NOW’s THE TIME (We’re the Place!)

 

Wow, our local market continues to evolve. Denver again is “queen of the pigs.” This report just out has Denver leading the pack…we’re at the top with only a 4% decline year to year in our market…compare us with Phoenix with a neg 34% (Las Vegas is not far ahead at a neg 33%). Gosh, what’s not to like?

Home sales plunged to the lowest levels since 1997…and may go lower. These tough times are getting tougher. Here are the highlights of Obama’s homeowner R-E-L-I-E-F plan.  And you thought it was “Tums…”

So what’s to feel good about? Like I said above: Now’s the Time.  The stock market continues to plunge, is our money safe anywhere?  What about real estate? What about it? What about Denver?  WAKE UP!  Take your pick. Multi-family, single family, condo.  You can make money with a fix ‘n flip. You can realize a healthy positive cash flow on a rental. Gosh, there’s even a good market for Rent To Owns. So what is everyone waiting for….  

 

REAL ESTATE WEATHER REPORT

OK. OK. Here’s what we’re seeing in Denver.  Investors are having trouble getting loans. Why is that?  Our Federal Stimulus favors owner occ homeowners, not investors.  What is working? Private money, HELOCs, Hard Money. The best “conventional” financing investors can expect is 70% LTV with full doc…and that’s with a 720 FICO. No wonder investors are not buying with the fervor they were a month or two ago. What does that mean? Better deals, lower prices, banks are taking less. We’re not seeing the “Highest and Best” like we were the past 6-12 months when investors were fighting over lower than usual opening bank prices. We’re not saying this has gone completely away, there is still some activity but…it’s slowed down considerably.  I even saw a house yesterday in Green Valley Ranch that has been vacant for over two years. Ouch.  Think of us as your local stock broker when we tell you to put a “BUY” next to Denver.

People are taking note of the flailing stock market, the fear frenzy, job loss and are looking for financial options. We’re seeing renewed interest in real estate. Real estate remains a viable road to wealth building, in spite of recent foreclosure setbacks. Our market continues to adjust and resize. The old adage: BUY RIGHT remains tried and true today.

So, here’s the dilemma: how can I buy super deals if lenders aren’t lending to investors? Go back to the top of this weather report;  YES YOU CAN get financing…maybe not the financing we used to get…maybe not terrific terms and conditions…maybe…YES YOU CAN (Obama-speak).

 

FOLLOW ME

If you’re sitting on the fence watching the real estate marketplace AND you need a push, call us or check out our Follow Me Program.  We hold your hand through the rehab process, FIND, FUND, FIX & FLIP…or FILL. No classroom, no bootcamp, hands-on take action. Call us for more details.

 

 

Of special note, we extend our sympathy to my good friend and business partner, Sandy Buckstein, whose wife Patty died earlier this week in a diving accident off the Mexican Coast.  Our hearts and prayers go out to Sandy and his family.

 

 

INVENTORY

OK. OK. Inventory. Variety (no, I don’t tap dance!). Some properties make more sense as rentals, others make better flips. Gauge your market, your goals, your needs, what is important to YOU.  We have both multi-families and single family homes that make sense (and can make you money)   We just got another Montbello house, 7 bedrooms and 3 baths…almost 2400 sq ft. Yours for $75K.  We also have a TRIPLEX that should have $70K in equity AFTER fix up. Call for details.

 

3660 Locust St. Denver.  DUPLEX. “North” Park Hill. Brick. 2/1s with 1 garage. Buy this REO for $110K, yeah, $110K, fix at $16K. Location is in demand. One block off Monaco Pkwy.

14419 E Montana Cir. Aurora. DUPLEX.  4/2/1 & 2/2/1. Buy this REO at $143K and fix at $17K, bank did new paint & carpet in one unit!  Rent for one could pay mortgage for both. Good location.

16772 E 8^th Av, Aurora.  6 bedrooms, 2 baths, brick ranch, close to Buckley AFB. Buy this REO at $72K and fix at $12-22K. Strong rent

3137-3139 W Virginia Av, Denver.  DUPLEX. Separate meters. 3 bedrooms  up & 2 bedrooms down.  Buy at $83.5K and fix at $21K. HUD

6740 Locust St, Commerce City.  3 bedrooms and 1 bath with a carport. Buy at $48.8K and fix for $15K.  HUD.

Call us for details.

