealtyTrac began posting foreclosure records in 2005, and Sharga estimated that of the 800,000 properties still on lenders' books, less than 10% of them would eventually be bulldozed.
"If the property is in extreme disrepair, where it is a blight on the neighborhood or a safety hazard, demolishing it can be seen as an improvement to the neighborhood, like pulling a bad tooth to save the rest of them," Sharga said.
Demolition can be done for between $5,000 and $30,000, depending on the size and type of the structure. Fixing up a blighted home for resale can reach into five or six figures, and when taxes, maintenance and liability costs add up to a continuing loss on a property, the most cost-effective means of disposal is the bulldozer.
"Homes that we demolished are at times listed at values of $5,000, but to bring them up to code and make them habitable could cost $50,000 to repair," said Jumana Bauwens, a spokeswoman for Bank of America Home Loans.
Cities proceeding with demolitions
Demolition of foreclosed homes and other abandoned structures is happening in several U.S. cities. Detroit has a goal of demolishing 10,000 structures by the end of 2013. So far, almost 4,000 properties have been identified, at least 95% of them residential. The properties come into the city's possession through donation, because of delinquent taxes or failure to respond to nuisance-abatement procedures.Bank of America has said it would identify 100 properties for demolition in Detroit. Rick Simon, a spokesman for Bank of America Home Loans, said homes designated for demolition are donated to public agencies and "generally would require prohibitive costs to make them habitable."
He said the properties are usually under $15,000 in value, costly to maintain or to prepare for sale and are often in areas with many vacant properties, creating blight and hurting surrounding property values.
What happens to the properties after demolition is being left up to the agencies receiving them. The bank will contribute to the cost of demolition or complete the demolitions before donating the properties.
Chicago last year contracted out demolition of 509 properties at a cost of more than $12 million, an average of $23,854 a structure. So far this year, the city has contracted for the demolition of 335 buildings at an average cost of $22,800.
A city ordinance was introduced last month to reduce the time it takes for foreclosure to six months, down from the two years now allowed. The goal is to work with banks to pass statewide legislation to speed up the foreclosure process and return the properties to the market.
Gus Frangos, the president of the Cuyahoga Land Bank in Cleveland, says Ohio has reduced the time it can take to get clear title on a property to 45 days. One key change came in the redemption process, which no longer lets a homeowner pay taxes and other costs at the last minute of a foreclosure and take back the property.
The redemption process had hung over what could be done, Frangos said, delaying loans, permits and the rehabilitation of declining properties.
The 2-year-old Cuyahoga Land Bank, a nonprofit, gets funding from penalties and interest paid on delinquent property taxes. It has demolished 500 homes, has 1,000 in its inventory and has disposed of an additional 1,500 properties by turning them over to neighbors or churches, or to contractors to rehabilitate. Frangos estimated there are 15,000 homes in Ohio's Cuyahoga County that could be considered for demolition.
There's plenty of help to do the demolition work, but Frangos said what his group does is "not a wonderful job program that will last forever."
"Demolitions were a couple of hundred a year and now could be more than a thousand," he said, "so there has been some increase in employment." But he considers demolition regressive spending, as opposed to building something that would continue to produce work.
Foreclosures' cost to families
The Center for Responsible Lending estimated that foreclosures in 2009 would cause 69.5 million nearby homes to fall in value an average of $7,200 each, for a total loss of $502 billion. The center projected that from 2009 to 2012, about 92 million U.S. families would lose an average of $20,300 in home value -- about $1.9 trillion in all -- all because of nearby foreclosures.The center said its projections represent only property value declines caused by nearby foreclosures, not price drops associated with short sales or the slowdown in local housing markets. The projections are based on data from Credit Suisse, Moody's Economy.com and the Mortgage Bankers Association.
The Center for Responsible Lending was founded in 2002 by the Self-Help Credit Union, a nonprofit community-development lender, and is supported by several charitable foundations. Its goal is to protect "homeownership and family wealth by working to eliminate abusive financial practices."
Not everyone is 100% behind the idea of demolishing foreclosed homes.
"Demolition is not ideal," said Julie Dworkin, the director of policy at the Chicago Coalition for the Homeless. "It's preferable to rehab homes and get people back into them."
To that end, Dworkin said, the banks could do two things: make it easier to buy foreclosed homes and donate properties that are still in good shape.
Those views are echoed in Cleveland, where Brian Davis, the director of community organizing with the Northeast Ohio Coalition for the Homeless, said homes should be donated when they first come on the market. "After six to eight months, they have been stripped and aren't worth saving," he said.
