Wading Through (and Living Through) the Chicago Public School Gifted and Magnet Lottery System

As the parent of a 5 year old this past year has been an eye opener on the ins and outs of trying to get your child placed in a good Chicago Public School (CPS) program. There are gifted schools, gifted regional centers, gifted programs in neighborhood schools, gifted classical programs, magnet programs of every shape, size and color, and, finally, your local neighborhood school. We tried the gifted route, and while our child tested well, he was not one of the few selected from the almost 5000 4 and 5 year olds who took the test this year. What can they possibly test at that age anyway?!

As we were getting all the paperwork in order to get our son tested, we were also researching any and all schools with programs we thought would work for our son (and would be somewhat convenient to our home). Should we try Oscar Mayer Montessori Magnet in Lincoln Park or Drummond Montessori in Bucktown? We tried both. Should it be Newberry Math and Science Academy? Does a math and science academy mean my son will concentrate in only math and science to the exclusion of other areas? What if it turns out he does not even like math?? Or how about Andrew Jackson or LaSalle Language Academies? We were more confused than ever! And while we tried to visit each school we thought might work, in the end we just could not make it to all of them, so we took a shotgun approach and applied to any that might possibly work in terms of program and location.

When the lottery determination letters were mailed out I would race home everyday to see what schools would be offering us a position. In the end, our bestposition was #7 on the proximity wait list at Disney II Magnet School, a new fine arts magnet school located in our neighborhood. There were sibling and general lottery wait lists as well. Could it be anymore confusing? Could we be anymore devastated that our wonderful, caring and bright child was school-less? After a few days of angst, we started looking at other options in the private sector.

Just as we started that plan B process Disney II called and Alexander was accepted off the wait list. We could not be more thrilled! The school is a sweet school with bright, happy hallways, classrooms and children. The population is diverse, the parents involved and the teachers and administrators engaged. It was one heck of a ride, but in the end we believe Alexander is in the perfect program...and we can even walk to school! Of course you can alleviate all of this lottery aggravation by going to your local neighborhood school...which begs the question of whether there are any great neighborhood school programs. The answer is a definite yes, so stay tuned to find out more with my next post. Please feel free to contact me if you have any questions about working through the CPS lottery maze (or would like more info about neighborhoods with great neighborhood schools!). visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

WOW, Positive Cash Flow is Back in Chicago!!

Remember when you and your REALTOR scoured the Multiple Listing Service, trying desperately to find a multi-unit investment building that would come half way close to covering expenses? Remember how you would venture to the corners of Chicago hoping beyond hope to find an investment that made some sort of sense? Remember how you likened it to finding a four leaf clover or a needle in a haystack? Remember the utter dejection, disappointment and depression that hit you when you finally accepted the fact that your friend, Mr. Positive Cash Flow, skipped town without even saying good-bye? Well, your buddy is back in town, so get ready to celebrate!

A couple of examples are worth noting. 1312 W. Barry - this is a great turn-key income property producing 3 flat in the heart of Lakeview. All the leases are through summer 2009 and bring in $4900/month in income. The units all have parking, hardwood floors, central A/C and gas forced air, and tenants pay all their own utilities except water. The units are tastefully rehabbed and maintained in great condition. THESE NUMBERS WORK!!! Likewise, 1806 N. Paulina is an investor's dream. It is a fully rented 3 flat with duplexed coach house with $8700/month in income from 4 nicely rehabbed units in the heart of Bucktown. The two 2-bedroom units and two 4-bedroom duplexed units are spacious, have separate utilities and stable, long term tenants. Seller's need to sell is your gain with this armchair investment. Did I mention POSITIVE CASH FLOW??? These numbers work with 20% down investor financing.

For further information on the loans currently available to purchase these properties, contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

American Responsibility

It has become my goal to begin each day with an attitude of gratitude, and as I age it has become even more important to me to do so. I can never predict what the day will bring, but I can decide how I begin it. It seems the times we are currently living through give us more reasons to be reflective and to seek out the positives. And if we can find the time and have the will to do so, the positives are there.

I think back to those who have walked this journey before us: our parents, our grandparents and the footsteps they left for us to follow. And it is in remembering that we find the strength and the guidance to leave footprints for the future generations to follow, just as those who have gone before have done for us. Sometimes I wish I had a crystal ball to see the future and, then in further reflection, I am glad I do not. I believe in the good of my fellow man and of the great country and city I am fortunate to call home.

As we approach this all important election, I encourage each of you to make the effort, to wait in the lines, to do whatever it takes to exercise this great right to vote for the next President of the United States. The things that unite us as Americans are far greater than the things that divide us as individuals. I believe in you, in our country and in our future. The footsteps left for us to follow will see us through, just as the ones we leave will be so important to this chapter in our history.

No one can deny that we are facing challenges. Real Estate has certainly seen its share, but the real estate market will recover. The signs are already there. Let us be reminded that the byproduct of panic is opportunity. Let us emulate the late civic and business leader Arthur Rubloff. Arthur was an optimist. In 1930 he started one of the most successful real estate firms in history. He was not deterred by market conditions. He knew that experience and dedication would win the day.

