Bends with Benefits

Are you flexible? How far are you willing to bend without breaking? Why does one tree snap while another remains? Some people see only one solution, one way out, while others keep their options open, they have choices. Multiple options increase your chance of success and reward. Yes, we learn from failure, we learn to adapt, to bend, to compromise. What’s most important: WE LEARN. WE GROW. We remember, we continue to improve, we become better.

“A man stops being when a man stops seeing….A man starts dying when a man stops trying,” two lines from a song, “Show Yourself,” I wrote last year that reinforce learning, growing, knowing, insight, and vision. We have the ability to persevere, to overcome adversity, to do the right thing and reap the rewards and benefits that follow. Remember, action speaks louder than words!

Here’s the Top 10 US Rental Markets:

1. Las Vegas

2. Austin (average $1,450!)

3. Charlotte

4. San Antonio

5. Orlando

6. Raleigh

7. Chicago ($1,550)

8. Los Angeles ($2,650)

9. Atlanta

10. Houston

Not enough room in your house? Here are a few CHEAP ways to expand your living space:

1. Go outside

2. Organize & store

3. Double duty rooms (office/bedroom, for example)

4. Build an addition (US midrange average $215 per square foot; OK not so cheap!))

5. Finish an unfinished space (attic, basement, garage, e.g.)

$64.5B in debt: FHA needs a bailout? That takes mismanagement to a new high…or low! How is that possible? Our tax dollars at work!

More bad news: Pimco sees 60% chance of global recession in 3-5 years! US debt to GDP ratio is 101.6, China is #2 GDP, Japan, #3 GDP, ratio is over 200%. They predict US will “chug along” slowly while Europe remains “mired in a recession.” Ouch!

Check out the world’s most expensive mobile home! $3M! Really!

The latest Mortgage Rates: 30 Year fixed at 3.87% and 5/1 ARMS at 2.59%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (These are AOL/Zillow.com reported average rates as of yesterday, Thursday) The tide continues to rise.

REAL ESTATE WEATHER REPORT

On we go. Our market continues to evolve. Is Denver really a strong market? I am curious to see reports on Denver Metro housing as to what went above asking, at asking, and below asking. I suspect we’ll see averages a tad above asking. More and more homeowners are “CASHING OUT” (read below); taking profits from their rentals, and, in some cases, houses they rehabbed and live in. We continue to hear from investors who are doing just that! Remember, the deals are out there; do not forget that our market is RELATIVE, that you must price things out comparable to what’s selling, not what you paid for something more than 6 months ago. Prices are going up, in some areas, double digit appreciation in 6 months or less! Others have been on a steady increase, slow but sure (…wins the race, we’re seeing both tortoise AND hare!).

BUYERS WANTED in METRO DENVER: We’re collecting names and numbers of investors who are looking for rentals that cash flow well. Most were rented, one with 30 months remaining on rental agreement (see Inventory below). Some are in great neighborhoods, some are multifamily (3-plex for $189K, e.g.). THIS IS A GREAT TIME TO BUILD YOUR PORTFOLIO. Let us know what you are looking for…

Back By Popular Demand: Coming July 20-21 to Denver: Rehab Acquisition Deal Workshop. John Fisher and team will teach you FUNDAMENTAL REHAB BASICS: fix up estimating, deal analysis, and value estimating. Mark your calendars. $97/pp. Rockbottom price; Topshelf event! The Deal is On!

Our 6-week series of classes are underway. We have a great group of students eager to learn and take action! (Hint: it’s all about systems) Check out our Invest Success Mentorship Program . We’re looking for people looking for us!

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). Next Breakfast Club is July 14. If you’re not on our list and want to be, LET US KNOW. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Inventory remains tight and many go quickly. Properties come, properties go…Sure prices are rising…but ask yourself: “will this make me money?”

4671 Vine St. Denver. DUPLEX. $130K. Should rent for $2100-2200/mo.

XXX Kent Dr, Aurora. $260K. 30 months remaining on 36 month lease at $1700/mo. Buyer must honor lease. Mission Vilejo! For investors that love a great house in a great neighborhood. Call us for more information, address, probably Sunday showing, etc.

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet). Nearly move-in condition for a rental.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: ”If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” ~John Quincy Adams

LIVE LIFE LIVE!

And Large! Why is it that “LIVE” has two meanings with 2 different sounds? Everyone has had a family member or friend pass away, sometimes unexpectedly. Perhaps you’ve had a friend that had a close call with death. It puts living in a different perspective. It also adds meaning to “living your life with no regrets.” There is no time like NOW to make changes; start small. It takes 21 days for it to become a habit, whether it’s diet, exercise, no more TV, work habits…Set goals, redefine who you are and how you want to LIVE YOUR LIFE. It’s never too late. Perform a random act of kindness. Do something different. Challenge yourself. Take nothing for granted. Be inspired, be inspiring. Smell the roses. Tell your loved ones that you love them, that they matter to you. Take action. Count your blessings. Be alive! Be real! Be true! Be better! What do you have to lose? Do it today!

Who are individual buyers competing with: WALL STREET! Large investment firms are buying up homes everywhere. Are they creating an artificial rise in prices? It’s too early to tell but institutional money is buying depressed houses. Blackstone, for example, has purchased 26,000 homes in 9 states! “Nationwide, 68 percent of the damaged homes sold in April went to investors, and only 19 percent to first-time home buyers, according to Campbell HousingPulse.”

