Estimating Your Way Around Rehabs

Many of you have asked me how I estimate my rehabs. Any rehabber will tell you there is no way to get exact figures, but there are ways to get close. The following method is geared towards light to medium levels of rehab and not structural or gut rehabs.

If you plan on rehabbing for a living (a darn good living I might add), start practicing in your own home, condo, or apartment. Pretend that it is your subject property. Draw your bathroom, kitchen, living room, bedroom, etc. out on a piece of paper. Draw in the individual components for those rooms (toilet, bathtub, vanity, sink, etc.) and also measure the cabinets for those rooms.

You need to start asking yourself questions. In what area do you want to do rehabs? To what standard of living in that area does this rehab have to conform? How big are the average kitchens and bathrooms in the area you've chosen? Visiting “open houses” in the area you want to rehab in is your best source for finding this information out.

Though it's true that a good rehabber can rehab in any area, the level of “bling bling” in the finishing details is determined mainly by what the area can support and not entirely up to the rehabber. KNOW YOUR REHAB AREA! Don't jump from area to area unless you know that area.

Now that you know your area, adjust your own drawings if they differ on average from the houses on your open house tour to increase the accuracy of your estimates. Remember, the goal of this exercise is not to get exact costs of doing a rehab; it is for you to learn how to walk into a particular property and get a feel for what it might cost to do that rehab.

Next, let's go shopping! If you plan on being a rehabber, plan on shopping. In Chicago we have many choices - Home Depot®, Lowes®, Menards®, Ace® and lots of independent home improvement centers. Go to a store close to an area that you want to rehab in and start tracking costs, one room at a time, for each item you are buying (with your mind only) and at the level of “bling bling” needed for your rehab area. Buy flooring that would be right for your area for each of the different rooms and make note of that. Then look at what a door or an average size window for the property might cost, and add those to your list under miscellaneous. You are getting used to “buying with your mind.” This will help you as you walk through a possible rehab. You are developing your ability to have a vision for a property.

By the end of your “mental shopping spree,” you will have a total amount for each room in your drawing and you will have lost your mind from spending five hours in your local home improvement store and a ton on your next rehab! You will begin to have a feeling about what a bathroom, kitchen and other rooms in the next rehab candidate will cost to bring it up to neighborhood standards.

I suggest going “mental shopping” several times to add additional items, as well as using the same drawings with different levels of “bling bling”. This will allow you to be able to price a kitchen with high-end cabinets and appliances, middle of the road, or low-end and improve your ability to walk in to a property and have a good idea of costs.

Contractors and builders will often use software to estimate jobs. They are usually geared towards new construction. Most will give averages or ranges, sometimes based by area of the country for some of the products we discussed. QuickBooks Pro® allows you to use certain estimation software and import it into QuickBooks Pro® for job costing. Even software will have variances that contractors must stick to if they gave you an actual job cost. If they have been in business for a long time, they also make adjustments based on their well-developed feelings and relationships with their suppliers.

Use your own personal estimates and safely add 30 percent for labor to compare with contractors and subcontractors as a way to know if you are getting a fair price for proposed work. Have them separate labor from product costs. If there is a big difference, have them justify it. If they can't, move on to the next contractor. Continue to practice developing the “feeling” for estimating and you will also see your estimates get closer to those of professional contractors.

Don't think that the way to cut costs is to get the cheapest labor or “squeeze” every last dime out of your sub- contractors. Cut costs by becoming a good shopper. Always allow contractors to make fair labor costs for jobs and the quality of their work or your reputation is likely to suffer. Most important, next to the quality of workmanship, is your ability to build a quality team. Without it, rehabbing isn't going to be so much fun. With it, you will be able to breathe new life into what many others have tossed aside.

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Scott Rubin is an active investor and founder of 5 Star Property Solutions, Inc. and 5 Star Reconstruction, Inc. For more information, he can be reached at 847-579-4830 or visit him on the web at www.a5starProperty.com

SUBJECT TO APPRAISAL

There are various types of real estate appraisals an investor needs from time to time. Today, we will be discussing “Subject To” appraisals.

What is a “Subject to” appraisal?

“Subject to” appraisals are sometimes referred to as after-repair value, ARV, appraisals. This is because the value of the appraisal is given as if the repairs have been made on the property. This is a hypothetical condition or future value appraisal because the value is rendered for some time in the future once these conditions have been met. Why get “Subject to” appraisals & who needs them?

“Subject to” appraisals are most commonly used by rehabbers and developers seeking Hard Money or Rehabilitation loans that provide acquisition and renovation cost. Simply, a lender gives the investor enough money to purchase a property and repair it, all in one loan.

The typical “Rehab Loan” provides 60% - 85% of the after-repair value of the property depending on the lender's requirements. For example, I appraise for a rehab lender that offers 70% Loan to Value (LTV) on the ARV of the property.

Breakdown: Suppose the ARV on a property is $200,000. As long as you can purchase and repair this property for $140,000 or less, they would lend you the money for this project. $200,000 x 70% = $140,000. The $60,000 spread represents the lender’s risk tolerance for borrowed funds and the potential profit margin for the borrower.

The ARV of a property is determined via a “subject to” appraisal. There are not many surface differences between a “subject to” appraisal and a typical “as-is” appraisal, where the property is appraised as it appears in its current condition. You should expect to pay a little more than a normal appraisal due to the different requirements and time sensitivity involved in a rehab loan.

The Inspection: There isn't much difference in comparison to a normal “as-is” inspection. The appraiser will measure the exterior of the property, take pictures, and note the property's environment and amenities. Inside is where the differences will be noticed. The appraiser is not concerned with the current condition of the property. Although interior pictures will be taken, the “subject to” appraisal is based on the hypothetical condition of the property being repaired. This is done via a repair list.

The Repair List: The repair list is the heart and soul of a “subject to” appraisal report. The appraisal cannot be completed unless the repair list is completed by the borrower and submitted to the appraiser. This list will be reproduced and inserted into the appraisal to document the hypothetical improvements on which the future value of the property will be based.

The appraiser will use this list to complete the appraisal report. For example, say a property has vinyl tile in the kitchen and bath. The appraiser will ignore the current materials and use what is in the repair list which says that ceramic tile will be placed in the kitchen and bath. Don't get intimidated by the thought of generating a repair list. The more detailed the better, but you don't have to break everything down by unit cost. A laundry list similar to the one displayed in Figure 1 will suffice.

The purpose of the repair list is to inform the appraiser and the interested parties to the scope of work to be completed on the property, the materials list, and the total cost of the project.

The specific layout and design functions of your project will be sought out by the appraiser during the inspection and interview process where the appraiser will ask questions on layout, materials, and design. (If the project is new construction, the plans are required.)

