Venture that owns sites near McCormick files Chapter 11 - Chicago Real Estate Daily

filing for bankruptcy is a way to temporarily halt a foreclosure...but it most cases probably a futile battle.

Venture that owns sites near McCormick files Chapter 11 - Chicago Real Estate Daily

US Shuts 7 banks in IL

Yesterday was D-Day for Illinois Banks, the largest amount of bank seizures in one day. Some of the institutions that will become part of a larger bank were really great neighborhood banks. The real estate melt down has really changed the landscape of investing. In summary:

Lincoln Park Saving Bank will become Northbrook Bank & Trust, a Wintrust Bank. Broadway Bank and New Century Bank were both aquired by MB Financial. Citizens Bank & Trust was acquired by Republic Bank. Wheaton Bank will become Wheatland Bank, another Wintrust Company. The Harris Bank acquired Amcore. First Midwest of Itasca will take over deposits for Peotone Bank & Trust.

Fordham in the NFL Draft

As a proud Fordham Alum I am really surprised to see Fordham University named during the NFL Draft. QB John Skelton drafted by the Arizona Cardinals in the 2010 NFL Draft. Best of Luck John!

NEW LEAD PAINT REQUIREMENTS

Effective today certain paint jobs on homes or apartments built before 1978 will need to be completed by a contractor who is lead paint certified by the EPA. A link to an article in the Tribune is included.

A few things caught my attention on this :

1) I have not seen too much in the way of a public awareness campain for this measure, I have not seen much in the way of alerting contractors either.
2) This is exepcted to increase the cost of a paint job by approximately 5%
3) The liabilty is on the contractor, not the property owner

Getting a loan will be pricier

This article from CNN predicts 30 yr. mortgage rates in the 6% range in 2011, but states that the fed will not let rates rise to sharply until the economy is ready. Now that it seems as if everyone knows where rates are headed, what do we need to do to prepare.

Underwater rental buildings at risk; Cook County - chicagotribune.com

Underwater rental buildings at risk; Cook County - chicagotribune.com

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I do not know why, but this number shocks me. 42% of 2-6 unit  Chicago apartment building owners are underwater? If you are an owner of a property that is underwater our Property Management team can increase market value and if you are interested in making a real estate investment our agents can certainly find you a great deal. Call Root Realty if you would like to discuss how we can help.

How Much Will Mortgage Rates Rise If Fed Ends Support? - CNBC

How Much Will Mortgage Rates Rise If Fed Ends Support? - CNBC


This is a very interesting article considering how it relates the to the real estate markets. It seems that the FED wil leave rates the same today, but when they stop buying mortgages we could see an increase in rates for two reason. One, there will be less demand and two they could begin re-selling the mortgages they own, thereby flooding the market and diluting any demand. The article implys that an inflationary period is coming and Root Realty is a believer that real estate is a good investment option during inflationary periods.

Foreclosure Investments

Root Realty is looking for investors...If you are looking to rehab apartment buildings or invest in multifamily and mixed use property,  please contact us. We have direct access to foreclosures and non-distressed assets.

Contact us today....

(773) 348-8080

http://www.rootrealty.com/

Fed Rate Increase

Complex, yet interesting article from Bloomberg highlighting steps the Fed is making in order to increase interest rates for the first time since 2006.

ECHO BOOMERS

ECHO BOOMERS= The children of baby boomers.

This generation is entering the prime renters age and many experts are expecting this growth in the rental population to have a strong effect on apartment building vacancy rates. This is great for owners of apartment buildings.

If you own a building why not get a free property managament quote from Root Realty.

2010 Apartment Outlook

I reviewed the Marcus and Millichap 2010 Apartment Outlook today and wanted to share a few things that I took away regarding the fundamentals of Chicago Multifamily Real Estate and the outlooks for 2010....

• The researchers at M&M feel that investment activity has bottomed and we are in the beginning of a recovery.
• The midwest, including Chicago, was not battered as badly as other parts of the country in terms of employment loss and occupancy rates. Because of this Chicago multifamily real estate valuations were not hit as hard and therefore will not have steep rebound that may happen in other parts of the country.
• The valuations for Chicago in this report are right in line with Root Realty's opinion of where Cap Rates are in the Chicago Multi-Family sector.
• As a wrap up, Chicago multi-family fundamentals will be driven by employment growth and many experts are anticipating growth in 2010.

Annual Apartment Vacancy- All Time High

The US Census Bureau recently released its Third Quarter 2009 Rental Vacancy Rates.

2009       11.1% (through 3rd Quarter)
2008         9.9          
2007         9.8
2006         9.9
2005         9.9
2004        10.1
2003          9.9    
2002          9.0
2001          8.4
2000          8.2


The vacancy rate is up in the South, West, and Northeast, but remains unchanged from last year in the Midwest.

Root Realty believes that as vacancy rates improve so to will valuations for Multi-family housing. In the short term, housing stock that is being rented needs to be sold off, but longer term the next generation of renters is on the way and rental housing should boom.


                     

Sold

Root Realty completed the sale of a 12 unit mixed use in Lincoln Square today. 8.8CAP. Investment properties at a good price in a good location are moving. http://www.rootrealty.com/

exciting website updates

Root Realty is currently updating http://www.rootrealty.com/ to become the #1 website for Chicago Property Management. The updated site will not only have information for property owners and investors, but will also have functions that make life for our tenants easier.