Will West Madison Become the “New” Wrigleyville? 1111 W. Madison
This 2-bedroom condo at 1111 W. Madisonin the West Loop appears to be in a prime location if you’re a Blackhawks fan.
This unit actually looks out over Madison, the preferred view for units in these buildings (otherwise, the units tend to overlook the parking garage and alley in the back.)
The midrise building was built in 2001.
The unit has hardwood floors, a gas fireplace and crown molding.
The kitchen has 42 inch cabinets, granite counter tops and stainless steel appliances.
It has all the bells and whistles including central air, in-unit washer/dryer and parking.
It is also listed for $41,000 under the 2007 purchase price.
With all the bars and restaurants benefiting from the Blackhawks Stanley Cup run and, yes, even some buzz about the Bulls again, could West Madison become the new Wrigleyville?
Dan Spain at Conlon: A Real Estate Company has the listing. See the pictures here.
Unit #2C: 2 bedrooms, 2 baths, no square footage listed
- Sold in February 2001 for $230,500
- Sold in March 2007 for $420,000
- Currently listed for $379,000 (includes the parking)
- Assessments of $265 a month (includes the cable)
- Taxes of $4434
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 17×11
- Bedroom #2: 12×9
- Living room: 31×14
- Kitchen: 8×6
This is the West Loop. What the heck is West Madision? This is over a mile from the UC, and if this area wasn’t Wrigleyville when Jordan was in town, it’s NEVER going to be Wrigleyville.
God help whoever buys here thinking UC traffic will make the neighborhood something more than it already is.
This is also a standard issue 2/2 that is still $160k over its 2001 price.
Was the last sale fraud? It had to be.
West Madison will never be like wrigleyville because
1) White people are scared to ride the Green line, and madison st. bus
2) not near anything fun except the indoor stadium and a few awful spillover bars
3) This is almost too far from the UC, but nobody wants to live by the UC because well its pretty ghetto and the traffic 100+ nights a year is awful.
4) The stadium isn’t “fun” and isn’t a historic landmark (aka in need of renovation giant toilet) and isn’t a tourist attraction due to the poor surrounding neighborhood
Hey sorry… unrelated, but you guys know all sorts of things I don’t and we are thinking about putting an offer in on a house. How do out find out the current situation on said house, ie; how much their mortgage is, etc, so we know what to offer? I know they have another place and are paying 2 mortgages right now, and I’m about to do some searching, but if someone can lead me in the right direction that would be extremely helpful.
Thanks!
Sonies pretty well hit the nail on the head
“Was the last sale fraud? It had to be.”
Heh. The recorded deed shows a sale price of … wait for it … $650k. No, not a typo (on my part–maybe in the data entry) for Unit 2C and P12. With a 100% mortgage (yes, a $650k mortgage on this 2/2). Registered Prez/Secretary’s address is this condo.
TR – I know you can look up mortgages (1st and 2nd lien) using ccrd.info you need the property pin number but you can find that easily on redfin. Hope that helps
sorry — “TS” not “TR”
t.s.
i’m not an expert but with a pin# and the cook county recorder of deeds website you can figure some things out. i think your real estate agent should be able to pull this info too. frankly, i wouldn’t anchor to the mortgage number. you might end up paying too much.
T.S.-
Email me at mg@mattgarrisongroup.com and I will have someone get that information for you.
MGG
The west loop….I went running through here last week and noticed A LOT of businesses shut down. Fulton Lounge even closed it doors. With Oprah leaving this area, will it lead to even more businesses closing its doors including those that might have depended on the Orpah staff lunch crew?
lol, to be even more blunter than sonies…suburban and fly-over-country tourists (and even city folk) do not like hanging out among poor people…let alone poor minorities.
if you really want a west loop entertainment district, build over the vast parking lot waste land surrounding UC (the same goes for new Comiskey) with commercial on floor 1/2 and parking overhead.
“lol, to be even more blunter than sonies…suburban and fly-over-country tourists (and even city folk) do not like hanging out among poor people…let alone poor minorities.”
Yeah I hear people go to Gary, Indiana for the people, not the beaches…
Ha. Agree with hello et al.