The Comps: Comparable properties help the appraiser determine and justify market value. In the “subject to” appraisal, the comparables will be selected as if the repairs in the repair list were completed. If the property would be a total gut rehab and the comps selected to determine value will reflect this.

Imagine that average condition brick bungalows sold between $140,000 - $160,000; total rehabs sold for $190,000 - $210,000; and the property you are buying today may be worth $90,000. Yet, the comparables the appraiser selects are between $190,000 - $210,000. Why? Because the appraisal is being completed “subject to” the completion of the list of repairs. If these repairs were finished today, the property would be worth what? $200,000 in our example, because the value of the property is based on the comparables that were rehabbed.

What to remember?

“Subject to” appraisals deliver the after-repair value of property. This value is based on the completion of a repair list provided by the borrower of the loan and to be completed at a future date. The comparables selected to support this future value will be selected based upon the hypothetical completion of all repairs and design plans given to the appraiser. So if you are, or intend to be a rehabber or developer, then, yes, you should be familiar with “subject to” appraisals because you may need a few in your future.

Invest With Passion!

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Freddie E. Taylor, MBA is a practicing Certified Residential Real Estate Appraiser in the Metro Chicago area for over five years, Mr. Taylor enjoys the business and services he is able to bring to the market. For more information about appraisals or to contact Mr. Taylor, visit his website www.pickingcomps.com.

WHOLESALING 101 = What is Wholesaling

Wholesaling is a Buy Low - Sell Low opportunity where the sell price is higher than buy price. For the investor who ends up buying from the wholesaler, it's a Buy low - Fix- Sell High opportunity or Buy Low-Fix-Refinance/Rent opportunity. Both the wholesaler and the end investor profit in this win-win situation. Sometimes this end investor may wholesale this property further to a fellow investor.

An example:

Your phone keeps ringing from one of your newspaper ads that reads "We sell ugly houses to investors at deep discount". You talk to all these investors and ask them the type of property they are looking for and their area of interest. Don't forget to ask them if can they pay cash and close quickly. Note down all relevant information about this person and add it to your buyers list.
Once you have built a big enough buyers list you put an ad in the newspaper similar to before but this time it reads "We buy houses for cash and close quick". Your phone rings from the ad. It's somebody who wants to sell you their ugly house.

You ask them the details of their situation and decide that it’s worth your time to look at the property. You get to the house and negotiate to buy the house for cash at a deep discount. You take out two empty real estate contracts from your file and agree to buy the property for $55,000 in cash and with a closing period of 10 days. Also during the process make notes and figure out what would be the estimated repair cost to bring this property up to date.

Now you get back in your car and call your real estate agent to email you a Comparative Market Analysis Report for a property in resale condition. When you get home you check out an email from your agent saying that the property is worth around $135,000. Now you go in your buyers list and identify the investors who are looking for this kind of property in this particular area. You pick up the phone and start calling them one by one Hi Investor, I’ve found something which might be of your interest .....but you have to move quick. Its a 3 bedroom 1 bath single family house in Englewood at 5757 S Sangamon St. It’s got a brick exterior and needs work of around 30k. After repaired value is around 135k and I am asking 60k. When can I show it to you? The sooner the better? Great! I'll see you at the property in 2 hours.

Investor likes the house. The investor signs an assignment contract to buy the property for $60,000 cash with closing in 7 days. Your contract price is $55,000 cash. Your profit is $5,000 cash, which you get at the closing table. You just wholesaled a property!

How can wholesalers protect themselves?

After a wholesaler has tied up the property with a contract to purchase, the next step is to protect his position in the deal in case the seller tries to sell it to someone else for a different price or terms. This could be done by recording the contract to purchase at the Recorder of Deeds office for the particular county. The same protection can be achieved by filing an affidavit or memorandum stating that the wholesaler has the contract to purchase the property along with a legal description. This is a better method since it hides the price and terms under which you purchased the property.

What are the reasons why I, as a real estate investor, should wholesale?
You want to get started in real estate investing with no money and very minimal risk.
You can find more deals than you can financially handle.
You are buying more deals than you can financially handle.
About the author:

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Hari Kusumakar is a real estate investor based in the Chicago area. He also runs the most visited real estate investment website. This website can be accessed at www.LocateRE.com. He can be personally reached at hari@LocateRE.com

My First Rehab - Danielle Johnson-Pierce

I had always wanted to “get into” real estate investing. Like everyone else, I had seen the late night infomercials and heard all the “get-rich quick” schemes where everything sounded so easy. I was never truly convinced by any of the so-called gurus, so I bided my time until about a year ago.

It was in February 2006 that I completed the investor training program taught by Guy Williams of Williams Realty and Investments in Hyde Park. This program forced me to master principles of time management and money management which led to the purchase of my first investment property on 9/28/06. I acquired the property for $77,750, rehab costs were $20,000 and the After-Repair Value was $145,000. This left me with a gross profit from this deal of over $45,000.

In addition to mastering the principles stated above, I also put in a lot of hours looking at properties. I looked at 60+ properties before finally closing on my first deal. I had to look at so many properties for the following 2 reasons. First, I was working full time so that only left the weekends to look at properties.

As a result, a lot of properties were snatched up during my hours spent at work. The other reason I had to look at so many properties is because I had limited funds and I had to locate a property where purchase price AND rehab were provided by my lender.

In terms of renovation on the property, my initial budget was $15,000 which was somewhere between a cosmetic rehab and a full gut rehab. I completed the following work on the property: new windows, new carpet, and fresh paint throughout the property. I remodeled the kitchen and the bathroom as well. On the exterior, I put new vinyl siding on the property and redid parts of the roof. When the rehab was about 90% complete, I uncovered extensive plumbing issues which added an extra $5,000 to my budget. Fortunately, I was able to go back to my lender, explain the situation and was able to receive the additional funds to complete the job.
Rehab began on the property immediately after closing and was 80% complete in about 4 weeks. The contractor that I ended up using, I met quite by accident. Since I had rehabbing on the brain so much, I was trying to pick up as many useful contacts as possible. So whenever I came across a white van or anyone or anything that looked like a contractor, I obtained their business cards. This is how I located my contractor. I basically served as the general contractor and he hired individuals as needed to complete the work. Of course, I made sure to see his driver’s license, a copy of his license and a copy of his insurance. Of the 4 bids I obtained, his was the most reasonable.