Dog bites man? No. Bug bites woman. Woman bites landlord. Bedbug’s Big Business: tenant awarded $800K!!!

“The housing recovery is real and getting stronger.” Yes, our market is getting leaner; NAR stats show SFH for sale peaked in late 2008 at 3.4M homes. It’s now around 1.6M homes.

Trulia rates the most overvalued cities in America.

1. Orange County

2. Austin

3. San Antonio

4. Los Angeles

5. San Jose

Probably not a great time to buy in these cities!

McMansions are making a comeback! Average square feet are starting to grow. Looks like our economy is slowly driving it upward. Good news?

Based upon GDP, here are the 5 fastest growing states:

1. North Dakota

2. Texas

3. Oregon

4. Washington

5. Minnesota

Now the 5 slowest growing states:

1. Connecticut

2. Delaware

3. New Mexico

4. South Dakota

5. Wyoming

Please note the range is from 13.4% in North Dakota to a negative 0.1% in Connecticut. All other states have, although most are slight, positive growth.

Goodbye 3% mortgage rates. Rates are on the rise and will continue upward. Did you miss your refi window? Don’t expect a rapid rise, however. The Fed is taking this slowly. Are we above water yet?

The latest Mortgage Rates: 30 Year fixed at 3.80% and 5/1 ARMS at 2.43%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (These are AOL/Zillow.com reported average rates as of yesterday, Thursday) The tide is rising!

REAL ESTATE WEATHER REPORT

What’s new? Interest rates are rising. How will that affect our marketplace? Not so much, in my opinion because this is Prime Buying Season, Summer. So the pent up demand will offset the reticence of higher rates. I expect the real estate pixie dust to settle by summer’s end, no major declines, more probable will see increases slow down. Right now, it’s a game of cat and mouse, a delicate balance is required less we upset house harmony.

Where are the deals??? I was amazed at our May Breakfast Club: so many attendees were actively doing deals, rehabbing, buying and selling. It’s not like our market has people climbing into their shells to watch from the sideline! Quite the opposite. The bar is raising. Prices rise. Properties rise. Profits rise.

Let us know if you’re looking for rentals that cash flow well but don’t have what we’ve come to expect in equity (20% is getting harder to find!). Thanks to last week’s responders. We may complain of rising rates but I still vividly recall floating a 1984 loan that rose from 15.5% to 17% at the close. Count your blessings!

Our 6-week series of classes are underway. We have a great group of students eager to learn and take action! Curious? Check out our Invest Success Mentorship Program . We’re looking for people looking for us!

Coming Soon to a conference room near you: Rehab Acquisition Deal Workshop. July 20-21. Mark your calendars. More information to follow next week.

John Fisher’s Breakfast Club is TOMORROW, June 8, 2013 0700AM at a temporary new location: Iliff Doubletree, just off I-225 on Iliff. We typically have 75 mostly seasoned investors attend. Find out why. $12 buffet breakfast starts at 0630. Come hungry!

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Inventory remains tight and many go quickly. Properties come, properties go…Deals are in the eye of the beholder. Ask yourself: “will this make me money?”

3112 York St. Denver. Brick bungalow for $250K. Classic popular neighborhood. Currently 3 bedrooms (1 N/C), 2 baths. Could turn into 4/3 with 2-3 car garage. Use your imagination. Tenants are moving out soon. Drive by first then call us to arrange to get inside. Huge potential.

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet). Nearly move-in condition for a rental.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: “Learn from the past, set vivid, detailed goals for the future, and live in the only moment of time over which you have any control: now.” ~Denis Waitley

Carrot or Kick?

What’s your motivation? Does that carrot in front of you get you moving? Or is it that whip or stick behind (literally) you? Or the possibility of a swift kick that forces you on? What makes you do something? Do you work for the sake of working? Is the promise of a big payday your carrot? Does the threat of retribution drive you to action? Another way to look at it: what gets you out of bed in the morning? What does it take to get you off your duff? The average American (over age 2) spends 34 hours/week watching TV! (that’s just under 5 hours per day!) …and that’s the AVERAGE. I spend maybe 5 hours watching a movie or sporting event so someone is overcompensating for me! I find it ironic that apparently many Americans have ample time to watch TV; it boils down to TIME and PRIORITIES. What are yours? As the late Warren Zevon wrote/sang “I’ll Sleep When I’m Dead.”

Here’s an interesting “twist:” cash out financing; old loan type makes comeback. This time it’s not your home refi, it’s stock portfolios, margin loans are funding real estate acquisitions. Diversify. Diversify (then there’s the real estate investor whose idea of diversification is 4 single family rentals, 2 condo rentals, and a small apartment building).

Servicers prefer short sales to loan modifications. No surprise! Bank servicers saw short sales at 51% of resolutions in 2012 vs 20% in 2012.

Here’s an interesting discussion on Makeovers that add value to your home: DIY Do’s and Don’ts. No one wants old appliances…or laminate countertops.

