Greetings, housing fans. We’re just a few days from an election that will shape our country for a few years. It’s amazing the claptrap information that’s out there. Fear, smear, Obama’s a commie, McCain’s a philanderer, Republicans who said they’d never support McCain, now support McCain; Democrats who said they’d never support Obama, now support Obama. A UK conservative magazine, the Economist, backs the “Socialist” Obama. Wow. What a time. The little TV I watch is recorded; I don’t have to listen to those smarmy adds, positive and negative. I am sure I am not alone seeking some solace after next Tuesday.
What’s going on in our friendly real estate market? Take a number. Denver is in the fish bowl. Lots of out of state lookers and buyers have either jumped in or are standing at poolside ready to rescue a drowning homeowner or investor or lender. What a time.
RENTAL. Here’s a link to rental vacancy report 3Q2008. Info on apartment vacancies. Vacancy rate is going up…a little…in most areas. The link provides an exec summary and a chart for those of you who need DATA. From the field, we’re hearing that there is still demand for single family and duplexes (check out our inventory below for deals that will cash flow as rentals).
The Denver Post references the ubiquitous Your Castle Real Estate statistics regarding residential real estate near light rail stops. The closer you are, the higher the value. The Post also addresses the Bailout that could help 3 million homeowners facing foreclosure. What does that mean to us? Fewer foreclosures? Maybe. Maybe we’ve nearly turned the corner in the Denver Metro Area. Maybe.
FINANCING. Is there money out there? Absolutely. Where? Sometimes you have to beat the bushes (not a reference to our current President) and NETWORK NETWORK NETWORK. If you have money or liquidable assets, NOW’S THE TIME TO INVEST. Thanks to the stock market swells, and CD rates around 5%, Private Money is a serious option to fund real estate deals. People with Self-Directed IRAs in the market and mutuals are looking into options. Hey, what about real estate? You be the bank. Let’s see…I loan you $100K to buy and fix up a property that sold for $190K three years ago and will be worth $160K after you fix it up. Even if you default, I get the house. I can dump it and still make money. Pretty compelling argument. For actual numbers, addresses, return rates, etc., call us.
If you haven’t jumped into the warm investor waters, it’s not too late. You make the call. Keep you day job and test the waters? You can be the aforementioned lender. Keep your day job and do a rehab? We can help you with our Follow Me Program where we teach you how to FIND, FUND, FIX, and FLIP/FILL. Are you ready to jump in those waters? Buy one of our foreclosed properties (see links below). Remember, you have options! TAKE ACTION.
WHOLESALE INVENTORY: here’s a recap on how we do business: nearly all of our inventory are foreclosed properties, some require light rehab, some heavy. We “buy: mostly Single Family Houses (SFH), a few Multifamily, and a few Condos/Townhouses. Virtually every property we have will cash flow as a rental. We’re beginning to see good FLIP numbers now. Demand is down for heavy and structural rehabs (let us know if you’re in the market as there are screaming deals out there for these…if you have the stomach and a strong risk muscle). We take control of the properties in the name of a new LLC (nearly all banks and HUD do not allow assignment of contract). You buy the LLC and off you go. Bottom line: if you have ANY questions regarding PROCESS, HOW IT WORKS, WHERE DID YOU GET YOUR NUMBERS, etc., please call us or e-mail us. Oh, if you want a breakdown on our FIX UP ESTIMATES, ask! Some of our frequent buyers know if our numbers are, for example, $15K to fix, they can do it for $10K as their contractors are either cheaper or more efficient; others figure $20K as their rehab/contractors cost more. Again. Ask. Either head to our Wholesale Webpage or click on the specific address below to view the property, pictures, map, numbers, etc. Then call us for access information, questions, or to BUY.
1059 EMPORIA. Aurora. Duplex. 4/2/1 times 2! Buy at $115K. Fix is $30K, including basement finish. Rent should be $2500/mo. Anyway you cut this, this is at least a double (after all, it’s a duplex), maybe more. 2-car garage not in records. REO.
4542 CORNISH WAY, Denver. Montbello. SFH attached (patio home). 5/3.5/2. Build in 1999. Buy at $79K, Fix at $12K. Rent should be around $1400 (should cash flow over $600/mo with 100% refinancing!). Rent or Flip. REO.
1155 S IRVING ST, Denver. SFH. 4/2/2. Buy at $62K, fix at $18K. Cute. Flip or Rent. HUGE garage. Another $600/mo estimated cash flow as rental. Rent or Flip. REO.