My contractor had the property fully complete by 12/1/06 and I officially became a landlord on 12/9/06. In January 2007, I refinanced the property and pulled out $10,000 in equity, which was the exit strategy I ultimately decided to go with. My initial strategy was to sell immediately, but due to the implementation of HB 4050, I decided that it might be easier to simply refinance the property and rent until it became clear how the new law would play out.  I felt the refinance would be the easiest to accomplish and would allow me to see much-needed funds right away. Currently, I have $29,900 in equity remaining which I will pull out upon the sale of the property later this year. I plan on listing the property for sale within the next 3 months. The current rent is $1200 per month which provides nearly $200 per month positive cash flow after the mortgage payment and hazard insurance.

I know that a lot of the time neophyte investors get burned during the rehabbing process. I was fortunate, however, to have mastered certain principles beforehand, which made rehabbing a lot easier. During the last year, I have since acquired my real estate license and joined the staff of Williams Realty and Investments, where I now teach my clients the same principles which allowed my first rehab to be a resounding success. I believe that acquiring the property is the easiest step of the process. After all, anyone with decent credit and earnest money can acquire an investment property. It has been my experience, however, that few know what to do with the investment property after the acquisition. Due diligence is absolutely key in real estate investing and it can prevent a lot of headache and frustration down the road.

Since completing my first rehab, I have come to the conclusion that rehabbing becomes far less challenging when pursued in the proper manner. I don’t mean to imply that the process is simple because rehabbing is inherently challenging. However, it is my belief that if certain principles are followed – success is just a matter of time. I will close with one of my favorite quotes: “If an individual cannot master their household budget, it will be very difficult to master the budget for a rehab project.”

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Danielle Pierce is an investor and licensed real estate agent with Williams Realty and Investments. She specializes in Time Management, Money Management, and Wealth Creation through multiple streams of income. She can be reached at 773-551-4769.

Finding A New Niche: Short Sales and Foreclosures

While some sit around and complain that the real estate industry is suffering from a down market, others seek out an entirely new way to prosper by focusing on segments of the industry that are experiencing growth: short sales and foreclosures. It might take extra education and enterprise, but with the knowledge we garnered from area experts, this could be a profitable direction to consider taking your business. By Dave Gottesman



The number of properties in pre-foreclosure – properties where the owner has missed enough payments to warrant foreclosure consideration, but have not yet been auctioned off and are therefore ripe for short sales – continues to rise and contribute to a larger percentage of the overall market than in recent memory. As lien holders increasingly face decisions regarding the handling of property owners who are late or unable to meet payment obligations, the process of initiating foreclosure proceedings or negotiating a short sale has become much more common.

A short sale is an agreement between the lender and borrower where the borrower has a contract offer by a third party to purchase the property for less money than is owed on the mortgage. In the short sale negotiation, the lender agrees to the discounted price, and absorbs the loss in order to avoid costly foreclosure proceedings.

Despite the popularity of these two methods, the number of experienced Realtors able to manage these transactions is more limited than those primarily using their talents to sell homes on the open market.


Turning Foreclosures Around
According to RealtyTrac Inc., foreclosure filings in the U.S. rose 94 percent in October 2007 compared to October 2006, and November saw a 68 percent increase over the same time period the previous year. Developing expertise in this growing niche has often led to success for those in the industry poised to take advantage of the changing marketplace.

Providing Realtor services in the skyrocketing foreclosure market is similar to selling homes on the open market. Additionally, there are many Web sites and seminars specifically designed to assist Realtors with the unique details of the negotiations.

Glen Daniels, director of real estate owned (REO) for the Web site Foreclosure.com, suggests that finding success working with foreclosed properties relies on understanding that the seller is not a homeowner with an attachment to the property, but rather an objective lender.

“Lenders are sophisticated in evaluating properties and current market conditions,” says Daniels, who stresses that the lien holders are motivated to sell and merely seek current value for their properties for quicker sales. An offer on a foreclosed home that is fair and impartial has a greater chance of being quickly accepted, as prices are based strictly on data and not on any emotional attachment. In some ways, the lack of personal attachment to the home makes this type of negotiation even easier, as putting a price tag on property is much simpler than putting a price on a family’s memories.

Many Realtors recommend formal training as a way to get a foothold in these niche markets, and encourage learning the subtle differences between dealing with foreclosed properties and standard purchases. Nancy Freeman, broker/owner of RE/MAX Realty of Joliet, offers a training class to agents entitled “Foreclosures, REOs and Short Sales” in order to provide important background information for Realtors that are newer to the industry.

The Realtors Real Estate School, a collection of courses offered by the Chicago Association of Realtors, offers an 8-hour foreclosure class, which also counts as three hours of continuing education credit toward Accredited Buyer Representative Manager (ABRM) requirements.

States vary on foreclosure statues, making it critical to pursue courses that focus on laws pertinent to Illinois, or the individual state in which a Realtor wishes to work in the market.

Entry into the foreclosure segment of the market has very few barriers and no formal license is required; however, industry veterans are in agreement that additional education is beneficial. Reviewing the statues themselves in order to develop an expertise in the timeline and undertaking of a foreclosure or short sale transaction is also a constructive way to penetrate the market.

When dealing with REO properties, unlike traditional home sales, the Realtors’ involvement in a foreclosure transaction typically commences once the lender has formally foreclosed on a property. At this point, the lender will put the property up for auction, often at a lower price than the expected sales price, in order to encourage a prompt sale. The property is also usually vacant, which speeds up the process. When a foreclosed property is sold, the buyer will likely need to secure financing via traditional routes, as the property is viewed as if the mortgage has been removed, and the lender now wishes to sell the property outright instead of restarting a payment process.

Web sites such as public-record.com and Daniels’ Foreclosure.com provide comprehensive and regularly updated listings for Realtors to locate these properties. Daniels speculates that this readily-available information will alter the role of the Realtor in the near future, creating an industry where the Realtor provides more sophisticated guidance instead of simply supplying data. This, however, will require Realtors interested in this niche to become experts.


Marketing Foreclosed Properties
One option for Realtors to market foreclosed homes to clients is to look at it as an investment strategy, as lower prices may provide a more profitable opportunity for a client to own property for rental purposes. Daniels, who does not expect the recent interest rate freeze to have much effect on the foreclosure market, says that current “investment opportunities are lucrative for buying and renting.” He predicts that the foreclosure market is “a niche that is viable in the foreseeable future.”

While the median price of homes that are foreclosed is lower than the average overall price of homes, expensive properties are not immune from the proceedings. Foreclosure risk for homes on the higher end of the market is mitigated by their greater equity, while homes on the lower end are affected more by the changing interest rates. However, the increase in foreclosures has been spread relatively evenly among all homes, according to Daniels.


Making Short Sales Work
Short sale transactions are also growing at a rapid pace as a potentially quicker, and more affordable, alternative to the lengthier foreclosure process. However, the short sale process is by no means easy. “Make no mistake, it’s very hard work,” says Dale Shea, a broker associate with Koenig & Strey in Lake County.