Here’s 5 renovations they DO NOT recommend:

1. Going overboard on landscaping or gardens (I love that 50’ fireplace/waterfall)

2. Converting a garage into a family room (that’s one I take on an individual case basis)

3. Taking out a bedroom (so the rehabber can put it back again)

4. Adding a swimming pool (duh)

5. Adding highly personalized colors, finishes, or fixtures (honey, I love the purple tile)

Why it sucks being a homebuyer: bidding wars, rapidly rising prices, having to “settle” for a house, 32% of buyers have been looking for over one year, 42% have put in an offer but 11% were accepted, and…drum roll please, we’re seeing this locally, “location, location, location” is less important: 80% say they would compromise to “snag a home.”

More bad news/good news: home mortgage rates at highest level in a year. See, it’s getting better all the time! The housing market revival is pushing rates up…

But wait, there’s more: Soaring consumer confidence points to US resilience. We’re now at a 72.2 “level,” best since Feb 2008.

The latest Mortgage Rates: 30 Year fixed at 3.76% and 5/1 ARMS at 2.42%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday) The water is rising!

REAL ESTATE WEATHER REPORT

How’s our market doing? I continue to hear from investors that are knocking it out of the park! This is turning into the best year ever for many. The cheapos are nearly gone. Heck, we fixed them up the past 10 years. I know, there are still many out there, ready for rehab. Local inventory remains tight. Banks continue to release some properties. We’re still seeing a few short sales. One thing we’re seeing more and more is prices on the edge; sellers are pushing prices up and buyers are paying it. Reread “why it sucks” above. Location becomes less important as our market shrinks. Even “structurally challenged” houses fair better in a seller’s market. That 1” dip in the bedroom is not as important. Sellers are not taking a hit, or less of a hit, for a busy-street property. Demand continues to dictate prices. Sellers don’t HAVE to DO as much. I saw one property sell last week that had miserable landscaping yet brought TOP DOLLAR. Is that becoming the rule in our mid-year market?

Sanity check alert. We are starting to see investors “cash in” on rentals acquired over the past 5-8 years. Many are rented with leases and sellers want “reasonable” sale prices. We found some that will cash flow $400, $500, even $700/mo. Any interest? Let me know. No fix up required. They are out there!

We start a new 6-week series of classes this Monday, June 3: we teach you how to Find, Fund, Fix and Flip (or Fill) properties in this hands-on Invest Success Mentorship Program . We’re looking for people looking for us! Curious? Call us.

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Our next Breakfast Club will be June 8, 2013 at a new temporary location: Aurora Doubletree. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Like our marketplace, inventory is tight. We had a few properties come and go so quickly this month they never got onto the website…Deals are in the eye of the beholder. Ask yourself: “will this make me money?”

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet). Nearly move-in condition for a rental.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: “If someone is going down the wrong road, he doesn’t need motivation to speed him up. What he needs is education to turn him around.” ~Jim Rohn

Do you Love What You Do?

And DO WHAT YOU LOVE? Are you “living the dream?” Why not? What would it take? It’s wonderful to wake up every morning and look forward to the day, meetings, helping people, doing exciting and fun things. What has to happen to make that happen for you? A job is not a job if it’s fulfilling and wonderful. It’s easy to be passionate about doing what you love! How do you get there? Maybe you kiss a lot of frogs. Maybe you have to cut that cord (or loosen that noose!). Maybe you take a chance, a risk. Maybe you color outside of the lines. Maybe you live in gratitude. Maybe that stairway to nowhere really goes somewhere, some place fresh and exciting. Maybe it’s a Stairway to Heaven. Maybe you have some opulent options. Maybe. If not now, when?

Looking for answers? Consumer confidence growing? WSJ gives us Four Reasons Why Home Sales are Looking Healthy:

1. Sales have increased from their year-earlier levels

2. Sales of non-distressed homes are picking up

3. The number of home sales jumped 11.9% in April from March

4. Homes are selling faster

No surprises on the local level; in fact, these are obvious observations!

It’s not apples and oranges, it’s apples and kumquats: China’s GDP. China measures it’s GDP by what’s built. US and most other countries measure GDP by what’s bought and sold. Do you see a bubble about to burst? Or a shoe that’s about to fall? All from a country that literally builds 12-24 new cities each year! Check this link to China’s new ghost towns!

The latest Mortgage Rates: 30 Year fixed at 3.68% and 5/1 ARMS at 2.31%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

So how is our market doing? Many local investors are doing better than ever this year. Sure we are having to pay more. Sure the fix up is costing more. Sure the houses are selling for more. Don’t get caught up in the woulda, coulda, shoulda game. It never stops: I would have done more if prices stayed low. I could have made more money if only (fill in villain of choice) didn’t cheat me. I should have bought more properties when they were “cheap.” It’s too late now; there are no deals out there…It’s the Second Guess Tango highlighted by “ifs” and “buts…” Take responsibility. Accept responsibility. Why are some investors doing well while others are not? Is there an “investor” chromosome that gives some an advantage over others? Why do I ask so many questions with so few answers? Do I?

Why would I ever need systems to rehab houses? I just “do it.” If you know it all you’ve stopped learning (and started dying)  Our Invest Success Mentorship Program is geared to the living and loving; those who want something more, something better… We start a new 6-week series of classes June 3: we teach you how to Find, Fund, Fix and Flip (or Fill) properties. We’re looking for people looking for us! Give us a call. (shhh, it’s not the water, it’s the systems)

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Our next Breakfast Club will be June 8, 2013 at a new one-time location: Aurora Doubletree. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Our inventory is tighter than a leather roof in the rain.  We have a cash cow that can be milked in Pueblo….