Davis acknowledged that neighbors want blighted homes taken down, "but having someone staying in the home, keeping criminals away and trying to improve it would not be a bad thing."
He would like to see a program where homes could be saved in exchange for sweat equity by homeless people. His organization's plan would be to have teams of four with various skills work on the homes, with a team member moving in when it was finished. The team would continue to work until all four members had homes.
Why houses are being torn down when homelessness is going up is a question that comes up often in meetings Davis has with the homeless. But he acknowledges that there are many homes in Cleveland not worth saving.
That's the same case in Detroit, where Dean Simmer often writes about homelessness issues on his blog.
"There are homes so blighted -- burned out, second floor falling in -- that no one should live in a home like that," said Simmer, who teaches at Detroit Cristo Rey High School and runs the school's information technology department.
Simmer sees many obstacles to any process of turning foreclosed or abandoned properties over to the homeless. "There are all kinds of issues -- crime, squatters, injury, liability -- not things banks want to get involved in," he said.
In fact, the best thing for the banks would be to have the property owners keep paying the mortgages and stay in the homes.
As part of its program to donate homes for demolition in Detroit, Cleveland and Chicago, Bank of America has held sessions for homeowners to meet with mortgage-modification specialists. Five hundred customers showed up in Cleveland, 1,600 in Chicago and 1,400 in Detroit.
Chase Bank has set up a down-payment assistance program for Detroit city employees to move into vacant homes in designated areas, and CitiMortgage held events in several cities last summer where 1,000 homeowners met with officials about mortgage problems. Nine hundred of those homeowners were at least 60 days behind on their mortgage payments, and 300 were in foreclosure. In September, Citi announced that 600 had met qualifications for loan modifications.
But even with help, many homeowners haven't been able to keep up with payments.
Rebecca Mairone, the national mortgage outreach executive for Bank of America Home Loans, said homeowners faced with economic hardships have moved into other housing and "in many cases have walked away from their homes, leaving behind vacant and deteriorating properties that can cause neighborhood blight."
Reselling the properties would be the next-best course of action for the banks. But remember location, location, location? The homes are in areas with dwindling populations and few buyers.
"Detroit covers 129 square miles, was built for 2.2 million people but loses 50,000 a year and now has just over 700,000 people," said local activist Jeff DeBruyn.
He has been an advocate for the homeless, a community organizer who helped reopen an abandoned apartment complex and most recently a self-described "entrepreneur" of The Imagination Station, a nonprofit whose ultimate goal is to construct "a creative campus in Detroit built on community, technology, sustainability and the arts."
But first it is cleaning up two blighted homes across from Detroit's historic, long-closed Michigan Central Station.
DeBruyn said that if a foreclosed home is the only one in an area and is in good condition, it probably should be saved. But he cautioned that "you can't leave property abandoned for a minute" before bad things start to happen.
"If homes are in foreclosure, it might be better to make way for a different use," said DeBruyn, who noted that many properties in Detroit fell into public hands after landlords ignored nuisance-abatement procedures.
DeBruyn said he "cheers internally" and hears from happy neighbors when boarded-up homes come down. "I get emails saying, 'I was going to leave Detroit, but now I'm staying, and thanks for that.'"
Tuesday, September 20, 2011
Reconsidering the Del Prado
At one time in my life I came within hours of moving into the Del Prado – always wondered how that would have turned out… It was a convertible overlooking the park and the tennis courts and of course, the lake. The building was in great shape back then and I wasn’t afraid yet of living in a building with a grocery store or restaurant. That’s not happening now…
Now the building is being re-done to its original terra cotta elegance and they’re even toying with making a movie theatre out of one of the ball rooms for the residents – they’re already showing models, so if you are searching for great rental in the best neighborhood in Chicago – now is your chance - give me a call – 312-498-1138
Sunday, March 6, 2011
Finding A Home
At one point or another, you will be required to find a place to live. Try not to wait until you have to - the goal is to look for and price your dream palace so that you can just glide into it after you get out of school. It may be your first purchase or it may be your first rental on the way to a place of your own - but get a place. Imagine not sharing a bathroom, cooking what you really want to eat, and reading until four in the morning if you so desire - well worth it!
Now, step one is to determine how much house you can get - no point in looking at a million dollar mansion if your budget won't crack $50,000. We all have to start small, and that's perfectly fine. On average, people live in five or six homes during their lifetime. Start small and work your way up - it's more comfortable that way. Make an appointment with a mortgage broker and see what your real options are - take in a list of your real bills - no point in wasting time dealing with half your bills and avoiding the real question of what you can swing. Once you see where you are - call me and we'll see what's available in your price range.