The area around this unit may pass for a neighborhood, but the half-mile radius around UC does not–unless you get your comfort from parking lots, the el, transitory housing (which, granted, serves its own separate purpose), and half a tree. In fact, the few “establishments” (take-out Chinese, liquor store) that existed in this zone a couple of years ago have been turned into parking lots. As a positive (!), the day-to-day traffic around there is not bad.
“Sonies pretty well hit the nail on the head”
that he doesn’t live in the West Loop? yep, he hit that nail pretty damn square.
i’ll add “scared white people on the Green Line and the 20” as another reason not to live in the West Loop.
and man those awful spillover bars…if only I could be closer to Casey Moran’s, my life would be complete.
you people need a new hobby, because you suck at bashing the West Loop.
I always liked to think of “United Center Park” as a blank slate; and in many ways it is. ALthough it may seem more like a choatic wasteland at the moment. There should be some kind of master plan. Plenty of space nice transit options. Run a crime report: south of Chicago Ave north of grand Ave. is far worse.
The real problem here is that this is just a vanilla plain boring 2/2 in a so-so neighborhood. I’ve seen similar condos a million times and they’re mostly overpriced and hence, languishing.
Oh yeah I forgot, the Billy Goat is such an awesome bar…
not
“you people need a new hobby, because you suck at bashing the West Loop.”
I think the West Loop is ok in general (as long as you stick East of Ashland), but it’s never going to be like Wrigleyville. I think Sonies was pretty correct in his assessment.
“you people need a new hobby, because you suck at bashing the West Loop.”
Come on Old Hickory, you at least need to give us a reason why it doesn’t suck.
FYI i’m also a fan of the west loop, greektown, and other establishments on east of ashland are some of my favorites in the city
Restaurant Row.
I go to the west loop to eat and shop, to me it feels more like a destination than a actual neighborhood to live. we go for brunch and do a stroller walk but always say on the drive home, i would hate to live here everyday.
To me @379k it seems narrow and somewhat like every other 2/2 everywhere else. i dont know if 379k is a good deal in the west loop as i dont follow this area at all.
400k can get you many, many 2/2 around the city and some that are unique or add something over the basic blah condo unit built in the bubble.
The West Loop is a great neighborhood to live in. I ride the Madison bus everyday and I havent seen any “scared white people”. For those of you making these comments, have you actually lived a month or two in the west loop? The neighborhood is thriving with new businesses. The reader who said Fulton Lounge is closed, have you seen their website http://www.fultonlounge.com/, a new business will be opening shortly. Before you make assumptions on the neighborhood, do some research.
Yes, there are a lot of overpriced condos that are vanilla box, but their are still some unique places available for those looking to do a little searching. Check out some of these great units:
http://www.redfin.com/IL/Chicago/843-W-Adams-St-60607/unit-702/home/12787482
http://www.redfin.com/IL/Chicago/1019-W-Jackson-Blvd-60607/unit-3J/home/14090541
Also, another unit in this building on the second floor, facing madison just sold for $325,000. I dont believe that the West Loop will become another Wrigleyville, but I do think its a safe neighborhood with great food and shops!
“To me @379k it seems narrow and somewhat like every other 2/2 everywhere else.”
Yeah, but there’s a $650k mortgage on it.
$650k!
“Fulton Lounge even closed its doors.”
Yes – but from their website: “In its place, an even more exciting establishment, the likes of which you have never seen, will incorporate the spaces of Fulton Lounge and the former restaurant next door. Get ready. You will be wowed.”
I don’t doubt that many business shut down but this is the case in almost any neighborhood right now. If I recall, the Oprah studios are remaining open although I’m not sure what will be going on there. Also, Fulton Lounge and it’s neighbor Folia are rumored to be the location for the Alinea spin-off.
“The west loop….I went running through here last week and noticed A LOT of businesses shut down. Fulton Lounge even closed it doors. With Oprah leaving this area, will it lead to even more businesses closing its doors including those that might have depended on the Orpah staff lunch crew?”
TS,
*Redfin sometimes has the PIN for a property (plus it has last sale price too) but sometimes its wrong. or use the cook county ass website to get it
*now use that PIN on the CCRD.info site to see recorded lien mortgage and release stuff
sometimes its pretty straight forward, but sometimes its a mess and would need a lawyer (HD, ANON) to figure it out.
