1. Research the Property

Identify Properties: Start by looking for buildings listed for sale in Chicago using real estate websites (like Zillow, Redfin) or by contacting a local real estate agent.

Check Zoning: Ensure the building’s zoning aligns with what you plan to use it for (residential, commercial, etc.). Zoning laws dictate what can be done with a property.

Visit the Property: Arrange a visit to the building. This will help you see its condition, neighborhood, and overall appeal.

2. Get Pre-Approved for a Loan

Determine Your Budget: Figure out how much you can afford to spend, considering your savings, potential income, and how much you’re willing to borrow.

Visit a Lender: Go to a bank or mortgage company to get pre-approved for a loan. This means they’ll check your credit and financial situation to see how much they can lend you.

Gather Documents: You’ll need documents like ID, proof of income (like pay stubs), tax returns, and bank statements.

3. Make an Offer

Decide on an Offer Price: Based on what similar buildings in the area are selling for and the condition of the building, decide how much you want to offer.

Submit Your Offer: Your real estate agent will help you submit a written offer to the seller. This offer includes your proposed price and any conditions (like getting a loan).

Negotiate: The seller might accept your offer, reject it, or counteroffer. Be ready to negotiate until both parties agree on the price.

4. Conduct Due Diligence

Property Inspection: Hire a licensed inspector to thoroughly check the building for any problems (like issues with the roof, foundation, plumbing, or electrical systems).

Appraisal: Your lender will require an appraisal, which is an assessment of the building’s value to ensure it’s worth what you’re paying.

Title Search: A title company will perform a title search to make sure the property has a clear title, meaning there are no legal claims or unpaid taxes against it.

5. Secure Financing

Finalize Your Loan: Once the inspection and appraisal are done, your lender will finalize your loan. This includes locking in your interest rate and confirming your monthly payments.

Review Loan Terms: Carefully review the loan terms, including the interest rate, repayment period, and any penalties for early repayment.

Prepare for Closing Costs: Be ready to pay closing costs, which can include fees for the appraisal, title search, and loan processing.

6. Close the Deal

Review Documents: Before the closing date, review all documents, like the loan agreement and the deed (which transfers ownership to you), with your real estate agent or attorney.

Sign the Papers: At the closing meeting, you’ll sign the documents that finalize your purchase.

Pay the Costs: You’ll pay the down payment and closing costs, usually through a wire transfer or cashier’s check.

Get the Keys: Once everything is signed and payments are made, you’ll officially own the building and receive the keys.

7. Post-Purchase Steps

Set Up Utilities: Contact utility companies (like ComEd for electricity, People’s Gas for gas, and the local water company) to set up accounts in your name.

Get Insurance: Purchase property insurance to protect your investment from risks like fire, theft, or natural disasters.

Plan Renovations: If the building needs work, start planning the renovation process. This might include budgeting, finding contractors, and applying for any necessary permits from the city.

8. Moving In or Renting Out

Prepare for Move-In: If you’re planning to live in the building, clean and make any small repairs needed before moving in.

Renting the Property: If you’re renting it out, advertise the units, screen potential tenants, and prepare lease agreements.

9. Ongoing Responsibilities

Regular Maintenance: Keep up with routine maintenance to ensure the building stays in good condition. This includes things like fixing leaks, painting, and lawn care.

Pay Property Taxes: Every year, you’ll need to pay property taxes to the city of Chicago. Not paying taxes can lead to legal trouble and potential loss of the property.

Manage the Property: If you’re renting out the building, decide whether to manage it yourself or hire a property management company to handle tasks like collecting rent and coordinating repairs.

By following these steps, you can confidently purchase a building in Chicago and manage it effectively.