To qualify for a short sale, the borrower must first demonstrate that they have endured a hardship, such as sickness, victim of fraud, loss of job or other extenuating circumstance. The Realtor, often collaborating with a lawyer, contacts the lender’s loss mitigation department to express the client’s desire to initiate a short sale and negotiate the terms. To present a short sale to a lender, the Realtor must have a contract to purchase the property by an unrelated third party and the original property owner is not permitted to remain an occupant in the home following the short sale.

A short sale is almost always a preferred solution to both a borrower unable to make payments and a lender seeking to recoup as much of their loan as possible. With this process, a homeowner’s credit score can be spared a hit of up to 200 points, and a short sale often yields a better price for the lender than costly foreclosure proceedings. With the recent surge of properties eligible for short sales and threatening to be foreclosed, “the rules have gone out the window,” according to Marki Lemons, an experienced foreclosure and short sales Realtor with Keller Williams Realty. She contends that the average discount hovers around 80 cents on the dollar. However, once short sale negotiations have been entered, other factors influence the discounted price, such as the condition of the property, or if the property has a subprime loan.

Shea, a 25-year veteran with short sales and real estate experience, has seen discounts as large as 30 to 40 percent, and others as small as 5 to 10 percent. He also notes that negotiating a short sale requires more work than most transactions, and despite a short sale being in the best interests of all parties involved, “it is very hard work, a lot of communication.” However, ultimately, “most people are very grateful.”

In rare cases, a lender will not agree to a short sale. Such as when a Veterans Affairs Loan is involved, since that loan is guaranteed by the government. In some cases, if there are multiple liens on a property, the holder of the first mortgage of an 80/20 loan may leverage their position, since the second loan absorbs most of the loss. However, the vast majority of the time, a lender will opt for a short sale before foreclosing once it has been determined that the homeowner or borrower is unable to make payments. According to Shea, it is important to “prepare buyers for the extra work of a short sale or your deal is likely to fall through.” Short sale offers tend to be initiated by the Realtor, though a lender may also solicit a short sale proposition.


Offering Additional Assistance
A Realtor familiar with short sales may be able to offer additional services to a homeowner besides finding buyers and providing assistance with the transaction. Lemons points out that negotiating a short sale may require significant patience, both in terms of being able to reach the proper loss mitigation specialist on the lender side, and also providing empathy to a client.

Many homeowners are unfamiliar and overwhelmed with the process of losing a home, and “most clients believe that someone is going to come and put them out in the middle of the night,” says Lemons. However, Illinois laws governing foreclosure include one of the longest timeframes in the nation between the first missed payment and eviction; 10 months at the minimum and possibly much longer. Even clarifying the timeline to a client and explaining the options provides an invaluable service to a concerned homeowner.

“First and foremost use empathy and not judgment,” suggests Lemons. “Explain everything in its simplest form.” Shea agrees and uses a similar approach, easing the fear of the unknown by assuring the client that the foreclosure process is a long one, where the lender can not simply sell an owner’s property after one or two missed payments. Shea alleviates his clients’ distress by guaranteeing the minimum number of months that the client will still have in their current home.

A critical responsibility is “dealing with feelings and attachments,” says Shea. He also feels it is important to openly tell short sale clients, “You have taken proactive steps to move your property and minimize a lender’s loss, you are selling your home and everyone is hereby in cooperation.” A Realtor can assist a client by easing their anguish and uncertainty, which may be of greater importance than the transaction itself.


Getting Started in Foreclosure
Locating properties that have recently been foreclosed or are in pre-foreclosure can be difficult and time consuming. Therefore, some organizations compile lists of these properties available via membership. Lemons recommends subscribing to a local foreclosure report, such as the one available at midwestforeclosures.com, to keep informed of current foreclosure activity and listings.

Due to the lack of understanding most people have in terms of the short sale process, finding clients can often take a long time. Shea recommends reviewing public records, for example the legal classifieds of local newspapers. Freeman adds that developing relationships with industry attorneys to get referrals is a good way to find potential clients. Pursuing an aggressive local mailing campaign to properties in the pre-foreclosure stage helps get your name in the forefront of a community, and serves as a good introduction for those who may utilize the assistance of a Realtor.

One of the more difficult aspects of the foreclosure market is acquiring the correct contact information of the lender or owner, as the task can often be tedious. Realtors first learning the proper research methods may spend hours on the phone, the Internet or at the Daley Center. The Multiple Listing Service of Northern Illinois is an excellent resource for locating foreclosed homes to show to clients, according to Lemons. When searching for properties, use search criteria such as “Bank Owned,” “REO” or “No Survey” in the Remarks field.

To profit in this developing market, Lemons advocates taking advantage of current low interest rates and falling prices, and consider marketing properties as investments. Taking the initiative to negotiate a short sale helps both the client and lender, and highlighting the potential for significant discounts can help build a track record of success. It is also advisable to align with an attorney proficient in handling foreclosure issues, as loss mitigation specialists and lenders commonly look favorably toward legal experts ahead of Realtors.

The foreclosures and short sales market has seen tremendous growth recently, with industry forecasts indicating the market will remain profitable for those in position to benefit from the growing need for experts in this segment of the industry. With lenders interested in moving properties quickly, Realtors who know where to look can often show clients a rising number of affordable properties. Identifying and educating property owners and homebuyers about the benefits of the preferred short sale transaction provides an additional opportunity for profit. Maintaining sharp knowledge of both the changing market conditions and rules of the road may prove rewarding for the savvy Realtor. C.A.

Resources:
Glen Daniels
Foreclosure.com
561.981.5337
gdaniels@foreclosure.com

Nancy Freeman
RE/MAX of Joliet
815.741.3100
Nfreeman221@comcast.net

Marki Lemons
Keller Williams Realty
773.536.8515
markilemons@kw.com

Dale Shea
Koenig & Strey Lake Forest West
847.295.8400
dshea@ksgmac.com

Source: Chicago Magazine http://www.chicagoagentmagazine.com/issue/article.asp?id=4&article=1102&status=archived

Day 9: Blog Search Engines, Reciprical Links, Picture Links on Blog

This post is for our 30 Day challenge to bring more traffic to this website.

1. IWP is submitting this blog to these websites. It is a long and time consuming process, but we are on the case. Many of these search engines are no longer working. Also, many of these search engines require you to sign up for their service with your email. We are concerned that we may get to much spam mail as a result. Consider using a special email for these things if you are goign to move forward with the 30 day challenge.

