Greetings, Investors of the Universe! Here’s wishing you a wonderful Christmas and Holiday Season AND a prosperous New Year. This is a great time to reflect back on 2008. What worked, what didn’t. What got you excited. Based upon 2008, what lies ahead? Where are you going AND how are you going to get there??? What’s your plan? Is it realistic? Logical? Can you do it?
These questions point to taking control of your real estate business, no matter how small or large. Remember, IT’S A BUSINESS, NOT A HOBBY. Treat it like a hobby and that’s what it is. Our Follow Me Program (www.followmedenver.com) teaches you how to FIND, FUND, FIX, and FLIP or FILL. We provide inspiration and SYSTEMS. No classroom work, it’s all HANDS-ON. You MUST do a house in this program. We teach you how to fish, so that, if you chose, you can make a living in this business. Many people say this business is EASY (just listen to a tape or go to a seminar), we know better. It’s hard work. It can be fun work, too. I love this business! It is exciting to create a WIN-WIN situation with virtually everyone you work with. Check out our website. Even if you’re not ready or don’t need any help (foolish pride speaking, I’ve only been doing this for 8 years and I need LOTS of help!) , please check out our FORUM. There is NO CHARGE to register, just sign in and have fun. We created the forum as a vehicle to help people with stuff…networking, selling an extra dishwasher, finding a good egress contractor, finding a great lending deal, contract for deed (Installment Land Contract in Colorado) vs lease option. The list is endless. This is a tool to help us do our business. Check it out. Do it!
So what’s going on around the country and in our backyard? A few loan-modification companies are in trouble, accused of preying on desperate Colorado homeowners. There is a SCAM ALERT on this! The Denver Business Journal reports that Colorado commercial banks’ lending is up 10% & 25% over last year; they have money to lend! We continue to hear that interest rates are falling, in fact, Mortgage rates hit lowest in 50 years! We’re hearing of local lenders offering HELOCS at 3.5% interest! And that may go down further…
We continue to get deals. Did you ever think that while everyone is shopping and partying this season some investors are finding extraordinary deals? Gosh, we’re not competing with the typical homeowner right now as they are not interested in buying a house when they’re buying toys and games for their wee ones. You better watch out! As interest continues to drop, and January brings in a new year with new dreams and goals, AND our local governments get involved in the fix and flip business, I anticipate a competitive shift with available inventory. We have a “rash” of closings the last two weeks of December as banks want to close their books on as many properties as possible. Cash continues to talk. Don’t forget, you can enter into this business at many levels of involvement, looker (there are people who just “like to watch”) to passive investor to full court full tilt hammer-in-hand investor. Call us if you have any concerns or questions on how you can get involved in this.
The cold weather continues to take its toll. We just had a house we hope to close on next week literally burst it’s pipes, winterized, too. Brrrrrr. Looks like a cold weekend, too. Stay warm.
2200 Elmira St. Aurora. 5/1.5/1. SFH. Buy at $59K, fix at $20K, flip at $128K or rent at $1100-1200/mo. It’s your option. This is a HUD and doesn’t have to close until February, 2009. Check it out and lest us know if you’re interested.
1185A S Fairplay Cir. Aurora, 3/1/1. Condo. Buy at $49.9, fix at $5K (VERY BASIC), HOA is $150/mo. While you could flip this, lease option works great as does renting…If you’re into this for $55K, your PITI will be aprx $450 (unless you get a 3.5% loan!), add HOA to reach aprx $600/mo. This will rent $900-1000/mo and cash flow well. Ranch style. HUD, as above that does not have to close until mid-February.
We have a few (2 SFH & 1 Multi) properties we’re waiting for the final paperwork to come in. We’ll post them as soon as we can. Call us or e-mail us with questions. Some of our deals go very quickly, others wait for the right person in the right situation!
This will be our last Newsletter this year as I am heading to sunny Scottsdale just after Christmas. This will be a business and pleasure trip (yeah, that market continues to tank, deals abound, extraordinary deals, everyone’s afraid to buy anything so plunging pricelines continue, we even found a junker 4-plex for $29K!). We should be blogging and have a newsletter out in a fortnight.