I usually assume a 6% 30yr fixed from the recorded mortgage. and if i see another mortgage for say something like a 100k or 250k or 75k even its 89% a HELOC and you never know if someone has a huge % balance on it or like someone like me only has a 5% balance on it.
no HD call tell you how to get the actual docs for like $2 if your hard core
Anon,
650k!!!!!!!! yikes i guess the can make it Unique? its not possible its a combined mortgage with another unit or condo elsewhere?
sign me up with that mortgage broker/banker; 300K is a better price; if you can rent it to UIC folks.
““To me @379k it seems narrow and somewhat like every other 2/2 everywhere else.”
Yeah, but there’s a $650k mortgage on it.
$650k!”
“its not possible its a combined mortgage with another unit or condo elsewhere?”
CCRD has it as a lien on two pins–the unit and the parking spot. The owner is a corp with no other property in Cook–always possible it’s securing something in another county, too. But the Deed price was $650k, too.
“But the Deed price was $650k, too”
wow funny money! so i guess the short sale will be on the parking spot? 🙂
I’ve been living on the east side of the west loop for 5 years and it’s a great neighborhood. But the farther west you go the less interesting it becomes.
The only thing keeping me from buying is the price. Things got way too overheated way too fast. Underwater sellers are trying their best to minimize losses but all it does is drag out the pain and drag out the recovery.
FYI fellow CC friends the west loop will not be shutting down with the unfortuante loss of The Fulton Lounge and the upcoming departure our pompous neighbor Mrs. “O” who appears to hate Chicago.
This neighborhood is not, and will never become, Wrigleyville and that is great news. I lived at 3462 N. Sheffield and watched a fight almost every Thrusday to Sunday night. {Perhaps that was due to the strong margaritas at El Jardin. Don’t forget the never ending stream of urination and vomit in hte street on game days!
Parking is way way better in the WL. Though there are some significant upsides to Wrigley I still like my humble west loop. Don’t bash it until you really understnad the hood.
“Perhaps that was due to the strong margaritas at El Jardin”
I am 99% positive those things are made with some variety of moonshine.
But I am 100% positive that will never stop me from drinking one!
how many people that post here actually own 1 or more homes. As a real estate investor and owner of several properties, I am amazed at the naivete expressed by many of the posters when it comes to their predictions on housing prices. It seems as though everyone wants or expects to get the greatest places for next to nothing. Sorry to burst your bubbles guys, but there are still a LOT of people out there with money waiting on the sidelines. Real estate is dropping, but it is NOT going to be the free-for-all that you vultures seem to be waiting for!
1. The 20 is fine for 18+ hours of the day. Beyond that it gets a bit seedier but this whiteboy has never had a problem with it.
2. I can’t speak for the Green Line because there’s no stops nearby, though that will change with the new Morgan/Lake station scheduled to open in 2012.
3. I hope this neighborhood doesn’t turn into Wrigleyville. I have plenty of bars to choose from and easy access to all forms of transit if I want to go somewhere else. I can live without the game-day gridlock, lack of parking, and frat boys pissing in alleys.
4. Pretty cheap HOA assessment. Perhaps too low?
5. As many have rightfully pointed out, both in this story and others concerning the West Loop, there’s an awful lot of cookie-cutter 2/2 “lofts” around here. I’m failing to see what sort of unique quality this one has to set it apart. Just another story of someone who bought at the height of the market. This won’t sell for a penny over $330k.
“Perhaps that was due to the strong margaritas at El Jardin”
“I am 99% positive those things are made with some variety of moonshine.”
I thought it was fairly common knowledge that El Jardin margaritas contain both tequila and everclear. And a tiny bit of lime juice.
clio,
Who are you and why do you think that being “a real estate investor and owner of several properties” somehow gives lends more credence to your predictions of future house price valuations than those on here who you think are being unrealistic in their predictions?
Sounds to me like sour grapes that you actually do own several properties in this downturn.
Skinner park is actually an amazing park and is excellent for kids. It was recently redone with a state of the art playground. I’ve heard that the recently built school is good (or getting better).