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet). Nearly move-in condition for a rental.

5051 Crystal Way, Denver.Montbello short sale. Buy for $170K. Fix is minimal. This could cash flow over $500/mo as a rental.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: Develop a passion for learning. If you do, you will never cease to grow. ~Anthony J. D’Angelo

What’s Your FORM?

Are you an introvert or an extrovert? Are you comfortable talking to people? Because I love systems as they provide a baseline of organization, the FORM System can help each of us with initial conversations and to build rapport with others. Most people love to talk about themselves. Essentially, FORM represents talking points: Family, Occupation, Recreation, and Money/Message. If nothing else, these are great ice breakers at a party. Many salespeople use FORM to make their clients more comfortable. It’s a TOOL, use it to help, especially with that initial meeting, phone call, or conversation.

Good news: Appraisals no longer derailing sales. We’re seeing this trend locally, as well. Appraisers are more comfortable and less paranoid than before. I still find it ironic that we look at the past to estimate the present, especially in a “hot” market.

Here’s an interesting Zillow study: Buying beats renting in 64% of American cities in three years. Miami and Detroit breakeven in two years. Some ZIPs were a slow as a 1 year breakeven.

Now, the boy who cried “wolf:” housing bubble threat grows throughout country: “prices in some areas are rising at an unsustainable pace…values are rising faster than incomes, an indication that prices may fall in some cities once higher mortgage rates erode affordability.” High rising prices: Phoenix and Las Vegas; falling prices: Chicago and Indianapolis. As an extreme example, a NY brownstone had 300 visitors over a two-hour open house! Another contributor to higher prices: Blackstone company bulk-bought 1400 homes in Atlanta.

Are lawns going away? Lawn cons: polluting mowers, contaminating fertilizers, wasting water with irrigation. Lawn pros: bird food (worms, insects), soil erosion preventative, filters rainwater/absorbs pollutants, converts CO2 to oxygen. Great landscaping can add 15% to sale price. Alternatives: fake grass, paint, ground cover. Decisions and choices….

The latest Mortgage Rates: 30 Year fixed at 3.49% and 5/1 ARMS at 2.31%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

This just in…Colorado foreclosure stats from Colorado Division of Housing: filings fell 41.3% year over year for 1Q2013. Auction sales fell 30.5% for same period.

Last weekend’s Breakfast Club further reinforced what we’ve been seeing in our local Denver metro marketplace: the deals are out there. Numerous wholesale deals, rental vacancies, rehabs soon to market. I remain encouraged and contend we have a strong market with opportunities abound. Yet I still hear “I can’t find anything…there’s nothing out there.” OK, if you think it so, it is.

Summer is nearly here. Warm turns to hot. Water restrictions everywhere. Let’s enjoy what Denver has to offer. Now more than ever, you need a healthy real estate imagination. Keep asking yourself: will this make me money? How can this make me money? Consistency rewards perseverance!

It’s not too late. You have to start somewhere. Did you ever think you could rehab a house? Our Invest Success Mentorship Program could be for you. We start a new 6-week series of classes June 3: we teach you how to Find, Fund, Fix and Flip (or Fill) properties. We’re looking for people looking for us! Give us a call.

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Our next Breakfast Club will be June 8, 2013 at a new temporary location: Aurora Doubletree. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Like our marketplace, inventory is tight. We even have a cash cow you can hear the mooing all the way from Pueblo….

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet). Nearly move-in condition for a rental.

5051 Crystal Way, Denver. Montbello short sale. Buy for $170K. Fix is minimal. This could cash flow over $500/mo as a rental.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: “Trust is built with consistency.” ~Lincoln Chafee

What the Hail?

‘Tis the season…green sky with white hail stones…Snow may be gone but hail is here. It’s not just the size, it’s the duration and frequency. Denver had a hailacious storm June 7, 2012. Why is that important? See Denver Weather Report below. Meanwhile, weather continues to contribute to plague people and property throughout the USA: flooding, drought, tornadoes, hurricanes, sinkholes…where’s the balance, the harmony? Is global warming real or are we just going through a phase, a cycle? Stay cool.

Don’t be surprised: Foreclosure filings drop to new 6 year low yet judicial foreclosures rise to 30 month high. Here’s an interesting chart of state by state foreclosure laws! Of note: Georgia has shortest period (37 days) while NY has longest (445 days). Many have redemption periods of 365 days with Tennessee at 730 days (that’s 2 years to redeem!!!).

It’s BACK: here’s our TOUR DE CHEAPO REPORT…. Every 60-90 days we take the Pulse of American Properties via realtor.com to see what $30K or less can buy (BOLD have gone up in past 3 months). Biggest winners: Miami and Charlotte dropped 294 and 259; biggest losers: Detroit added 1505. Overall, our country is doing much better, low interest rates are making a difference. Just a few cities added more cheapos. I’ve been running this TOUR for over 2 years as we continue to ride and glide the hills and valleys of America’s real estate!

The latest Mortgage Rates: 30 Year fixed at 3.40% and 5/1 ARMS at 2.33%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

Hail today, gone tomorrow. Earlier this week I was talking to a contractor outside the University Hills house we are rehabbing, I noticed ALL the neighbor’s roofs were “new.” Then I remembered last summer when there were 3-4 houses per block in a seemingly perpetual state of roof replacement. The house we are rehabbing has been a rental for 3 years. Our tenant didn’t say anything. I called my insurance agent, we had the roof inspected. Our $1K deductible will pay for a $10K roof!

