While John Fisher is on vacation, our Guest Blogger is Justin Walker. Thank you, Justin!
It’s a fun saying and one that applies to this particular blog. While John’s away, he has allowed me to “hijack” his blog. Reflecting on that saying and looking past its typical light-heartedness, what do we do when the “cat is away?” What motivations do we have when no one is watching? What core values? Are we honest? Do we operate under integrity? Even when no one is watching? Many of us as real estate investors/entrepreneurs don’t have a “cat” anymore to keep us in line. We are on our own, operating day-to-day under our own motivations and core values, our “cat” is usually ourselves. It’s great freedom, but also a huge responsibility – to necessarily stick to our motivations and core values day in and day out, even when no one is watching. If you’re a “cat” that’s some “mice” for thought to start the day. On with the fun…
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 OK for FHA loan as is);these HUDs may “go” quickly):
- Akron, OH 4/1 for $9.5K (IE)
- Memphis, TN 4/1 for $8K
- Gary, IN 3/1/1 for $6K (IE)
- Zion, IL 6/3 TRIPLEX for $32K
Here’s to thinking outside the box. Who’s your end user and what do they want? It’s great when investors can get creative with their deals!
It feels like the real estate supply in Denver is resembling that old saying for “the limbo.” How low can you go? Inventory has hit 4,100 units. In the $200-300k price range there is approximately 2-3 weeks of inventory!! Apparently beautiful Colorado is just too irresistible…
If you’re a landlord and having a bad day, read this. It would appear that the market is primed for landlords a while longer. Judging by our inventory issue, there are quite a few people being forced to rent for lack of finding a house!
The latest Mortgage Rates: 30 Year fixed at 3.74% and 5/1 ARMS at 2.88%! 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
Is there any surprise in our market right now? Inventory: low, prices: still rising; albeit not QUITE as fast as they have. It’s apparent that inventory is low, but I was amused with the fact that Denver is setting record low’s in inventory. It’s astounding. Rehabs are selling quickly if done REASONABLY well. I’ve seen multiple times where an error of buying too high or an overrun of rehab will be made up in appreciation by the time it’s for sale. I am seeing some give on finishes as well. A market like this can be dangerous – it can people the mindset of “the market will bail me out,” which can lead to some bad decisions. It’s always a good idea to have multiple exit strategies, even if it seems like they aren’t needed.
How about building/development? Many places you look houses are being bulldozed and duplexes, townhomes, and multi-family are going up in their place. Things are going gangbusters, contractors are ridiculously busy, and ultimately our housing density is increasing. Maybe we’ll need to include some “Uber” credit with our properties sooner than we think.
How long will this continue? If you look at the traditional market cycle of 14 years, and if we bottomed somewhere around 2010-2011, then we are on the backside of our “uptick” and things will start slowing in a couple years. Is that true? Is it likely? I don’t know. Many things can affect this – interest rates, economy, national migration, etc. Most of which we cannot truly predict. But history tends to repeat itself. Personally, I think we’ve got a couple more years of this. We can conjecture all we want, but the truth is, we make decisions and move in the direction we CAN see and make sure there’s an exit if things turn.
It’s been fun, but probably not as fun as an investor cruise!
How many 2-day workshops can you take for $175 or less? The answer is ONE: our 2-day REHAB ACQUISITION WORKSHOP February 28 and March 1. This is a CORE class, MANDATORY stuff you MUST KNOW (remember, there’s a hard way and an easy way and there’s a right way and a wrong way). Register HERE! This class won’t be offered again until August. Day 1: classroom training. Day 2: field day! While this class is directed to the newer investor, many veterans find it valuable with “tricks & tips!”
We’re looking for people looking for us! Our Invest Success Mentorship Program classes start the first Monday of the month. We offer webinars, house tours, and small, personalized classes. We’ll help you 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 March 14, bring your blarney! Thank you for helping us help you!
INVENTORY: Inventory flows: CHECK ‘EM OUT!!! Erie, Brighton & Loveland. More coming soon!!! NOTE: if you don’t reach us with a phone call (303 338-8000), text us at 303 564-1680.
574 Holbrook Street, Erie. 2 bedrooms and 1 bath. Buy for $195K.
143 N 7th Ave, Brighton. 3 bedrooms and 1 bath. Buy for $156K.
250 Shupe, Loveland. 2 beds, 2 baths, 2 car garage. Easy fix. Buy for $215K.