Here’s hoping investors get to pick first and get the lowest price with no “highest and best” round of bidding! What a wonderful world this would be!
Thanks to everyone who helped us be successful in 2008. I KNOW 2009 will be more exciting and rewarding. Those of you who know us, know we have 10 Commandments to Real Estate Investing. Number 10 is “GIVE BACK! TAKE THE TIME TO HELP SOMEONE ON THEIR JOURNEY.” So many wonderful people have helped me with my journey; while I have (thanks to Robert Frost) “miles to go before I sleep,” there is so much to do! Be the difference!
QUOTE FOR THE YEAR:
It is a most mortifying reflection for a man to consider what he has done, compared to what he might have done. ~Samuel Johnson
Alliterators of the world align. 2008 is nearly at a close. How was your year? What worked? What did not? How did you deal with the financial follies? How will 2009 be any different? What changes will you make? Why? What will you do differently? Better? How can you better adapt to change?
As you will see below, our inventory has improved. We were OUT for the first time in months. Nada. My apologies. Although we have 4 available on our website, we have two (or more) that will spring (make that winter) forward early next week. More on that later.
Hey, headlines (that’s Front Page!) in the Denver Post yesterday: BUILDING AND BASHING BLOCKS: Federal bailout to hit home in Colorado. All those million$ ($53M for Colorado) must be spent. How is in question. Allocations are underway for various communities. For example, Denver: Westwood, Montbello, Green Valley Ranch, West Colfax are all getting “something.” Landscaping, new “guts,” scrape, etc. What does this mean to the Real Estate Investor Community? This could be one of our Breakfast Club discussions this Saturday morning….It’s too early to say. Aurora has announced plans to buy and rehab (FIX & FLIP!!!) 110 homes over the next 18 months in “old Aurora,” mostly 80010. How does that affect us? Will they buy mostly HUDs? Stay tuned….
What else is happening? Mortgage rates drop to lowest level since January. Yeah, baby, 5.53% 30 year fixed! What else? Oh, a federal official states that mortgage rates could drop to 4 percent…in our lifetime (within the next year!). Wow! Remember, you have a choice, you can see this as gloom and doom, a harbinger of bad things to come OR you can see this as an opportunity to raise yourself up, to take advantage of every opportunity. It’s your choice. Choose wisely. If you work things well, you can lay the groundwork for LIBERTY, FINANCIAL FREEDOM, and set yourself up for life. People are doing it today. You can too! By the way, that same report above states that “nearly half of all new home transactions were canceled in Las Vegas in October, while more than 40 percent were canceled in Phoenix, San Diego and Denver. Wow. Paranoia? Prudence? Your call. Cash is king. Make your money work FOR you. Take advantage of the marketplace.
I’m not making this stuff up. These are wobbly times; many are having trouble standing up. Some have placed their heads in the sand. Others are strategically planning how they can position themselves to best advantage.
BREAKFAST CLUB ALERT. Yeah, 0700 this Saturday, December 11 at Perkins, I-25 and Colorado Bv. Be of good cheer! We’ll discuss what “ails” you and interests you. We’ll network. We might even do a deal (I’m planning on signing a contract or two after the meeting…). The food’s good but you don’t have to feed your stomach, we want you to FEED YOUR MIND….If you did not get an electronic invite, e-mail Linda or myself to get you on the list. We protect it, keep it private, no sharing, no spamming, no BS.
Banks continue to keep their pricing lower (make that MOST banks) to create bidding wars that can ultimately bring in better, higher prices (for them). How do we benefit? Well, we could be getting those deals. If we have properties in the area, we may be seeing prices creeping up (actually, we ARE seeing prices grow up). All of this bailout claptrap makes us numb to the numbers, how many zeros in a gazillion? What does it matter, really? Life goes on with or without you and me.