The neighborhood is pretty sparse, but there are a couple decent bars and restaurants. Plus, the Madison bus is nice if you work downtown.
ps: Clio: I actually could own several homes, although admittedly the minority of homes featured here on CC.
I also tend to be fiscally conservative and understand what a financial commitment owning a piece of real estate is. Its the fiscal equivalent of a wedding, to be honest as you are tied to that property and on the hook for any potential movement in valuation–including down. And those moves are amplified if you are using the bank’s money and a high LTV mortgage.
Inquiring minds want to know Ms. Clio: what kind of financing did you use to build your real estate empire, as it were? Was it 100% bank financing, 95%, 90%, 80%, or less (or even 0%)? I think this metric says a lot about an investor’s strategy in real estate.
Sonies: I disagree with you that the UC won’t ever be a tourist destination. A few weeks ago I was there for one of the blackhawks games and was waiting for friends outside- near the Michael Jordan statute.
Up strolled a young Asian couple who spoke almost no english and had me take their picture in front of the statue. They were oblivious to everyone being there for the game. They had come all the way to the stadium to see the statue.
I took the picture and they walked away through the parking lot and back towards the direction of the Sears Tower.
Thanks everyone!
“Up strolled a young Asian couple who spoke almost no english and had me take their picture in front of the statute. They were oblivious to everyone being there for the game. They had come all the way to the stadium to see the statute.”
This has to be the exception, not the norm. I remember way back in the day during Bulls mania that the UC was going to be the centerpiece of a wonderful entertainment district. That turned out well.
****1. The 20 is fine for 18+ hours of the day. Beyond that it gets a bit seedier but this whiteboy has never had a problem with it.****
lol, i absolutely agree. 97% of the city i have no problem walking around (or have walked around). I’m just as vigiliant on Garfield Blvd as Sheffield/Belmont.
Unfortunately, as with many things in life, it’s all about the lowest common denominator.
If “Caitlin from Ottumwa, IA” doesn’t feel safe walking around an area at night, then perception becomes reality.
sad but true.
Barry: It’s apparently not the exception. It’s the norm. People take cabs out to the stadium just to see the statue.
“Just last week, this writer was surprised to see so many tourists go out of their way to travel to the United Center to see the Jordan statue. Sixteen years later, the sculpture remains extremely popular.”
From the NHL Fanhouse blog: http://nhl.fanhouse.com/2010/05/28/the-michael-jordan-statue-toews-ered/
If you really want to know if tourists are showing up, you can watch a United Center live webcam of the statue. Alas, no tourists there at 11 pm when I posted this.
http://www.unitedcenter.com/unitedcenter/mjstatue_camera.asp
When I think “West Madison,” I think of west of Western, where it starts to get really dicey.
This property is firmly in Beat 1212, the best part of the 12th District. The most common criminal occurences here are thefts from auto, though if you don’t leave anything in plain sight, you’ll probably avoid any break-ins. I wouldn’t mind living in this area; it’s centrally located and there’s a fair amount of businesses around, but it’s not super congested either.
However, as mentioned, there are a ton of 2/2s in the West Loop, and plenty of them were put up fast and cheap during the bubble.
bob wrote “Inquiring minds want to know Ms. Clio: what kind of financing did you use to build your real estate empire, as it were? Was it 100% bank financing, 95%, 90%, 80%, or less (or even 0%)? I think this metric says a lot about an investor’s strategy in real estate.”
Bob,
I (unfortunately) originally had about 50-60% equity in all of my properties (now about 10-20%). I am not underwater/upside down on any of my properties so it doesn’t make sense for me to “walk away” from any of these investments. You are right that I am angry that the government/system has made it too easy for irresponsible people
(those who bought with 0-5%down) to walk away from their homes/investments while punishing those who diligently and honestly made the “responsible” choice and put down 20-50%. But… as you all must know, this is the new economy brought about by the new government. We should all get used to it – hey, it actually might be fun to be lazy, irresponsible and careless and still not worry about it because all of the rich people will pay for it (through the increased taxation and new government programs)… aughhh it makes me sick!!
sorry for the rant
clio
“t actually might be fun to be lazy, irresponsible and careless and still not worry about it because all of the rich people will pay for it (through the increased taxation and new government programs)”
The future on this is as yet unwritten. Vote in the fall and vote Republican even if you aren’t one–its the only way we can put a check on DC’s desire for ever increasing power and fiscal irresponsibility.
