4-Bedroom SFH Goes From $1.2 Million to $399,900 in Lakeview: 1019 W. George
This 4-bedroom single family home at 1019 W. George in Lakeview recently came on the market as a “pre-foreclosure.”
At $399,900, it is priced $830,100 under the 2007 purchase price.
It is also listed $50,100 under the 1991 purchase price.
Yes- it went under contract the day it was listed.
Yes- “rehab work required.”
The listing pictures show a hole in the kitchen ceiling.
The frame house is built on a 25×125 lot and has a 2 car garage.
The 2007 listing describes a second kitchen in the lower level that could be used as a nanny’s quarters.
There are cherry cabinets and granite counter tops in the kitchen.
The listing said this could only be sold for all cash.
Did someone get a deal?
Will there be more of these to come with unsold million dollar homes on the north side?
George Cuevas at Jameson Aspire has the listing. See the pictures here.
1019 W. George: 4 bedrooms, 3.5 baths, 4200 square feet, 2 car garage
- Sold in May 1991 for $450,000
- Sold in August 2004 for $1.18 million
- Sold in July 2007 for $1.23 million
- Originally listed in August 2008 for $1.299 million
- Reduced several times
- Was listed in October 2009 for $979,000
- Withdrawn
- Currently listed as a “pre-foreclosure” at $399,900
- Under Contract the first day it was listed
- Cash Only
- Taxes of $16,117
- Central Air
- Bedroom #1: 18×13 (second floor)
- Bedroom #2: 18×14 (second floor)
- Bedroom #3: 15×13 (second floor)
- Bedroom #4: 16×11 (lower level)
more “inside deals” for cash only investors
the rich keep getting richer, no surprise there…
I don’t believe this for one minute. Something is very fishy with this deal – let’s wait and see if it closes and what is the final sales price. And no – there will not be “many more” of these types of deals in the future – and if they are, they are already gone before anyone on CC would ever be able to buy them
Oh yea, could this buyer be related to someone?
Scary on all fronts.
inside deal. someone at the bank had to pass this along to a friend. No where close to actual value. Someone should report this and it should be investigated. fraud.
I would think that if the seller held out for a week, it would give time for all the cash buyers to come out of the woodwork and bid against one another, resulting in a higher price.
I don’t see any issue with this listing. It seems there are many popular methods of getting distressed properties off the books. This one takes the ‘list it low and attract lots of bidders’ approach. They also have the cash only stipulation which means they want it off the books ASAP. I can only guess someone ran the numbers that showed cash only ASAP at lets say $500k is better than waiting up to a year at who knows what selling price.
I give credit to any lender than reduces the sale time. Short sales are a mess right now and in general banks look real lazy.
wait a minute – everyone is basing their comments on assumptions which are likely untrue:
1. people assume that someone is actually going to get this for 399k. I highly doubt this (I doubt any bank would expect such a low offer and I doubt that the highest offer received was 399k)
2. people don’t really know the extent of damage in the house or any liens/construction probelms. This could run a few hundred thousand – still not bad if you could get it for 399k but, you never know.
Unless there was *significant* water damage, this is (easily) a deal at $600k. Even with the view of R.Kelly’s Enterprise rental car lot.
Something happened between the original listing in October 2009 and this most recent update. I walked through this sometime not too long after it came on the market in 2009 and it was presented as, and appeared to be, a turnkey property. Maybe I’m mixing houses, but I’m pretty sure this is the same house. All that being said, this isn’t the most picturesque block in the area as most of the the street between Sheffield and Seminary includes two-flat rentals in need of updating and a huge apartment buidling, but still, $399K would obviously be a steal. Something doesn’t add up.
Correct clio, there are a lot of unknowns for any investor on a place like this. They have to do their homework fast, come up with a max bid and submit. Estimating what the rehab costs are will certainly vary widely. If it is catastrophic they will have to assume lot price + auction gains of fixtures. If it is salvageable as this place appears then purchase price + holding costs + rehab costs + realtor/transfer fees must be less than potential market price resale in 2-6 months depending.
ris-kay.
