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Christian Chase's Blog

By Christian Chase | Agent in Naperville, IL
  • The Perfect Flipping Storm

    Posted Under: Foreclosure in Naperville  |  January 18, 2010 3:49 PM  |  1,598 views  |  No comments

    Savvy investors have been snatching up deals for the past 10 months to buy, fix and sell for profit.  Contrary to popular belief we are in the best flip market in the past 15 years.  There are a few critical factors that have contributed this opportunity. I will list them below:

    1. New construction is almost non-existent. Banks are unwilling to lend money to builders who build on speculation. Over the past few years banks have been taking back incomplete projects and disposing of this property at pennies on the dollar. (This is much worse to the bank than a typical foreclosure.)

    Why this is an advantage for my investors: Our toughest competition has been eliminated. Builders always have an upper hand on foreclosure investors, they can build almost anything anywhere. If a buyer needs an extra bedroom they can build it, we are limited and as a result lose many end-buyers to these competitors.
    No Builders = Less Competition  
      

    2. Short Sales are a huge percentage of the market. Look through the MLS today and you will see many units listed as a “short sale”. These units are a large percentage of total homes listed. Realtors are severely limited on what they can show. A short sale can take anywhere from a month to a year for approval.  Agents and buyers are unwilling to enter into these unpredictable contracts.

    Why this is an advantage for my investors: Our competition is difficult to purchase for the everyday home buyer. If someone has a lease and needs to move on a particular day or a company relocates an employee they will shy away from this type of  property.  Buyers look for predictability and our home sales are just that, very predictable.  
    Short Sales = Unpredictable Purchase 

    3. Current homes listed are in sub-par condition.  Home sellers who have their homes listed are not spending money on making improvements. They feel why pour money into a property they are already losing money on.  As a result, many homes listed today need paint, carpet, and updating.

     Why this is an advantage for my investors:  All of our homes listed are totally remodeled. We make our units look like new construction. When buyers look at other MLS units many need those improvements, our unit is ready to move-in and priced at or below our competitors. 
    Property Needing Repairs = Sub-Par Competition

    4. Bankers lending to qualified investors. The days of goof-balls getting loans are long gone. You need three things to invest today. 1. Good Credit 2. Good Income 3. Good Tax Returns

    Why this is an advantage for my investors: If you are reading this you most likely are a client of mine and my clients have all three requirements and then some!
    Goof Balls Gone = Good Selection of Loans and Property

    Christian Chase
    Foreclosure Investment Real Estate
    www.ChaseForeclosure.com
    www.ChaseRental.com
    christian.chase@mychaseagent.com
    630-527-0095

  • 10% Down Investor Loan Program

    Posted Under: Foreclosure in Naperville  |  October 20, 2009 3:46 PM  |  1,706 views  |  No comments

    New Loan Program Launched Today! 10% Down Loan with Rehab, and Closing Costs Financed Into Loan.   

    This program was developed to meet the unique, and largely neglected, financial needs of our real estate investors. These rehab loans provide 90% financing for the purchase, improvements and closing costs for 1-4 family non-owner occupied properties. All Chase Real Estate foreclosure properties qualify for this loan.

    •   +10% Down Payment
    •   +Rehab Financed in Loan
    •   +9 Month Loan Term
    •   +Interest Only – No Prepayment Penalty
    •   +680 Minimum Credit Score
    •   +Closing Costs Financed In Loan



      Watch are video Click Here

      Christian Chase
      Chase Real Estate
      630-527-0095
  • New Rules For Real Estate Investing

    Posted Under: Foreclosure in Naperville  |  March 26, 2009 1:32 PM  |  1,666 views  |  No comments

    1583467_191d886988The new economy brings with it  a new set of rules for investing in real estate throughout Chicagoland. In the past real estate has been a proven method for building wealth, but the current rules for successful investing have changed.

    Making big money in real estate is still a possibility, but investors must pay very close attention to the changes that this economy brings. Todays investors need to reexamine their criteria for buying, selling or renting property. They also need to be flexible, along with complete research, before they  take advantage of some of the best  foreclosure deals seen in years.

    New Rule #1 Location, Location, Location

    No, this may not be a new rule but many investors of the recent past forgot how important location is when purchasing investment property. The best locations make investors wealthy. A client of mine called and said he found a foreclosure located in a less than desirable area. He could purchase the property for $50,000 and rents were almost $1,000 per month. Positive cash-flow was over $400.00 per month. Yes, he made a nice positive cash-flow and the numbers looked good on paper, but the problem was location. Because of the location tenants  were consantly moving in and out, vacancy rates were high and as a result rents could not be raised, he was always looking for new tenants and re-remodeling his homes.  If you purchase property in a good location tenants tend to stay and rents can be raised year over year and very little remodeling is required.

    New Rule #2 Buy, Fix and Sell Now

    Sounds crazy? Let me explain. New construction in Chicagoland has come to a halt, homeowners are short selling their homes. Home remodeling has slowed down to a snails pace. As a result, homes entering the market are in need of some remodeling. I am not saying they are trashed but they require new carpet, updated kitchens, wallpaper removed etc… A few years ago buyers could find both new construction homes and existing resales in perfect condition. Today these are both difficult to locate.  Because of this shift, investors who buy, fix, and sell property have a major advantage over the competition.

    New Rule #3 Expert Advice

    Ever call a real estate agent to ask advice about investing in property? Spoke with a lender about obtaining financing on a foreclosed home? Discussed title with a real estate attorney? A couple of  years ago anyone with a pulse was an “expert” and could  navigate through the smooth waters of real estate investing. Today, working with a schooled advisor is critical.  Questions to ask each advisor: (1)How many properties to they personally own today? (2) How many years experience do they have working with investment property? (3) If they are a real estate agent, how many foreclosed homes have they sold in the past 12 months, then 24 months? If the answers are few you are dealing with a neophyte. Beware! Investors need expert advice.

