Ted Ihde's Blog: Ted Ihde author of “Thinking About Becoming A Real Estate Developer?” - Posts Tagged "chicago"
Chicago
55,000 – Fifty-five thousand would be the number of non-performing residential structures in the city of Chicago five years ago…in 2019.
32,000 – Thirty-two thousand would be the number of vacant lots in the city of Chicago five years ago…in 2019.
In order to increase Chicago’s property tax base, vacant, abandoned and distressed residential structures will need to be renovated, in scale. Thus, transitioning now non-performing “black holes” on Chicago’s balance sheet to investors. And to owner-occupying homebuyers. Intended outcome? The undergoing of substantial numbers of inner city renovation projects of non-performing residential structures. The transformation of what can now be categorized as city liabilities, into city assets.
How about vacant Chicago lots?
Non-performing lots in Chicago need to be conveyed – in scale – to new property owners. Property owners who pursue the building of new homes on the vacant lots.
As new homes are built on what are now vacant city lots, a new revenue source for the city – coming by way of property taxes paid to the city…property tax amounts which are based upon assessment values for properties which have newly-constructed homes on them – is established.
While Chicago is saddled with substantive numbers of non-performing residential structures, the establishment of processes which reduce the number of vacant lots has been a priority for the city.
For example…
Between the years 2015 and 2019, Chicago proceeded to sell in excess of 1,000 (out of approximately 11,500) vacant lots. Five years. Over 1,000 lots sold. On average, over 200 vacant lots sold per year. For five years. Pretty good!
The Chicago Large Lots Program…
Through a program Chicago established to address challenges linked to the high number of vacant city-owned lots – this program being, the Large Lots Program – neighborhood property owners were able to purchase up to two vacant lots from the city. One condition of the lot acquisitions being, the lots purchased needed to be properties on streets on which buyers already owned real estate.
The sale prices of those lots sold through the Large Lots Program? $1 each.
32,000 – Thirty-two thousand would be the number of vacant lots in the city of Chicago five years ago…in 2019.
In order to increase Chicago’s property tax base, vacant, abandoned and distressed residential structures will need to be renovated, in scale. Thus, transitioning now non-performing “black holes” on Chicago’s balance sheet to investors. And to owner-occupying homebuyers. Intended outcome? The undergoing of substantial numbers of inner city renovation projects of non-performing residential structures. The transformation of what can now be categorized as city liabilities, into city assets.
How about vacant Chicago lots?
Non-performing lots in Chicago need to be conveyed – in scale – to new property owners. Property owners who pursue the building of new homes on the vacant lots.
As new homes are built on what are now vacant city lots, a new revenue source for the city – coming by way of property taxes paid to the city…property tax amounts which are based upon assessment values for properties which have newly-constructed homes on them – is established.
While Chicago is saddled with substantive numbers of non-performing residential structures, the establishment of processes which reduce the number of vacant lots has been a priority for the city.
For example…
Between the years 2015 and 2019, Chicago proceeded to sell in excess of 1,000 (out of approximately 11,500) vacant lots. Five years. Over 1,000 lots sold. On average, over 200 vacant lots sold per year. For five years. Pretty good!
The Chicago Large Lots Program…
Through a program Chicago established to address challenges linked to the high number of vacant city-owned lots – this program being, the Large Lots Program – neighborhood property owners were able to purchase up to two vacant lots from the city. One condition of the lot acquisitions being, the lots purchased needed to be properties on streets on which buyers already owned real estate.
The sale prices of those lots sold through the Large Lots Program? $1 each.
Ted Ihde author of “Thinking About Becoming A Real Estate Developer?”
Today, a real estate developer and a licensed real estate broker, Ted graduated Summa Cum Laude from Bloomfield College.
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