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The number of unsold homes in the Denver area continues to decline. In October there were 23,120 homes on the market, a 20.1% drop from 2007!  Inventory hasn’t been this low since January 2005, when there was slightly less than 21,000 homes available.

One of the primary reasons for the lessening inventory is the fact that would be home sellers, are not putting their homes on the market given the current conditions.  Many sellers we work with are choosing to be landlords, or just sit tight until the competition from bank owned properties subsides.  Unfortunately, they may have to wait a while.  I predict the REO properties will continue to dominate our landscape for the next 6-9 months.

Another reason for the smaller inventory numbers is that we’ve seen investor money start to pour in.  There has been 3 occassions in the past month where Get Home Denver Team clients, have lost buying opportunities due to bids on properties we identified.  These multiple offer scenarios are a good sign that this market is on the rebound!

There are some really good deals out there, and investors are starting to gobble them up!  We scour the market on a daily basis, and present these deals to our clients.  If you would like to be included on these deals, simply contact us and I’ll make sure you are receiving this info!

Image by pbo31 via Flickr

HomeVestors of America Inc. ranked Denver No. 6 on its list of top 10 markets for residential real estate investing in the third quarter…

Based on HomeVestors data, the best U.S. markets for home sales, in order, are:

(1.) Dallas
(2.) Houston, Texas
(3.) Fort Worth, Texas
(4.) Atlanta, Georgia
(5.) San Antonio, Texas
(6.) Denver, Colorado
(7.) St. Louis, Missouri
(8.) Philadelphia, Pennsylvania
(9.) Milwaukee, Wisconsin
(10.) Richmond, Va.

Based in Dallas, HomeVestors was started in 1996 and now has more than 230 franchisees in 35 states. The company’s slogan is “We Buy Ugly Houses.”  Franchise Brands LLC of Connecticut became majority owner of HomeVestors in June 2008, acquiring 62 percent of it.

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Fannie Mae has announced that they are lowering the maximum loan-to-value (LTV) ratios for a number of loan types. The three changes that will have the most impact follow:

Principal residence, cash-out refinance: Current max is 90%, new max is 85%. This means that if you refinance your primary residence, you can’t get more than 85% of the value if it’s a cash-out transaction.

Investment property purchase: Current LTV max is 90%, new max is 85%. This means purchasers of investment properties will need 15% down.

Investment property refinances (all types): Current max LTV is 90% for rate and term refinances and 85% for cash-out refi’s, new max is 75% for both. This means the most you can get with an investment property refi is 75% of the value.

The changes are not in effect yet for loans that are run through Fannie Mae’s automated underwriting system, and Fannie Mae has not announced when they will upgrade their underwriting software. They usually make upgrades relatively soon after making announcements.

With the bailout of Fannie Mae and Freddie Mac, there are sure to be some changes in a variety of areas.

Stay tuned. We will have follow up information when available.

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If you are a regular subscriber to BlogHomeDenver than this is old news to you; for everyone else, The Denver Post recently published an article touching on some of the incredible deals for investment buyers in the current real estate market.  The current credit crisis and difficulties in the national real estate market are providing opportunities for investors to take advantage of the banking industries misfortunes and missteps.

The newspaper article highlights an active investor who is jumping on this market.  The take-home message for Denver investors is the spike in properties for sale under $100,000.  There are currently over 2000 properties priced under $100,000.  The majority of these are single family residences that make ideal rentals with easy cash flow in the extremely tight rental market (under 3% vacancy).  Denver investors can pick up a detached residence at the same price as a condo and rent it without the HOA fees.  The condo and townhome values have been hit the last few years.  Buyers can avoid the uncertainty of Home Owner Associations (HOA) fees rising due to depleted reserves, or delayed maintenance, or unpaid monthly fees due to foreclosed units.  The HOA is the weak link in condominium investing because it directly cuts into profits by taking a portion of the tenant paid monthly rent.

As an example, one of our investors purchased a rental this year for $65,000.  Compare this to the previous sale price of $147,000 and that is a 66% sale on income property.  It gets even better.  Let’s assume it’s a 25%, or $16,250.00, down payment since it’s an investor loan.  Let’s add on $10,000 for closing costs and immediate repairs or updating for a $26,000 total investment on an asset that is worth almost 3 times that value, at a minimum.  If we look at the previous sale price compared to the initial investment (only 17%), the asset value is over 5 times the investment cost!

This Leverage (not to mention the Tax Advantages) is the TRUE STRENGTH of Real Estate Investment!

So you have to ask yourself if you want to begin to diversify your investments with real estate now, or wait for the market to recover and the prices to begin to climb.  If you don’t want to step up all by yourself, look to form a small group of willing investors to take a first step towards building your own real estate empire.  Now is the time, Denver is the place.

photo credit: hackshaven

Excessive loans against your credit card might result in loss of your car insurance as well as putting up your homes for sale.

The vacancy rate for residential real estate in the Denver area is at a meager 2.7%. The availability of rental property is at the lowest point since 2001!

In Arapahoe County, the vacancy rate is 1.6%.