No more handouts or entitlements to the dregs of society. In fact we need to reverse a lot of them.
thanks bob – i completely agree. it has become so politically incorrect to criticize the current government that it is refreshing to hear someone who actually agrees with me!!!
Hello; 97% of the city is jot safe or comfortable to walkaround during the day or night. I know myself as a preppy looking white Guy wouldn’t last very long in somewhere like englewood, roseland, west Pullman, back of the yards, brainard etc. Half of our fair fitness could be straight out of a set from ‘the wife’s. 97%is a bunch of baloney. If you’re in a neighborhood with only liquor stores currency exchanges payday loan store and storefront churches I promise you will be messed with if you are not from the neighborhood.
Wow, googles auto type is terrible, my previous post makes little sense. Pls ignore.
Vote out incumbents. Rinse and repeat every two years until they prove they are working for the voters and not the special interests.
“The future on this is as yet unwritten. Vote in the fall and vote Republican even if you aren’t one–its the only way we can put a check on DC’s desire for ever increasing power and fiscal irresponsibility.”
“I (unfortunately) originally had about 50-60% equity in all of my properties (now about 10-20%). I am not underwater/upside down on any of my properties so it doesn’t make sense for me to “walk away” from any of these investments. You are right that I am angry that the government/system has made it too easy for irresponsible people
(those who bought with 0-5%down) to walk away from their homes/investments while punishing those who diligently and honestly made the “responsible” choice and put down 20-50%. But… as you all must know, this is the new economy brought about by the new government. We should all get used to it – hey, it actually might be fun to be lazy, irresponsible and careless and still not worry about it because all of the rich people will pay for it (through the increased taxation and new government programs)”
The regs that make it easy to walk away from underwater properties have been in place for years. There just haven’t been as many underwater properties for people to walk away from. The e-z, no money down, no doc loan environment made it inevitable that there would be a crash, and that when the crash came, there would be many people with no equity and nothing to gain by staying in their home and continuing to make payments on their e-z, no money down, no doc loan. Anyone who chose to invest in real estate in such an environment really should have been aware of this risk; it wasn’t a secret.
You made a bad investment. Just like the folks who took out an e-z, no money down, no doc loan on a property they couldn’t afford.
“Hello; 97% of the city is jot safe or comfortable to walkaround during the day or night”
no its not… maybe 50%…
Homedelete? Exaggerating? I never!
I disagree with the statement that 97pc is safe. I agree with sonies that its more like 50. I didn’t say that 97pc is unsafe.
And Sabrina, the only reason a bunch of people were looking at the MJ statue recently is because they put a hockey jersey, helmet and some skates on the statue..
Madeline wrote:
“You made a bad investment. Just like the folks who took out an e-z, no money down, no doc loan on a property they couldn’t afford.”
Madeline,
I agree with you that I made a bad investment choice – but don’t put me in the same category as those who bought with no money down – they are actually smarter than me and made a better investment choice (not losing much, if any money and still getting to live in a place they couldn’t afford at least for a little while!!!)!!!
“This neighborhood is not, and will never become, Wrigleyville and that is great news.”…… “I dont believe that the West Loop will become another Wrigleyville, but I do think its a safe neighborhood with great food and shops!”
I agree 110% and am glad it will never become Wrigleyville. I lived there the entire time I was a resident of Chicago and LOVED the area. It was as though you were living in a quiet but closer version of a surburb neighborhood. Parking was easier, there were no street urchins at everycorner, no bikes flying 2″ from your car and most importantly to me at that time was the freedom my dog felt to walk down any block and still have some sidewalk space to herself.
Wrigleyville is overrun with drunken piss/vomit/defecate in your flowerbox college kids who have no regard for it being home to people who actually own their own homes.