We had another rain storm Wednesday; a renter reported a leak. We had that South Denver property inspected. Guess what? I anticipate we will get a new roof soon. The big storm was June 7, 2012 from Colorado Springs up to Fort Collins. You owe it to yourself (figuratively) to call your insurance company to inspect your rentals AND your personal residence. I have heard some claims paying over $20K to replace a roof. Statute of limitations is one year so act quickly! What do you have to lose? Especially if you’ve already lost part of your roof! You make the call!

Overall, our market remains HOT. Bidding wars are becoming the standard. Anything that lasts more than a few weeks could be seen as a greedy seller (yeah, banks and HUD can be in that group with individual sellers). It continues to take a bit longer to close (probably more lender requirements). Refinances remain STRONG. Appraisers are busy. Will there be another bubble? Will prices continue to rise rapidly? I suspect not but STAY TUNED and INFORMED!

TOMORROW. John Fisher’s Breakfast Club. Saturday, May 11, 2013. Embassy Suites-Denver Southeast. 0700-0900. Buffet breakfast begins at 0630. What a great way to start your weekend; fellowship, food, referrals, maybe a wholesale deal, a new contractor. Find the value for yourself: NETWORK like never before.

Do you invest in the stock market? How about yourself? Do you want to be accountable for rehabbing a house? Then our Invest Success Mentorship Program may be for you. We start a new 6-week series of classes June 3: we teach you how to Find, Fund, Fix and Flip (or Fill) properties. We’re looking for people looking for us! Oh, and we’re exploring Colorado Springs. Does a wider net catch more fish? Give us a call.

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Like our marketplace, inventory is tight. We even have a cash cow in Pueblo….

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet).

5051 Crystal Way, Denver. Montbello short sale. Buy for $170K. Fix is minimal. This could cash flow over $500/mo as a rental. Watch your investment grow!

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: “The fishermen know that the sea is dangerous and the storm terrible, but they have never found these dangers sufficient reason for remaining ashore.” ~Vincent Van Gogh

Are You a Pinball Flipper?

It’s not just two buttons you push and shove on a gaming machine. It’s a term to describe rehabbers that “bounce around” with their rehabs. They don’t really have a system and they run here and there with their rehabs. As a result, their rehab process is fuzzy, unclear, unfocused, and confused. “Tommy, can you hear me?”

As our marketplace becomes more competitive with deal acquisition, it becomes critical that we “have a plan” to support our strategic and tactical goals, and that we have benchmarks/milestones that tell us whether we’re “on target.” Fix and Flip can be a great way to make a living, just make sure you’re clear with your path and direction. You, too, can be a “rehab wizard!”

Our national market continues to “mature,” sale prices are rising, rents are rising, assessed values are rising, property taxes are rising, new housing starts are rising, commercial real estate is also improving across the board. What’s not to like?

How about 15-year mortgage rate hits record low? How low? 2.56%. Last year it was just over 3%. Is it time to refi? You can get a 15 year loan with same payments as your current 30 year.

We keep hearing how great increased rent is for the landlord, the investor. What about the tenant? “What we’re seeing with the rental market is not explainable by population trends alone-it clearly reflects the movement of former homeowners into rentals as well as delays in home purchases by current renters,” explained co-author Maya Brennan. “But this increase in rental demand has not been matched by an increase in supply. This imbalance leads to rising rents in markets across the country.”

Secret ‘pocket listings’ return in hot housing markets. Sound familiar? Pocket listings are properties the realtors keeps in their “pocket” for select specific buyers. You see “not listed in MLS.” It brings up a dilemma about if to list, when to list, how to list, and the ethics surrounding how the property is presented to a prospective buyer. Can you say “gray?” We know it’s not black & white! Keep your eyes open for these “colorful” listings!

The latest Mortgage Rates: 30 Year fixed at 3.28% and 5/1 ARMS at 2.30%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

Score card: the results are not all in and this may be a bit premature, but…I know realtors and investors that are having their best year ever. It is heartening to hear from investors that said 2012 was their best year….What’s different? How can this be when most people cannot find a deal, let alone buy one? Maybe it’s the “Secret Sauce,” that formula of froth and substance that allow people to rise, like cream, to the top. I feel “the change,” do you? Right now it’s a combination of things and it’s hard to put a specific finger on it (OK, try the index), but our marketplace is constantly moving, shifting, changing, even reinventing itself. 5280 Magazine’s May 2013 issue features Denver Real Estate 2013-Get in the Game. The article begins with one simple fact, “There aren’t enough homes on the market.” We’re almost back to our 2007 highs in many neighborhoods, beyond in a few. Neighborhoods highlighted: Sunnyside East, Montclair, Skyland, Park Hill West, Lower Highland, Wash Park West, Sloan’s Lake East, and Country Club. I love how a few guided (or imaginative) individuals (probably realtors) have coined new ‘hoods; now we have Central Wash Park, Wash Park North, South Wash Park, Wash Park East, etc. Try finding those in the legal descriptions and “official” neighborhoods. For years we had a rental in “South Bonnie Brae;” now it’s fashionable (and desirable) to call it “Cory-Merrill.” “What’s in a name,” an old sonneteer once began…The answer is LOCATION and Perception IS Reality; a rose is not as sweet!

