interested in bank owned prop in Joliet, IL. Need advice...

Asked by John, Lockport, IL Mon Jan 7, 2008

(Old Renwick subdivision specifically--Weber and Renwick RD) 4 bed home is listed at 220 and comps out around 275. Just looking to do a quick easy flip. House does not need much work (maybe 15 grand). Any advice on this area and foreclosure flips in general?? Having it ready by March 1st I would assume would be a positive and this seems like a great area?? I have done a couple of these and have some experience, but none in this area?? Thanks!!!


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Scott Smith, Agent, Willow Springs, IL
Mon Jul 7, 2008
Hi John,

In today's market there is no sure bet or investment. If you are looking for an investment property now is a good time to get a deal but if your looking to get the biggest return on investment you will need to wait until the market turns around, there for you may need to sit and hold the property or rent it out to offset your overhead. I agree with the agent below about coming in low on your bid. After all this is an investment not your dream home so think of it as a business move. Just keep in mind that if you purchase a investment property you may have two mortgages, two real estate tax bills and utility bills not to mention up keep for a while.

I would be more than happy to answer any of your other questions..

Take care and best of luck !!
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Larry & Deni…, Both Buyer And Seller, Joliet/ Plainfield, Illinois
Wed Jan 16, 2008
There just don't seem to be too many "easy flips" these days. You need to purchase something and "add value". You need to make the property different than when you bought it, usually more different than new paint and carpets. What worked 2 years ago does not work today.

Have you thought about joining a local real estate club? There you can network with 200 other investors who are doing exactly what you want to do. I'd suggest the one below.

Feel free to email me any questions about Plainfield, Joliet, or Will County investing.
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Lori Gilmore, Agent, Plainfield, IL
Tue Jan 8, 2008
Hi John -- I am familiar with the area, and I ran some quick stats about the subdivision. Currently there are 14 competing listings in that subdivision with an average market time of 196 days. In the last 6 months 9 properties have closed and 6 of those closed at $255 or under. Though the comps support a $275 price tag, market activity does not indicate that the $260 and up price bracket is moving quickly.

If you want to pursue the property, I would make an offer significantly under list and try to resell the property under market value in its repaired state. I would also plan more than one exit strategy because of the long market times in that area. You might want to consider offering it as a lease option to broaden your base of potential buyers. In that scenario, you don't cash out as quickly, but you can make a little bit of upfront cash and create some monthly cash flow as well if the numbers work.

Additionally, realize that when you buy bank owned properties, the bank will require proof of fund with the offer, so make sure you have your paperwork in order. Also, the bank will not pay survey or termite, so make sure you factor those costs in when estimating what it will take to close.

Good Luck! Feel free to contact me if you have additional questions.
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