Fisher Friday Flyer – April 8th, 2016
Anyone ever heard of the rat race? Of course you have. Where did that phrase come from? Who made this idea up? Is it real? There’s a board game designed around it from Rich Dad Poor Dad. Have you ever played the game? It’s the hardest to get out of the “Rat Race” as the guy with the highest income. Why is that? He’s the guy the game has set up to have the highest expenses that need to be covered with “passive income”. He’s the guy with the huge college debt and driving a leased Mercedes (sorry to the Mercedes drivers out there). I’m convinced that the rat race is one of the biggest lies or at least mis-leadings ever perpetrated on American society. What we call the rat race is actually closer to a mouse trap and one that we set for ourselves. How you may ask? Who is signing on the dotted line? It’s not the bankers, sellers, your neighbors or your friends… it’s you! For every dollar we borrow, what is the result? An obligation. For every dollar we choose to spend on excess, what happens to those obligations? Nothing, they remain. Often times, we are the ones setting our own traps, making our own “rat race.” Wait, really? This is fantastic news because it means you have more control than you think. What does it take? A plan, discipline, focus, and probably some tough decisions. Don’t let “it” hold you back!
FOR YOUR READING PLEASURE
The bottom is about to fall out! Actually, the title of the article and the content don’t seem to match up. Denver is 5 years into an extreme seller’s market. The last 30 years have had 8,9, and 10 year cycles respectively for buyer’s and seller’s markets. With all of the talk about a crash, of course someone will be right… eventually. Everyone can take their guesses, but I like numbers and the numbers here seem to point to a few more years of a seller’s market.
Denver did not make the top 10! Amazing, amazing, I know. In what you might ask? Here are the top 10 most expensive markets to rent. I guess it could be worse (or better) depending upon what end you’re on. Median price for a two bedroom is
- San Franscisco – $4,780
- New York City – $4,450
- Jersey City – $3,080
- Washington, D.C – $2,990
- Boston – $2,900
- San Jose – $2,640
- Los Angeles – $2,630
- Seattle – $2,390
- Stamford, CT – $2,380
- Miami – $2,000
How are rents doing in Denver? Well, the areas with the highest rent increases are Arvada, 8.9% and Thornton, 8.7%. Whereas, Denver proper has cooled to 2.5%, which is below the 4.1% state average. Why the low rent increase? Great question – could it be that rents are plateauing from price? Or is it the thousands of units hitting the market and landlords offering concessions? Maybe landlords just can’t keep up!
On a similar note – Colorado Springs is hitting its stride. Is anyone moving their interest down south? Rent increased 11.4% year over year or (drumroll please) otherwise 4x the national average. Colorado Springs remains quite affordable and stable – median one bedroom rate in the Springs is $790, whereas Aurora is $1,080 and Denver is $1,350. Very interesting…
MORTGAGE RATE UPDATE
The latest Mortgage Rates: 30 Year fixed at 3.39% and 5/1 ARMS at 2.59%. 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
What to say? Forecast is still looking nice and rosy. The market is picking up quite nicely and anyone with property to sell in the next couple months is likely going to find themselves in a similar spot as recent years – lots of traffic and lots of offers. Oh, if everything were this rosy? We’ve got to take the good with the bad, as always in any market there benefits – easy sale and higher prices. Then there are pitfalls – where have all the flowers (I mean good contractors) gone?
Our Invest Success Mentorship Program is ongoing and we are signing up more students. Tell your friends. 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. Next Breakfast Club is this Saturday, April 9th at Poppies. We start at 7:00am. We’ll see you there!
Are you ready for the Real Estate Investor Success Summit? Put on by Pine Financial and Your Castle, it’s a good day of solid content. This year’s Summit is on May 7. Details and registration are HERE.
INVENTORY: Inventory flows: CHECK ‘EM OUT!!! More coming soon!!! NOTE: if you don’t reach us with a phone call (303 338-8000), text us at 720-345-8361.
6495 Parfet Street, Arvada, CO 80004 3 beds, 2.5 baths. 2 car attached garage. Buy for $336K!
1502 Juniper Street, Longmont, CO 80501 3 beds, 1 bath. 2 car attached garage. Yours for 300K!
3860 North Jackson Street, Denver, CO 80205 3 beds, 2 baths. 1 car attached garage. Buy for 281K!
310 South Lewis Street, Lakewood, CO 80226 4 beds, 2 baths. 1 car attached garage. Yours for only 267K!
9981 Bluegrass Street, Firestone, CO 80504 3 beds, 2 baths. 3 car attached garage. Buy for $375K!
76 South Knox Court, Denver, CO 80219 3 beds, 2 baths. 2 car detached garage. Buy for $205K!
1301 Mariposa Drive, Denver, CO 80221 3 beds, 2 baths. 2 car carport. PRICE REDUCED to $220.5K!
Until next time,
QUOTE OF THE WEEK: “It’s a rare moment when we take a break from the tribulations of the daily rat race to reflect on assumptions and values that we casually accept as gospel.” – Graydon Carter