Do you know everything? Then our training is not for you. But, if you want to be held accountable to take action, to rehab a house, our Invest Success Mentorship Program may be for you. We start a new 6-week series of classes June 3: we teach you how to Find, Fund, Fix and Flip (or Fill) properties. We’re looking for people looking for us! Give us a call.

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Our next Breakfast Club is May 11) Call, Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Like our marketplace, inventory is tight. We even have a gem in Pueblo….

605 E 7^th Ave, Pueblo. 3 bedrooms, 1 bath. Will rent $600-650/mo. Buy for $27K. Fix $3-10K. Would make an ideal Rent To Own for Denver or Colorado Springs investor!

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet).

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: If you go to work on your goals, your goals will go to work on you. If you go to work on your plan, your plan will go to work on you. Whatever good things we build, end up building us.
~Jim Rohn

Intention vs Attention vs Action

You can have INTENTION to do something, yet it doesn’t matter until that something is done. We “pay” ATTENTION, yet that must translate into ACTION, into completion. Being well-meaning, intending, doesn’t cut it without proper ATTENTION to the task at hand. They are precursors to ACTION, getting it DONE. We all know people that “wish” their lives away with no follow through: “I wish I had bought that 1964 Mustang,” e.g. Same thing with “I could have” and I should have…” well, did you? “I could have done THAT.” “THAT could be me up there.” “Gosh, I should have paid more attention…” If that’s you, you’re deluding yourself. Who wants to be around people that make excuses? Accept it and move on OR do something about it. That’s it, decisions and choices. And what you do is….TAKE ACTION. There are no substitutes., nor excuses. INTENTION is just a start. It begins today!

This is getting to be a broken record: Home prices: biggest…since housing bubble! Case-Shiller (just acquired by CoreLogic this week!) index reports biggest year-over-year gain since 2006.

Appraisers are optimistic on housing. That’s half the battle when conservative appraisal industry is confident our market is moving up. It takes time but it’s happening!

More trends: single family rental market to decline? Rising rent, low inventory, higher home prices, new homeowners are willing to pay more than investors for their American Dream. All appear to contribute to an investor rental slowdown.

More trends: Fannie predicts 1.8M homeowners will regain equity in 2013. As prices rise, fewer will be underwater as the recession floodgates close to receding waters.

Fannie reports 15 year fixed at record low! 2.61%. What’s next? Now that interest rates are habitually low, here’s an interesting discussion…OK, DEBATE…over the elimination of the mortgage interest deduction. The big benefit is with high-income families. Lower-income homeowners may not have enough deductions to claim mortgage insurance! If/when it does happen, experts predict it will take about seven years to phase everything in/out. The NAR is opposed to the elimination but the pressure will continue (we can count on taxes to go up!)

From the we-are-amused department: AOL Real Estate shares some over-the-top photoshopped listings. You have to see these! Photoshop furniture in an empty house?

The latest Mortgage Rates: 30 Year fixed at 3.32% and 5/1 ARMS at 2.27%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

The only changes going on in our marketplace is that the few homes for sale are being viewed as never before. That “fire” house in Park Hill has over 40 offers, many over the already inflated asking price. Whomever ends up “winning” the bid may well “lose” as the rehab required will put them 20% or more over the market value, enough to make a homeowner wince. I had a showing this week and was told there will be 7 different viewings in a 2 hour window. Guess what? Only 2 showed up. I have my opinion why. We’ll see how the bidding goes on that vacant short sale. So the market is tight. The “hit” we would take for a busy street is muted. Homeowners are not as picky as they were even 6 months ago. We are seeing a strange sort of “concession now” or “concession later” strategy with homeowners bidding it up, then taking the price down upon inspection. Inspections run the gamut, from the absurd to the whimsy. No harm in asking for the moon…and careful what you ask for.

We are doing a rehab in University Hills (we’re the one with the 672 sf new garage) and I cannot believe the activity going on. Scrapes, remodels, normal (1200 sf) new builds, abnormal new builds (McMansions), vacant lots; there’s something for everyone. Basic 1000-1100 sf houses going for $240-250/sf. Maybe homeowners love being so close to I-25…or is it the Highline Canal?

We sold out our Acquisition Workshop last weekend. Thanks to everyone! At the conclusion of Day 2, two attendees viewed a house, used their new-found knowledge and formulas, and placed a bid on that house. Next Acquisition workshop will be August 17-18 (note your calendars).

Are we there yet? What’s missing? Our Invest Success Mentorship Program is on-going. We teach you how to Find, Fund, Fix and Flip (or Fill) properties. Our 6-week series of classes recycle every 3 months. We’re looking for people looking for us! Give us a call.

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Our next Breakfast Club is May 8. Call, Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: Like our marketplace, inventory is tight. Here’s one gem…

3900 S Hazel Ct, Sheridan. REO, 5 bedrooms, 2 bath, brick. Buy for $160K. Bank did their version of remodel (paint & carpet).

