IT’s What You DON’T Know

By April 17, 2015 Uncategorized No Comments
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This phrase is becoming one of our hallmark expressions. Truly, it is what you don’t know that bites you; how do you know what you don’t know?  Rather than get tangled up in a hierarchical spiral, how do you know what you don’t know?  Experience, trial and error, networking, and sharing are all possibilities. No one really knows everything. So how do you account, adjust, and adapt for the unknown?  How can you anticipate the unexpected?  It’s not ignorance, it’s not knowing.  Being prepared only goes so far.  It does help, however, to keep surprises to a minimum.  Don’t let the Gotchas Getcha.  Calm down and consider options, consider possibilities; what can happen? Is it realistic?  Do the “Gotchas” morph into RISK REMEDIATION?  Why do we have “contingencies?”  Oh, just “in case.”  Face it, stuff will happen; it’s how you deal with it that’s important. Let logic rule!

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: 

Salary advantage goes to children of homeowners. Now it can be revealed. If your parents owned the home you grew up in you will make more money than if your parents rented. Multiple factors contribute.

March foreclosures are up yet 1Q2015 foreclosure activity drops to lowest level in 8 years!  States (still) with highest foreclosure rates: Florida, Maryland, Nevada, Illinois, and New Jersey.

Here are the best places in America to buy a fixer-upper!  Best deals are areas with good supply of older homes needing TLC. Here are the top 10 rated for fixer-upper potential (Fixer Score):

  1. Philadelphia 92 score
  2. Lake, Indiana 90
  3. Marion, Indiana 86
  4. Mahoning, Ohio 86
  5. Dutchess, NY 81
  6. East Baton Rouge, LA 78
  7. Lorain, Ohio 78
  8. Delaware, PA 76
  9. Fulton, GA 72
  10. Seminole, FL 69

It will be interesting to monitor the rush to rehab in these cities now that the “word” is out!

Now the 20 hottest housing markets in America (out of the top 200 markets):

  1. Waco, TX
  2. New Orleans, LA
  3. Ann Arbor, MI
  4. Denver, CO
  5. Santa Rosa, CA
  6. Fort Wayne, IN
  7. Vallejo, CA
  8. San Diego, CA
  9. Columbus, OH
  10. Detroit, MI
  11. Manchester, NH
  12. Boston, MA
  13. Austin, TX
  14. Boulder, CO
  15. Springfield, IL
  16. Charleston, WV
  17. Pittsburgh, PA
  18. Tampa, FL
  19. College Station, TX
  20. Lansing, MI

OK, you love these stats, right? So here’s the Top 20 Fast Selling Markets (DOM):

  1. San Jose 22 days
  2. San Francisco 26
  3. Santa Rosa 32
  4. Denver 37
  5. Seattle 37
  6. Boulder 38
  7. Vallejo 38
  8. Los Angeles 41
  9. Minneapolis 43
  10. San Diego 43
  11. Santa Cruz 43
  12. Fargo 44
  13. Sioux Falls 44
  14. Oxnard 45
  15. Dallas 46
  16. Portland 46
  17. Austin 48
  18. Greeley 48
  19. Modesto 48
  20. Sacramento 48

But wait, there’s more:  Home prices in 6 US states just broke their 2006 records:

  1. Colorado 9.8%
  2. Texas 8.5%
  3. Wyoming 8.4%
  4. New York 8.2%
  5. North Dakota 7.7%
  6. Oklahoma 5.2%

Finally, the highest and lowest county property taxes in our country:

HIGHEST: All New York and New Jersey; SFH average starts at $13.8K/yr!

LOWEST: Mississippi, Alabama, Virginia, Pennsylvania, Oklahoma, Tennessee, and Georgia; average county taxes start at $216/yr.

The latest Mortgage Rates: 30 Year fixed at 3.52% and 5/1 ARMS at 2.67%. 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

It’s spooky when you see your area listed in top 10s.  Hot market and low DOM (Days on Market) beat the “trough” (when we hit the most recent bottom, 2006 officially).  All indicators that more are rising than the temperatures. Everyone’s worried about when will it peak, when will it end. Gosh, with our inventory SO LOW, the market is keeping itself up quite well on its own.  It does not hurt that interest rates are near record lows.  I know of an investor that just refi’d their rental at 3.75%!  A deal in hand is worth…more down the road, based upon our recent market experience.  Make sure you do your due diligence!

IT’S NOW OR NEVER: How to Keep From Getting Screwed By Your Contractor. April 18, 2015. We’ll interview contractors and carve out a special 3 hour section on structure with estimating formulas, area maps, and videos!!! This class is also called The Gotchas That Getcha! Register HERE.

Coming Soon:  Insurance for the Investor. May 30, 2015.  We’ll have registration up by next week.  We’ll cover everything insurance, especially roof issues and claims. Don’t miss this first time event. Cover your assets!!!

We’re looking for people looking for us!  Our Invest Success Mentorship Program classes start the first Monday of the month. 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.  Our next Breakfast Club is May 9. Write, Text, Tweet, Facebook (the verb), E-mail, drop by.  Thank you for helping us help you! 

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INVENTORY: Inventory flows: CHECK ‘EM OUT!!! Centennial, Castle Rock, Littleton, Lakewood, & Westminster. More coming soon!!! NOTE: if you don’t reach us with a phone call (303 338-8000), text us at 303 564-1680.

7531 Wolff St, Westminster. 3 beds, 1 bath, 1 car attached garage. Finish basement for a 5/2/1A. Buy for $270K.

350 S Parfet St, Lakewood. NICE. 5 bedrooms, 5 baths, 2 car detached garage. Yours for $367K.

1912 Bellavista St, Castle Rock. HUGE. 5 beds, 4 baths, 3 car attached garage. Buy for $385K.

6553 Big Horn Trail, Littleton. 5 beds, 4 baths, 2 car garage on ¼ acre.  Roxborough!  Buy for $440K.

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….

2715 W 86th Ave, #28, Westminster. Buy this 1 bedroom, 1 bath condo in Prospectors Point for $62K. Convenient location. (REDUCED by seller)

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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