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Contractors Profit from Foreclosed Homes for Sale in Chicago

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By : John Cutts    99 or more times read
Some residential contractors have been profiting from foreclosed homes for sale in Chicago. Because the demand for newly-built homes has declined, some home building contractors has turned to properties purchased from foreclosed home listings to earn money, and because they have strong experiences in home building, they are able to make more money from lower-priced properties that they can fix, restore and sell for higher prices.

These contractors also do not like to be called house flippers or rehabbers. They insist they are a different kind of breed of real estate investors. Since their background is in home building and they are adding stronger and better features to properties, they believe they are adding more value to the residential market.

Some of these contractors also do not resell properties that they have rehabilitated. They prefer renting out. What they do is to choose foreclosure properties in the more stable neighborhoods in Chicago, renovate them at an average cost of $51,000 and then rent them out to carefully chosen tenants at $1,500 a month or less.

Despite the decline in number of foreclosed homes for sale in Chicago in March, foreclosure properties still abound for investors in the metro area. As foreclosures slowed down in the central areas, some contractors-turned-investors shifted to the suburban areas where they believe prices would recover more quickly.

They said they have long waiting lists of tenants, about 50 percent of whom receive rental assistance from the government. These contractors have really been protecting their investments as they provide trainings to prospective tenants, including instructing them on simple routine tasks such as lawn mowing and proper use of garbage disposal systems.

The pace of entry of residential units into foreclosure auctions in Illinois has been slowing down over the first months of the year, as shown in the decline of the ranking of Illinois in the state foreclosure charts.

For the first two months of the year, Illinois was eighth in the charts. In March, Illinois moved down to tenth, and in the first quarter rankings, Illinois was ninth in the rankings. First quarter foreclosure postings statewide declined by almost 5 percent to 45,780 filings.

In March, both the numbers of foreclosed homes for sale in Chicago and in the entire of state of Illinois declined, with total foreclosure postings statewide dropping by almost 18 percent to 14,199. The number, however, is still great for investors focusing on foreclosures in Illinois.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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