 

Bon Homepetit!

 

John Fisher

www.happycanyongroup.com

303 338-8000

 

 

QUOTE OF THE WEEK:

The great aim of education is not knowledge but action. ~Herbert Spencer

HOMEOWNERS 1, INVESTORS 0

 

Some score, eh? Is it halftime? Send me in, coach!  Looks like our federal government is offering some bailout incentives to homeowners in trouble. Conditions abound. What happened to the first time homeowner incentives? Here’s an great comparison to the Bush incentive vs the Obama revision. If this is hard for ME to understand, how do you think Barry and Betty Buyer will sort this out? Is there anyone that speaks “government-ese?”

From the “because-we-have-nothing-better-to-do department…” Our local Colorado legislators are piqued that  RealtyTrac reports our foreclosures inaccurately; this pique has led to a “clean up” bill that may report our “condition” more accurately.. we’re now number 11 per RealtyTrac. Who knows where we are…really…is there a source of state pride?

Hey, there’s a social network site you may find helpful, www.biggerpockets.com.  Check it out. Good write up in the Post 10 days ago.

From the “no-man-is-an-island department;” a book by John Maxwell: Teamwork Makes the Dreamwork.  Think about it.

 

 

REAL ESTATE WEATHER REPORT

It’s almost  Springtime.  Warmer temps, heavier snow, Flips are in the air. Keep those prices down and you’ll be fine!  Remember, it’s dicier and spicier when you hit $250K sale prices.  Don’t forget, many are starting to get their tax returns, good “option down” money. Rental markets are doing ‘OK,” especially single family and not in Colorado Springs (more and more Co Springs investors are buying in Denver). 

 

IN VENTORY

Here’s what we “got….”  We have three multi-families not “listed” yet: a triplex in Aurora at $106K that will rent for around $2200/mo after fix up…a brick duplex in North Park Hill for $110K…an Aurora duplex for $143K with 6 bedrooms, 4 bathrooms and 2 garages.  Call us for details. We’ll post them when we receive final documentation.

 

4890 Eagle St, Denver. Montbello.  4 bedrooms, 2 baths, 2 garages. Lite fix.  $79K to buy and $15K to fix. REO.

10525 Montview Bv, Aurora. 6 bedrooms, 2 bathrooms, 1 car garage. This REO is $64K and nearly $20 to fix.

16772 E 8^th Av, Aurora.  6 bedrooms, 2 baths, brick ranch, close to Buckley AFB. Buy this REO at $72K and  fix at $12-22K. Strong rent

3137-3139 W Virginia Av, Denver.  DUPLEX. Separate meters. 3 bedrooms  up & 2 bedrooms down.  Buy at $83.5K and fix at $21K. HUD

6740 Locust St, Commerce City.  3 bedrooms and 1 bath with a carport. Buy at $48.8K and fix for $15K.  HUD.

Call us for more information. Lots more deals in the hopper that can make you hoppee.

 

Bon Homepetit!

 

John Fisher

www.happycanyongroup.com

303 338-8000

 

 

QUOTE OF THE WEEK:

The winner is always part of the answer.

The loser is always part of the problem.

The winner always has a program.

The loser always has an excuse.

The winner says, “Let me do it for you.”

The Loser says, “That’s not my job.”

The Winner sees an answer for every problem.

The Loser sees a problem for every answer.

The winner sees a green near every sand trap.

The Loser sees a two or three sand traps near every green.

The Winner says, “It may be difficult but it’s possible.”

The Loser says, “It might be possible but it’s too difficult.”

Be a Winner.

~Vince Lombardi~

WWW.OPPORTUNITYISNOWHERE.COM

 

So what did you read in the URL above? Did you read OPPORTUNITY IS NOWHERE OR OPPORTUNITY IS NOW HERE?  Newsweek Magazine talks about WHAT IT TAKES TO SURVIVE and cites a recent book, The Luck Factor, by Wiseman. Wiseman asks the aforementioned question.  Are you lucky or does a dark cloud follow you around?  Cause for pause.

What else? Home prices in record plunge.  Stay tuned!