“As a real estate investor and owner of several properties, I am amazed at the naivete expressed by many of the posters when it comes to their predictions on housing prices. It seems as though everyone wants or expects to get the greatest places for next to nothing. Sorry to burst your bubbles guys, but there are still a LOT of people out there with money waiting on the sidelines. Real estate is dropping, but it is NOT going to be the free-for-all that you vultures seem to be waiting for!”
AMEN AMEN AMEN!! This is exactly what I have been saying since I started posting here.
“I’m failing to see what sort of unique quality this one has to set it apart. Just another story of someone who bought at the height of the market.”
From someone who has toured MOST of the units for a year +, there are many characteristics which set WL units apart from those in other parts of the city. Most importantly to me was the age of most of the buildings and the condition many are in. There are also many smaller upgrades one can make DIY style that can and do make your own unit unique. It’s called being creative and thinking outside of the SS/Granite/single vanity master bath box.
As much as HD and Lowes are hated here, with a discerning eye, one’s $$$ can go along way in customizing a space…customization that at closing time goes a long way in being able to say one lived virtually cost free for years. Creative people, get creative and enjoy the fruits of your labor come resale time.
“Who are you and why do you think that being “a real estate investor and owner of several properties” somehow gives lends e credence to your predictions of future house price valuations than those on here who you think are being unrealistic in their predictions?”
It’s called getting your hands dirty in a field and enjoying the work you put into it instead of sitting on the sidelines and throwing nothing but negativity into the mix. Try it sometime!
“Sounds to me like sour grapes that you actually do own several properties in this downturn”
and your ranting sounds like sourgrapes because you DON”T own anything! Sorry to be down on you Bob, but after awhile your negativity wears us down. And yes, I am sure comments will come flying at me about ‘bragging’…it don’t bother me the same I am sure it doesn’t bother you.
westloopelo-
I couldn’t agree with you more. My wife and I are proud residents of the West Loop. We lived just north of Wrigleyville for 3 years prior to settling in WL, and there is no neighborhood I hate more than Wrigley. Overpriced properties, vomiting/pissing college suburbanite CHILDREN, and terrible traffic. I firmly believe that WL is not attempting to be a Wrigleyville and probably never will.
Tho I wouldn’t suggest anyone living west of Ashland.
“Skinner park is actually an amazing park”
It really is a nice place to hang out esp if you have either dogs or kids as you can walk up and strike a conversation with other ‘parents’…something that never happened to me in say…Lincoln Park. Very friendly park which will be even better once the council approves that long promised fenced in Dog Run. My dog made it on the fund raising calendar, ‘The dogs of Skinner Park’ twice so far.
“However, as mentioned, there are a ton of 2/2s in the West Loop, and plenty of them were put up fast and cheap during the bubble.”
But there are many upper level units being placed throughout the area as well. I cannot recall the name of the building, but it is on the SE corner of Throop and Adams. Six stories of full floor 3200+ sq ft units that were priced (amazingly low for the quality of finishes) in the high 700s to low 900’s I believe. Then you have the units right next door that span the entire block from Throop to Racine, the new (4 or 5 buildings) of 4 flats on Jackson….so it goes to show the variety located in this rather small area.
“No more handouts or entitlements to the dregs of society. In fact we need to reverse a lot of them.”
Spoken like a true Republican who has no idea of how tight a grip the state/feds have on these allegedly endless handouts and entitlements. While it might have been true two decades ago, these much needed welfare checks/medicare-aide payments have become nearly impossible to obtain nowadays.
“As much as HD and Lowes are hated here”
Dooode i dont understand the bad stigma of HomoDepot and lowes either. shoot i get my paint at Menards Dutch Boy is a good bang for the buck for people who paint every 3-5 years (and sometimes every two like my wife wants).
westloop when you were in chicago i do hope that you too advantage of HOBO. its in the ghetto but i got all he tile for almost every tile job i did for friends family and my place, and saved butt loads of $$$ doing so.
the few down falls of HOBO is the bull nose is sometimes scarce and you have to get creative. plus the limited selection and the what you see out is all they have and wont get it again. (buy 5 boxes extra and store it for repairs in the future)
also most dont know about the “builders warehouse” on pulaski north of fullerton that has dirt cheap toilets, sinks, cabinets, and counter tops. again its a what they have out is it and wont get it again thing.
most shy away from Flee markets in the ghetto, but with people gutting foreclosures as they are kick out you can pick up some great stuff used but cheap. I picked up a pimptastic kitchen faucet (no name on it) last summer with a bunch of copper pipe that i used in the remodel of our bathroom.
