2226 N. Lowell

2226 N. Lowell
 Belmont-Cragin Neighborhood
Chicago IL 60639
___________________________________  

Living Room

3950 N. Major
Portage Park Neighborhood
Chicago IL 60634
_______________________________________  

Here is a classic example of using our Winning Formula to invest successfully in Foreclosed or “Wholesale” Real Estate.  

After being on and off the market for 3 years, this property finally became a bank owned (REO) home. Originally listed in March ’09 for $174,900, when the price was ultimately reduced in November to $109,900, it was sold within the week and closed 3 weeks later @ $80k.  

The purchaser is a professional real estate agent and investor. She brought in her construction crew and turned this property around quickly. She put the property back on the market at @219,900 on Jan 18,2010. It went under contract within a week.   To be able to bring this property back on in the low $200′s made the buyer’s purchasing decision a “no brainer”. This is the key to success in this market.  

Could she have gambled and gotten more? We’ll know once it closes – but I suspect she got very close to full list price – if not more! [ Follow-up note: It closed March 29th for $217,000.] The key to success in a buyer’s market is to UNDER price the property. It is the best way to create a sense of urgency in the buyer. If the property is priced UNDER market, it will just generate multiple offers, an auction environment and offers for more than asking price. One way or the other, the market will correct the price.  

As the old saying goes: “Pigs get fed, hogs get slaughtered.” Grace was a smart and savvy investor in her handling of this property.  

“To Your Success!”
mary!  

6757 N. Oconto
Edison Park Neighborhood
Chicago, IL 60631
__________________________   

 Here is an actual true life example of our “Success Formula For Investment Success”. Although this property was an estate sale rather than a foreclosure (my preferred ‘wholesale  real estate’ opportunity), the formula is the same. The property was initially listed for sale at $245,000 in May of ’09. On the market a mere 20 days, it ultimately closed in July ’09 for $214,500.  

The new owners purchased the home specifically with the intent of cleaning it up, modernizing it, and then reselling it for a profit – a classic “flip” scenario. Having completed their repairs, the home was just put back on the market in Jan ’10 at $387,000. Within a matter of days, the property was put under contract. Let’s do the math. My figures are hypothetical since I don’t know the actual numbers – but my experience with rehabbing properties personally tells me the numbers should play out this way:  

Sale:                           $375,000
Purchase:                 - 214,500  
Proceeds:              $160,500       

Closing costs (acquisition + sale):                                                             $18,000        
9 months holding costs @ $2000/month:                                                      18,000
(taxes @ $500, utililities @ $200,  insurance @ $100
 mortgage payment @ $900)
Rehab costs:                                                                                                         50,000
                                    TOTAL EXPENSES:                                                                    $86,000  

Proceeds:                            $160,500
 Less expenses:                -   86,500
 Net Profit:                         $ 74,000                                                                 

Click Here To See My Featured Properties Now.