Note brokering brings in income:
Today we talked about an example of how brokering of notes is a great way for more income. This is one of the ways that doesn’t require money or good credit to benefit from. As an investor we can look at the public county records of homes and see who is the lien holder that holds the 1st mortgage. In most cases it will be a bank name. Sometimes one can see an individual’s name. A call or letter can be made to them to see if they would like a lump sum rather than monthly payments that they are receiving from the home owner now. If they have interest, we can list the home, the amount of the mortgage, the interest rate, minus the exact address on a note selling website. In turn, a buyer can have interest in taking over the mortgage as the new lien holder. If the mortgage is 170K, at 7%; the buyer might offer 160K to buy it out. We in turn can call the lien holder & tell them we have a buyer that will pay them $155K. This way the buyer pays 160K, the title company could charge $500 to change the lien holder, we earn $4500 for a brokers fee, and the buyer has $155K as one lump sum.
This is a great way to make money from real estate that doesn’t require dealing with rehabbing, maintenance, or collecting of rent.
We also discussed an article in Bloomberg Businessweek that talks about the rehabilitation of an area in Chicago which is now the go to spot for new commercial real estate. This article can bring us insight to be aware of areas of cities that can be refurbished and can allow us as investors to pick up properties at a low price. We need to make sure that the neighborhood is fairly safe before we purchase property though in that new area.
Chicago’s River North Tech Hub Draws Companies to Former Skid Row
Startups and expanding tech companies are cramming into River North, drawn by its historic buildings and easy access to mass transit, giving the neighborhood the lowest office vacancy in downtown Chicago. Office rents in the district have jumped 26 percent in the past two years, the third-largest increase for a U.S. neighborhood where high-tech companies cluster, behind Redwood City on the San Francisco Peninsula and Manhattan’s Midtown South, according to brokerage CBRE Group.
River North was a manufacturing center for the first half of the 20th century but declined in the 1960s as warehouse businesses moved elsewhere. Like other neighborhoods that became high-tech magnets, River North was considered fringe and had lower rents than surrounding areas, according to Colin Yasukochi, director of research and analysis for CBRE in San Francisco. It has the kind of industrial-era buildings with brick-and-timber construction that appeal to technology tenants.
Developer Albert Friedman started buying buildings in the district in the 1970s, renting first to artists and photographers, when the neighborhood was “pretty dangerous”—a skid row with drug dealing and prostitution, he says.
Friedman Properties owns and manages more than 4 million square feet of commercial real estate in Chicago, much of it in River North, where the company redeveloped the Reid Murdoch Center, a red-brick landmark that houses the headquarters of Encyclopedia Britannica.
The neighborhood’s mix of refurbished industrial buildings and new construction includes apartments and condos, cafes, nightclubs, and hotels such as the Hyatt Place Chicago/River North. “There used to be a time when you didn’t want to walk through River North after dark,” says Sharon Romack, chief executive officer of the River North Business Association. “Now River North is the place to be after dark.”
Yelp rented space in the Mart, a 3.6 million-square-foot art deco property once known as the Merchandise Mart. Vornado Realty Trust, which owns the building, recently changed the name to attract more high-tech companies.
Some businesses are already finding the area too expensive. SIM Partners, which helps companies get more exposure online, began seeking space about 18 months ago, according to Jay Hawkinson, senior vice president of emerging products. “When we started, River North was the place to be for tech,” he says. Unable to find affordable space, SIM Partners ended up moving its headquarters from Evanston, Ill., into 14,500 square feet at 30 N. LaSalle St. in the Loop. Hawkinson says the rent, in the low $30s per square foot, is a few dollars less than what the same space would have cost in River North.
No comments yet.