Its crazy how people have a stigma against things like HD, LOWES, target, Ikea. But when you weed through the crap at those places and mix it with high/mid end stuff tastefully you cant tell the difference and you save so much $$$$$$$.
we have great pride that in our home and apt that only a few can pick out the ikea stuff.
too much coffee today Westloopelo? you are a quote machine
“too much coffee today Westloopelo? you are a quote machine”
LOL I’m telling you, you take a day off from reading/posting here and you have a ton of catching up to do! I thought I’d get it all out of the way in one or two posts…that way my comments aren’t the free for all they usually are.
“I (unfortunately) originally had about 50-60% equity in all of my properties (now about 10-20%). I am not underwater/upside down on any of my properties so it doesn’t make sense for me to “walk away” from any of these investments. ”
I don’t understand the above… If total property value has decreased, you have MORE “equity”, although less value, or am I misunderstanding something here? Is there another definition of “equity” other than “how much money I’ve sunk into this property against what I actually owe on it”?
If you have $100k in equity on a property valued at $1,000k, you have 10% equity, but if the value decrease to $500k, you then have 20% “equity”, no? If you sell and are able to get your “equity” out, what’s the issue, other than you don’t make a huge profit?
“If you have $100k in equity on a property valued at $1,000k, you have 10% equity, but if the value decrease to $500k, you then have 20% “equity”, no? If you sell and are able to get your “equity” out, what’s the issue, other than you don’t make a huge profit?”
No. You have *negative* 80% equity, because you still owe $900k on the property now worth $500k.
Use 50% equity–$500k cash and $500k debt on $1000k of assets. Reduce asset value to $600k, but retain $500k debt, you now have $100k in equity, or 16.6%.
But if that’s how it works for you, I’d like to have the number for you mortgage lender.
Are you serious logansquarean?
$1M property with $100k means a $900k loan
Sell that place $500k and you have to pay back the loan ($400k -$100k down payment = $300k loss)
Unless of course you are of the new age of “walk away” thinking, then it’s just $100l loss.
“Sell that place $500k and you have to pay back the loan ($400k -$100k down payment = $300k loss)”
More new math!
“No. You have *negative* 80% equity, because you still owe $900k on the property now worth $500k.”
oh. yeah. duh on my part. I was making the wrong assumption on borrowed amount. I forget this fact, because I bought a crapshack for peanuts back in 98′, and at one point it was “worth” almost triple what I paid for it after rehab, while now it’s not so much. But, no matter what, I still have plenty of “equity” in it, that I’ll recoup upon sale. I keep forgetting that other people bought closer to the peak… and for investment, not as primary residence. Although, I still believe there’s a bottom-line “intrinsic” value to properties that most will not go under, barring catastrophic collapse of a neighborhood.
sorry for the loss, but if you hang on to it long enough, it could/should/might recover?
“Although, I still believe there’s a bottom-line “intrinsic” value to properties that most will not go under, barring catastrophic collapse of a neighborhood.”
I agree, but do you think we’re close to the baseline on *land* values? Because that drove so much of the bubble. Are std chicago vacant lots/teardowns in Logan e of Sacto/s of Fullerton intrinsically worth the ~$130k currently being asked for them? If not, where would you peg that baseline?
The Jordan statue has been a tourist destination since it was built. Every Hawks/Bulls/concert I have ever been to at the UC had people taking pictures in front of it. It’s been up for over a decade and yet still no one has built a Hi-Tops in the Woop…
Personally, I think the Woop stinks. Literally. It smells there, like asphalt, failure, fish, and hot garbage. Pretty much a general city stink.
I’ve also been warning people for years about how impossible it is to catch a cab in this neighborhood. Nobody believes me until they are getting chased down an alley by a rapist because they couldn’t get a cab after a show at Bottom Lounge and they decided to walk closer to downtown to find a cab.
Woop woop!!!
Sorry, I’m in a WEIRD mood today.