Each and every one of us can rely upon our experience as Americans, as dedicated members of this society, in approaching our future. We are survivors and we will survive, both individually and collectively. For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

Connie Engel's Listing in Ravenswood as Featured in The Chicago Tribune

Our own resident blogger Connie Engel was recently featured in The Chicago Tribune's "Sell it to me" section with a lovely home in Ravenswood Chicago. See the entire article here: http://www.chicagotribune.com/classified/realestate/chi-sellit-lincolnsquare-1012oct12,0,3836959.story

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Posted By: John D'Ambrogio

Disney II Magnet School: Raising the Bar for Chicago Elementary Students on the Northwest Side of Chicago

Disney II Magnet School, located at 3815 N. Kedvale in Chicago's Old Irving Park neighborhood, began operation in September 2008. Modeled after Disney Magnet School located at 4140 N. Marine Drive along the lake, the opening is a much anticipated and welcomed addition to the Old Irving, West Walker and Independence Park neighborhoods. While the school is a magnet school, it derives 30% of the student body from within the 1.5 mile radius surrounding community. The school will ultimately be a K-8 elementary school, but is only K-2 this, its first year.

It will add one grade level per year until it serves K-8. It is amazing to now see all the listings in the MLS that actually cite the school as a major attractive feature of the neighborhood. In fact, 4 active listings in the neighborhood show Disney II as the school! CPS has a long way to go to meet the needs of all the children in the city, but it is heartening to see that the system is finally taking the ball and advancing proven school programs by replicating them throughout the city. For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

Take a Ride Along the North Branch Trail for a Delightful Excursion!!

Where can you live in this world and go from strictly urban to forest and wildlife in less than 10 minutes? Why, Chicago of course, and what a wonderful Chicago it is! We all know that Mayor Daley is an avid proponent of biking as his Mayor's Message makes clear: "As part of our effort to make Chicago the most environmentally friendly big city in the nation, one of our main goals is to promote environmentally friendly lifestyles. Bicycling is a great way to get around Chicago. It's fun, fast, healthy and good for our environment. We want to make Chicago the most bicycle-friendly city in the United States. We have an ambitious, multi-million dollar program to establish 25 miles of new bike lanes and 200 miles of signed routes and to install 2500 bike racks. Major improvements to the Lakefront Trail are underway, with new bike paths to be built at other locations." (http://egov.cityofchicago.org)

Combine the City's (and Mayor's) affinity for biking, and the fantastic green space the Cook County Forest Preserve provides (http://www.fpdcc.com) and you have one heck of a play ground for biking enjoyment.

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One of my favorite places to bike is North Branch Trail. The trail is all paved so it is perfect for road bikes like mine. The trail starts at Caldwell and Devon Avenues in Chicago, and continues north approximately twenty (20) miles to Lake County, Illinois. It winds along the North Branch of the Chicago River and the Skokie Lagoons, providing access to various picnic groves, golf courses and also the Chicago Botanic Garden. The trail is full of wildlife and flora, from deer (it is unusual for me NOT to see deer on a ride) to butterflies to bunnies, and from wetlands to prairies to lush forest. It is a perfect place to get away from the City and enjoy a little exercise in an absolutely beautiful setting!

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For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

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Posted by: Connie Engel

FHA Might Be the Way to Go in Today's Tough Lending Environment

FHA lending is once again in vogue. Revised regulations, coupled with the virtual collapse of the sub prime mortgage lending market, have made Federal Housing Administration (FHA) insured loans a viable and popular lending choice for many borrowers. After years of shrinking market share caused by the abundance of Alt-A paper, the FHA is seeing more lenders seeking to be able to offer their borrowers FHA-backed loans.

FHA programs are government-backed loans that give lenders the option to offer an alternative to borrowers who would not otherwise qualify for a prime loan. Prime loans require borrowers to have a 620 or higher credit score, 45% or less debt-to-income ratio, 90% or less loan-to-value. FHA lending provides lenders with the ability to offer a government-backed loan with features that benefit a wider population of borrowers than conventional prime lending entails. Note that unlike other government agency lending such as Freddie Mac or Fannie Mae, FHA does not lend money or purchase loans. The FHA provides the insurance to help lenders mitigate credit risk.

There are many advantages and a few disadvantages with FHA loans. Here is just a sampling of the pros and cons: Advantages:\n\n

FHA loan down payment requirements are small - 3% of purchase price, though this is going up to 3.5% October 1, 2008

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Ability to use a gift as your total down payment

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FHA loan criteria allows borrowers with less than perfect credit

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FHA home mortgage loans allow you to include closing costs in your mortgage amount and, until October 1st, sellers can pick up the closing costs

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Interest rates for a FHA loans versus a conventional mortgage will be very close, if not identical

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FHA loan programs allow home improvement funds to be included in the purchase money mortgage amount

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FHA loan mortgage insurance (1.5% of loan amount) is due at closing but may be included in loan amount

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FHA loan insurance (0.5%) is payable annually - 1/12 of premium included in your monthly payment

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FHA loan appraisals are more extensive than conventional ones - may cost a bit more. These are some major pros and cons. As you can see, the advantages can mean a great deal to you while the few disadvantages result in just a few higher costs to achieve your goal of home ownership. You may not qualify for conventional financing but you might fit perfectly into the FHA loan process.

