Project Description:

The objective is to identify a sound income producing real estate opportunity within the city limits of Champaign-Urbana. The project will be completed as a team. Each team will present its findings in class near the end of the semester. No formal written report will be required other than the presentation materials. As a class, we will vote for the best overall product after all presentations are completed. The winning team will automatically receive a 100% for the project. 

The property must cost no more than $250,000. It must have the potential to be income producing, and it must be available on the market after September 16th, 2005. 

These parameters are intentionally broad and should allow your team to focus on nearly any type of real estate income producing property opportunity you would like. However, to narrow the project focus and to provide as many resources as possible, you are encouraged to limit your search to single family homes, condos, duplexes, or multifamily homes. 

There are four components to this project. 

1. Identify your investment strategy. What type of property are you looking for? Do you want something hassle free? Are you willing to invest some time and resources to fix-up a run down unit? Do you want a duplex, multifamily, or single family home? Are you most interested in operating cash flow, or long-term appreciation? How will you manage the property? What happens when something breaks? How will you find renters? What is your strategy for the down-payment?
2. Conduct market research to obtain information on rental rates for specific types of rentals, by location. This is the only way you will be able to make reasonable income assumptions for the properties you would like to consider. The local newspaper and websites of companies which have rentals are a good place to collect this type of information. We will do this portion of the research early in the semester. We will create a form in class to collect and analyze this data so that all groups are consistent. Each group will then be assigned a specific geographic area within Champaign-Urbana to collect data. 
3. Locate good potential properties. The MLS listings below, and the local newspaper are going to be the most useful re sources. It is also frequently the case that the best deals are listed "For Sale By Owner". Some of these will be in the newspaper, sometimes on web-sites, but sometimes they can only be found by driving around town. 
4. Run financials incorporating your purchase price, rental rate research results, expense estimates and financing options. Select your preferred property. The best property may not be the one with the highest IRR, but rather the property that best fits in with your investment strategy--easy to rent, fixer-upper, high appreciation potential, etc.

Presentations will be conducted during class during class periods 25, 26, 27 and 28. Each team will have up to 15 minutes to present their investment alternative. You should use Powerpoint slides to organize your presentation, though the presentation itself may be given electronically or via overhead transparencies. Remember, the team that does the best overall job (finds the best opportunity, does the best job analyzing it, and convinces the rest of the class of this during their presentation), will receive the most student votes--and hence 100% guaranteed!. 

Note, the assumptions you should use for some of your expenses are given below in the "Project Assumptions" page. Be sure you use them.

    Project Assumptions

Realtor Listings:

   http://www.realtor.com

For Sale By Owner Sample Site:

    http://www.forsalebyowner.com

Assessed Valuation Data:

    http://www.co.champaign.il.us/rewebapph/ccreinqcc.htm

Zoning information:

    http://www.ci.champaign.il.us/business/index.php?where=bd.html

Local Rental Information:

    http://www.cu-living.com

    http://www.champaign.com/realestate.html

    http://www.barr-re.com/houses.html

    http://www.ramshaw.com/index.php

    http://www.wardproperties.com

    http://www.roysebrinkmeyer.com

    http://www.ciapartments.com

    http://www.faronproperties.com

    http://www.armoryhouse.com

    http://www.gabesplace.com

    http://www.rentnet.com

NewsGazette:

    http://www.newsgazette.com

Other sites of potential interest:

    http://www.ccapartment .com

    http://www.chicago.craigslist.com

    http://www.saferent.com

    http://www.hud.gov

    http://www.fanniemae.com/index.jhtml

    http://www.foreclosures.com

    http://foreclosurefreesearch.com

    http://www.buyerstrust.com/foreclosures.htm

    http://www.highnoi.com

    http://www.mhhe.com/business/finance/RealEstOnline

    http://hughesre.com

    http://realestateforprofit.com

This project can be a lot of fun, so enjoy it. If the group that recommends the best property does not want to buy it, I WILL (if it is any good of course!).  :o)