Cash flow is available (timing the market)

I am looking for a profit that can make me $1000 positive cash flow a month.  I have determined in my chicagoland area I have to buy low and add units.  The big question is how to do this.  I figure each $100,000 per loan is equal to $600 in mortgage.  Taxes and insurance in my area are anywhere from $400-$600.  Thus a payment of $2200-$2600 is expected.  In my area I could break even with 2 units rented out.  I have to add a third unit and get the property in the $200000 to $250,000 range. 

My quest is to add another unit in the building whether in the basement or converting the attic.  This is a great tool in any area as well.  To do this you have to talk with your construction offices in your city.  It is extensive but it should be able to add $600 – $1000 in my area and it may do the same in yours.  Good luck

HOw to time the Real Estate Market

How do you forecast when to buy?  How much longer do I wait.  I would say jump in at anytime.  Yes the supply is getting bigger and they are forecasting drops of 6% on prices in 2008 and they are not exactly sure how many more defaults on mortgages are coming but it is still a good time to buy.

 You have to view it like this.  By the time that you find the property, line up the financing and then close on the property the ideal time might have passed.  Think of all the people that missed out on buying a property before prices rose to historic highs.  The time is now.  If you need to do more research on properties check out these sites.  You can check out prices online and take the pulse of the market in different cities and neighborhoods by going to trulia.com, zillow.com,homegain.com as well

Cash flow in Real Estate today

How are you gonna get the magical cash flow.  Here is how rental units.  If you buy a typical 2 to 4 unit they will be priced to break even or even lose.  But if you buy a property where you can add cash value to it then you will increase your revenues.  In many areas you can add onto a property by converting the attic into a unit as well as converting the basement into a unit.

 You can add up to 1200-1500 to the building revenue.  That alone could add another 100000 to 200000 value.  It increases the equity as well as the revenue.  This will give you an option to buy another property or just sit on the cash.

 Good luck

Credit Crunch to your advantage(The Real Estate Man)

The fed is not happy with the capitalizing of lowering the discount rate so many economists are forecasting 3 more drops or a 1/4%.  If that is the case expect to see very low rates. 

You may hear the stories of housing drying up but prices are coming down and rates are coming down all at the same time.  It is a great time to get a property if you have good credit. 

Many local realtors are predicting that from this time last year if you buy a property your mortgage will be as much as $500 a month lower.  Now is the time to strike

The Real Estate Man

The many property deals in Chicago (From the Real Estate Man)

If you are following the internet, MLS or just driving around the streets of Chicago you should see the bottom coming out of the real estate.  Prices are coming down!  It is starting to hit its stride.  We have seen hundreds of price changes on the MLS.  It is very common to see $20,000 drops on bricks and $30-$40,000 price drops on framed properties.

You will hear statistics of large drops, increase in foreclosures and short sales.  Those are all great words and accurate.  In areas like Avondale, Logan Square and even Roscoe Village it is very common to see price drops of 20-$40,000.  

If you go to areas like North Lawndale or Garfield Park you will see foreclosures piling up.  If you are looking to get that Greystone under $300,000 now is the time.  They are starting to get under $300,000 creating great cash flow possibilities. 

Get the Deals now! 

How rare to find a cash flow property (From the Real Estate Man)

If you are gonna be a rich person in Real Estate and you are starting today the question you have to ask yourself are you gonna hold for 5 years or 30.   You can attend all the real estate seminars you want that say you can get a few properties and generate cash flow then flip it.  Sounds sooooo easy but it is tremendously tricky these days and for 1 very good reason the Internet.

Buying properties use to be a 6 week process on average in the 90′s before the Internet explosion.  Now it is on average a 2 week process with the buyers doing a tremendous amount of the research on the Internet.  It has opened the flood gates for entrepreneurs to get into the game. 

Bill Smith of Chicago owns 2 3 flats in the area and he described as a race to get anything under contract a couple years ago.  People were buying properties with 1000 negative cash flow going into the properties.”  The thoughts are we might recover in 2008 or 2009 or even in 2010.  Basically no one knows just yet.  It is all up in the air. 

The only question is will you be able to get positive cash flow on the next property.  Good luck 

Hello world!

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!