2. Reciprical Links. A few days back, we talked about utilizing a website called LinkMachine. Well, it is working. Our links are begining to grow and it seems like everyday we make more. Hopefully, overtime this will increase our search engine rankings. It is almost time to do some real SEO work with the tags, titles, and meta tags, but we will save that exciting stuff for another day.

3. Picture Links. The blog has been moved to the homepage at www.investwithpassion.com, but many of the pictures were not linked. For example, we have two website sponsors on the right side of the page, but these images were not linked to their respective websites. They are now. Also, the logo at the top of the page and the advertisement for the upcoming event were linked to their respective pages as well. This had been driving us crazy and now we have learned how to do it.

Day 9 draws to a close, but we are begining to see a slight increase in traffic and Google earnings. As we settle into the new website layout, this is expected to increase.

Invest With Passion!

Day 8: FeedBurner, Pings, Blog Layout

This post is part of a 30 Day series to drive more traffic to this website. IWP is following the challenge of Brian Armstrong and his blog Breaking Free.

1. We discovered we already had a FeedBurner account. One purposer of this account is to activate FeedFlare for your blog and webpages. It is a really cool tool, but we need more time to implement and use it properly. Will return to this issue.

2. Pings. Reading Brians post on pings got us to wondering if we were set with all of these websites. Well, we posted a comment on Brians page and he was kind enough to reply with the answer. IWP asked about pings for Blogger, since that is the blogging software we use. Brian uses WordPress, but replied with the needed information for IWP. Turns out, we already have the correct information activated, thus leaving no additional work. For Blogger users, here is the help link Brian sent us. Pings for Blogger

3. The Blog Layout was upgraded again. Today the website sponsors were put into place and the header at the top including the IWP logo and the IWP Event advertisement was adjusted. It took more time than expected because of an unexpected alignment adjustment that needed to be made. Nevertheless, it was solved and we are off to day 9.

Day 8 draws to a close.

Day 7: MyBogLog, Blog Layout, DreamWeaver

This series is part of the 30 Day Challenge to drive more traffice to this site. Let's go!

1. MyBlogLog is a web 2.0 website for blogs. Check it out. IWP registered the blog and in the future will build on this community.

2. Blog Layout was upgraded. The aim is to move it to the homepage to be the main page of the website. It is coming. Today the links on the left side of the blog was upgraded and linked to their perspective pages. The Adsense leaderboard replace the floating item between blogs. This activated the ads on the right side of the blog center. The order of the right side was altered as well. Next we have to input the sponsors of the websites ads and we may be ready for a soft launch. Once step closer.

3. DreamWeaver is going to be a central part of the future that we are building. Today it was used to change the blogger layout in the website at InvestWithPassion.com.

Day 6: DreamWeaver, Stumble Upon, Delicious

This series of post is for the 30 Day challenge to bring more traffic to this site.

1. DreamWeaver - We purchased a training manual for DreamWeaver. It is time to step the production of the website up and reach for more powerful tools. As mentioned before, FrontPage was the software of choice. It is still great, but we need more power and control. Specifically, the interest in DreamWeaver is the control over CSS, Cascading Style Sheets. These really allow you to control the content in your site quick and easy.

We have been reading the chapters on this material, Chapters 5 and 6. You will begin to notice a change in the website very soon.

2. Stumble Upon. IWP created a profile on www.StumbleUpon.com This is another social networking site that allows the community to share websites with one another.

3. Delicious IWP account was created here as well. This is a portable bookmarking website, so when you are not at your computer you can still get access to all of your favorites. This is a great little website and we have been meaning to make personal accounts because of the ability to get to your bookmarks. In addition, IWP will be able to add their www.investwithpassion.com to their bookmarking community, which means more links and hopefully hits to the website.

Day 6 comes to an end and we recognize there is a lot of work to be done to this website, but we are up for the challenge.

Invest With Passion!

Day 5: Template, Link Machine, Template,

This is Day 5 of the Marketing Challenge to bring more traffic to this website.

1. The Template. Worked further on the template of the website. The goal was to make the template more visually appealing while learning more and more about blogger.com and DreamWeaver, which I am finding is an outstanding technology. Had some reservations because been working with FrontPage so long, didn't want to learn any new tricks. However, necessity has made it so DreamWeaver is learned. That is a great thing. Check out the newest version of the website/blog, it is coming along great. www.investwithpassion.com/blog

2. Link Machine. There is so much to do with this software that I had to come back to it to gain additional links to the website. Haven't noticed anything on Google's Page Rank, or noticed any additional links to the website. Figure that it must take some time for the Google bots to scroll over all the websites. It will happen soon. In the mean time, i have to keep working sites like LinkMachine to build the links that will eventually drive the needed traffic to the website.

3. Templates. That's right, more work on the Templates. It may not seem like a lot was done, but some major time was taken on this undertaking. Probably more time that necesseary was spent, but that is water under the bridge and I have learned a tremendous amount thus far.

Day 5 draws to a close and I am going out of town on Friday for the weekend, so this is going to be interesting to see what is done for Days 6, 7, and 8. We will make it happen.

Invest With Passion!

BOOK REVIEW: WHO MOVED MY CHEESE?

Dealing with change is often a challenge for most people. We like to dwell in familiar territory and have a tendency to shy away from the unknown. However, there's a saying that I learned years ago, “change is inevitable, growth is a choice.” Therefore, if we are going to advance in life, knowing how to adjust to change is essential. The book, “Who Moved My Cheese?” by Spencer Johnson is the perfect reference on how to effectively cope with change in life. The book depicts a story of two mice named “Sniff” and “Scurry” and two little people named “Hem” and “Haw” who are traveling through a maze in search of cheese. The mice live a simple life utilizing their basic instincts. They use a simple trial and error method going through the maze to locate cheese. The little people, on the other hand, complicate and over think everything. They rely on their complex brains to develop more sophisticated methods of finding cheese. The maze represents the various paths that we take in life in our quest for our individual cheese. The cheese is a “metaphor for what we want to have in life, whether it is a job, a relationship, money, a big house, freedom, health, recognition, spiritual peace or even an activity like jogging or golf.” It is that thing or things that are important to us.

The four characters would get up early each morning in search of cheese. Essentially they did what most of us do each day, awake early in the morning and prepare to go to work. Some days they would find a little cheese, some days a lot of cheese, and other days none. Until one day they respectively arrive at Cheese Station C, which was the cheese jackpot. This station consisted of the various types of cheeses that each character liked. They had “arrived” so to speak. They had found that thing that was important to them - their cheese. Each morning thereafter, the mice would arrive early, remove their shoes and tie them around their neck so that they would be readily accessible when needed. Essentially, they understood the importance of staying prepared for the future. On the other hand, as time pasted, the little people would stroll in later each morning. When they arrived they would throw their running shoes to the side and relax. They became complacent and thought they were secure. They became so comfortable that they didn't even notice what was happening around them.

