So here’s a true story about a home worth more $ to the owners than the buyers who bought it.  Any agent worth their salt tell this story in first person backwards & forwards.

Setting:   The North Shore

A very nice home on the North Shore, built about 2005/06 had been owned by a  couple for exactly one year when they decided to sell.  Upon meeting with them in the Spring of 2011, I learned that they hoped to sell for 15% more than they paid a year ago.  Wow.  Really?  In a continuing declining market since 2006…hmmm.  I explained there was no chance of that unless a significant remodel had been done which added quite a bit of value to the home.

Naturally they were not delighted to hear the news that they should list their home for 10% less than they paid for it the prior year, if they really wanted to sell quickly and move out of state, as they had already spotted the next home they wanted to buy.

Naturally I was disappointed I did not win their business, but not at all disappointed that they found another agent who was delighted to tell them what they wanted to hear…and that agent took their overpriced listing.  And the home sat, and sat, and sat on the market, costing them money every month.

Nine months later the home has finally sold …. for what I might ask?  For 10 PERCENT LESS than they paid for it in 2011 and 20% less than the price the agent promised them.  That agents stats are well, let’s just say not on the charts.

Their out of pocket costs included approximately $20,000 in real estate taxes alone and 9 months of mortage payments !  Ouch…

It’s a tough market for sellers and the message is not likely good news – so beware the agent who tells you what you want to hear as you will pay the price for their misguidance or their inexperience.  As my attorney friend Sam says, There is no substitute for experience.

With all of the bad news that continues about the U.S. economy, many people are tempted to hide their head in the sand and pretend it isn’t happening. From my experience investing in various markets, including commercial real estate, I have found that the most successful investors are always keeping a lookout for a unique situation. In my opinion, we are now seeing one of those unique situations inside of the apartment building market.

For example the New York Times published an article today titled “U.S. Mortgage Relief Effort Is Falling Short of Its Goal”. Here is the “bad news”:

1) The dropout rate from the Making Home Affordable Program was very high: 96,000 trial modifications were canceled by lenders in July, 2010. The number of canceled trials now exceeds 616,000.

2) Many modification seekers did not qualify for permanent status, either because their debt load was not heavy enough, they did not live in the house, their documents were incomplete or they simply failed to make the trial payments.

3) Critics say the program will provide little long-term relief.

In addition to the failing U.S. Making Home Affordable Program, the government now admits that as many and 1 out of every 3 home mortgages is now underwater. This is a startling statistic and it can only mean that we will eventually see more foreclosures.

So how does this affect the apartment building investor?  The answer is simply one of supply and demand. It is obvious that families who are leaving their homes because of foreclosure will have to live somewhere. The best choice for many former homeowners will be to rent an apartment. This means that demand for apartment housing in the near future could outstrip demand.

As I continually stress to my apartment building investing clients, it is absolutely essential that the beginning commercial real estate investor educate him or herself thoroughly before deciding to invest their hard earned money and time into buying apartment buildings.

Get your head out of the sand and see the “bad news” for the opportunity that it truly is. Message me and I will recommend the best course to enroll in your area so that you can begin to invest in highly profitable apartment buildings anywhere in the United States.

There are distressed opportunities like these in every town. Don’t let one pass you by.

Robin Wilson | Buying, Selling, Leasing, Home Staging & Property Management

In combing through some last minute listings before heading out to see a few places, I noticed a brand new listing in the Glen that had just come on the market.  Day 1.  So new, that when I called for an appointment, the office didn’t know how to handle my call.  He-hee.  Soon after, I met up with my sharp & rational buyers (no, they’re not all like that) and said “I have a surprise for you.” 

In that we had been looking for a home for several months, they knew the inventory & what price homes were selling for.  So when I said to them, “This is a brand new listing, and on paper it appears to be a good value - so if we like it, let’s jump on it,” they knew what I meant.  I want my buyers to be first to the gun, the early bird gets the worm, all that advantage. 

So at 5pm I saw it on-line, we were in the house at 6pm, and by 9pm we had a deal.  Done.  All that research and pounding the pavement paid off. 

Who do you know who is Paying Attention to the market, and making sure you & yours have the upper hand in all things real estate?  Find out at www.ChicagoToNorthShore.com

This chart shows the percentage difference between the average monthly rent and mortgage payment for a median-priced, single-family home in communities across America. For example, in San Jose, Calif., the monthly mortgage payment averages $2,600, while rent is about $1,000 less. That’s about 60 percent cheaper. But in Cleveland, it’s the opposite. The average rent is about $750 per month, while the cost of buying is $420, or about 44 percent less.

http://www.npr.org/2011/06/08/137029194/for-many-its-still-a-good-time-to-buy-a-homeMicrosoft%20Office%20Word%202007.lnk

There are three agents at present on our ChicagoToNorthShore.com team, serving not only CHICAGO of course, but also the North Shore communities of Evanston, Skokie, Wilmette, Winnetka, Kenilworth, Glencoe, Glenview, Northbrook, Northfield, Highland Park, Highwood, Lake Forest & the Lake Bluff communities. 

We are recruiting for an exclusive leasing agent, expert agents who cover the West & NW & SW parts of Chicagoland, and agents who live in & know the Chicagoland neighborhoods like the backs of their hand.  And very soon we’ll need a mini-me to manage us…a behind the scenes, omniscient cracker-jack at command central to manage our time & teamwork. 

I am super-psyched to be at this curve in the road in my career…the ride is guaranteed to be exciting.  WE are honored at the idea of working for you, our client.  Regardless if we buy or sell or lease or refinance or insure or renovate or stage or manage your humble abode, we will use all the tools in our toolbox to find The Right Answer for you and yours.  Welcome-we look forward to EARNING your business.