CHICAGO CITY WHOLESALERS, was founded to invest in residential real estate. We buy houses at a discount, in as is condition, then sell the property at wholesale prices for a small profit. At this time we specialize in residential properties only - these are single family homes and multi-units (under 5 units) that we buy directly from motivatedsellers, from other investors, from banks, property in pre foreclosure, and foreclosures. We operate in Chicago, Illinois and the surrounding areas.

We sell retail properties, fixer uppers, properties in need of rehab, and also luxury properties. We buy properties that are mainly for Investors, Rehabbers, and any one looking for discounted properties.

We are "cash buyers" of property.

We use solid well known techniques to buy and sell property under win/win scenarios for both the buyer and seller. And then sell them at wholesale prices. With the current backlog of houses on the market, and an average of 18 months on the market for a house to sell, we have the solution for many sellers who cannot sell their house in today's market cycle.

We are expanding our business in Chicago and the surrounding areas and are seeking houses to buy under terms that are advantageous both to the seller and CHICAGO CITY WHOLESALERS.

                                 Getting Retirement Income From Rental Properties

Whether you have a 401k or other retirement plan, income from a rental property can make your later years more enjoyable. The real estate market is a “buyers market” today meaning you can get great buys today. Chicago homes for sale will no doubt include the following two best buys today:

1. Chicago Bank REO’s
2. Chicago Preforeclosures (short sales)

The above two buys can be obtained at wholesale prices.

What is a Bank REO?
This is where the owner of a house stops making their mortgage payments to the bank, the bank forecloses on the property, then seeks to sell the property via auction, the property is not sold at the auction, thus the property goes back to the bank at this point it is a Bank REO(Real Estate Owned).

Banks who do like to own properties, so they will sell them at greatly reduced prices. Great way to get a great deal

Preforeclosures (short sales)
This is where the owner of a house stops making their mortgage payments to the bank, the bank then begins foreclosure proceedings on the property. Before the property goes to auction, a prospective buyer can negotiate a short sale (pay significantly less than the current mortgage) with the bank and own a home for significantly less than the mortgage or present market value.

Positive Cash Flow
You heard that saying the “cash is king” well that is what you should be looking for in a rental property, you want positive cash flow which means you want you monthly income to exceed you monthly expenses. I would suggest a minimum of $500 per month on a single family home rental and more on a multi unit.

Appreciation and Depreciation!
I caution all newbie Chicago investors and rehabbers, do not buy a rental property for strictly appreciation and/or depreciation. Make sure it has a positive cash flow first and utmost or you could suffer financial loss owning your rental property.I live in Chicago so I always buy first for positive cash flow and look at the appreciation and depreciation later.

Some things to consider when looking for a rental property:

1. Good location. Rents tend to be stable in good neighborhoods.The location should be not too distant from where you live now.
2. Buy property at a discount,a make sure the rents cover all expenses.
3. Find a property that’s not too old so it will comply with building, zoning, and fire codes. And it will have lower maintenance costs. Have it inspected.
4. Locate a good handyman who can do many of the repairs cheaper than a licensed contractor

                                     Real Estate And Our Econmic Future

You ask – when will this thing turn around? Well lets consider a few things here. First how long did it take us to get into this position? Folks it took at least 8 year to get into this position, and some say even longer. Well it may take us as long to get out of it as it took to get into it.

I do not think that things will stabilize until late 2010 or late 2011. It will take at least 3 years for things to stabilize. If you have investments in real estate in Chicago and the greater Chicago land area you must realize that it will take at least 2 or 3 more years for the real estate market to stabilize.

Let look at it!

Inflation is at a 27 year high, while personal income is down 1.6%. Unemployment is 9.5%, housing prices are decreasing over most of the country, foreclosures are very high and expected to climb even higher – the second wave of ARM’s are expected to hit very soon. Defaults on commercial mortgages are increasing, the stock market is not doing well. Pension Plans are taking a heavy hit, many folks have experienced over 30% plus loss of their pension plan funds and are worried about their future.

Even inflation is creeping up and bothersome – gas prices are going up, food prices are going up. Banks have more properties on their hands then they can handle because of Bank REO’s and foreclosures. Real estate investors are buying Bank REO’s and foreclosures and sell them at wholesale prices for profits. It is however still difficult for the average wage earner to buy a house today because of the credit crunch.

Even though there are great buys in real estate today in Chicago and other cities across this country, the people most able to buy are real estate investors with cash. Chicago homes for sale are not moving like they did 3 or 4 years ago – inventory of homes in Chicago are at 20,399 in July, 2009.

Summary: The market for Chicago real estate will get worse before it will get better. We will, in my opinion, see the housing market slip down even further, this means further decreases in property values, more days on the market, more foreclosures and short sales. Look to 2011 or 2012 for a bottoming out.

Not good news, but real news.