PREHAB, REHAB, & FREEHAB
No, this is not a new law firm. Only REHAB is in the dictionary. PREHAB is cleaning up the property and doing a few basic improvements (light paint, e.g.); a clean basic house sells better than a trashed out house. A common application to PREHAB is to buy a house at county auction, do some basic improvements, and sell it for $10-25K more. PREHAB also works well for Rent To Own properties. FREEHAB is a contractor’s response to a cheap investor (those two words DO go together!): “It’s REHAB, not FREEHAB!”
1. Home prices begin to stabilize
2. HARP could lead to refi surge
3. Mortgage rates likely to remain low
4. Investors, foreign buyers flock to the market
5. Foreclosures and short sales moving quickly
You won’t get any arguments from me. All of these are “spot on” in our marketplace!
20% of all home sales in 3Q2011 were in foreclosure. Days on Market was up to 193 nationwide.
7 Foreclosure deals around the country. Can you say “cheap?”
In case you were sleeping: Fed Extends…Low Rates Through 2014. New finance, refinance, you name it. Low rates will be here for a couple years. Maybe it’s time to buy that duplex, that rental, that 2nd home, heck…that flip!
REAL ESTATE WEATHER REPORT
Like many professions, REHAB is an art. Some do it better than others. There are systems, processes, rules, regulations, restrictions, and tradition that all must be measured and considered. Although I do not call it my “signature,” I always put canned/recessed lights in the kitchen; I always put in an over-the-range microwave oven; I always paint the front door a warm shade of maroon; I always put a vanity cabinet in the bathroom (no stand-alone pedestals!). Like most investors and rehabbers, I will go with what has worked for me in the past…until it no longer works; then I adapt and adjust.
It appears we’ve turned the corner with properties. We’ve recently seen more investor houses go U/C and we’re seeing better wholesale deals. Yeah, inventory is low; we hope sellers on the sideline will put their houses back on the market. I’ve already seen it in my neighborhood this week. We are bullish, we are encouraged!
Colorado employment growth Dec 2011 hits 5 year high! Unemployment now at 8.7% and heading down! See, good signs are everywhere: We Buy Houses….
Thanks for a great Rehab Acquisition Workshop last weekend. Lots of information, data, and ideas. Our next workshop will be May 19-20, 2012.
On LinkedIn.com? Join our local real estate investor forum, John Fisher’s Breakfast Club, continues to grow on LinkedIn.com. Register. Read. Post questions. Network. Extend your resources.
Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!). We appreciate feedback on Newsletter / Blogs and Breakfast Club meetings (Feb 11 is next). Thank you all for your news tips and leads! If you’re not on our list and want to be, LET US KNOW. Call, Write, Text, Tweet, Facebook (yeah, it’s a verb!), E-mail, drop by. Thank you for helping us help you!
INVENTORY : Inventory comes and goes. Sure the market is down, and so is our inventory. We expect more anytime, any day, any place. Keep checking, or, better yet, follow on Twitter or get a TEXT every time we get a new deal.
Call us, 303 338-8000, for information or questions. FU and ARV are estimates. Actual results may vary (is that small enough?). We post ‘em when we get ‘em so bookmark or TWITTER or TEXT: Read the side bar (top left). If you don’t want to tweet, follow the instructions and we can send you a text message. You’ll be notified when we put a new property up onto our website. Simple. Some of our properties never make it to this blog/newsletter.
We expect a 4/2/1a in 80011 last week and it’s still in the works but we cannot post it until we have the final signatures. Expect a sale price of around $76.5K for a house that works as a flip or a rental. Keep watching our website. Hopefully, this will “hit” later today.
328 S 3rd Ave, Brighton. Buy this SS needs some love. 4 bedrooms, 2 baths brick ranch with oversized 2 car garage for $114K with an ARV of $200K. Flip it or rent it, make some money! We expect this to be snatched up today or tomorrow. Take action. Act quickly!
1786 Galena St, Aurora. While not a “true” wholesale, this cute 2 bedroom house is rented for $800/mo with a lease through June, 2012 and tenants want to buy it. With a recent appraisal of $86K, this is a great property for the landlord who doesn’t want the hassle of rehab. Buy this for $76K and expect cash flow of over $400/mo!
QUOTE OF THE WEEK:
“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” ~Niccolo Machiavelli