Michael Hobbs

An Excerpt from our client, Cherry Picker Investments, and the properties their customers acquired

Foreclosure Investing Success in Illinois:

6151 W. Roscoe, Chicago, 60634

1306 S. 49th Ct, Cicero, 60804

1134 N. Waller, Chicago, 60651

8243 S. Manistee, Chicago, 60617

1337 Sunnyside, Highland Park, 60035

full article at:

http://www.cherrypickerinvestments.com/blog/136-the-week-in-review-chicago-foreclosure-investment-highlights

Sincerely,

Michael Hobbs

Department of Housing and Urban Development (HUD) announced that their program called the Emergency Homeowners Loan Program is soon closing the door for application. The deadline is July 22, 2011.

see their website at: http://ehlp.nw.org/

The Emergency Homeowners’ Loan Program (EHLP) was created to provide emergency mortgage assistance to homeowners who are temporarily and involuntarily unemployed or underemployed due to the economy or a medical condition and are at risk of foreclosure. The Dodd-Frank Wall Street Reform and Consumer Protection Act provided $1 billion to the U.S. Department of Housing and Urban Development (HUD) to develop EHLP.

The Emergency Homeowners’ Loan Program (EHLP) can provide eligible homeowners with a 0% interest, forgivable loan that pays past-due mortgage payments (principal, interest, taxes, insurance, attorney fees), as well as a portion of the homeowner’s mortgage payment for up to 24 consecutive months, or up to $50,000, whichever comes first, and provided that certain eligibility requirements are maintained.

Hope this information is helpful.

Michael Hobbs

It has been a little while since Chicago was #1 in the nation in anything...unfortunately, this time it is not something to cheer about.

Chicago was first among the country’s 20 largest metropolitan areas per data compiled by RealtyTrac based on housing stats.

The Chicago metropolitan area had 118,776 homes in May 2011 that were either owned by banks or were in the process of being taken over by lenders because the owners could no longer afford their monthly mortgage payments, according to RealtyTrac. The Chicago area includes Cook and DuPage counties as well as parts of Indiana and Wisconsin that are part of the metropolitan areas used in U.S. Census tracts.

The Chicago housing inventory exceeds the Los Angeles and Miami areas, where the foreclosure crisis seemed particularly severe, AND Chicago’s inventory of foreclosed homes is falling more slowly than elsewhere. Chicago sells fewer foreclosed home each month than any other major metropolitan area except New York, where state laws similar to Illinois’s offer protections that make it hard for banks to drive borrowers from their homes.

During the first five months of the year, for instance, an average 4,004 foreclosed homes in Phoenix were sold each month. The monthly averages were only 1,697 foreclosed-home sales in Chicago, while 762 foreclosed properties sold in New York.

In speaking with Bardan Azari, Cherry Picker Investments, "We have seen a continued trend towards greater investor interest in foreclosed properties because the quality of the inventory is much higher than it was just two to three years ago. Today, we have multiple cash investors who are successfully acquiring great properties for both rental housing as well as fix and flip opportunities."

As an appraiser....we see many things. Yesterday, we were surprised that it was a house for $306.00

Most of the time, we see normal things, every day life kind of situations...typical house or condo. And then, we also see things that many people don't see....vandalized houses, wierd configurations of homes, unique improvements, huge condos, tiny condos and studios, beautiful waterfront views or skylines. And some days, we see things that could be worthy of a movie...but more about that later.

From time to time, there comes an opportunity for every investor to say, is this too good to be true???

Since a quarter of our business involved experienced real estate owners and investors, we are fortunate to know of a number of opportunities that come along...Yesterday was one of those days.

Yesterday, amidst the normal hussle and bussle of properties being auctioned off due to foreclosure, clients of Cherry Picker Investments (www.cherrypickerinvestments.com) got an opportunity to buy this house. Granted th mortgage was somewhere south of $100,000. Yet the house sold for $306.00 Time will tell what the real story is, but in this case, we were told the bank just wanted OUT. The bank was willing to take any bid that a client would offer.

And one Cherry Picker's clients got in on the bidding...STARTING AT $1. Granted, the winning bidder offered $306. In the upcoming week, another post will profile the 'rest of the story' as Paul Harvey would fondly say, once we learn more about this acquired property...but for now...it's awfully enticing....

So, how amazing does the price for a Brick House have to be before you say it is an opportunity. Considering that for just about everyone, one paycheck buys this house, it does seem like an opportunity. Heck, the bricks are worth more than $306.00 that it took to buy this.

Yes, you read that correctly, a Chicago Foreclosure of a Brick 2 Story Single Family House. Granted, the photo was taken from the Cook County Assessor, but it is a 2 Story Brick House. The real condition of the house is not yet known as this all transpired in a matter of minutes yesterday.

I don't know much more than you at this time, but we regularly see the clients of Cherry Picker achieve $30,000 to $50,000 per transaction in timeframes less than 60 days...which can be mindboggling to uninitiated real estate professional and especially to most appraiser out there. Then again, most appraisers are not entrepreneurs and they are definitely not real estate investors...so of course, they are skeptical of any possibility of an investor making a profit, much less a big one.

Here are some Quotes Regarding Opportunity that I thought seemed applicable:

Even when opportunity knocks, a man still has to get up off his seat and open the door. Hello, Anyone home?

The trouble with opportunity is that it always comes disguised as hard work. Wake Up, It's time to get to work Investing.

Too many people are thinking of security instead of opportunity. They seem more afraid of life than death. You might die before another one like this comes along.

Opportunity knocks at the strangest times, It's not the time that matters But how you answer the door. Hello, I'm knocking again....anyone home?

Many an opportunity is lost because a man is out looking for four-leaf clovers. The rich man finds diamonds in his backyard not halfway around the world!

So, whether you think it is or it isn't time to invest in real estate, I'd say it is...at least at these prices.

Provided the house doesn't need to be torn down, the property will generate at least $1000 if not $1300/mo in rental income, the taxes are probably about $1500/yr and the insurance on the house is $1000. Don't know just yet what the rehab costs are....when we know.. you'll know.

Happy Investing,

Michael Hobbs, President, PahRoo Appraisal & Consultancy