Welcome to the CCIA!
CCIA is an organization of and for real estate investors. Since 1983, we have been providing the best education, motivation, and networking opportunities, as well as many other resources that investors find very helpful in getting their questions answered and their problems solved. Please visit the CCIA Info page for more information.

New Note from Jane (08/09/08)

Read about Jane's Lessons from the 1980's Cycle!

Read Past Notes!

September 6, 2008

Kris Kirschner "Opportunity Day"
in Schaumberg - Click for Article
Click Here for Web Registration


Next CCIA Meeting
Sunday, September 21, 2008

John Hyre

'Legally and Ethically Hammer the IRS'

Note: 3th Sunday and back at Signature Events - 7 Bridges

Map
6:00-9:00pm

Free for Members
$15 for Guests

See all our new Workshops below

Please note our NEW E-Mail Address:

CCIA@CCIA-Info.Com


Landlords / Investors - we have consolidated Critical Resource items on our Resources Page - Landlord Resources. You can click on the Resources Menu button above or just click here!

The IRPOA invites CCIA Members to check the latest Lobbyist Briefings.

Click Here
(Use ID: irpoa
Password: lobby)

2007 Wrap-Up
2008 Wrap-up

Cook County Anti-Predatory Lending Program Effective 7/1/2008 - Read

 

CCIA Members Speak - Click to see what they are saying!

New Revised CCIA Survey -(7/21/08) Please help us serve you better! Survey Form

Sept 21, 2008 CCIA Monthly Meeting
Note: Signature Events 7 Bridges Location - Map

John Hyre
Topic - Legally and Ethically Hammer the IRS
Article -Legally Hammer the IRS
Article - "Are You Dealing?"
Article - "Choice of Entity 101"

Oct 19, 2008 CCIA Monthly Meeting
Note: Signature Events 7 Bridges Location - Map
Marko Rubel
How to Automate Your RE Investing and Make $20-50,000 Per Month, Part Time!
Nov 16, 2008 CCIA Monthly Meeting
Note: Signature Events 7 Bridges Location - Map
Jon Goldman
The Lumpy Mail Guy - Marketing

Sept 6, 2008 CCIA Workshop
Location: Schaumberg, IL

Kris Kirschner
Auto Pilot FREE Pre-Foreclosure Wealth Building Seminar - Details Coming
"Opportunity Day Article"
Online Registration

Sept 13, 2008 IRPOA Workshop
Location: Collinsville, IL
Lou Brown — Street Smart Wealth Strategy 1-day Seminar
Click for More Information


Message from Jane Garvey 8/09/08      (Archives - Past Notes)


Lessons from the 1980’s Cycle

Dear CCIA Members and friends,

“Nothing is selling!” Have you heard this statement lately? Well, frankly, it isn’t true. Sales activity is slower than it was a few years ago, but properties are still selling. In any market, there are people whose life circumstances dictate a move. And, there are at least a few people who recognize that it is a good time to buy now that prices have come down and interest rates are still low. Between these two groups, there is a market for property. In addition to buyers, there are renters. The rental market is healthier than it has been in quite a while.

Ideal buying conditions, and ideal renting conditions, yet I still hear investors singing the blues. They have a variety of reasons for their distress. But, what they need to do is wake up, and smell the roses. There are opportunities in every market, and this one offers lots of opportunities for investors.

I want to tell you a little story from my past, in the hopes that you can learn some lessons from the past, and apply them to the present.

Back in fall of 1979 my husband and I bought a lakefront condo for $56,810. It was our first purchase. We were just getting out of graduate school and taking teaching jobs at Loyola. Moving from student housing, and student stipends, we had very little money, and needed a place to live. We found this condo, and structured a deal with a $10 down payment. The purchase price was no deal, but the financing was something we could afford.

We rehabbed the condo and lived in it for a few years, and then kept it as a rental when we moved out in 1983. It had appreciated a little, but interest rates in the early 1980’s were 12% - $17% and up, so the market was slow. By about 1987, the condo’s value had climbed to $75,000. I was still renting it out when the tax reform act precipitated the savings and loan crisis. In the midst of that disaster, a number of condos in the same building went on the market for $22,000. They were bank owned foreclosures. I grumbled about it at the time for two reasons. Now I had new competitors in my rental market that had lower costs than I did. And, the value of my property had just suffered a dramatic loss. But, despite the fact that I owed more than the property was worth, the tenant kept paying rent, and I kept making payments. Property values quickly jumped back to pre-S&L Crisis levels. It is now 2008, and a tenant is still paying rent to me on this same condo. I have only a vague idea of value, but it is something like $145,000.

What did I learn from this? First, I made a major mistake. I should have bought the other condos. Second, time heals most wounds in real estate. Third, changes in market value don’t really matter much when you are holding something as a rental. Fourth, distressed property sales only have a temporary effect on values. Most homeowners won’t sell for less than they owe, unless life circumstances force a move.
Happy bargain hunting! – Jane Garvey


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