Denver Real Estate Investment…a Ripe Opportunity
January 12, 2012 by Bob Schenkenberger · 1 Comment
Watch this Video for a national perspective on the fundamentals of Investing in Denver Real Estate.
If you have considered investing in real estate but all of your disposable income is tied up in retirement accounts, I have a solution! You can ABSOLUTELY use your personal IRA account as a self-directed vehicle to buy single family homes.
You can do this on your own, or form small partnerships of up to four members. You would then take part of you portfolio and invest in homes rather than the stock market. The great thing about real estate is it is an investment asset that always has demand, shelter!
Just a few key factors of using your IRA to buy Real Estate:
- You pick the individual property you want to buy and negotiate the price and terms.
- Your IRA is held by a custodian, Lincoln Trust Co. is the one I use. This is no different than Merrill Lynch, or Dean Witter, etc.
- Your custodian holds title for your benefit, in the percentage you own for a specific property. Example: Lincoln Trust Co. for the benefit of Bob Schenkenberger 52%, and Lincoln Trust Co. for the benefit of John Smith 48%.
- All net rental proceeds go directly into your IRA account, tax deferred, just like when your IRA stocks earn dividends.
- You name the property manager of your choice, including a relative.
- When you sell the property, any gains go directly into your IRA account, no capital gains taxes. Just like when you sell a stock for more money than what you paid, it just adds to your account.
If you have an interest in learning more please contact me and I’d be happy to sit down and explain how you can take advantage of the best real estate investment market in the country!
Denver Foreclosure Slowing
November 22, 2011 by Bob Schenkenberger · Leave a Comment
Megan Gates is an active blogger who provides written work to the blogosphere pertaining to New York City Real Estate on behalf of Elliman.com, home improvement and the latest architecture, design and fashion. Follow her on twitter @MEGatesDesign.
The Housing Bubble
With the burst of the housing bubble in recent years, many homeowners had the living nightmare of seeing their home’s value plummet, having difficulty repaying mortgages, having difficulty selling their property, or facing foreclosure. However, after many banks and lending companies cleaned up their lending processes, the new trend in the Colorado housing market is seeing the rate of foreclosures drop.
According to a report done by the Colorado Division of Housing, the third quarter is seeing the fewest new foreclosures since 2006. The entire year can end with fewer filings than last year but there could be many that are pending that won’t be counted.
Colorado reported 8,026 new foreclosure notices in the third quarter and 4,627 sales of those homes at an auction; a sold property at an auction is the final step in the foreclosure process. In well-populated metro counties, such as Adams, Denver and Arapahoe, they are seeing declines of about one-third in new foreclosure filings.
All around the country, investors are seeing an opportunity with all of the foreclosures popping up around the country; many investors are buying single family foreclosed properties like these ones on http://realestate.msn.com/for-rent-foreclosed-owners-welcome and renting them out to those who used to own. Many who have been foreclosed on would rather rent a single family home then have to go back to apartment living, so the situation is proving beneficial for both parties.
Housing Funds for Seniors and Disabled
November 16, 2011 by Bob Schenkenberger · Leave a Comment
Announced by HUD today, almost $750 million has been earmarked to help the housing needs of low income seniors and those with disabilities. Contact us for more info!
Here is the official HUD announcement:
OBAMA ADMINISTRATION ANNOUNCES $749 MILLION TO FUND HOUSING
FOR VERY LOW-INCOME SENIORS AND PERSONS WITH DISABILITIES
WASHINGTON – Thousands more very low-income senior citizens and persons with disabilities will have access to affordable supportive housing thanks to $749 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These grants will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly and persons with disabilities.
The grant funding awarded under HUD’s Sections 202 and 811 Supportive Housing programs will kick start construction or major rehabilitation on more than 189 housing developments in 41 different states and Puerto Rico. When complete, more than 4,800 elderly households and persons with disabilities will be affordably housed with access to needed services. Read a detailed summary of each grant.
“The Obama Administration is committed to helping our senior citizens and persons with disabilities find an affordable place to live that is close to needed healthcare services and transportation,” said HUD Secretary Shaun Donovan. “Recent bipartisan changes to these two supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own.”
Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to both programs. Nonprofit grant recipients will now receive federal assistance that is better connected to state and local health care investments, allowing greater numbers of vulnerable elderly and disabled individuals to access the housing they need even more quickly.
Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto. In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD’s Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes. Section 202 provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to meet their unique needs (see attached funding chart).
Section 811 Capital Advances will provide $137 million nationwide to assist very low-income persons with disabilities through 92 projects in 35 states. An additional $12.6 million will be available for project rental assistance contracts (see attached funding chart). Most of the housing supported through the Section 811 Program will be newly constructed, typically small apartment buildings, group homes for three to four persons, or condominium units that are integrated into the larger community. Residents will pay 30 percent of their adjusted income for rent and the federal government will pay the rest.
HUD’s Section 811 program provides housing for households with one or more very low-income individuals with a disability. Under this program at least one person must be 18 years or older and have a physical or developmental disability or chronic mental illness. The program provides persons with disabilities the opportunity to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.
HUD provides these funds to non-profit organizations in two forms:
Capital Advances. This is funding that covers the cost of developing, acquiring, or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years for (under Section 202) or very low-income persons with disabilities (under Section 811).
Project Rental Assistance Contracts. This is funding that goes to each development to cover the difference between the residents’ contributions toward rent and the cost of operating the project.
Residents must be “very low income” with household incomes less than 50 percent of their median for that area. However, most households that receive Section 811 or Section 202 assistance earn less than 30 percent of the median for their area. Generally, this means that a one-person household will have an annual income of about $13,500.
Get Ready for Ski Season!
November 7, 2011 by Bob Schenkenberger · Leave a Comment
Colorado’s Ski Season kicks off, in earnest, this weekend! Here are a few photos to get you fired up!
If you aren’t able to get to Colorado’s world class skiing within a few hours of your home, let me know! The Get Home Denver Team will be happy to hook that up for you!
Or, if you would like to buy a vacation property or second home, minutes from the slopes, we’ve got you covered there also!
Photo Credit: On Fire (by eatbitter)