One morning, Sniff and Scurry arrived at the station at their normal time and discovered that the cheese was gone. It didn't really surprise them, because they had noticed the supply of cheese dwindling each day. They simply removed their running shoes from around their neck and headed off into the maze in search of new cheese. After some time, they found Station N that had more cheese and was better then the previous one. Later that day Hem & Haw arrived at the station and was completely disturbed by what they saw. They both yelled, “who moved my cheese?” Unlike the mice, they hadn't paid attention to their environment and never noticed the decrease in the quantity of cheese. They spent the remainder of the day mad, in denial, searching around the station hoping to find their cheese. They awoke the next day and came back to the station hoping the cheese showed back up. In fact, they continued to do the same thing day after day, thinking things would get better. Instead they begin to get weak from hunger & stress.

Then one day, Haw busted out laughing. He begin to realize how foolish they were for doing the same thing over and over again expecting different results. It finally clicked to him that if they were to change their current situation, they needed to change what they were doing. They needed to get up, find their running shoes and get back in the maze in search of new cheese. He begin to envision himself finding and enjoying new cheese in the maze, which motivated him even more to get moving. Hem on the hand, was overtaken by fear. He became very anger and refused to listen to Haw. As Haw ventured out into the maze each day in search of new cheese, Hem continued to go back to Station C in disgust.

Haw eventually found Cheese Station N and was reunited with Sniff and Scurry. Although his road was a little bumpy, he stayed with it and refused to give up. In finding Cheese Station N, his hard work and effort had paid off. However this time, he had learned from his past experience to stay aware of his environment and prepared for future change. The story ends with Haw hearing a sound in the bushes outside the station and Haw praying that his friend Hem had finally woke up.
Change is the only thing that is constant in life. As we venture through the maze of our individual lives, just like the characters in the book, we will encounter dead ends, detours, unexpected obstacles, etc. - CHANGE. How we react to change is totally up to us. We can choose to be like Sniff and Scurry and keep our running shoes polished and ready or waste time like Hem and Haw complaining instead of finding “New Cheese.”

Day4: Interviews, SEOMoz.org, Blogger into website, and Technorati

This post is part of our 30 Day Challenge to increase website traffic.

1. Interview request were sent out. This was pretty simple, but it is powerful. I read the report that Brian suggested about the power of networking and leveraging the Internet. In step with that advice, request for video content were sent to two professionals on the subject's of asset protection and property management. The requested time was for next week, so that should be one of the three things we do for the site then.

2. http://www.seomoz.org/ is search engine optimization website. No real progress was made here other than registering. Plan on coming back to this segment soon to work on it.

3. Integrated Blogger into the website. This took some time to do because we are not very website literate apparently, but the time was taken. It is essential we get our website into the blog format, there are just too many positives to name at the moment. Nevertheless, following some advice from fellow bloggers, we were able to re-create the blog into the website at www.investwithpassion.com/blog. IWP is adding a home page that will send the viewers to the blog. Here is the home page www.investwithpassion.com/iwp2.htm

Time still needs to be put into these sites because they don't look very appealing right now, but the victory was getting it into the website. We ended up getting some Dreamweaver experience as well. It seems like a powerful product. Maybe one day we will make the switch from Frontpage to Dreamweaver

4. Technorati. I know, we were only suppose to be doing three things a day, right? Well, don't hold our passion against us. Technorati is a huge blog search engine. According to the site, it indexes over 94 million blogs. Invest With Passion is now one of those blogs. Visit our page and endorse us here.



That's it for the day. Talk to you soon!

Invest With Passion!

Day 3 - Link Machine, Meet Up, Blogger Integration

Here is day three to my marketing challenge to build more traffic to Invest With Passion.

1. Installed LinkMachine to the website. LinkMachine builds reciprocal links between site developers. you and another website link to each other. This helps with search engine optimization. This is important because search engine rankings are influenced by the number of websites that link to yours. They should be relevant links.

LinkMachine is a monster program. It has a lot of functions and capabiilties. Didn't really get very far through it, but did get it installed on the site. You can see our resource page here. Add a link to our directory, you can do that here as well.

Sooner or later, we will get around to changing the template to make those pages blend in well with the main site. As said earlier, there is a lot of work to be done with that LinkMachine.

2. Created a Meet Up account. Watching this video on the top five ways to increase traffic to your website, they mentioned Meet Up, so I created an account. View the IWP Meet Up profile here. After clicking around a little bit on this site, we were not that impressed, but you never know until you try. With that spirit in mind, the account was created and we will make some connections and some meet ups as well.

3. Blogger Integration. Ok, the www.investwithpassion.blogspot.com blog was created to make this happen, so we need to integrate the blog into the website. It just makes sense because we are going to be updating the blog regularly and people return for fresh content, so if that could be our homepage we would be on to something.

I have been reading this webpage to integrate blogger.com into the IWP website. After some painstaking hours, the task still hasn't been completed. I know, that is a lot of work for no results. Well, we did have some positive results. The blog has been integrated into the website, but not the homepage as we desire. http://www.investwithpassion.com/blog/

You can notice the url is pointing to investwithpassion.com, so we have it on the site, just need to figure out how to get it into the website. The website I am reading from makes it seem so easy to do, but I guess I am slow or something because I cannot figure it out. I got the path section down obviously, but don't understand that changing of the titles and the body tag sections.

Needless to say, we will revisit this subject at a later day.

Day 3 draws to a close.

Day 2: Active Rain, Digg, Article Posted

This is Day 2 of the Marketing Challenge: 3 Things for 30 Days to build the blog.

You may notice these post are rather close in time. That's because we are very excited to get this started because we have been searching for a plan for the online marketing efforts. This is perfect so we jumped the gun and did day 2 almost immediately. That's passion for you!

1. Started an Active Rain account. Active Rain is simlar to MySpace and other social networking websites, but it focuses on real estate. It is the largest real estate social networking site we know of. Needless to say, it was time for IWP to begin networking through that outlet. After getting familiar with the site's layout, we moved on to the next step in the development.

Our page is located at www.activerain.com/investwithpassion. Visit the page and add us as your friend. Networking is what it is all about.

Also, we included the Active Rain link to our Add IWP as a Friend on the side of the homepage of the website, joining our YouTube, MySpace, LinkedIn, and Facebook accounts.

2. Join Digg.com. If you are not familiar with Digg, then get familiar. Check it out here, http://www.digg.com/. At the suggestion of Brian, we read this article on Digg.com and talked about the importance of writting comments to Diggs and how it can generate great traffic for your website. Here is the article, Guide to Traffic From Digg Comments, http://www.seomoz.org/blog/guide-to-traffic-from-digg-comments.