So here’s what’s happening with our inventory. Houses come, houses go. Overall, we’re all raising the bar, improving the neighborhoods, getting properties fixed up, sold, rented, inhabited (no, not those teenagers smoking something yesterday afternoon in the back bedroom of an Aurora REO). We are making a difference. Feel it, feel good. It’s good to see owner occs backing off a bit, (seasonal hush) paying over (did I say “over paying?” well, from a wholesaler prospective…) asking price so we can offer you a few bargains….I have to say this again: our deals can make you money, either as a flip or cash flow well as a rental. If you have ANY question about that, please contact us and we’ll review a few formulas to help you better understand how and why.
9300 Palo Verde St, Thornton, 5/2. We’re selling this at $86.5K with a fix of $19K. We estimate the ARV at $160K. Comps are hard to find. Many investors are finding success in this area, especially with flips. This will cash flow as a rental, too. Oh, this is a HUD, a new HUD, bub.
1022 Lewiston St, Aurora. 4/2/1. For sale at $85.5K and $10.5K to fix (can you say LITE?). This comps (ARV) out at $140K with curb appeal on a 12,850’ lot. Yeah, this, too, is a HUD.
596 Ursula St, Aurora, 7/2/1. Yeah, 7 bedrooms, this HUD property gives us a trifecta. Buy this at $105.5 and fix it at $19K with an ARV of $160K. Hard to turn down those bedrooms and 2273’ of space. FHA had this appraised this year at $139K AS IS. Do the math. Do your diligence. Do.
1757 Oswego St, Aurora. 3/1/1. You can say we saved the best for last. At least from a CHEAP point of view. We’re selling this REO gem at $47K and it needs $13.5K in repairs. It’s 5 blocks from Peoria and Colfax, where the Fitz Med Complex begins. The price AND the property give you lots of options: Do I hold? Do I flip? Do I sell? Do I buy this?
Finally, what’s to come? We plan to have two more properties close to Fitz available next week. One has a bonus 1/1 MIL unit and was fixed and flipped a few years back, the other is a Hoffman gem without structure problems (that’s a novelty!).
If you haven’t figured this out by now, talk to some of our buyers, our customers. Your success makes us successful. We’re here to help. We even offer a hands-on mentor program, FOLLOW ME, complete with discussion board, to help you through the process of FIND, FUND, FIX, and FLIP or FILL. No classroom, no BS. We KNOW this business ain’t easy. Nothing worth having is.
Bon Homepetit and PAX VOBISCUM,
QUOTE OF THE WEEK:
To find a fault is easy; to do better may be difficult. ~Plutarch
Pick a letter: R or D
Greetings Investors! So what do YOU chose? The National Bureau of Economic Research reports we can backdate our RECESSION to December, 2007. What about the BIG D (no, not Denver, DEPRESSION)? Are we there yet? Are we??? I wonder what will be prescribed for this kind of Depression (no, Rogain will not help with this Recession!)?
Our market continues to evolve: foreclosures, fix and flips, rentals, layoffs. Hey, I heard yesterday that Denver tops the U-Haul Migration Index. U-Haul doesn’t release figures except year to year so here’s access (scroll down to Migration Trends, then click on PDF reports) to info that says Colorado was #1 state in 2007 and Denver was #8 city in 2007. What does this mean? It means that more families that rent U-Haul vehicles and vans, trucks and trailers are moving into these locations than out of those locations. It’s just another indicator to help us assess local marketplaces and make assumptions on what that means for real estate, buyers and renters.
The Colorado Housing Division reports that “completed foreclosures down 14 percent since 2007.” That could be good news to investors. Are we out of the declining market woodshed? Don’t bet the bank on it (although your IRA may be a good bet to move some of it over into real estate…).
The Wall Street Journal reports that cities are lining up defining how and what they’re going to do with the millions given to them in the Neighborhood Stabilization Program. Aurora, CO is getting $4M and rumors are rampant that they plan to buy 110 junkers, fix them up and either sell them or place section 8 renters in them. Read their proposal for yourself. Denver is looking into this, as well. Gosh, just what we need, not only to compete with a government agency on buying property(I have a strong susspission that they will pay more than I will on a junker) but to compete on selling or renting. The government rarely does these things as well as private industry. Nonetheless, they must use the money or lose it. Stay tuned.