Fannie Mae is opening up their program for investors again. We can have up to 10 properties…with conditions. Click HERE for more details. Cash in hand is key.

 

Happy Friday the 13^th.  No, we’re not going to talk about gloom and doom!

Happy VD for tomorrow. Speaking of tomorrow, don’t forget to attend our Rehab Breakfast Club, February 14, 2009, 7-9AM at Perkins Restaurant, I-25 (Buchtel) & Colorado Bv.  Among other topics, we’ll be discussing financing, rehabbing, our local market, and the “gotchas that getcha!.”

 

REAL ESTATE WEATHER REPORT

Blue skies or heavy rain (that’s perspiration for some of us)?  Or drought? Where is the opportunity?  Let’s start with your goals. Do you have them written down? Are they Specific, Measurable, Attainable, Realistic and Time sensitive (that’s the SMART test)? What steps have you taken so far? Obstacles to overcome?  Or is that opportunity conversion?

 

IN VENTORY

Here’s our wholesale inventory.  We have two properties not “listed” below.  We expect them to be available in the next few days. One is a 4/2/1 & 2/2/1 duplex in Aurora, the other is a SFH in Morris Heights, very close to the Fitz Med Center.  Let us know if you’re piqued.

4890 Eagle St, Denver. Montbello.  4 bedrooms, 2 baths, 2 garages. Easy fix. Hey, here’s a little secret: properties are flippin’ in Montbello.  This REO can make you money. Flip it or rent it. $79K to buy and $12-15K to fix.

10525 Montview Bv, Aurora. 6 bedrooms, 2 bathrooms, 1 car garage (convert from carport).  Great house, close to bus. Oh, this REO is $64K and nearly $20 to fix.

16772 E 8^th Av, Aurora.  6 bedrooms, 2 baths, brick ranch, close to Buckley AFB. Buy this REO at $72K, fix at $12K for a rental or $22K for a flip. Should rent over $1200/mo or sell for $140K or more. Closing is delayed until March.

3137-3139 W Virginia Av, Denver.  DUPLEX. Separate meters. Upper unit has 3 bedrooms and 1 bath, lower 2 bedrooms and 1 bath.  Buy this at $83.5K and fix at $21K. This HUD should an easy rent for $800 & $700/mo or more. Great value.

6740 Locust St, Commerce City.  3 bedrooms and 1 bath with a carport. Buy at $48.8K and fix around $15K.  Light fix with good cash flow. So, you’re into this HUD for under $65K…rent it or flip it. Your choice.

1185A S Fairplay Cir, Aurora.  3 bedroom, 1 bath, and 1 car garage. HOA is $150/mo. Buy just under $50K and fix at $5K. This HUD should rent at $950/mo so you could see over $300/mo in cash flow.

That’s it. Call us for details. Great deals, Lots of choices. Your call.

 

Bon Homepetit!

 

John Fisher

www.happycanyongroup.com

303 338-8000

 

 

QUOTE OF THE WEEK:

The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity. ~John F. Kennedy

CONSUMER CONFIDENCE- FRAIL..FLAIL..FAIL

Wow, how can we get a bead on a moving target?  Layoffs abound.  Businesses close.  Banks fail.  Stocks fall. Economy sinks. Lenders won’t lend (or cannot).  What does “BAILING” have to do with “SAILING?” OK, you get wet!  It can be difficult to “put on a happy face” in light of everything going on.  Confidence? Optimism? Faith? Sometimes it comes down to just that! I believe. I know.  It’s OK. We’re OK.  Perception is Reality. There it is again.  Some things just won’t go away. Where does that leave us? Paralyzed?  Frozen? Unable to move?  Or are we up for a challenge?  We must persevere!  And GROW…our minds, our business, our influence, how we affect everyone we touch.  Put that smile back on your face.  Make it work!  Here’s some good news:

$15,000 tax credits for new homeowners? That should help regain confidence!  Great news for realtors, mortgage brokers, AND INVESTORS SELLING RETAIL PROPERTIES. GOSH, THAT’s US!

Who is lending? Wells Fargo led the nation in residential mortgages in 2008 with Morgan/Chase 2^nd, and Bank of America 3rd.  Loans are being made. People are buying houses.