We didn't post any comments, but we did join the site and community. It looks really great and we should begin participating soon. The Digg This feature was implemented into the website. You can view that on the homepage at http://www.investwithpassion.com/, scroll to the bottom of the page and look on the left site to see it. Number two down!

3. Submitted an article to the Bloggerspheir. We went into the files of IWP articles and posted one to our blogger, Active Rain, and IWP Community Blog. We have to get quality content out into the Internet world and start building our case for higher search rankings on Google and Yahoo, and other search engines.

Not a bad days work. It was all pretty simple and we look forward to doing it again. The next day is a new adventure and we will keep you posted.

Invest With Passion!

Team IWP

ILLINOIS LAND TRUST

By Kevin Kete w/ permission from www.InvestWithPassion.com

If so, consider an Illinois Land Trust just as you might choose to safeguard important papers or other personal property in a safety deposit box. An Illinois Land Trust provides a ‘vault’ for the protection of your real estate assets, arguably everyone's most valuable investment.
A land trust is a simple and inexpensive arrangement under which real estate owned, or about to be acquired, in Illinois can be transferred to a special type of trust. Under this arrangement, the trustee becomes the legal title holder to the property. However, the trustee holds the property for the benefit of the beneficiary of the trust and acts only on the direction of the beneficiary. (In general, the beneficiary is the person or persons who first establish the land trust.) Plus, the advantages of direct ownership of the real estate, such as the homestead exemption and senior citizen exemptions, are all retained and you stand to gain many more benefits with a land trust.
The benefits of using an Illinois Land Trust include:

1. Elimination of Probate Expenses and Delays
The land trust agreement allows the beneficiary of the trust the flexibility to designate the succession of ownership exactly as desired. For example, the beneficiary may designate his/her spouse, children or other successors. By transferring the real estate through a land trust, successors can bypass costly and time consuming probate proceedings relating to the property and thereby deal immediately with the property. This can help avoid insurance, real estate taxes and utility bills which would be payable during a probate period.

2. Insulation from Liens and Judgments
Under applicable laws, liens, claims, judgments and other such matters against an individual will automatically attach to any real estate owned in the name of that person - either individually or as a co-owner with others. This would make the sale or refinance of the property more difficult. If title to the same property is held in a land trust, legal matters affecting the beneficiaries do not pass through to the subject property.

3. Ease of Ownership by Multiple Owners
When dealing with matters of title to real estate which is owned by more than one person, such as when the property is sold, it is generally necessary for all of the owners to sign applicable paperwork. However, if the property is held in a land trust, the beneficiaries may designate one or more of them to direct the trust to sign paperwork in connection with the title. This may be of real benefit when it is not always practical to have all owners available to sign documents.

4. Ease of Selling, Transferring Interests and Use as
Collateral
The beneficiary's interest in a land trust is considered a personal property interest under the law. As such, it makes the transfer of the beneficiary's interest easy to accomplish, as the underlying property ownership can be transferred this way rather than by deed. This could also be helpful if the beneficiary wants to assign his/her interest as collateral to secure a loan, or if the beneficiary wants to make annual gifts of fractional interests in the property to grandchildren or others.

5. Confidentiality
Because the legal owner of a property in a land trust appears in the public record only as a numbered land trust in the name of the trustee, the beneficiary's interest in the trust remains confidential. Many people believe that the nature and extent of their real estate holdings should be no less confidential than their bank account balance or the contents of their safe deposit box.
The costs of holding real estate in an Illinois Land Trust typically include an Acceptance & First Year Holding Fee and an Annual Holding Fee for subsequent years scaled according to the type of real estate and its market value. There is a fee charged for executing specific documents such as contracts, deeds, leases and mortgage documents. However, the need for document execution by a land trustee is usually infrequent. More important is the experience level of the land trust administration staff and as quick a turn around as is practicable.

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Kevin L. Kete is the Vice President of North Star Deferred Exchange which provides Qualified Intermediary services for investors to affect a tax deferred exchange. For more information, he can be reached at 312-242-6217 or via email at kkete@northstartrust.com.

Invest With Passion is Chicago's real estate investment resource for the new and experienced. More information can be seen on the website at www.investwithpassion.com, visit us today!

Day 1: Zookoda, Tags, and No Plug Ins

Team IWP! has taken on a marketing challege to do three things everyday for 30 days that will create a profitable blog. And we are off!

1. Set up account with Zookoda. This is an email newsletter service that is free. IWP is on a tight budget, so everything that can help build the business we are going for if it is priced right. The blog I got this idea from is Breaking Free, http://www.startbreakingfree.com/37/website-marketing-three-tasks-per-day-for-a-month/.

Brian got rid of Zookoda for Feedblitz, but it seems like it will do the trick for IWP for now. The account was created, but that is as far as we have gotten. Check out this site here, http://www.zookoda.com/

2. Creating a http://www.blogger.com/ website. The IWP! page is at www.investwithpassion.blogspot.com. This is a must nowadays, so we had to get on the wagon. Could have sworn we already had a blogger site, but we created another anyway. Brian seems to use Woodpress for his blog, but we noticed Wordpress doesn't allow Google's Adsense which is big part of our plan, so it was a no go. Besides, Google is the big company in this field and we figured it would get better search rankings and compatibility with our plans in the future wiwth the use of http://www.youtube.com/investwithpassion and more.

3. Next up was SEO work, Meta Tags and Title Tags. This is real website nerd stuff here. But, Google makes it really easy to fill these out as you go. There is a lot more to learn to this stuff, but we are dedicated and committed to making this happen.

The world has to know what Invest With Passion! is putting together and Team IWP! can get this done.

Information can change your life!

Invest With Passion!

Team IWP!