Housing inventory changes on an hourly basis in Chicago and most other cities in America. The dream house that was available six months ago is probably not still available, so please try to remain realistic. We'll look at places that you plan to move into within the next thirty - sixty (30-60) days or so.
You need to have a plan regarding the space available. You don't want to move into a place too small maintain your belonging, remember you have to pay for the place, so your happiness is what's important.
Don't worry about neighborhoods - the search is based on your commute to work, the space you need
(studio or one bedroom to start), and the budget you can accommodate. In Chicago, there is a place for every conceivable budget. Once we select five - ten (5-10) places, you will take a look at the areas and the buildings to make sure they meet your other specifications.
You want a place close to grocery stores, retail outlets, dry cleaners, and restaurants. If you have children, you want a place close to a good school that you kids can attend. The most important thing is that it be close to your job or an easy commute. You won't want to travel two hours each way to work, especially now that gas is so expensive. You also have to be close to family and friends. You don't want to be isolated.
Don't buy a house without an inspection! Don't get a place that doesn't have room for your car off the street! Make sure that inspection includes possible extermination - if that's necessary, I'm probably passing on the house, quite frankly. If you don't understand how things work everywhere, you didn't get a good inspection. Make a scaled down drawing of your place and your belongings - will everything fit comfortably? What are the options for expansion over time? You will need to expand over time - so take that into account.
You should not purchase a home with the thought that you will flip it in a year or two and so it doesn't matter what the interest rate is - that's actually never been true, and anyone who said that to you should be eliminated from your list of friends and added to your enemies list. That type of thinking leads to foreclosures, divorces, and mental breakdowns. If you don't love the house enough to live there long term (at least a decade) don't get it. You may move, but you want it to be your option, not your obligation.
No matter what you decide, make sure the decision is one that meets the needs of all concerned. If you have concerns that you are willing or aren't able to share with your real estate consultant - you have the wrong consultant, or you aren't really in the market. There are too many homes out there not to make one of them your own. Now is the perfect time.
Now, step one is to determine how much house you can get - no point in looking at a million dollar mansion if your budget won't crack $50,000. We all have to start small, and that's perfectly fine. On average, people live in five or six homes during their lifetime. Start small and work your way up - it's more comfortable that way. Make an appointment with a mortgage broker and see what your real options are - take in a list of your real bills - no point in wasting time dealing with half your bills and avoiding the real question of what you can swing. Once you see where you are - call me and we'll see what's available in your price range.
Housing inventory changes on an hourly basis in Chicago and most other cities in America. The dream house that was available six months ago is probably not still available, so please try to remain realistic. We'll look at places that you plan to move into within the next thirty - sixty (30-60) days or so.
You need to have a plan regarding the space available. You don't want to move into a place too small maintain your belonging, remember you have to pay for the place, so your happiness is what's important.
Don't worry about neighborhoods - the search is based on your commute to work, the space you need
(studio or one bedroom to start), and the budget you can accommodate. In Chicago, there is a place for every conceivable budget. Once we select five - ten (5-10) places, you will take a look at the areas and the buildings to make sure they meet your other specifications.
You want a place close to grocery stores, retail outlets, dry cleaners, and restaurants. If you have children, you want a place close to a good school that you kids can attend. The most important thing is that it be close to your job or an easy commute. You won't want to travel two hours each way to work, especially now that gas is so expensive. You also have to be close to family and friends. You don't want to be isolated.
Don't buy a house without an inspection! Don't get a place that doesn't have room for your car off the street! Make sure that inspection includes possible extermination - if that's necessary, I'm probably passing on the house, quite frankly. If you don't understand how things work everywhere, you didn't get a good inspection. Make a scaled down drawing of your place and your belongings - will everything fit comfortably? What are the options for expansion over time? You will need to expand over time - so take that into account.
You should not purchase a home with the thought that you will flip it in a year or two and so it doesn't matter what the interest rate is - that's actually never been true, and anyone who said that to you should be eliminated from your list of friends and added to your enemies list. That type of thinking leads to foreclosures, divorces, and mental breakdowns. If you don't love the house enough to live there long term (at least a decade) don't get it. You may move, but you want it to be your option, not your obligation.
No matter what you decide, make sure the decision is one that meets the needs of all concerned. If you have concerns that you are willing or aren't able to share with your real estate consultant - you have the wrong consultant, or you aren't really in the market. There are too many homes out there not to make one of them your own. Now is the perfect time.
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