How Do You Know What You Don’t Know?

 

This may be THE biggest question we face. In life, in work…period.  Sure, “hindsight is 2020”… “if I knew then what I know now.”  Another BIG question is “if I had it to do all over again, what would I do differently?”  Everytime I complete a project (rehab, e.g.), I ask that question as part of my “lessons learned” review: what worked, what didn’t, what changes would I make, how could I have improved the project, etc.  Nonetheless, HOW DO YOU KNOW? Short answer is “you don’t!” Yet, it’s experience that makes a difference. One of my favorite teaching tools is to talk about my mistakes and what I learned from them; such that our students will (hopefully) not make the same mistakes.  Another learning tool we must practice to master is to gauge and mitigate and control RISK! Make decisions based upon the facts on hand AND your gut. It comes down to developing a great network and sharing your experiences (which is exactly what we do in our Breakfast Club (see Breakfast Club tomorrow below).

HUD STEALS for you investors who are looking for out-of-state deals (this is just a sample of potential bargains available; click on link for more information; all at investor status; “IE” means FHA-lender repairs are under $5K, “IN” means insurable, OK, for FHA loan as is);who says there are no bargains out there? These HUDs may “go” quickly: 

Home prices hit new highs in 10 states. 33 states are at or within 10 percent of their price peaks, going back to January 1976…10 states…reached new price peaks:”

  1. Alaska
  2. Colorado
  3. Iowa
  4. Nebraska
  5. New York
  6. North Carolina
  7. Oklahoma
  8. Tennessee
  9. Texas
  10. Vermont

Millennials are taking over2015 sees the millennial generation surpassing boomers and Gen X to become the largest generation in our workforce. Is it time to retire?

What to expect from housing in 2H2015: (who needs a crystal ball when we have economists and pundits prognosticating and steering our economy to who knows where?)

  • Home prices continue to rise but at a slower pace
  • Mortgage rates are rising
  • Low inventory will continue
  • Higher mortgage rates may cause home prices to level out
  • New home construction still lags, spec houses are rare
  • Rents will continue to rise
  • Vacancy rates are at record lows

Home improvement projects: do you hire it out or do it yourself? Here’s some improvements best left to the professionals:

  • Tree removal
  • Roof repairs
  • Fence installation
  • Outdoor pathways
  • Outdoor shower

Here’s another wonderful interactive map courtesy of RealtyTrac.  This time it’s Buy-to-Rent Returns in Major Counties throughout the USA. Best buy-to-rent returns are in Detroit, Atlanta, Cleveland, and Philadelphia.  They also indicate buying is more affordable than renting in 66% of our markets!

The latest Mortgage Rates: 30 Year fixed at 3.85% and 5/1 ARMS at 2.81%. Expect investor (non-owner occ) rates to run about ½ point higher on non-owner occ loans. (These are AOL/Zillow.com reported average rates as of Thursday) 

REAL ESTATE WEATHER REPORT

We’re seeing a little loosening locally. Prices are still climbing, but not “as much.”  Rentals are still hitting record territory.  How long?  How far? Lots of cash out there. Lots of opportunity if you know what you are doing!  If not, partner! Mentor! Network! Don’t just sit on your thumbs!

Here’s an article from the Denver Post on providing housing to the homeless “…Millions of dollars in government vouchers (are) available to cover rents and help move people off the street.”  There are even funds to cover rental repairs. Problem is, very few landlords are participating and that money will be lost if it is not used.

Don’t forget our Breakfast Club tomorrow, Saturday, July 11. Doors open at 0630 and the fun begins at 0700 (that’s AM!!!).  If you’ve never attended, you owe it to yourself to check it out. No registration or fees, just show up. Find out why so many investors keep coming back. It’s a networking paradise!

We expect another sell-out to this popular course July 18: Out of State Investing. Registration/info HERE. We’ll provide lots of demographic sources and help you with a system or two. Bonus handout will be HOW TO VIDEO A PROPERTY IN 3 MINUTES (this document is suitable for immediate use!). More bonuses to come.

Coming August 15-16: REHAB ACQUISITION WORKSHOP. This 2 day training class prepares you to estimate fix up costs and after repair value. Registration link will be up next week.

We’re looking for people looking for us!  Our Invest Success Mentorship Program is ongoing.  We offer LOCAL webinars, house tours, and small, personalized classes as well as hands-on on-site experience.  You will learn where and how to look for deals!  Oh, and our flagship program requires you to REHAB A HOUSE! You’ll have our ear for a year! Amp up your business with custom systems and procedures. Go to our website for more information. Better yet, call us. Nothing ventured, nothing gained!

Call us with tips, rumors, conjectures, deals, and cold cases (we’re thirsty!).  If you’re not on our list and want to be, LET US KNOW. Write, Text, Tweet, Facebook (the verb), E-mail, drop by.  Thank you for helping us help you! 

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INVENTORY: Inventory flows & goes: CHECK ‘EM OUT!!! More coming soon!!! NOTE: if you don’t reach us by phone, text us at 3035641680. Happy Hunting!

1530 S Utica St. Denver. 3 beds, 1 bath, and 1 car attached garage. Buy me for $205K.

1601 S Ivanhoe St, Denver. 3 beds, 1 bath, 2 car attached garage.  Buy for $425K. Huge potential!

675 Balsam St, Lakewood. 4 beds, 2 baths, 2 car garage. Dated but great location. Buy for $275K.

12510 Vrain St, Broomfield. 4 beds, 3 baths, 3 car garage, light rehab. Buy me for $360K.

224 S Kathleen Av, Milliken. Weld County! 1 bed, 1 bath with carport. Cheapo. Buy for $77K.

3401 S Ivy Way, Denver, University Hills with basement!  3 beds, 2 baths with 2 car garage. Buy for $295K.

1095 S Ouray St, Aurora. Tollgate Village. 5 bedrooms and 3 baths with 2 car attached garage. Buy for $240K.

2948 N Ivanhoe St. Denver. Park Hill. 4 beds, 1 bath. 1 car attached garage. Buy for 330K.

2406 W Yale Ave, Denver. 3 beds, 2 baths with 2 car detached garage; it needs lots of LOVE! Buy for $220K and make it shine!

7738 Lamar St, Arvada. 4 beds, 2 baths with 1 car attached garage. Easy fix. Buy for $235K.

1285 W Chenango Way, Morrison. 3 bedrooms, 2 baths, and 2 car attached garage. Great neighborhood. Buy me for $210K.

8418 Allison Ct, Arvada. 4 bedrooms, 3 baths, 2 car attached garage in popular Arvada! Buy for $260K.

1265 S Fairfax St, Denver. 3 beds, 1 bath, carport. Great location. Buy for $280K.

7058 S Chapparal Cir West, Centennial. Buy this 4 bedroom, 4.5 bath, 4-car garage “mansion” for $540K. Great numbers. Great location on over 1 acre close to DTC! It’s luxurious, captivating, impeccable….

Bon Homepetit!

 

John Fisher

www.invest-success.com

303 338-8000  

QUOTE OF THE WEEK:  It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.  ~Mark Twain

 


 

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