A rule of thumb that an investor told me is : make sure you have *twice* the bid amnt to account for any unexpected surprises when “rehab work is required.”
We got our agent to dig on this property, as it looked like a crazy deal. From talking to the seller’s agent, there was significant water damage and it is being sold to a developer to repair the damage and finish construction.
Looks like a total inside deal, though. It came up on the MLS originally as TEMP, then immediately disappeared. Reappeared a few hours later as contingent. Given what I know, this will close at 399k or so and there wasn’t an opportunity for the average buyer to bid on this (forgetting for a moment the issue of getting a mortgage on it).
Shady deal, IMO.
List price is not the same as sale price. Let’s not get our panties in a bunch until we find out the sale price is.
Probably shady, sure, but I guess if an entity, even a public company, chooses to work with insiders and sell real estate in this way then they can do so. There is no assumed duty of fair dealing and right to purchase associated with real estate.
“Probably shady, sure, but I guess if an entity, even a public company, chooses to work with insiders and sell real estate in this way then they can do so. There is no assumed duty of fair dealing and right to purchase associated with real estate.”
So long as they aren’t selling it to officers or directors, their immediate relatives or entities controlled by same. Because then they’d be usurping corporate opportunities for private gain. And I don’t think a couple hundred grand is worth that potential headache.
but but but, how did it ever sell for 1.23 million in the first place, ever?
It’s FRAME; 3 fireplaces, nanny-quarters and fancy kitchen notwithstanding.
There’s a saying: “The cycle transfers wealth from Weak Hands to Strong Hands.”
Everyone is assuming the bank is selling this but where does it say that?
“but but but, how did it ever sell for 1.23 million in the first place, ever?”
It’s neighbor–1017 George, which looks v. similar from the outside, sold for $982,500 in Mar-06. Which just makes it weirder.
And this:
http://www.redfin.com/IL/Chicago/1025-W-Wolfram-St-60657/home/35628677
Is probably your comp for a finished reno.
“but but but, how did it ever sell for 1.23 million in the first place, ever?”
Because someone said that it could be worth 2.4 million in a couple of years 😀
wow this deal sounds more crooked than Clio talking about how things are great and prices are going nothing but up then inturn sells the farm and says thank gosh i got rid of that headache it was the worst RE investment he made.
wait didnt he even try to sell it to me and offer me his special financing?
“wait didnt he even try to sell it to me and offer me his special financing?”
No – I knew that you couldn’t afford it.
with all the farming you promised me i thought i would be able to live a sustainable lifestyle…
….and with the connections i made from the farm bordering 1mil plus homes would help me improve not only my self-worth but my monetary worth?
with all the farming you promised me i thought i would be able to live a sustainable lifestyle…
….and with the connections i made from the farm bordering 1mil plus homes would help me improve not only my self-worth but my monetary worth?
but alas you were correct not to offer me the farm as poor ol grooves w2 cannot cover a fraction of the list price let alone the taxes.
I put in a $750k bid back in March 2009 for this place. Needless to say they didn’t accept and I moved on. Whoops…kinda pissed off to see it sell for this price.
Also, my RE agent at the time told me the bid would be insulting and that I shouldn’t even put it out there. I told him I don’t give a damn if I insult them. They never countered back so I guess they weren’t happy.
“So long as they aren’t selling it to officers or directors, their immediate relatives or entities controlled by same. Because then they’d be usurping corporate opportunities for private gain. And I don’t think a couple hundred grand is worth that potential headache.”
I’m lazy on this part of the law, so I could be wrong, but even then I think you only have a cause of action if you’re a shareholder.
“even then I think you only have a cause of action if you’re a shareholder.”
Sure, but how many people is that for BOFA, JPM, WF, etc?
Can’t wait to see what it closes at and exactly how this investor was made aware of this on day one. It sure looks like a bank insider was integral to someone getting this at a below market price.
