All Forum Posts by: Chris Titcomb

@Phil Gaulrapp, your tax rate is not based on property type, rather, it's based on the location of your property within its' taxing district (For cook county, see: http://cookcountyclerk.com/tsd/DocumentLibrary/2015%20Tax%20Rate%20Report.pdf).  The assessment ratio will differ depending on your property classification and the equalization factor is the same throughout Illinois.

@Ryan Boren, I agree with @Crystal Smith.  A thorough tax analysis is very important.  And when analyzing properties it's important to not only look at the tax bill, but also the property's assessed value with the County Assessor's office (as well as the Township Assessor's office if you're in a collar county, since they post the current year's assessment on their website).  In the eye's of the Assessor, a recent arms length transaction for a residential deal is the best evidence of value.  For this reason, if you're buying a property for much less than the assessed/market value of the home, you may have a good tax appeal to file, thereby reducing your property tax liability.  This strategy will vary depending on each deal, so you should speak to a property tax appeal attorney or an experienced RE broker for advice.  But, as an example, if you're analyzing a Cook County property that's been assessed at $50k (which would be a $500k market value given Cook County's 10% assessment ratio), but you're purchasing for $250k, it's likely you'll be able to file an appeal and reduce the assessed/market value down to the purchase price, which would in turn reduce your tax bill.  Keep in mind, however, that Illinois taxes are paid in arrears, so you wouldn't really see this reduction for about a year.  In Cook County, you'd see the reduction applied the following year on the 2nd installment tax bill (which would be for the year you appealed).  And if you're flipping, in this situation you should definitely adjust the tax prorations in the contract to benefit you based on the results of the appeal.  I see tax re-proration agreements utilized or even other methods, such as basing your tax credit off the new assessed value, multiplied by the current tax rate and equalization factor.

Welcome to BP David Simon! This site is full of great info and awesome networking opportunities! I'm a real estate attorney here in Chicago. If you ever have any questions or want to meet up for a cup of coffee, just let me know. And good luck with your future deals!

@Jerome Lanier, as long as the contract is a standard Chicago contract, you'll be fine.  The seller will order a payoff from his/her lender prior to closing and that lien will be cleared from title and wont appear on your owners policy.

@Jerome Lanier, you'll be in good hands with any of the major title underwriters here in Chicago (e.g., Fidelity, Chicago Title, Stewart, First American).  However, keep in mind that, depending on the contract you're submitting, there's probably a title provision that calls for the seller to convey clean title (i.e., marketable title not subject to unpermitted exceptions) at closing.  This means that the seller (I'm assuming you're the buyer since you're submitting the offer) is obligated to clear up the title issues.  Also keep in mind that you can look up the property on the cook county recorder of deeds, which will show any instrument recorded against the property.  If you have any other questions, just let me know.  

Hi @Jeff S. - I ran into this same problem with an investment condo I was holding about two years ago and needed to get a portfolio loan.  I went with Republic Bank, who was able to offer some pretty good terms.  I can PM you contact info, if you'd like

I'll PM you a great lender.

Hey @Account Closed!  I recently flipped a condo in Logan Square and love the area as well!  Very hip with awesome new restaurants opening all the time.  My office is just over in Bucktown, if you're ever free to grab a cup of coffee and chat real estate!

@Maria Bocanegra, as a fellow legal professional in Chicago, welcome to the site!

Elbert Dockery just sent. What you want to do in the app is go to the inbox and then there's a button on the top right, where you can send PMs