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000

QUOTE OF THE WEEK: The smallest deed is better than the greatest intention. ~John Burroughs

Momentum or Motivation

They are not mutually exclusive. You can have all, either, or none. It helps to have both, however. How important are they? I recently heard Success Magazine talk about Motivation comparing it to eating: you have to do every day. You don’t just feed your body, you must feed your mind. Pick up speed. That’s why people come to my Breakfast Club (tomorrow morning, see Weather Report below). That’s why we associate with like-minded people. That’s what moves us, keeps us going. That’s why we celebrate victories; team spirit, we’re a part of something good, something great! It’s contagious. It’s catching. It’s revolving. It’s moving. What motivates you? Money? Doing something well? Being acknowledged? Feeling good? Gathering momentum? Gaining impetus? Being at the top of your game? Being the best you can be? Can you do better? What is your “WHY?”

It’s Pay Back Time: Foreclosure’s Checks are in the mail…next week. Aprx 4 million borrowers will get checks between $300 and $125K from the top 13 banks for “servicer misconduct.” More than $3.6B will be paid out over the next few months!

Are you familiar with John Fisher’s Neighborhood Rating System? (if not, plan to attend the RAD Workshop below!) Ratings range from 1 to 10. 1 is essentially “blood in the streets” where you’re not safe day or night. 2 is when you’re not safe at night. Here’s a Gallop index identifying the top (or bottom, realistically) most unsafe cities to walk at night:

1. Stockton, CA

2. McAllen, TX

3. Yakima, WA

4. Mobile, AL

5. Rockford, IL

OK, who did Gallop see as the “safest?”

Minneapolis came in first. Raleigh, NC tied with Denver-Aurora at Number TWO! Makes you want to take a walk tonight!

How about the 10 Hottest ‘Hoods in America that pass the Starbucks test?

1. South Park, LA

2. Stonestown, San Francisco

3. Lawton Park, Seattle

4. Crown Heights, NYC

5. Dorchester, Boston

6. Anacostia, DC

7. Home Park, Atlanta

8. East Mount Airy, Philadelphia

9. NE Dallas/White Rock, Dallas

10. Northside, Northline, Houston

You know you’ve arrived when Starbucks, yoga studios, and dog parks move in!

Money Magazine does a great job discussing smart strategies for buyers, sellers, and owners. Compare how far will your salary go. Move fast if trading up, go slow if downsizing. Fix up your home before you sell. Houses with professional photos sold for $3K more than amateurs. Lots of nuggets!

THE END IS NEAR!!! For foreclosures, that is! Foreclosure filings continue to drop…RealtyTrac says “we’re getting back to normal…”

The latest Mortgage Rates: 30 Year fixed at 3.40% and 5/1 ARMS at 2.29%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

No new news flashes. Our market continues to soar. Inventory continues to DROP. Prices rise. Rentals rise. So what else is new? Interest rates remain LOW. Refi your 30 year 4.5% loan into a 15 year 2.5% loan and keep payments about the same…5/1 ARM rates are close to the 15 year. GET RID OF ANY INTEREST-ONLY LOANS!!! Refi, replace! PLAN. Where do you want to be in 5 years? How about 2 years? You don’t have to win the lottery; you can plot, plan, and play out your program to be debt free. Imagine how that would feel? Top that off with a couple of free and clear rentals.

Can you still Fix and Flip? One of our mentor students just closed on a Harvey Park home that will do well. Buy at $125K, Fix at $25K, sell at $210K. That should work for most investors. The deals are out there. If you’re not comfortable with numbers, find someone who is. Better yet, get help. Learn the “numbers,” the formulas, the options available. Take on a partner, a mentor, an expert. Take a class (see below), become an expert, THE expert. Find your niche, your “sweet spot,” what works for you. Don’t sit and watch. Take action, become engaged, involved. Make a commitment to “do it!” Call me, I’ll challenge you! Motivation can be powerful!

Scam hits “home.” My wife and I recently put our primary Denver home up for sale. Within 2 days our agent received a call from a renter who answered a Zillow rental ad on our house. Apparently, an industrious con artist operating somewhere in the Caribbean decided to collect rent for our house! Police and State Attorney General are investigating.

BREAKFAST CLUB TOMORROW. Find out why this network event is so popular (it’s not just the food, it’s the information, the experts, the deals). Saturday, April 13, breakfast buffet begins at 0630 AM, meeting runs 0700-0900. Embassy Suites, Denver Southeast, on E Hampden, just before Tamarac (close to the new Super Target). Bring your questions, your agenda. Don’t reinvent the wheel estate.

EXPERT PANEL. In addition to stellar formulas and analyses, we will have a panel of lenders, rehabbers, and contractors discussing the “Gotchas that Getcha.” Rehab Acquisition Deal Workshop. April 20 & 21. Cheap! Two days of core investor competencies: fix up estimates, deal analysis training, and after repair value estimates. All for $97/pp. Register HERE. Extraordinary value, extraordinary people!

Are you MOTIVATED yet? What is missing? What do you need? A mentor? A group to bounce ideas off of? Our Invest Success Mentorship Program is on-going. We teach you how to Find, Fund, Fix and Flip (or Fill) properties. Our 6-week series of classes recycle every 3 months. We’re looking for people looking for us! Give us a call. You can start today! You owe it to yourself!

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). If you’re not on our list and want to be, LET US KNOW. Call, Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: We expect more real deals anytime.

