Chicago Relocation

Relocating Transferees – Your Relief is here…

January 27, 2010

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As seen on     Baird & Warner  is proud to welcome Jon Kiser to its professional family in the newly created role of Client Services Manager. Jon will be working closely with John D’Ambrogio, B&W’s VP of Strategic Development.  

What does this mean for our Baird & Warner agents? Jon will be focused on protocol and training, making sure that you have the proper tools and back end support you need to best service your company generated clients. With extensive background at third party relocation companies, Jon is acutely aware of the approach needed to convert those buyers and obtain (and keep) those listings! Jon’s addition will also give John D’Ambrogio the opportunity to further his focus on building new business streams which will mean more revenue for you!
“I can personally speak to Jon’s capabilities, his tenacity and his dedication to excellence,” said John D’Ambrogio, who previously worked with Jon at Rubloff Residential. “It’s a pleasure to be working together again.”  
As the only brokerage in Chicago to receive the Leading Real Estate Companies of the World’s prestigious Relo Quality Certification, B&W is dedicated to unparalleled service and attention to detail.  






Breaking News – Cartus Buys Primacy Relocation

January 21, 2010

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What does this mean for the relocaton world, and individual transferees, as the relocation world gets smaller and smaller….


And I quote: 

Acquisition Positions Realogy for Strategic Growth Across its International and Domestic Businesses

PARSIPPANY, N.J. 01-21-2010

Realogy Corporation, a leading global provider of real estate and relocation services, today announced that its relocation services subsidiary, Cartus Corporation, has acquired Primacy Relocation, a prominent relocation and global assignment management services company based in Memphis, Tenn. Financial terms of the transaction were not disclosed.


Your thoughts are welcomed!!!!



Cash flow v. tax breaks – Part 1

January 10, 2010

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As mentioned in an earlier post – There are four factors to growing rich with investment property – positive cash flow; tax breaks; capital repayment; and — appreciation.  Each of these can vary significantly year to year and each has a unique effect on the ultimate return on investment property.

Let’s say you buy a lovely goldcoast brownstone apartment on tree-lined Astor St.  You come up with a down-payment (these days upward of 30%+ if you’ll be using it exclusively as a rental).  You then get a mortgage (with a little luck), find a renter and start to collect your rent.

So your mortgage payment of PITI (principal, interest, taxes and insurance) is $3000/month.  And let’s say you rent the place for $5000/month.  With your $2000/month “profit” you earn $22,000/year on your rental property.  Kind of.  That’s assuming you do all the management, advertising, toilet plunging, etc. by yourself and have no outside costs – but that’s another post altogether. But if you have a lucky year (and your tenant always pays you) you make a tidy profit.  In the course of ten years you’ve earned $220,000 and are well on your way to success.  But what about taxes?

Fortunately you have depreciation and other tax benefits that also help you grow  when investing in luxury real estate.  For example you can take advantage of depreciation Our generous government let’s you take a sliding rate of depreciation on the value of the property.  The IRS publishes guidelines each year – You can take a look at publication 946 – “How to Depreciate” .  In some of the early years that you own a property you can deduct up to 3.64% of its value  – which can be used against revenue you earned on property.

For example, if the fair market value is $500,000 for your rental property, you can depreciate it in certain years for 3.64%, or $18,200 (personal property depreciates a bit differently).  That means $18,200 out of the $22,000 you earned in rent is exempt from taxes – leaving you liable for taxes only on the $3800 difference.  You still earned $22,000 but can offset a significant portion of it!  That’s how some properties ”negative cash flow” while still putting money in the owner’s pocket year after year.  I simplify, of course.  That’s why the accountants are the ones who make the REAL money!


Attention Chicago Transferees – Relocation Season starts today!

January 3, 2010

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My longtime colleague Jim Kinney was interviewed today for Mary Umberger’s real estate colum in the Chicago Tribune.

In it she describes (as your humble author has done many times before) that traditionally the “spring season” starts the weekend after the super bowl (some big football game, I’m told).  However, given the unique market situation in Chicago and other parts of the country, she feels that we’ll be starting a bit early this year – She quotes Kinney ( vice president of luxury home sales for Baird & Warner  ) as saying “We’re going to see a lot of property coming on the market; we’re going to see everything that people took off the market in the fall, knowing they were going to be back in the spring in order to qualify under multiple-listing service rules as “new” listings” (a little trick realtors play on a regular basis).

Kinney still warns us about, as Mary Umberger puts it – the “danger in relying too much on what the guy down the street is asking.”

Kinney adds – “An awful lot of listings are wrongly priced. If people use those as a guidepost, they could get into trouble. Do a combination of historical data (houses sold no longer than six months ago) and looking at who you’re competing against, once you’ve determined whether they’re valid prices.”

I’ve known Jim for a decade and he’s been pricing properties correctly for more than twice as long.  Have a listen to what he has to say…