Illinois Condo Notes?

[Jake C.]

Hi all!

I understand that most note buyers are not very keen on investing in Illinois notes, let alone notes for condos in Illinois... Is this true?

And if it is true, what would be the best way to find Illinois condo notes? Seems like most brokers dont even deal with them....

Any insight would be greatly appreciated!

Thank you!

Jake

[Bob Floss II]

@Jake C. Several potential obstacles scare investors away from Illinois condo notes.

First, the general Illinois issues that push away most Note investors, namely our long foreclosure process. Second, the issues related to the HOA possibly restricting transfers through right of first refusal or restrictions on rentals. Third, if the association is not 'healthy' or too many units are rented, it can be extremely hard to impossible for a buyer to get a mortgage. If you are limited to a cash buyer pool, the units sell for a large discount on the open market.