3821 HARRISON ST, Denver. SFH. 3/1. Buy at $73K, EASY FIX UP at $7K.Check the pix. Even the TEAL TILE works! Solid, brick, cute. You don’t have to close until mid-December. Rent or Flip. HUD.
4567 EUGENE WAY. Denver. Montbello. SFH. 4/2/2. Buy at $94.5K, EASY FIX at $7K. Check the pix. Cute. Nice neighborhood, nice location. Tri-level, vaulted ceilings. Rent or Flip. Close by Dec 7, 2008. HUD.
4445 GENOA ST. Denver. Green Valley Ranch. SFH. 3/2/2. Buy at $94K, fix at $13K. Cute. Close to DIA. Tri-level, vaulted ceilings. Curb appeal. HUD.
2741 BARNHART ST. Thornton. SFH. 5/2/2. Buy at $97.5, fix at $14K. Cute ranch. Flip or rent. HUD.
That’s it…for now. Properties come, properties go. We update the Wholesale page whenever there is a change, new property, under contract, new information, etc. Let us know if you have any suggestions for improvements. We continue to work on our most frequent request: CHEAP. CHEAP. CHEAP. We feel these properties meet the cheap test: rental cash flow, great lease options, good to great flips. They work.
Happy House Hunting!
QUOTE OF THE WEEK:
Politics is supposed to be the second oldest profession. I have come to realize that it bears a very close resemblance to the first.
Wow! Check out our inventory. Lots of great deals. If you need any help crunching numbers, give us a call. Every one of these properties will cash flow as rentals. Some will flip well. What is this saying about our market? It’s telling me a few things. 1. We’re into the 4th Quarter of 2008 and many lenders want their properties off the books by year’s end. This happens every year. Will it better? We hope so. 2. Our market is filled with terrific bargains and great deals. 3. Buyers, both investor and owner-occ, who have marginal credit are not buying. Most buyers closing have good to great credit. 4. Bidding wars continue with both owner-occ AND investor properties. “BAFO “(Best And Final Offer) appears to be the REO rally cry. There even is/was a $15K good looking property in South Aurora (yeah, Meth Mid is $60K and you enter at your own risk) Is bio-hazmat gear a new Halloween costume? 5. DOM (Days on Market) continues to decline in the under $250K market! Don’t people know this is late October and houses don’t sell well? Oh, no one told them, sssh….These are interesting times. Who’d ever thought we’d rejoice at $2.66 per gallon for petrol? Even Brittany Spears appears to have fallen back into favor while Colin Powell is now reviled by the “right.”
The local and national real estate news reads like the crisis of the minute:
In September, 81,312 homes were lost to foreclosure.
US working on plan to help homeowners refinance.
Colorado 10th for foreclosures. I feel better now, don’t you?
Remember the story of the optimist and the pessimist? You find what you look for. I go looking for deals; lo and behold, there they are! Sounds like a “secret” manifestation.
Here’s our inventory as we pick up 4th Quarter steam. No condos or multifamily…yet. Just bread and butter bargains. It’s refreshing to offer properties in Denver, Lakewood, Aurora, and Thornton. Call us for access information, or fix up specifics, or closing protocol, or wholesale process. Please note some of these are basic detailing, paint and carpet, easy rehab and fix ups.
2053 Galena, Aurora. 5/2/2. CHEAP. Buy at $57K; fix under $20K. ARV over $120K. The numbers work well for this property. REO.
1432 Harlan, Lakewood, 3/2/1. Buy at $76K; fix at $7K! ARV over $120K. Easy rehab. Great numbers. REO.
1155 S Irving, Denver. 4/1/2. CHEAP. ARV over $120K. Buy at $62K; fix under $20K. Huge lot. Huge garage. Cute house. REO.
3821 Harrison, Denver. 3/1 CHEAP. Buy at $73K; fix at $7K. ARV over $115K.Easy fix. Cute house. HUD.
2741 Barnhart. Thornton. 5/2/2. Buy at $97.5K; fix under $15K. ARV over $170K. HUD.
4567 Eugene Way, Denver. 4/2/2. Montbello. Buy at $94.5K; fix at $7K. Light fix up! ARV over $135K. HUD.
4445 Genoa St, Denve. 3/2/2. Green Valley Ranch. Buy at $94K. HUD.
Happy house hunting!
QUOTE OF THE WEEK: Truth often suffers more by the heat of its defenders, than from the arguments of its opposers. ~William Penn
Sounds like my Holiday wish to you: HOPE and PROSPERITY. In times like these, we need encouragement and kind deeds. The latest Newsweek says that for those born after WWII “we’re now living history, suffering one of the greatest financial panics of all time. It compares with the big ones—1907, 1929…The crisis has forced the United States to confront bad habits developed over the past few decades. If we can kick those habits, today’s pain will translate into gains.”