1013 W 9^th Ave, Longmont. Centrally located, great neighborhood. 3 bedroom house. Buy for $110K.

1515 S Lincoln St., Denver. REDUCED. REDUCED. Rehab has begun. Investor wants out. Architectural drawings are available. 4 bedrooms, 3 baths, 2 car garage with 350’ office on top. Buy for $260K. Fix at $100K, ARV at $525-550K. This will be your last chance before this is taken off the market Monday.

Bon Homepetit!

John Fisher

www.happycanyongroup.com

303 338-8000 or, better yet, text me at 303 564-1680

QUOTE OF THE WEEK: “ Motivation gets you going, discipline gets you growing. “ ~John Maxwell

Got Systems?

Are your systems in place? Are you ready to go? What about processes? Do you have them? One of the most important elements in our business, in any business, is CONSISTENCY, doing something that works over and over (and over); then, do it again. Whether it’s a marketing campaign or a blog (253 consecutive Fisher Friday Flyers, and counting!), consistency keeps it going. Why continually reinvent the wheel when you can set up procedures and follow them. What do you think PROTOCOL is? Does your business have a Policy and Procedure Manual, or Methods and Procedure, or business practices? You lay the foundation down for others to follow. How about franchises? Same thing. The systems work. You follow them. Execute. Repeat. Why is the granddaddy of franchises so successful (McDonalds, but Subway recently surpassed them in number of American stores). It works. It’s easy to follow. The systems make money. It’s that simple. So, where are you? Where’s your business? Where are you going?

From stagnant to sizzling: bidding wars are back. Not news to Colorado. 90% of all homes sold in major California markets drew competing bids. What? Only one offer???

Realtrends.com consolidates USA Today and NY Times to report there are 3 buyer groups out there:

1. Boomerang Buyers: recovering forecloses and short salers are back.

2. Gen Y: pent up and prepared to buy

3. Boomers: as the market returns, so do they

Here’s 3 real estate myths followed by reality:

1. Best time to sell is Springtime: best time is during the holidays or right after!

2. Always start with your lowest offer: a low offer gets you nowhere fast!

3. Cash is king: savvy seller will seriously consider a solidly financed offer!

Housingwire reports on the best markets for buying single family rentals 9.3 + cap rates:

1. Memphis

2. Saginaw

3. Toledo

4. Ocala

5. Las Vegas

6. Palm Bay

7. Atlanta

8. Jacksonville

9. Deltona

10. Springfield (MO)

Finally, 9 cities where it makes no sense to rent (compare with above, this could be where it’s smart to be a landlord):

1. Detroit

2. Cleveland

3. Dayton

4. Gary, IN

5. Warren, MI

6. Memphis

7. Toledo

8. Kansas City

9. Birmingham

The latest Mortgage Rates: 30 Year fixed at 3.38% and 5/1 ARMS at 2.31%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (these are AOL/Zillow.com reported average rates as of yesterday, Thursday)

REAL ESTATE WEATHER REPORT

Speaking of CONSISTENCY (walk the talk), the Fisher Friday Flyer began May 24, 2008 and we’re nearing our 5^th anniversary (and approaching 260 consecutive issues)!!! Many thanks to those who pass on appropriate links and news articles.

How hot is our Denver Metro market? Denver Business Journal consolidates media reports to tell us our market is not slowing down, rapid sales increases, rapid price increases, and, we’re at the lowest inventory in 28 years, at least. Here’s a telling indicator: 5976 homes were placed U/C in March, 2013 AND March has 6,682 active listings. Something’s gotta give: prices go up as inventory goes down. Simple supply and demand….

So hit the streets, hit the internet, shake some deals out of the woodwork. We’re ramping up and expect bigger and better deals to accompany the market rise above waterline. Get busy! Be creative. Use your imagination, not stagnation.

BEST DEAL IN TOWN: April 20-21, book it! Rehab Acquisition Deal Workshop. Cheap! Revised and Remodeled. Two days of core investor competencies: fix up estimates, deal analysis training, and after repair value estimates. All for $97/pp. Register HERE. If not now, when?

Our Invest Success Mentorship Program is on-going. We teach you how to Find, Fund, Fix and Flip (or Fill) properties. Our 6-week series of classes recycle every 3 months. We’re looking for people looking for us! Give us a call. You owe it to yourself!

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). Next Breakfast Club is April 13, mark your calendar. If you’re not on our list and want to be, LET US KNOW. Call, Write, Text, Tweet, Facebook (the verb), E-mail, drop by. Thank you for helping us help you!

INVENTORY: We expect more real deals anytime.

11858 Bradburn Blvd, Westminster. Store front. All commercial or combine commercial with residential. 2 Bedrooms, 2.5 baths with 2 car attached garage. Buy for $270K. Close to conference center, restaurants. Live the urban life in Westminster!

1013 W 9^th Ave, Longmont. Centrally located, great neighborhood. 3 bedroom house. Buy for $110K.

1515 S Lincoln St., Denver. REDUCED. REDUCED. Rehab has begun. Investor wants out. Architectural drawings are available. 4 bedrooms, 3 baths, 2 car garage with 350’ office on top. Buy for $260K. Fix at $100K, ARV at $525-550K. This will be your last chance before this is taken off the market next week.

Bon Homepetit! Happy Easter!

John Fisher

www.happycanyongroup.com

303 338-8000 or, better yet, text me at 303 564-1680

QUOTE OF THE WEEK:

“ If you can’t describe what you are doing as a process, you don’t know what you’re doing.” ~W. Edwards Deming