Mistakes That Can Turn a Flip into a Flop

I know many of you have often thought of becoming "flippers". While this segment of the real estate market is not as active as it was a few years ago, there's still opportunity out there. But one must be preparred. So, from USA Today as republished in Realtor Magazine, I'd like to share like this list of 10 mistakes that could turn your flip into a flop:

1. Liar loans. "Lying on a mortgage application is a federal crime," says Joseph Falk of the National Association of Mortgage Brokers. "It includes bank fraud, wire fraud and mail fraud and potentially a host of state offenses. This can result in jail time."

2. Overpaying. No matter how promising the property, the bottom line is trump.

3. Lacking cash. Desperation makes investors do crazy things. When you act in haste, you're more likely to make poor decisions.

4. Quitting your day job. A steady source of cash staves off desperation.

5. Hiring unlicensed contractors. Not only do they present an insurance risk, but worse yet, often they don’t get the job done.

6. Buying sight unseen. You can bet it will be uglier than the seller said it was.

7. Buying property far, far away. Even the tiniest repair can mushroom into a crisis.

8. Buying too many properties too fast. Too much money, too little time.

9. Underestimating remodeling costs. There’s no such thing as a cheap and easy fix.

10. Having a poor exit strategy. Running out of cash and living on credit cards doesn’t work.

At least one of you is asking yourself..."why didn't I have this list earlier...I would have saved myself a lot of money and agrivation."

Source: USA Today, Noelle Knox (10/23/2006)

Update on the Park at Adams and Peoria

This morning I noticed a bulldozer digging in the parking lot at the corner of Adams and Green. Of course I went over to talk to the freezing crew to find out what they were up to.

A little background...those of us living in the Greektown section of the West Loop have been after the city to create some green space here for years. Earlier this year, after many years of talk and no action, the lot was finally purchased by the city from UIC and now it looks like the long awaited neighborhood park is on the way!

This morning's diggers told me they were looking for buried tanks and also conducting an environmental evaluation of the property in order to provide the city with an estimated cost for the demolition prior to the park installation. After all, kids need to play in a non-contaminated area!!

So how long will the process take...my new digger friend says 6 months before the lot is ready for park installation. Perfect timing for Spring!

If you're interested in input come to the community meeting regarding the Adams Street Park November 15th 7-8:30 at the Merit School of Music at 38 S Peoria.

West Loop = Chicago's Old Hobohemia

By Jeff Payne
I'm writing this as the old Christian Industrial League buildings at Halstead and Monroe are being demolished with gusto right outside my window. I now know what it's like to live in an earthquake city like San Francisco as my condo shakes violently with every pounding blow of the wrecking ball. So today I'm wondering what bit of history are we loosing? The answer is one of the last remaining bits of Chicago's historic hobohemia.

If you're interested what the West Loop was like in the old days, I highly encourage you to read the excellent Chicago Journal Article by Michael Nagrant.

Here's an excerpt to get you started..."The era of Hobohemia had begun. Madison Street was filled with "bindle stiffs" (hobos who wore packs and rolled blankets upon their backs), "bottle gangs" (groups of bewhiskered huddled homeless men pooling money and passing whiskey), "jackrollers" (hobos without compunction who would steal from their fellow bums), "haybags" (female hobos who would trade sexual favors for liquor), "dingbats" (hobos who scavenged through dumpsters), and "halfies" or "stump bums" (hobos missing limbs or confined to wheelchairs)...."

Read and see if you can identify what used to be where you're condo sits today!

Chicago's Olympic Logo's All About Real Estate!

Had to post the Chicago 2016 Olympic Logo for you!

Do you know your credit score?

Free credit reports began one year ago. September 2006 marked the first anniversary of every consumer’s right to a free annual credit report from each of the three nationwide consumer reporting companies (Equifax, Experian, and TransUnion). Click here to get your FREE Annual Credit Report!

Check out the Fulton Arts Walk '06

Situated in the urban warehouse district of the West Loop, the Fulton Market area houses some of Chicago's best artists, musicians and galleries. This year's Fulton Arts Walk has something for everybody.

Ugly Building Contest

The Chicago Journal wants you to help them find the ugliest building in Chicago. I know a few new construction condos in the West Loop that qualify....hard to decide which is the worst. I'll get my camera out and post a few pics later.

Spending too much on housing?

The Trib reports that the portion of homeowners in the six-county Chicago land area spending more than 35 percent of their household income on housing costs jumped from 17 percent in 2000 to 28 percent in 2005.