Who really knows what is happening? Really? Conjecture, speculation and rumor. Meanwhile, many of us are hustling to make ends meet. Huge layoffs loom. I don’t believe Denver Metro will be hit as hard as other areas. Our MLS inventory is down, houses continue to sell AND close. Loans are being made. Life goes on. And we have snow on the ground and in the mountains. Enjoy!
We’re still getting our FollowMeDenver.com website refined. The discussion board is up. Please register and ask a question or provide an answer. Know any good contractors? Any scam artists? What’s going on with lenders? Any banks lending at 80% NOO? Do you have any good wholesales (other than the ones we offer?)? Any renters? Rentals? Lease Options? Use it, we’ll monitor it. If you think you may need some help with rehab, check out the website. We can help.
Acquisition? Bidding wars? Realistic bank pricing? Wow, it’s all going on. Both investors AND hunting homeowners find themselves in bidding wars very similar to what we experienced in 1999-2002, the main difference is that the prices are down 30-40-50-even 60% from where they were back then. That means Rentals will Cash Flow (what a novel concept, especially to older investors with properties in “nice” neighborhoods like Boulder, Cherry Creek HS area, Golden, Wash Park). IF YOU ARE READY NOW, WE CAN HELP YOU GET A RENTAL THAT WILL CASH FLOW $300-$400-$500 PER UNIT PER MONTH. No, it is not too good to be true. We’re doing it NOW. YOU CAN TOO.
It’s not just CASH FLOW, investors are now fixing and flipping again. Imagine that. The numbers work. Most important, HOUSES ARE SELLING. BUYERS ARE BUYING. Ride this wave, dudes and dudettes! Call us!
Don’t forget, if you have a special need or requirement, let us know. We often see (and pass on) unique properties that could make sense to the right buyer/investor. I am in the throes of negotiation on a 2plex that will have $100K equity AND cash flow $1000/mo AFTER fixup with 100% financing…this works for a couple Single Family Houses, too:
8980 Lilly Dr, Thornton. 3/1/2. OK. We have a comp 2 blocks away, identical floor plan, even with double garage, that sold in mid-November (that’s 3 weeks ago!!!) for $150K. Check this baby out. Buy it at $73.5K, fix it for $11K (or go hog wild and over rehab at $15K, the numbers still work), you’re into it for just under $90K. Now what? SELL IT at $140K for a quick sale (or $130K or even $125K), what do you make? Oh, only $30-40K. Mark my words, if this is still available next week, it will go into my own personal inventory and I’ll rehab it in January. Gosh, back up, rental, less fix so you’re into it at $85K, you get 100% financing (yes you can) on a refi so your PITI is aprx $680/mo and you rent this for $1000 or more OR you get some cash back with the refi and drop your cash flow down to $200. This is a cute house and it’s a HUD.
17690 E Utah Pl, Aurora. 5/2/2. Cute. Buy it at $114K. Only $12.5 to fix, most of that is in windows and roof. If you want to do more work, finish off the basement by adding another bathroom (reconfigure laundry room, est additional $5K) and you have a 5/3/2. This is just a few block from Rangeview HSchool and Mrachek MSchool. Structural issues (minor) have been taken care of (two new posts in basement). Cute, great curb appeal. Say our numbers are off (it goes both ways, we have investors that wonder how we can do this so cheaply and others that wonder why we’re so high in our estimates, a local contractor told me 3 weeks ago that our numbers are in alignment with his estimates), say it costs $20K to fix so you’re into this for $135K. Say our ARV is off, say it’s only worth $160K, so you only make $15K…and that is if things go wrong or badly….You owe it to yourself to view this property and decide for yourself. Run your numbers. Comps are hard. Not a lot goes on the market in this part of Aurora Highlands. Oh, this beauty is a HUD.
3821 Harrison St, Denver, 3/1. Easy first time rehab. Buy at $73K, fix at $7K. Rent at $900. Do the math. If this works, check it out. HUD.
We expect more properties over the weekend so please check back to our website, www.happycanyongroup.com and click on Wholesale.
Happy House Hunting
QUOTE OF THE MONTH:
The simple solution for disappointment depression: Get up and get moving. Physically move. Do. Act. Get going. ~Peter McWilliams