To view more, as reported by the Rocky Mountain News, click here!

What this means to the Real Estate Investor, is BUY!  When there is a large supply for purchase, and small supply for rent, you have a recipe for great returns!

Contact us today for information on becoming a Real Estate Investor!

photo credit: respres

According to The Millionaire Real Estate Investor by self-made millionaire and real estate investor Gary Keller, most successful real estate investors have had to overcome certain beliefs that later proved to be unfounded. Some of these beliefs center around the way they view themselves as investors, and the others are focused on beliefs about investing. By addressing these doubts and fears, and recognizing that they’re unfounded, you’ll eliminate the major barriers to becoming a real estate investor. ·

Personal Myth #1: “I don’t need to be an investor. My job will take care of my personal wealth.” Truth: History indicates that few jobs pay enough to create true financial independence. Financial wealth building depends on another vehicle. ·

Personal Myth #2: “I don’t need or want to be financially wealthy. I’m happy with what I have.” Truth: Financial wealth offers greater opportunity to care for yourself and others, and that is something most everyone wants and needs.·

Personal Myth #3: “I can’t do it.” · Truth: You don’t know what you can or cannot do until you actually try. ·

Investing Myth #1: “Investing is complicated.” · Truth: Investing is as complicated as you make it. ·

Investing Myth #2: “All the best investments require knowledge most people don’t have.”· Truth: Your best investments will always be in areas that you can or already do understand. ·

Investing Myth #3: “Investing is risky. I’ll lose my money.”· Truth: Investing and gambling are not the same thing. Investing, by definition, is not risky. ·

Investing Myth #4: “Successful investors can time the market.” · Truth: Timing isn’t about being in the right place in the right time. It’s about being in the right place all of the time. ·

Investing Myth #5: “All the good investments are taken.” · Truth: Plain and simple, every market, in every time, has its share of good investments.

If you’re interested in investing, but you have doubts about whether or not investing fits in with your current financial program, it’s best to consult with a qualified Real Estate Broker and reputable Mortgage Planner who can assess your financial situation and put you on a plan that targets your goals. As with any financial program, gaining clarity on the facts is always the best place to start.

There are a number of key factors to consider when investing in Real Estate.  One of the most important for the long term thinkers, those who are buying with the intent to hold for a few years (3-5 minimum) is vacancy rates.  Vacancy rate is the percentage of units that are empty.

No one wants the cash flow pimp of an empty unit!  Cash flow is king,  and if the market is saturated with available units, it means the owner/investor will have to eat a monthly payment, or reduce the rent charged to gain a tenant.  Both of these options kill cash flow!

These statistics just published by the Rocky Mountain News, continue to show that the vacancy rate in Denver is a positive sign for the Real Estate Investor.

Apartment vacancy rates in the Denver metro area fell to 5.9 percent during the first quarter of 2008, falling from 7.1 percent during the first quarter of last year.

To go along with the tremendous value opportunities in our market, this is a great time for the investor, or wanna-be investor to get into the game!

Please contact us to get more information, as well as, access to our exclusive list of “Wholesale” properties we find for our clients!

The Farm @ Arapahoe County

$75,000 below value! - 29% Discount!

• Listing Price in Mid $300’s
• 4 Bedroom
• 4 Bath
• 3036 Sq. Ft.
• Bank Owned

Click here to go to the Full Disclosure Information on this property. Including, Price, Address, Investment Analysis, and Market Analysis!

There are basically 3 types of people buying these properties currently.

1. Those looking to take advantage of this market and invest in real estate.

a. We have had people buy individually, and form small groups to buy through an LLC. (if you want info on how to do this, please let us know. We are happy to give you any info you’ll need to get started.)

2. Those looking to take advantage of this market and Move into a new home.

a. One caveat, if this is the category you fall in, you must be willing to keep your current home as an investment. These deals can NOT be contingent upon the sale of a property.

3. First Time Homebuyer’s

a. This is the best time in over 20 years to buy your first home. We have special mortgage arrangements such that the first time home owner, can purchase with little or no money down!

All of our Wholesale Property Opportunities are for our clients only, and are password protected. If you would like access to these special deals, please contact us for qualification, and the password.

Click here for our current available deals!

We’ve made the process very easy. First sign up to receive our blog feed. We will post every investor only opportunity here, and you will only be notified if you have subscribed. You can also check back on the site daily, if you choose, just not very efficient.

When a property is posted, you will have the ability to click on a link that will take you to the properties overview and analysis. This page is password protected, and will change monthly.

To get everyone started, this month’s password is “feb2008″, type it in without the quotes! Then starting around the beginning of March, I will send out a post telling everyone, that there is a new password. It will be necessary for you to contact us for the current password, as we don’t want all the detailed information out in the public eye. This would only create more competition for the properties! We want our clients to have first, and somewhat exclusive access to these deals. Without password protection, anyone with internet access could contact their own broker, and compete with you!

So there you have it. There will be a number of properties posted in the next day or so.

Click here for our current available deals!

Get ready to get a GREAT deal!