 

REAL ESTATE WEATHER REPORT

Flippers of the world rejoice, per the above (new homeowner tax credit), our government is offering huge tax incentives to new homebuyers. Let’s give them what they want, a good house at a good price. Everybody wins. What’s not to like!  Blue skies.

Investor financing is becoming harder to find than 80% non-owner occ financing. “Take outs” (investor refinance) are becoming as rare as “cash out” (as in money back) refi’s.  Investors are skittish, hesitant to buy and hold or flip. We all wonder if our market has really hit bottom or do we have further to fall.  What’s holding YOU back?

Denver deals are everywhere: flips are working in more neighborhoods, rentals with healthy cash flows are the rule.  Now if we can just find an efficient and effective property management company….

 

Who would have ever thought that investing in real estate could be more secure than investing in the market? If you are not comfortable rehabbing, you (or your IRA) can be the bank. Call us for details. Or maybe you want to learn more about this business…call us, we can help. Meanwhile, enjoy the roller coaster ride and don’t fall out. 

 

INVENTORY

If you haven’t noticed, our inventory has not changed much.  We’re doing as much as we can with our resources. These are real deals. They all will cash flow and you can still get 100% financing (in a convoluted carefully orchestrated way).  Don’t tell yourself five years from now that you WISHED you had done THIS or THAT. No one ever got rich on a wish (blow that candle out or catch a falling star). It is hard work. Do NOT let anyone kid you. This stuff ain’t easy…but it is rewarding…if you make it so!

 

16772 E 8^th Av, Aurora. 6 bedrooms (3 non-conforming), 2 baths. ½ mile to Buckley AFB. Buy at $72K rehab at $12K as a rental or $22K as a flip. This REO should cash flow well. I may take this down next week.

10525 Montview St, Aurora. 6 bedrooms and 2 baths, close to bus, very close to Havana.  As a rental you could be into this for $80K. This REO can make you money!

5100 W Gill Pl, Denver.  This 3 bedroom, 1 bath, 1 car garage REO house is close to Sheridan and Mississippi and the rehab runs from $15K up to $24K if you doll it out. Lots of options. Check it out.

1185A S Fairplay Cir, Aurora. CONDO. 3 bedrooms, 1 bath, 1-car garage. $150 HOA. Buy this at $49.9 and fix at $5K. This HUD will cash flow. Don’t forget, condos are less risky than single family homes; less reward, too, but a good rental hedge with fewer typical headaches.

 6740 Locust St, Commerce City. 3 bedrooms, 1 bath, 1 carport. Buy at $48.8K and fix at $14.5K.  ARV around $100K.  Rent or flip. This is a HUD.

7000 Newport  St., Commerce City. 3 bedrooms, 1 bath, and 2 garages on ½ acre. Buy at $67.5K and fix around $15K. This would be a gearhead’s dream..or a small business owner with vehicles that need space. This property has already been foreclosed.

2200 Elmira, Aurora. 5 bedrooms, 1.5 baths, 1-car garage. Buy at $59K and fix at $19K. This HUD will sell around $120K or cash flow well.

2842 S Lincoln St, Englewood. 3 bedrooms, 2 baths. Buy at $110K and fix at $25K including $15K in structural/foundation work. HUD.

3137-3139 W Virginia Av, Denver. Over/Under DUPLEX, 3/1 up and 2/1 down. Buy at $83.5K and fix at $21K. This HUD should rent for $800 up and $700 down, maybe more. That means a HUGE cashflow if you can put up with two tenants.

4890 Eagle St, Denver. Montbello. Newer Montbello. 4 bedrooms, 2 baths and 2-car garage. Buy at $79K and fix at $12-15K. This REO is on the corner in SE Montbello.

 

It’s been a while since we’ve had 10 properties in active inventory. Check out our website and do your diligence.  We hope you see the VALUE in these properties and how they can make you money. Take advantage of these opportunities.

 

Bon Homepetit!

 

John Fisher

www.happycanyongroup.com

303 338-8000

 

 

QUOTE OF THE WEEK:

The future is not a result of choices among alternative paths offered by the present, but a place that is created–created first in the mind and will, created next in activity. The future is not some place we are going to, but one we are creating. The paths are not to be found, but made, and the activity of making them, changes both the maker and the destination. ~John Schaar