    New Rule #4 Government Money

    Government money is sloshing around the real estate market. The way our government solves problems is to throw money at it;  if you have the ability to solve these problems, the  money will flow your way. State and Federal money is available to investors when buying and renting real estate. Who can use it. YOU.  The government will back 50% of purchase price on many investment properties, they will subsidize rents - the uses are almost endless.

    www.ChaseForeclosure.com

  • Wholesaling 101 - FHA an investors friend

    Posted Under: Foreclosure  |  January 25, 2009 10:52 AM  |  1,591 views  |  No comments

    es1Wholesaling is where an investor buys a property in foreclosure at a low price - then sells the property at a slightly higher price for a profit. With banks negotiating to new low levels, my investors have been able to take advantage of this unique opportunity. At Chase Real Estate we have a simple wholesaling system that works.

    The system starts with identifying substantially undervalued real estate that is in fairly decent shape. By decent shape, we mean a few mechanical issues but mostly cosmetics. Chase Investor purchases property for $100,000. Once closed, the rehab team cleans out property and repairs/turns-on all utilities ie. furnace, water and electric. (All of our foreclosed homes have their utilities turned off)

    We find that “regular” buyers are very nervous when purchasing a home. The key items of concern are structural and mechanical issues. As a wholesaler, it is our job to make the property a bit more habitable. This not only helps the buyer feel more comfortable but also the bank who is making the loan for the new buyer.

    At Chase Real Estate we are working with numerous buyers who are looking to purchase homes under market for their personal residence. Using the wholesaling technique we are able to offer these buyers a number of real estate products not available to the general public. First, when a buyer calls us looking to purchase a home we will provide them with your home that is in need of repair. Most homes will need $5,000-$35,000 in repairs (This is a 203K loan from FHA). We inform the buyer of the ability to buy this property with a low 3 1/2 percent down payment. Then, this is where it gets really good, the buyer can finance all the repairs in this loan. Kitchen cabinets, stainless steel appliances, granite counters, carpet, paint, hardwood floors, roof, bathroom remodeling etc….

    Here is how the numbers work: Chase investor purchases the home for $100,000, then completes a few repairs and clean-out lets say $2,000. The investor prices property for $120,000 sold ”AS-IS”. The home repaired will appraise for $150,000. This allows the new buyer to finance $30,000 for repairs. It is that simple. The only hitch is a short seasoning of title. From the time the investor purchases the home to the time the new buyer purchases the home must be a least 90 days. This is a great way for investors to make money buying and selling using a technique that works in every market!

    www.ChaseForeclosure.com

  • Frozen Pipes - It's That Time of Year

    Posted Under: Foreclosure  |  January 25, 2009 10:50 AM  |  1,552 views  |  No comments
    Frozen pipes are very common this time of year. Most of the homes we purchase are winterized and as a result will not have frozen pipes. Investors will run into frozen pipes more often after the property has been remodeled and is listed on the market.

    Once the property has been remodeled and the furnace is working, the home is warm. Problems arise when the gas or the furnace are shut off. I have seen pilot lights go out from wind down the chimney. The gas bill is sent to the wrong address, the investor forgets to pay. As a result, the gas company turns off the gas.  Frozen pipes are almost always the end result.

    The best way to protect the property is to remind the handyman to turn off the water at the main line inside the home. Keep the furnace at 55 degrees.  If the furnace stops working the only issue will be a broken pipe, we will not have Niagra Falls in the home.

    For sales purpose post the “Notice” on the counter explaining to buyers and their agent not to use the bathrooms. If they are having a home inspection they can turn on the water at the main inside the property. Then, they are instructed to shut off water after testing.

    Click Here For Notice

    www.ChaseForeclosure.com

  • Is it difficult to get a loan? Fact or Fiction

    Posted Under: Foreclosure  |  October 27, 2008 7:44 AM  |  2,172 views  |  4 comments

    We hear daily on media channels this statement: “Consumer credit is limited, mortgage money has dried up and student loans are more difficult to find”.  A small percentage of borrowers have been impacted by these tightening restrictions. My example of the person who has been impacted negatively is: Joe the Pizza Parlor owner.  Joe has a good business, lives in a nice house and has a good credit score. Joe’s problem is that he shows on his tax returns zero income. He writes everything off. His accountant has been doing this for a number of years. As a result, Joe looks like he makes no money each year. We all know Joe makes good money, he pays his bills, drives nice cars, takes vacations. When he applies for a loan to buy a home the lender needs to see his tax returns and they show no income. In today’s lending world banks want to see two critical things: number one, good credit and number two, income.

    Joe will now have to declare income on his tax returns if he will be looking to acquire credit for homes, cars ect…. Accountants will be advising Joe to show income. As a result, the federal government will collect more taxes and help pay down the deficit.

    The “Joe’s” are having a hard time getting loans. Fact!

    Everyone else having a hard time getting loans. Fiction!

  • Fannie Mae 4 Property Limit. True or False?

    Posted Under: Foreclosure  |  October 13, 2008 8:05 AM  |  3,915 views  |  2 comments



    I have heard from a number of lenders that Fannie Mae is no longer allowing investors to finance more than four units.  (It used to be ten) After receiving conflicting information from these lenders I went straight to the Fannie Mae website to learn more. Some mortgage brokers said it is still ten, some said it’s now four. I asked the question: “What if the current units are held in a corporation  or llc. does this count against the total?”  Check out the website. Give me your interpretation. Help is needed!

    On the Fannie Mae website www.eFannieMae.com you can find a recent announcement 08-22 Dated September 5, 2008.

    www.ChaseForeclosure.com - Investor Website

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