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For more information contact me by For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

Real Estate Investors Beware!

While the number of investors in the marketplace is vastly reduced from years past, there are still many willing to take a bite at the apple. Right now, with the exchange rate being what it is, Europeans are finding the real estate market in Chicago a potential good bet. In fact, investors from across the pond are being agressively marketed to by many high profile developments, including the proposed Spire, which will be the tallest and potentially the most expensive condo building to be built in Chicago.

While the Spire and other developers are catering to overseas investors, the day of purchasing and then immediately flipping appear to be over. There seems to be a tacit understanding that any investor will need to hold onto his property in order to build equity, it will not happen over night. According to a recent Crains article (June 28, 2008) the developer of the Spire is proposing quite a deal to investors by presenting a guaranteed 7.5% return via renters for two years. This investor deal is rare for such a high-profile project because buyers typically don't stand for paying luxury prices to live in a complex filled with short-term residents. The investor package is of sufficient level to cover mortgage payments, annual real estate taxes and apartment service charges, ensuring the investor does not incur any costs in the first two years, according to a recent press release.

Today more than ever a real estate investor must do his homework, something many did not do in the past several years. Many real estate investors forgot that old adage from childhood: if it sounds too good to be true it probably is. This is particularly true for investors in many condo conversions marketed in downtown Chicago. According to a recent Crain's article (June 16, 2008), eight downtown buildings converted by a single company since 2001 account for over 55% of the foreclosure cases in all of the downtown condo projects on buildings with 175 units or more developed at the same time. That equates to an 8% foreclosure rate for this company's eight buildings. One of the reasons there are so many foreclosures is that this company heavily marketed to investors, often the novice real estate investor. The hook was to guarantee for the first couple of years a tenant for the unit at a rental price that would cover, or come close to covering, the monthly expenses. In the high-flying times of rapid price appreciation many investors believed they could purchase a unit, rent it out for a couple of years, then flip it at the end of the guaranteed return period for a profit. Unfortunately, the prices paid for the units were vastly inflated. These investors are now in the unenviable position of owing far more than the units are worth, and many are walking away from their investments and mortgage obligations.

Jim Kinney, Managing Broker and President of Rubloff Residential Properties, said that investors are more likely (than owner occupants) to say, Hey, this was a bad business decision. I'm going to mail the keys back. As one investor stated, it was way too good to be true. I should have detected this miles away. For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

You Can Still Get Gazumped in This Housing Market!

According to Wikipedia the verb " gazump" means to refuse to formalize a property sale agreement at the last minute in order to accept a higher offer. The word is thought by some people to have come from the Yiddish word gazumph meaning to swindle or overcharge. When property prices are in decline, the practice of gazumping becomes rare. But guess what, it is still alive and well in Chicago, and happened to my buyers. As luck would have it, the second offer the sellers accepted fell apart, and my buyers were able to buy the property after all.....at a price LESS than originally agreed! They were able to negotiate a lower price because the sellers had already entered into a contract for purchase and were, therefore, under time and monetary pressures to sell. While not a technical "gazunder" (the term gazunder refers to the practice whereby the buyer waits until everybody is poised to exchange contracts before lowering the offer on the property, threatening the collapse of a whole chain of house sales waiting for the deal to go through, the effect was, in the end, the same.....and was poetic justice! For more information contact me by visiting my website or call 312-264-5864 or e-mail cengel@rubloff.com.

95% Financing for Condominiums is Back in Chicago!!

According to Lane Sears of RWF, a joint venture between Rubloff and Wells Fargo, https://www.homeloans.com/loans/lane-sears1/index.page there is great news out there for first time homebuyers and buyers with low down payments. Wells Fargo Home Mortgage is now offering 95% financing for condominium purchases in Cook County and some of the surrounding counties again. This means that FHA is no longer the only low down payment financing vehicle for city condominiums, which is great news for units in buildings that don't have an FHA approval or can't be spot approved because of the Right of First Refusal or any of the other myriad of FHA/condo spot approval issues.

Here are the stipulations for obtaining 95% financing:

- minimum credit score of 700
- maximum debt-to-income ratio of 41%
- maximum loan amount $417,000, the conforming loan limit
- purchase transactions only; not available for refinances
- available in the following counties: Cook - DeKalb - DuPage - Grundy - Kane - Kendall - McHenry - Will

It is good to see the mortgage guidelines pendulum end up in the middle after swinging from too lenient to too stringent