“I agree, but do you think we’re close to the baseline on *land* values? Because that drove so much of the bubble. Are std chicago vacant lots/teardowns in Logan e of Sacto/s of Fullerton intrinsically worth the ~$130k currently being asked for them? If not, where would you peg that baseline?”
Well, I’m still living in the mindspace of pre-bubble, so I’d say whatever the old appreciation model would have land valued at today? Based on something like 2000 values or so? $130k is too much. I’m thinking in the $90’s, if the block is nice, if it’s on the Boulevard a lot more, due to scarcity.
I actually tried to be a Realtor, right as the bubble was starting. I couldn’t understand how a crappy little bungalow could sell for $250k. It seemed to me to be in excess of it’s intrinsic value at the time, and I simply didn’t have the right mindset for thinking “it’s worth whatever someone will pay for it”. My brain just doesn’t work that way. It’s like when I see a ladies handbag or shoes, that are “worth” $1,000. There’s just no way the cost of the materials and labor come to that price, and no matter what kind of label you slap on it, it doesn’t change what the thing is; a purse or a pair of shoes.
“I’ve also been warning people for years about how impossible it is to catch a cab in this neighborhood. Nobody believes me until they are getting chased down an alley by a rapist because they couldn’t get a cab after a show at Bottom Lounge and they decided to walk closer to downtown to find a cab.”
I keep an eye on the crime blotters for the U I C area, and it’s clear that there is still more crime in this hood than folks want to imagine. When I read about strong-armed robbery on a main street before midnight, that’s not a good sign for a hood’s safety cred.
“I’ve also been warning people for years about how impossible it is to catch a cab in this neighborhood. Nobody believes me until they are getting chased down an alley by a rapist because they couldn’t get a cab after a show at Bottom Lounge and they decided to walk closer to downtown to find a cab.”
Oh come on now!! Chased down an alley by a rapist? LOL OK. You obviously haven’t been in the area for years.
I would think if you were talking about west of Ashland I might agree with you. Around the park (where I lived and still own) it was very safe and quiet.
I would usually walk over to Publican or any of the other restaurants in the area and never once did I feel in danger…at any time of day or night. There is always a constant stream of cruisers due to the Precinct station on Racine and the large academy on Throop and Adams. From Ashland east is not that big an issue.
Stink? Of course from the warehouse district you are bound to get an unpleasant drift occasionally, but not that big a deal. In RN along the River I would hold my breath on occasion….
OK, done with being a WLoop cheerleader. Like any other hood in the city it has it’s supporters and it’s detractors. Nothing new.
To be honest, I felt more…afraid…out and about in some areas of Halstead and further up along Clark. This was during the time when single men were being robbed and beaten often.
As I said before, crime can happen in any hood, esp in Chicago. What was that about the National Guard being called in to help CPD with daily killings?
And no, I am not at all being racist in mentioning that.
“Oh come on now!! Chased down an alley by a rapist? LOL OK. You obviously haven’t been in the area for years.”
Wait … I thought he was referring to himself. No?
(I keed, I keed).
“It’s called getting your hands dirty in a field and enjoying the work you put into it instead of sitting on the sidelines and throwing nothing but negativity into the mix. Try it sometime!”
I fail to see how having direct, hands-on experience rehabbing properties lends more credence to your estimates of future real estate valuations, however.
oh god crime blotters aren’t a very good representation of neighborhood quality at ALL
ChicagoBull and others are mistaken about the West Loop. Crime happens everywhere in the city at 2am. If you’re walking through any neighborhood at 2am DRUNK, or on a cellphone or with headphones on, you’re a target – even on Michigan Ave. I lived in Wrigleyville for 15 yrs before moving to the West Loop and it’s 100% different. No screaming/yelling all night, no urinating on the streets, no puke every 50 yds. I miss the people, but you definitely get what you pay for in the Woop – classier people. Any night of the year Wrigleyville is filled with suburbanites who are screaming, “SHOTTTS! WOOOOHOOOO!!!” all night. There is no place to actually RELAX in Wrigleyville. It has it’s charm, but Wrigleyville caters to the 21-30 crowd while the Woop caters to the 28-45 crowd to be sure.