German Llanos is the Broker/Owner of 24 Hour Real Estate LLC with offices in Chicago, IL and Miami, FL. He helped over the last 11 years to over 400 clients to buy, sell and lease Real Estate.

TAG: price

Fannie Mae announces program to boost Miami condo sales (sigue traduccion al espanol)

I have 8 clients with over 700 credit scores, more than $15K in down payment and most of them make more than $50K a year. All of them want to buy in Miami “those great condo deals”. All of them are no cash investors and want to play vultures here in the “Ground Zero” of Real Estate. The problem was: No financing… in the buildings with those deals. In the expensive ones, where the price doubles there is financing. If you wanted to buy 20, 30 cents out of a dollar…. it needed to be cash.

Well, good news! Fannie Mae announced a new program to provide financing. Now, is Fannie Mae a bank? Is she a rich aunt from Europe?

Nop. Fannie Mae is a government-sponsored institution who re-purchase the loans that banks make. Bank of America or Chase “originate” residential home mortgages but they do not keep those in their portfolio, they originate and immediately turn around and sell the loan to Fannie Mae (or Freddie Mac) for cash. Banks do not like to keep loans (portfolio) because it drains their liquidity for 30 years. They rather turn around, sell the loans for a discount, make a profit and keep moving forward.

The problem was that if Fannie Mae did not repurchase loans in specific building due to their bad finances and number of foreclosures…. banks did not want to lend on those buildings. Then without being able to resell many sellers went to foreclosure or sold at ridiculous prices.

Now this might change. Email me to send you a list of buildings with the “Special Approval” designation of Fannie Mae. As you can see there are dates for some of those because this status might change… so do not procastinate again!!! This is a window of opportunity so take it.

Give me a call for questions, we can go into more detail over the phone.


847-962-0923 /



Tengo 8 clientes con mas de 700 en su score crediticio, mas de $15,000 para downpayment y casi todos hacen mas de $50K al ano. Todos quieren comprar esos “increibles deals” de Miami. Todos ellos no tienen cash pero quieren ser esos buitres que se levantan los mejores deals. El problema es que No Hay Financiamiento…. en los edificios donde esta lo bueno. Los edificios caros, donde los precios estan mas del doble alli si hay. Pero si usted quiere comprar a 20, 30 centavos por dolar, tenia que ser cash.

Bueno, buenas noticias! Fannie Mae anuncio un nuevo programa para proveer financiamiento. Pero, es Fannie Mae un banco? una tia rica de Europa? Quien es Fannie Mae?

No. Fannie Mae es un institucion sponsoreada por el gobierno americano que se encarga de re-comprar los prestamos que los bancos hacen. Banco de America y Chase “originan” prestamos hipotecarios residenciales pero no se los quedan en sus portafolios, ellos originan e inmediatamente se dan la vuelta y los vende a Fannie Mae (o Freddie Mac) por efectivo. Los bancos no mantienen estos prestamos en su portafolio porque les quita la liquidez por 30 anos. Ellos mejor se dan la vuelta, los venden a descuento, hacen una utilidad rapida y siguen para adelante.

El problema es que Fannie Mae no compraba los prestamos en determinados edificios debido a las malas finanzas y elevado numero de casas reposeidas de los mismos…. los bancos entonces no querian prestar en esos edificios. Lo que terminaba pasando es que la gente que queria vender en los mismo terminaba en foreclosure o rematando las unidades de sus edificios pues los compradores no podian conseguir financiamiento.

Ahora esto podria cambiar. Escribanme un email y les mando la lista con edificios con “Aprobacion Especial” de Fannie Mae. Como puede ver hay fechas pues este status puede cambiar en cualquier momento. No lo piense 4 veces y deje pasar esta oportunidad.

Deme una llamada si tiene preguntas y vamos sobre mas detalle.


847-962-0923 /

How you can take advantage of the Inflation?

If you lived in Peru or Argentina by the second half of the 80’s beginning of the 90’s you know what it is. It means that every month your salary is reduced not because of wage cut because your purchase power decreases due to the increasing prices.

I came to the US on 2000 and I remember buying a gallon of milk in Wallgreens at $2. Sometimes It came down to $1.90 so I used to buy a couple on the corner of Church and Skokie Boulevard in Skokie, IL. Now like the Bob Dylan’s song “Times are A-changing”… in the Publix of Brickell in Miami, FL or in Tony’s of Humboldt Park Chicago, IL you find Dean’s or Prairie Farm gallon in between $4 till $6. It took 50 years to get from 30 cents of dollar the gallon until $2. It took 9 years to get to $6.
I am not a hardcore milk fan, so what is the problem with this? The problem is that if you are the average American your income did not grow 300% in 9 years. Further more it looks to me that this is just the beginning.

Without getting deep into Economic concepts. If you increment M1 (supply of money) in the economy, (this means paper dollar bills in plain English) without and increase in good and services of the economy then prices will increase. More simple, if Uncle Sam start printing too many dollars, the green buck will depreciate. Simple law of offer and supply… too many paper bills then they are less worthed.
It would be nice if your salary would be indexed so every month you will have an increase in your salary just to keep up your purchase power. Purchase power is how much you can buy with a certain amount of money. But it is not and it probably will not be.

The inflation will hit Main Street America. Milk will probably increase 8% a year consistently as soon as the economy starts moving again. Same with other prices in the economy. I wish I can be wrong about but I lived in the 80’s in Peru, I lived in a Hyper Inflation environment and it is not fun. My dad used to own a hardware store and he used to need bags of paper bills to pay suppliers. He needed two drawers in the cash register and it was sad to see my old man being nervous next to the 30’s of each month with a package of cash ready for other people.

How can you take advantage?
See the environment now and project yourself economy 10 years ahead. Let’s identify an opportunity:
– Rents are cheap because there was built too much housing inventory during the last years. Will not be like that forever since population keeps growing and there is still a lot of immigration not only from other countries also from countryside.
– Interest Rates are still low now: 5% 30 years fixed average. This is not normal! Rates were around 18% during the 80’s and yes people still borrowed money.
– Home prices are at the historic bottom. Also this will not be like this forever.
So what about if you buy a property with several units on it and lock it in a 30 years fixed loan. Your payments will be fixed for 30 years and…… YES!!!! Rent prices will go consistently up just with the inflation effect. If you do not see it yet… let me a do a quick example:
A 3 flat in Humboldt Park (Chicago, IL) with easy access to public transportation will give you a monthly rent roll now of ($800+$700+$600) = $2100 and your mortgage $1300 plus ins and taxes $400 so you make $400 a month. After the recession your payments will increase BUT YOU PAYMENT of $1300 will remain the same. Taxes and Insurance will go up too but the inflation effect will be much higher on the rents.

Please take advantage of the inflation factor, give me a call and let’s make some money for your future!

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