Community Investment Corporation: Property Management Training

As with any other business venture, successfully owning and managing residential real estate requires in depth knowledge, planning and organization. The apartment industry is highly regulated by federal, state, county and local government agencies. Understanding of and compliance with the rules, regulations and ordinances set forth by these agencies is essential. In addition, a written-strategic plan detailing all aspects of your business - including but not limited to - pre-purchase, financing, marketing, day-to-day operations, etc. is also important. Lack of organization and/or negligence in the operations of your property(s) can, and often will, result in financial loss and/or legal liability.Whether you are a seasoned building owner/property manager or just starting out, I highly recommend the Community Investment Corporation's (CIC) Property Management Training workshop. CIC is a mortgage banking firm created in 1974. Their mission is “to be the leading force in neighborhood revitalization through innovative financing programs.” CIC is intended to serve as a catalyst for needed rehabilitation lending and to foster the success of cost-effective developers. In addition, CIC is committed to increasing the professional skills and knowledge of hands-on building owners and property managers through various basic level workshops in property management and maintenance. In particular, the Property Management Training workshop is offered at various locations, four consecutive evenings-three hours per evening throughout the Chicagoland area. The overall emphasis of CIC's Property Management Training workshop is to equip building owners and property managers with adequate information to create, implement and maintain a sound operations plan for their residential real estate. Over the four days, the workshop covers in detail the following topics: Marketing/Tenant Selection, Evictions, Fair Housing, Special Financing Programs, Tax Appeals, Maintenance Systems, Housing Choice Vouchers (Section 8 Programs) and City of Chicago “Residential Landlord and Tenant Ordinance.” Below I have highlighted the information discussed in each of these topics. Marketing/Tenant SelectionThe Marketing Plan for your business should cover your tenant selection policy, advertising methods, and property appearance. Within the scope of the tenant selection policy, consistency with all applicants is vital. You should establish your criteria considering income requirements, maximum occupancy, credit worthiness, previous rental history, housekeeping, criminal background checks, drug screening, etc. Once you have defined the criteria for selecting tenants, you will want to consider your advertising methods. Vacancies will cost you money and having an established plan for advertising can help buffer the financial lost. There are various ways of advertising your property - signs, newspapers, resident referrals, Realtors, flyers, church bulletins and area employers to name a few. In addition, the appearance of your property is just as important as the other aspects. There is a direct correlation between the appearance of your property and the types of tenants you will attract. EvictionsAs a building owner/property manager, there may be times where you have to evict tenants. Possible grounds for eviction could include non-payment of rent, lease violations, end of rental period and seizure of illegal drugs. The eviction process is detailed and it must be followed appropriately. The process begins with the preparation and delivery of a Notice to Terminate. There are four standard types of notices utilized in eviction cases:The 5-DAY NOTICE is for past due rent only. These are typically served to the rent-delinquent tenant on the sixth day of the month.The 10-DAY NOTICE is for cause. This notice is used when a lease provision has been violated.The 30-DAY NOTICE is used when no lease exists. Whenever there is a verbal month-to-month agreement, the lease can be terminated by either party with a thirty-day notice.The SPECIAL 5-DAY FOR DRUGS NOTICE is utilized in cases where an arrest and seizure of illegal drugs have occurred in an apartment. Serving the notices is just the beginning of the process. Filing a complaint, the summons issued to appear in court, the trial date, and the judge's ruling follows. The entire process could take weeks or months, depending on the circumstances of the case. Fair HousingThere are several fair housing laws that a building owner/property manager must be familiar with. These laws go well beyond the prohibiting of the obvious racial discrimination that most people associate with fair housing. For instance, within the City of Chicago, there are thirteen protected classes of individuals: race, color, religion, sex, national origin/ancestry, familial/parental status, disability/handicap, age, military discharge, marital status, sexual orientation, source of income, and housing status. Familiarity with your local Fair Housing laws can protect you from potentially costly violations. Special Financing ProgramsMulti-unit buildings with six or more units are considered commercial properties. Financing programs for these properties are different from those of smaller unit dwellings. Most programs require a minimum of a 20% down payment and have other restrictions. However, CIC offers various unique financing programs for residential real estate purchases and refinances:Flexibility to finance more than 80% LTV with extensive rehabUp to 30 year amortization and 1.15 debt cover on select loansAttractive ratesNo prepayment penalty on most loansNo legal or document fees at closingNo payments during constructionLine of CreditsConstruction and permanent loans in one process Tax AppealsThe tax appeals section of the training workshop covers:Triennial AssessmentHow to Appeal Residential Property TaxesUnderstanding Your Tax BillsProperty Tax News Update Maintenance SystemsRoutine maintenance and repair of your property is key to keeping it attractive, preventing many equipment failures, and over the long haul lowering operating costs and frustration for you and your tenants. You should consider developing a Maintenance Policy and Procedures Manual that addresses all aspects of your individual building and its systems. This manual is the guide that can be adapted to meet the needs of your building and requirements for compliance with federal, state and local codes. Proper maintenance requires planning, an organized set of procedures, staff commitment to quality control, and the active support and supervision of the owner/manager. There are three general types of maintenance services:Routine maintenance consists of activities that are planned for and occur on a scheduled basis. Routine maintenance corrects problems resulting from continuing wear on the property and equipment, accidents, and abuse.Preventive maintenance is service that is programmed and is designed to avoid serious problems at a later date. It also serves to secure items that are always in repair.Request and respond maintenance includes services that are requested by a resident or an employee. Requested maintenance cannot be anticipated, but it can be reduced by a preventive maintenance program. Housing Choice Vouchers ProgramThe Housing Choice Vouchers Program, previously known as the Section 8 Program, is a federally funded rent assistance program that provides help to low- and moderate-income families, enabling them to rent privately owned properties by paying a portion of the family's rent each month. Families participating in the Housing Choice Voucher Program can rent a single-family home, an apartment or a condominium. Prior to receiving a subsidy, however, every unit must pass a housing inspection. Once the unit passes inspection and rent reasonableness guidelines, voucher families pay between 30 to 40 percent of their monthly income toward monthly rent and utilities, and the difference is paid directly to the property owner. City of Chicago Residential Landlord and Tenant OrdinanceThe City of Chicago has defined a “Residential Landlord and Tenant Ordinance” that applies to all properties within the City of Chicago boundaries with the exception of:Owner-occupied buildings containing 6 units or lessHotels, motels, inns, tourist houses, rooming houses and boarding houses occupied for less than 31 continuous daysEmployee-occupied unitsA unit being occupied by a purchaser pursuant to a real estate purchase.Therefore, if you own a property within the City limits that does not fall within the exceptions listed above, it is essential that you know, understand and comply with this ordinance. The penalty for non-compliance of the ordinance could include, at the minimum, the tenant's recovery of actual damages sustained and the recovery of two months rent.As you can see, there is a plethora of information that a building owner/ property manager must be aware of in order to ensure compliance with government agencies, protection from potential costly violations, and being a valuable asset to the community. Keep in mind, that I have only briefly touched the surface regarding the vast amount of information you will receive attending CIC's Property Management Training workshop. Once again I encourage you to attend the workshop, I guarantee you will not be disappointed. Additional information about the workshop can be found on CIC's website at www.cicchicago.com. There is a small fee for the workshop.

******************************************************************************************************Anita Clinton (AC) is an investor, a licensed loan originator and real estate consultant. Contact her at 312-246-4894 or anitaclinton@yahoo.com.