What we are facing right is market correction. Historically, the market had corrected it self. By its natural trend, the market will average itself
Someone else pays for your investment - Your tenants literally pay for your investments.. Over time, the value of the property increases, your mortgage payments decrease, as the principal is paid off effortlessly.
We area a group of like-minded real estate Entrepreneurs and investors that are uniting our capital and expertise resources in order to take advantage of the real estate opportunities in today’s market
Default means the home owner stops making payments,, Reo, the bank owns already the property/ Auction, when the property is being Auctioned
Nationally, foreclosures are still in the rise
As of today, there are 78,263 foreclosures records in Cook county Updated as March 2008 Updated ilFLS Database info: Wed Mar 26 2008 ACTIVE LISTINGS 120433 Last Update: 16:18:49 Mar 26 2008 County: Records: Auctions Cook County: 78263 35374 Lake County: 8512 3949 Kane County: 6760 3723 Dupage County: 7680 3779 Will County: 10782 5259 McHenry County: 3990 1639 Kendall County: 1482 550 Winnebago: 2899 1149
The subprime mortgage crises will cost Illinois about 5.4 billion 2009
Investing in real estate should not be approached as a hobby. It takes experience, understanding and knowledge to formulate and execute a plan. You are mistaking if you think that you can watch a DVD or read a book and instantly gain enough knowledge to thoroughly research markets
1. Real Estate = Get Rich Quick Mindset (Please, Get a College Degree)
2. Believing Cheapest is Best ( remember the 4P’S of marketing. Place, Price, Promotion & Product, these factors are vital)
3. Do-it-Yourself Investing ( I don’t want to be rude but 80% chances you will fail).
4. Thinking Markets Can Be Timed ( "You can't time real estate markets, therefore there is no right time to invest.)
5. Prioritizing Cash Flow Over Appreciation ( positive cash flow is not bad, but long-term appreciation is the goal)
7. Sacrificing Profits Because of Proximity ( have an open mind )
You should not put all of your money into only one Investment
Diversify your investment
Fix and flip * Property appreciation * Cash flow * Other people's money paying your mortgage.
Lest focus on property appreciation Here's a simple example: Pretend you find a desirable property for $100,000, and you buy it for 25% down ($25,000). 1) Appreciation: Property goes up in value by 5% in year 1. It's now worth $105,000. Return after one year is 5000/25000 = 20% on your $25,000 investment in the first year! 2) Cash flow: Rent each month is $1000. Your mortgage, insurance, taxes and miscellaneous expenses are $900/month. Income minus expenses = $100/month. 12 months x $100 = $1200/year income. Add that to the appreciation and you have made 6200/25000 = 25% in the first year through appreciation and cash flow. 3) Other people's money paying down your mortgage: Assuming you have a mortgage at a 5% fixed rate, at the end of the first year you will owe $73,440 on your $75,000 mortgage. You have now built an additional $1560 equity into the property ($75,000 - $73,440 = $1560). Your return including appreciation, cash flow and reduced principal give you a first year return of 7760/25000 = 31%.
Virtually, You can invest any where in Chicago, but as a matter of preference we focus in this development areas
Historically, Real Estate had always been a good investment.
The Power Of Leverage (If your $100,000 investment produces a 30,000 net gain in two years than your annual rate of return is 15%. The stock Market produces ( historically) an average annual rate of return of 8-9%
Weak men will always wait for opportunities to happen; strong men and woman will seize the moment and make them happen because they know that an obstacle, a difficulty is often an unrecognized opportunity.
Remember. Nothing will happen unless you take action today.