Hey rbd and other real estate gurus, check this out.
zef204
Posts: 4,742 ✭✭
There was a teardown on my block that sold on 3/30/05 for $725,000. They built a new house and sold it on 8/16/06 for $2,400,000.
I don't know the construction or carrying costs but I think they made some good money.
Here are the before and after pictures:
Before:
After:
The after's details:
Typical Chicago lot in Lincoln Park. 25x125. 6 Bedrooms, 4.5 bathrooms. 5300 Square Feet. 2 car garage, with a roof deck. Top of the line finishings with an elevator, yes, an elevator. Including the lower level the home has 4 stories and since the lot is a mere 25 feet wide, due to zoning restrictions, the building cannot be wider than 22 feet. The Master Bedroom is 18x13.
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Well, with a traditional 20% down payment, which would be: $ 480,000.00
Then, you could finance, $ 1,920,000.00 with a 30 Year Fixed Jumbo Loan (estimated rate of: 6.19%) for: $ 11,746.95 per month
Or one could have an interest only loan (estimated rate of: 5.5%) for: $ 8,000.00 per month
You say you want to go with NO MONEY DOWN? Ok!
How about that 30 year fixed rate above, with a 480K second mortgage?
Well, then it will be around: $ 15,296.95 monthly ($ 11,746.95 30 year fixed 1st + $ 3,500 for an 8.75% interest only 2nd).
Or 80%/20% Interest Only Loan: $ 11,500.00 monthly ($ 8,000.00 interest only 1st + $ 3,500 for an 8.75% interest only 2nd).
Or if u are really "on a budget", one could have a so-called "smart loan", with lower monthly payments, that creates a "negative amortization" against the property for the first five years, by paying "less than interest only rates" above!
Plus, be prepared to be 'bent over" at the closing, from all those friendly smiling faces, with their sweaty palms opened, that want to get paid at closing/settlement: Attorney/closing fees, attorney review fees, title fees, buyer's title insurance, appraisal fees, home inspection fees, termite & pest control inspections, survey report of property, real estate commissions (paid by seller and/or the buyer) lender/bank fees, mortgage broker fees and/or loan orgination fees, loan processing fees, loan application fees, rate lock fees, plus "extra junk fees" from ALL OF THE ABOVE
It is quite possible, that on a $ 2,400,000 sale, with a mortgage, one could expect to pay 3% to 5% ($ 72,000 to $ 120,000) in closing costs in a City like Chicago. Make a deal with the Seller to cover buyers closing costs by either reducing the sales price or by just having the seller agree to pay buyer's closing costs (i.e., up to 5% of the sales price). Mortgage lenders will allow a "seller concession" to the buyer for 3% to 6% of the selling price of the property. By doing a "seller concession" to the buyer, at least the buyer will not have to come-up with all that extra cash (or than buyer's down payment) to pay all those closing costs.
Forget all this, if u can afford a 2.4 million dollar property in Chicago? JUST PAY CASH!
rd
P.S. Why not just rent in Skokie, take the cash and buy few million dollars worth of Mantle, Cobb, Gehrig and Ruth? That's what most of us would do, no? LOL!
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<< <i>From what I read in the Tribune a few Sundays ago, it sounds like these 2.4 Million Dollar homes in Lincoln Park will be the standard in a few years. >>
Yeah, it's crazy. They are tearing down home's left and right. I hat when they tear down the old Greystones though. There have been several of the Greystone 3 flats that have been turned into some sick single family homes.
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<< <i>Give me the address and I will check the public records to see what the mortgage amount is. I can check this in most places in the US. >>
The same article I referenced before stated that the owners slowly purchased multiple lots over the course of a few years under various company names and the like
<< <i>Chicago's Pritzker family is famous for protecting its privacy and shielding its business affairs from scrutiny through an elaborate set of trust funds. So it is not surprising that Penny Pritzker, whose share of the family fortune is estimated by Forbes magazine to be $2.1 billion, went to some trouble to mask the fact that she was acquiring property on Orchard Street.
She formed a limited liability corporation called Orchard Street Land LLC and used that legal entity to buy five contiguous lots during 2002 and 2003 at a cost of more than $7 million, property records show. She took the further step of having the tax bills on the property mailed to J. Kevin Poorman, vice chairman of Classic Residence by Hyatt, the retirement-community business she heads. Poorman also is the secretary and treasurer of the Pritzker Traubert Family Foundation, according to the charity's recent filings with the state.
Despite their desire to stay in the background, Pritzker and her husband, Dr. Bryan Traubert, have had to identify themselves as the owners of the house several times: once when they applied for a building permit and a second time when they successfully sought a zoning exception in the summer of 2003 to reduce their front yard setback from the stipulated 15 feet to 12 feet to accommodate a 14-foot-wide fireplace chimney.
According to city documents viewed by the Tribune, the three-story house will have 9,238 square feet of living space, not including the basement. For permit purposes, the couple estimated construction costs at $3.4 million.The house, despite its size, will not entirely fill the five lots. Two lots to the south will be heavily landscaped....................
THE HOME BELONGING to Sara Crown Star may differ visually from the Pritzker house across the street, but the families share a penchant for privacy. Her father, industrialist Lester Crown, used John Washburn, an attorney with the Crown family law firm of Gould & Ratner, to pick up three lots on Orchard in early 2002 at a cost of $4.3 million. Seven months later, Washburn moved the property into a LaSalle Bank land trust, property records show. The sole beneficiary of the trust was Lester Crown, according to city records.
On March 1, 2005, Lester Crown transferred his interest in the trust in exchange for $5 million to an unnamed party, apparently his daughter Sara. The same day, records show, the trust took out a $1 million mortgage from the Henry Crown Grandchildren Trust. As one of Lester's seven children, Sara is a grandchild of the late Henry Crown, the titan behind Material Service Corp., which later merged with General Dynamics. Letters from neighbors contained in a Zoning Department file for the property's street address identify Crown Star as the property's owner. >>
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