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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.

New Wholesale deals coming early next week.  I’ve identified 5 that look great on paper.  I am going to look at them and shoot some pics over the weekend, and will present the ones that are actually worth buying Monday or Tuesday. 

I hope all 5 will be worthy of our presentation, but that’s why we screen them for you!

Check back next week, or better yet subscribe and be notified automatically!

Have a great weekend!