I can say it no better! We’re in a unique position, electing a president to take us through this turmoil, wars in Iraq and Afghanistan, and an economy on the run. Do we have the “right stuff,” the discipline, the wisdom, the prescience? It’s going to take time to sort things out and make deliberate decisions that will help us help ourselves.
On a smaller scale, it’s like fixing up a house: how much money and time do we put into it? Will we make any money on it? What happens if we do nothing? Do we have insurance? What if….what if…what if…on and on. Make deliberate decisions, no excuses, assume responsibility, take action.
We’re nearly ready to launch our FollowMeDenver.com website. The discussion board is up and ready! It’s easy to register and participate in the PLANKS: Finding, Funding, Fixing, Flipping, Filling. Post your questions, your deals, your rentals, your retail properties, your tips, your comments, contractor recommendations. The Forum is to help us in this business, to learn, to share; kinda like our Saturday Breakfast Club Meetings, a forum to discuss what’s what!
So what IS going on in our business? Some markets are improving, some MLS days on market (DOM) are under 90 days, some people are getting loans, doing deals, buying, selling, fixing, renting, making money. Are you?
Here’s our inventory. You be the judge on sellability and rentability, the value. These links can help you with your diligence. Our inventory remains down. We’re still getting great deals; some last longer than others, all can make you money. Keep checking our website.
2147 Barnhart, Thornton. 5/2/2. Buy at $97.5K, $14K to fix. ARV $165-180. Nice house, nice neighborhood. HUD.
4445 Genoa, Denver. 3/2/2. Green Valley Ranch. Buy at $94K. HUD.
4567 Eugene Way, Denver. 4/2/2. Montbello. Nice ‘hood. Buy at $94.5K. LOW fix at $7K!!! You guessed it…HUD.
Happy Canyon Group, Inc.
QUOTE OF THE DAY: All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. ~Arthur Schopenhauer
Panic attacks? Runs on the banks? IRAs drop 30% or more? Consumer confidence at all-time low? You betcha, doggone it! Who needs details? The evidence is everywhere. The “it doesn’t affect me” people are living in a hole. Would gas at $2.99/gal put a smile on your face in light of this “crisis?” Gosh darn it, there were so many “global warming is fiction” soothsayers, is anyone saying this “crisis” is fiction? I think not. Gloom and doom, mattress money, cheap real estate, PERCEPTION IS REALITY. Wow, there it is again. Oh, did I say cheap real estate? Take your pick and pull yourself out of this perceived depression. Take action. Respond, do not react.
It’s not all bad news, bears (no bull). Nationally, pending home sales are up to the highest level since June 2007 and surprised Wall Street, which expected a drop. Denver housing market looks up as sales increase and inventory decreases. So, your call, is the glass half full or half empty?
Some property deals are irrefutable. I know many investors with 3Q buys that are making them over $500/month in cash flow rental income. Is that you? We’re seeing signs (not just seeing them, they’re smacking us in the face) that the Denver metro market is stabilizing: inventory is down (at least in properties under $500K), banks are discounting their “basis” at county foreclosure actions, REOs are being listed LOW and bidding wars ensue, we’re seeing more and more DOM (days on market) less than 5 days, solds often are higher than last asking price. I’ve been an active HUD player for years and I’ve never seen anything quite like this since HUD’s been on-line; owner-occs are buying (and some are lying…about being owner occs, that is) and paying more and more. Happy Canyon Group still has an extraordinary win to bid ratio (66%) as we have excellent systems in place and choose well.
If you’re in the hunt, great! If you’re thinking of getting into the hunt, educate yourself, take a seminar, take a seasoned investor to lunch, take action. This business is not a spectator sport! Watching from the sidelines doesn’t make you money. I’ll step down from my ACTION SOAPBOX and head to our inventory. Lately, it’s been down. Our philosophy has always been that if the house and numbers work for us to rehab, they will work for most everyone else. We love to buy cheap. We love to negotiate our buys DOWN. We just have a couple of properties today but there will be more…soon… maybe later today. Access our site. We appreciate your business.
Oh, our Breakfast Club meets tomorrow, Saturday, October 11, 2008, at Perkins, I-25 & Colorado from 7-9AM. It’s a great way to start your weekend. We’ll be discussing the local market, lenders, deals, and anything else that’s of interest and importance. Let us know if you want on our distribution list so you get the official notice.