Whoa… This makes the Kenilworth house look like a ripoff. It will be interesting to see where this trades. Based on the implication from a pricing perspectve, make this a comp and I believe no one has equity in Lake View, or for that matter, the north side of Chicago. Also, the damage appears to be wholly cosmetic — hell, I’ve done worse adding a cabinet to a bathroom. Standard lot value in this area of Lake View is 375k to 400k and there are developers that have recently paid amounts actually above this. As an example (in a better school district and which was torn down, so lot value only though it was a few months ago):
http://www.redfin.com/IL/Chicago/1529-W-Wolfram-St-60657/home/13364386
I do know of at least one or two other listings where a ridiculous list was proferred and sparked a multiple offer situation. The theory being that a buyer will bid against himself or get carried away with the auction effect. I don’t know that these were profit-maximizing moves, frankly.
As for insider transactions, while its possible, what is being discussed seems serious to me. I think one could view what is being described as a fradulence conveyance of loan collateral, right? If so, I bet the OCC would have an interest as well the SEC if these assets back a pass through. That this hasn’t been turned on its head suggests perhaps maybe that is not the case, but who knows.
“Sure, but how many people is that for BOFA, JPM, WF, etc?”
Sure, tons, so if you have good information that the buyer is closely related to an officer, etc., and a nose and desire for derivative suits, go nuts.
There are so many unknowns about this property, we cannot accurately draw any conclusions anything without knowing all of the facts. There is enough info, however, to understand that there is more to this story than the presented data. It will be interesting to see what the truth is behind this place. However, if anyone is looking for an absolute STEAL in Oak Brook (yes, Hinsdale Central School district), see the place below:
http://www.redfin.com/IL/Oak-Brook/31-Concord-Dr-60523/home/18086771
Hmmm…maybe a “straw buyer” for the new mayor, just in case he can’t get rid of that pesky tenant in time…?:-)
“Also, my RE agent at the time told me the bid would be insulting and that I shouldn’t even put it out there. I told him I don’t give a damn if I insult them.”
Ed, wow your own agent used those words?
I know our agent gave us a heads up on low-balling. but when i explained we are going with the the philosophy “throw a bunch of low offers at many places and see if one sticks” then our agent was on board.
“Hmmm…maybe a “straw buyer” for the new mayor, just in case he can’t get rid of that pesky tenant in time…?:-)”
In time for … what? Kids will be at camp all summer after school ends in DC, and his current rental and/or a suite at a downtown hotel will be sufficient for the two of them.
No where does it say the bank is selling this place. Maybe someone wants to transfer ownership for tax puposes etc.
“In time for … what? Kids will be at camp all summer after school ends in DC, and his current rental and/or a suite at a downtown hotel will be sufficient for the two of them.”
lease is up in july right? so he will be fine the trick is to buy on that block if you know he is going to stay, you get a *free extra police patrol
“lease is up in july right? so he will be fine the trick is to buy on that block if you know he is going to stay, you get a *free extra police patrol”
I can’t imagine that he buys a different house. Why would he?
“I can’t imagine that he buys a different house. Why would he?”
i have no support for why he would leave or stay, the true question is to ponder if he puts his kids into CPS or Private, and if you pulls a “i did private for security” reason.
“i have no support for why he would leave or stay, the true question is to ponder if he puts his kids into CPS or Private, and if you pulls a “i did private for security” reason.”
I think he puts the younger two back into the same school they went to all along before they moved to DC for two years. Which is a private school. The HS kid is the wild card. Rumor sez Latin.
“I think he puts the younger two back into the same school they went to all along before they moved to DC for two years. Which is a private school. The HS kid is the wild card. Rumor sez Latin.”
not knocking the guys decision for whats best for *his kids, i guess its a “do as i say, not as i do” thing. but yeah with 40% turn out what do you expect.
and for the record i voted miguel so i have a right to complain 😉
“not knocking the guys decision for whats best for *his kids, i guess its a “do as i say, not as i do” thing. but yeah with 40% turn out what do you expect. ”
Dude, the alternative is *not* Lake View HS; it’s NSCP/Payton, possibly Lane, and then with the cloud over the kid that he got clouted in, even if he had perfect grades and the highest test scores ever recorded. He’d get a pass if he’s a varsity caliber athlete as a frosh, which is *highly* unlikely, but that’s about the only way, no? Otherwise, he’s the mayor’s kid who has to constantly prove himself for at least 2 years.
