Vanessa,

If a condo building is mostly (more than 50%) renters, chances aren't very good that you'll be able to secure financing for it, so if you're not paying cash, I would suggest that you contact the Homeowner's Association to find out the exact percentage of non-owner-occupied units.

Earlier this year, both Fannie Mae and Freddie Mac started requiring 70% owner occupancy in new developments, (different rules apply to existing associations) and FHA promises to come out with new guidelines soon.

This information is usually not disclosed up front, and your agent may not question the owner occupancy percentage before putting in your bid. However, every lender out there will be requiring a Condo Questionnaire to be filled out by the Association Mangement and this is a deal killer.

For more information about buying a condo, you can click on my profile and see my blog, or feel free to give me a call.

Thanks,

Matt Bukovy
Sr. Mortgage Consultant
Wintrust Mortgage
3317 W. Irving Park Rd.
Chicago, IL 60618
Cell 773-416-7107
Phone 773-654-2498
eFax 773-409-5558

You are fortunate to be a first time buyer in a market that gives you many choices as well as a $8000 tax credit. Buying a condo is quite different than buying a single family home. Make sure to investigate the condo association and find out things such as the percentage of units delinquent on paying assessments and percentage of units owned by investors. Work with an experienced real estate agent who can help you with your search.

My advice is to keep looking a find a building that doesn't have the problems that buildings like the Sterling is experiencing. There are many good buildings with units for sale.

Michael Wallace
Mortage Banker
michaelw@chicagobancorp.com

Huis Clos - No Exit - is Sartre, not Camus.

Yes, The Sterling is a tough, problematic building. But McCarey's take on its probable fate is about as accurate as his existentialism references.

Other buildings have suffered this fate over the past 30 years and found other paths out than the one McCarey suggests. In the early 80s virtually every building in Sandburg Village was in worse shape than The Sterling as far as the number of foreclosures, and close on the percentage of renters. 2 East Oak, an Invsco conversion of the late 70s was in equally bad shape and came out of its troubles eventually without a bulk purchase scenario.

If you have the stomach for it, and the cash, and the patience, the long-term (very long-term) outcome might be favorable based on the property's location. It's not, however, for the typical first-time buyer.

Hey Vanessa,

Regard The Sterling and any property directly or tangentially related to American Invsco as if it is the plague.

In all likelihood the only means whereby you might purchase a unit at 345 LaSalle is by making a cash offer. Because as much as 80% of the building is rented, few if any lenders will extend credit to finance a purchase. In my experience a healthy condo will cap rentals at 20% - 25%. The scenario of this building as is described in this link to a Crain's Chicago article - http://www.chicagobusiness.com/cgi-bin/article.pl?article_id… - is that units were pushed as investments under what at the time were apparently propitious arrangements.And so for this small down payment you can buy this property and Invsco would handle the rental. Thing is the luster faded quick through a combination of inflated prices, exploding ARMs, a weakening rental market, and investors who lost the means to keep pace with payments.

The result? A building for which the word quagmire is simply inadequate. The Sterling, is perhaps a mixture of Kafka and Camus. And like Camus' famous work on existentialism, there truly appears to be "No Exit." There is no feasible or reasonable way to credibly argue that a single owner will have any impact. Your purchase here, because of the milieu of properties with liens promises to be as harrowing as it is nerve wracking. The only means of enabling The Sterling to be extricated from it current fate is a bloc buyer purchasing many multiples of units (at firesale prices) and establish terminal point leases toward a point when the building will transition to a condo building rather than a de facto rental building.

I bid you the best of luck in your effort to find the best place. And in so doing I urge you to find the best real estate professional to walk you through the process.

Tom McCarey
The Real Estate Lounge Chicago with @properties

I agree with Philip. This building has been having a ton of problems. There has been a lot of short sales in this building, and buying in that building now will probably be a bad investment. I think more and more units will continue to come on the market for less and less in there. Its like trying to catch a falling knife in that building. I would try to find a better deal elsewhere. If you need any help, I would be happy to help. I work with alot of first time buyers. Good luck!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696

The Sterling has been one of the poorest performing buildings in the downtown area which is good for buyers today (if you understand the risks), but pretty brutal for those who bought during the conversion. There are similar buildings nearby. Needless to say you have lots of choices in the areas you describe depending on what your criteria are. Let me know if you would like to talk about it or perhaps my website may be helpful.

philip

Hi Vanessa,
quick question for you..... Are you looking for a property to live in yourself I am assuming so since you say you are a first time home buyer... One of my offices is located in the South loop area and if you like I can e-mail you daily all new listings that will be available in those areas you mentioned Southloop area, River North, the Gold coast and any other you may want to consider. But I need the size of condo you need and your preferred price range, so I can personalize the search on your behalf.

I do not want to repeat what the other agents forwarded already to you about the Sterling Building itself...

I also would like to mention to you that if financially/income wise you qualify for the up to 8000 $ tax credit for first time home buyers (you have to stay in the property for min. of 3 years after the date of closing) you also must close before Dec. 1st, 2009. Feel free to contact me and let me have your wish list so that I could be of further assistance.
Edith Karoline YourRealtor4Life!
Working always in the very BEST interest of her clients!
EdithSellsHomes@gmail.com

Knowing what you want is half the challenge. Keep your options open and do your best to treat the purchase like an investment. Focus on value, and choose an area that shows the most room for improvement in the short term (a few years). Remember, its only a buyers market if you take advantage of it!

Vanessa,

345 N Lasalle currently has 10 active listings. 1 studio $174,900, 6 1BR 1 Bath units range in price from $199,900-299,000. 3 2BR 2 Bath units range in price from $279,000-$399,900. Some of these condo's have garage parking, others have an outside space.

If you have any other questions about this or other properties in the area, do not hesitate to contact me.

Mark Risting
Prudential Starck REALTORS
630-550-1953
mristing@starckrealtors.com

Hi Vanessa,

One site that contains a lot of good information on Chicago area properties is Crib Chatter. If you click below - you can read some of the blog post and comments about the building.

http://cribchatter.com/?cat=41

Good luck!!

Sari