4567 Eugene Way, Denver. Montbello. Good location. Great neighborhood. Great house. a 4/2/2 with LOW LOW LOW fix up of $7K, all for $94.5K. Check it out. HUD.
4445 Genoa. Denver. Green Valley Ranch. Basic bread and butter house. 3/2/2 for $94K. HUD.
We expect more properties. If you have any specific requirements, wants or needs (oooh, I NEED a house now, e.g.), call or e-mail us. We can help! Hang in there and persevere! We’ll get through this, be stronger, smarter, and better off!
Happy Canyon Group, Inc.
QUOTE OF THE WEEK: Many an optimist has become rich by buying out a pessimist. ~Robert G. Allen (yes, that Robert Allen)
Greetings, these are exciting times, economically, politically. Congress is still deciding what HELP will look like and our two presidential candidates are anything but candid. Remember, PERCEPTION IS REALITY…..There are some threads woven into Napoleon Hill’s Think and Grow Rich and the Secret: if you think it’s so, it is. Confidence is waning. What kind of tourniquet must be applied and to which jugular? What’s going to happen if you cannot get a business loan? Some local restaurants are already going under due to economic uncertainties.
What’s going on in our real estate investment marketplace? Anyone getting loans out there? Anyone buying? Any great deals? Yeah, cash is king. I hear of investors buying 10-20-30-50 properties this year…and plan to do more next year. Has our market bottomed out? Not yet. Probably in some areas. How can you sell something if no one can buy? Oh, rent. Yeah, that works. Times are getting harder for realtors, title companies, lenders, brokers….yeah, BUT. Opportunities abound. We “got” 3 multi-family properties over the past 10 days, all cash flow well, all WERE overleveraged and went into foreclosure, and all should make someone a lot of money. Could that be you?
Here’s some more easily digestible news as we watch and wait to see what’s next in Wall Street and Washington: “Colorado is receiving $53 million to buy and redevelop foreclosed and abandoned homes, under the federal National Stabilization Program that begins today (Oct 1) and ends Sept. 30, 2011.” So some state agencies may buy, fix and sell some stinkers.
HUD’s trying, they’re really trying, their Hope for Homeowners program appears to fall short, however, as it offers shared equity for reduced rates/interest for homeowner’s refinances.
Once the dust settles, if and when Congress passes something to boost our economy, I feel we’ll have more options as investors. Remember, this mess goes back to when ANYONE with a pulse could get a loan (and did!); some docs were falsified, misstated and inflated. Now we’re all paying the price. Homeownership ratios will continue to drop. Rental ratios will continue to increase. I’ll be surprised if we see many owner-occupied homes selling for under $100K (I like surprises but don’t expect them!). Most owner-occ sales will be in the mid-range sale prices, where families have income, credit, down payments. What a novelty!
So you cannot FLIP that junker in Old Aurora (80010) to owner-occs (there are a few out there, but the vast majority just cannot get loans). Hey, we do have a “hidden” market to SELL these properties. Here is the bus plan for our Passive Investor Rental Model (PIRM):
1. Buy house
2. Fix house
3. Rent house
4. Sell house to passive investor
What’s the catch? You may not make the killing you read about from the seminar hipsters, BUT you could make $10K over 30-60 days. What’s wrong with that? We have a few sources; call us if you’re interested in this model. Cash flow can only take you so far. Most of us need diversified balanced income, capiche?
Here’s our inventory for this weekend. None are great flips; all are great rents. All could apply in the aforementioned PIRM. Run the numbers, do your diligence. Buy, buy, buy!
1105 Dayton St, Aurora. NEW. Duplex. Front is 5/2, back is 3/1. Buy at $120K. Corner of 11th & Dayton, Lowry Park is across the street. Should rent for $2100/mo. REO.
1612 Alton St, Aurora. NEW Triplex. Brick. Front unit only needs appliances. Lower unit is 1500 sf! Buy at $96K. Should rent for $2200/mo. REO.
2009 Emporia St. Aurora. 5/2. Cheap at $59K. Should rent for $1200/mo. If you can get 100% financing (yeah, it’s still possible) you can get over $500/mo cash flow. HUD.
4445 Genoa St, Denver, 3/2/2. Green Valley Ranch. Hey, what do you expect for $94K? This, too, can make you money. HUD.
That’s it for now. We’re getting a 6/2/2 in Commerce City that we’ll sell around $69K. It should post later today or early next week. Check our website for updates, additions and changes.
QUOTE OF THE WEEK: Insanity in individuals is something rare - but in groups, parties, nations and epochs, it is the rule. ~ Friedrich Nietzsche