Why should the kid pay that price? To make his dad’s policies easier to implement?
Until I just wrote this, I had thought it all the way thru, but now, I’m totally of the mind that whatever they do, everyone should shut it, unless they would also pick a school for their kids *solely* to make their working lives easier. I wouldn’t, so count me as a defender of wherever the Rahmkids’ school choice is.
like i said i am not knocking the guy doing whats best for his kids. and your point is well thought out and i see where your coming from and agree the kid should not suffer for his parents beliefs.
you kind have to say to our new policy and “change maker”, what were you doing before you ran to help chicago’s schools become better? oh wait nothing you just sent your kids to private to obtain an out of sight out of mind zen.
but i am not one to question either as i have a savings fund ready to go for k-12 private if things dont go well, and i even (almost) went to the burbs for schools and still ponder the idea.
so what i am really saying if i understand myself, is that i dont fault him for making the best choice as a parent but will play devils advocate for his choices as “leader” and tie his personal examples to his voiced ideals.
one thing i wont do is vilify him for it. (other things/issues are up for grabs)
“you kind have to say to our new policy and “change maker”, what were you doing before you ran to help chicago’s schools become better? oh wait nothing you just sent your kids to private to obtain an out of sight out of mind zen.”
He pulled to get capital funds for CPS while in Congress. Coonley’s $3m+ reno was largely funded by federal dollars obtained when Rahm was still the Rep. (and the banner that hung there for 18 months wouldn’t let anyone forget it).
“He pulled to get capital funds for CPS while in Congress. Coonley’s $3m+ reno was largely funded by federal dollars obtained when Rahm was still the Rep. (and the banner that hung there for 18 months wouldn’t let anyone forget it)”
wah, what? from what i read and what i was told (taken at face value) that his policies, wanted and put in place, where not CPS oriented.
not saying its correct as i didnt do my own due-diligence and dig to find out.
i would love to learn if there is more that he did that i am unaware of.
“wah, what? from what i read and what i was told (taken at face value) that his policies, wanted and put in place, where not CPS oriented.”
You got that from your CTU-member friends, didn’t you?
I’m not saying he’s generally more pro-CPS than any of the other candidates were, and I believe that he is more pro-charter school than I would choose were I tsar, but how is he supposed anti-CPS?
At $399k is there anyone that wouldn’t buy this place? As for being frame, I don’t mind frame houses. I would actually rather have a frame house over that cinderblock that needs to be sealed every couple years to protect from water damage that looks so ugly. I’ve heard of numerous pipe bursts in recent months due to the cold weather, and appears to of happened here. I’d have to see the damage in person but this doesn’t look bad at all from the photos. I’d take the “risk” at 399k and buy this place in a second.
“You got that from your CTU-member friends, didn’t you?”
some not all but, most were other union folks so you get an idea where my word-of-mouth facts came from 🙂
that coonley thing is a total shock to me, as it makes me look like an azz to a few people i had a back and forth with.
i wonder what other crazy shyte i have been sarguing isnt really *true
“that coonley thing is a total shock to me, as it makes me look like an azz to a few people i had a back and forth with.”
Well, you know how that congressional funding thing works–there’s a legit question how much of that was really b/c of Rahm, vs just general allocation of $$. But he sure as shi.. stuff took credit for it. Also why he officially announced he was running *at* Coonley.
See here:
http://www.centersquarejournal.com/news/rahm-emanuel-announces-run-for-mayor-at-coonley-elementary
This listing is pre foreclosure, aka short sale. There are over $1 million in mortgages on this property so it is highly unlikely the bank will ever approve this sale. However, if the bank does approve there is potential for a “friend” to purchase, rehab, flip and split the proceeds with current owner.
A $750k offer (outside of a short sale agreement) would not be profitable for current owner based on open loans, however, a plan like above would be a money maker and current owner walks from loans (IF BANK APPROVES), we can only hope the banks short sale groups investigates thoroughly.
“Also why he officially announced he was running *at* Coonley.”
the sad thing about that is it didnt click in my head to read why he announced there or research it. i was pro miguel by then already 🙂