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).
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.
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 8th 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.
QUOTE OF THE WEEK:
The great aim of education is not knowledge but action. ~Herbert Spencer