Michael Welk, Your Castle Real Estate, was installed as the 66 th Chairman of the Board of the Jefferson County Association of REALTORS. Welk's term of office runs from October 1, 2009, through September 30, 2010. During his term in office Welk pledged to work cooperatively with other REALTOR associations to promote continuing education as a means for members to achieve success, and to have a positive attitude. Welk believes the industry will transition from survival mode to thriving in 2010 and declared, "I am going to call the bottom of the market." Citing statistics Welk continued, "I actually believe the bottom was in late second quarter. The time is now to take advantage for the first-time home buyer tax credit, low interest rates, and other opportunities."
Welk concluded, "As we move forward with a positive message and a positive attitude, REALTORS will be on the rise in 2010 and we will transition from survive to thrive."
Kay Watson, former president of the Colorado Association of REALTORS, installed Michael Welk as Chairman of the Board. Robin Lucy, Your Castle Real Estate, was installed as Chairman-elect. Steve Danyliw, Danyliw and Associates, took the oath of office as Corporate Secretary. The directors for the 2009-10 term are: Matt Cohen, Re/Max Alliance; Amanda DiVito, Re/Max Alliance; Lincoln Gill, Broker One; Kelly Murphy, Murphy Realty; Karen Nichols, Re/Max Alliance; Chad Ochsner, Re/Max Alliance; Dave Pike, Coldwell Banker; Anthony Rael, Metro Brokers; Toni Rice, Re/Max Alliance; Annie Schneider, Re/Max Professionals; Jim Smith, Golden Real Estate, and Sue Vencil, Keller Williams Advantage.
The Jefferson County Association of REATLORS represents more than 2000 real estate professionals in Jefferson County, Colorado.
A month ago I was in Washington DC for the REALTORS® Midyear Legislative Meetings & Trade Expo. This was my first visit to Washington DC and it won't be my last. With the amount of history and tradition that exists a person could spend a lifetime there. This blog is not about the history of the US but something very interesting happened to me within my first hour of being reconfirms my business focus.
I had a reservation to stay in a fairly well known hotel with a unique name. Again I have never been to DC so I have no idea where this hotel is or where anything else is for that matter. I got into the taxi and gave him the name to my hotel and to my disbelief he did not know where it was located and I had to pull it up on my Blackberry to get him an address. Now I would have understood if he would have been new to the area as well but he told me during the trip that he had been a cabbie there for over five years.
My next confirmation was the next day. I had reservations to a well known seafood restaurant down by the Potomac River in the Georgetown Waterfront area. Once again I haled a cab from my "not so known" historic hotel and asked the cabbie to take to the restaurant. Once again he had no idea where the restaurant was and dropped be a good half mile short of my destination.
There are Realtors in this industry that are no different then the cabbies I spoke of above. I have heard stories from buyers that have stepped into a Realtor's car, who claimed that they were the area expert but they proceeded to add the address into their GPS system and still proceeded to get lost. Local expert? Most likely not. You must have local knowledge of your market.
NAR statistics show that 25% of the time an agent was selected for a listing because they had local knowledge or they were a specialist in a geographical area. What does this mean? That local knowledge and total commitment will lead to an amazing and successful career!
I am happy to announce the release of our first book:
The 2009 Guide to Real Estate Investing
The release date is April 1st, 2009. It is a basic guide to investing in DSF Homes, Condos, Fix and Flips, and small (2-4 Unit) apartment buildings. I co-authored it along with my associates Charles Roberts, Michael Canon, and Mike Welk. We basically ran through everything we have learned as investors over the past 10 years or so, and our combined ownership or over 170 rental units played a big part of the book as well.
Some advanced praise has already started to roll in:
Your book is a concise, practical guide for all current and potential real estate investors. Your examples and insight go a long way to help readers establish their investment plans, manage the properties and monitor returns. It's a perfect reference. It was immediately beneficial to me and I can't wait to share it with my clients! Terry
McCullough, Broker Associate, Kentwood Cherry Creek Terry works with owner occupant as well as investor clients.
I would recommend this book to our clients. This book is straightforward and pragmatic. It doesn't sell or pitch. It gives the direction and guidance that all new real estate investors need to get started. I would recommend this book to anyone getting started with real estate investing. This book serves as both a compass and a map.
Mark Struznik, owner HomeVestors, Metro Properties Inc. Mark and his team have bought and sold hundreds of investment properties.
It's imperative in today's uncertain economic environment to cover all your bases when looking at an investment property. This book provides the investor with a comprehensive template that should increase the probability of them achieving success. The book provides a good road map.
Bobby Hutchinson, Senior Advisor, Pinnacle Real Estate Advisors Pinnacle helps investors buy and sell mid-size apartments.
This book is just what I need to help educate my clients. It will help me save a lot of time and it'll help my clients make better decisions.
William Roberts, President, Denver Board of Realtor Will is a developer and also helps investors buy and sell property.
The 2009 Guide to Colorado Real Estate Investments is a clear reflection of the knowledge and expertise exhibited by Your Castle Real Estate. Even in a severe housing market and economic downturn Your Castle Real Estate's methods benefit their customers. As a professional statistician I am impressed with Your Castle's creative use of data to put them leagues ahead of their competitors.
Kieron Dey BSc, MBA, FSS Consulting Statistician
The 2009 Guide to Colorado Real Estate Investing is a great field guide for both the experienced real estate investor as well as the novice. This book clearly describes all aspects of real estate development with thoughtful detail and real life experience. A "must read" for anyone contemplating this type of venture.
Jeff Cline, Cline Design Group
We will be taking orders soon, if you are interested.
DENVER - Even though foreclosures are on the decline here in Colorado, the Foreclosure Prevention Task Force Hotline received a record number of calls last month... http://tinyurl.com/fclr-hotline
Investing in Real Estate 9 - Scrapes, Pops and New Construction
This blog will discuss a type of real estate investment, scrapes, pops and new construction, in the Arvada area in Denver.
What this investment is: Purchasing a small home in an expensive neighborhood that may or may not need work. The home is bulldozed and a new home or duplex is put on the lot. Alternatively, the existing home is renovated and more square footage is added on. A pop-top is adding a second story to an existing home to add more square footage (commonly, a master bedroom suite).
Equity needed: Being able to document your income and your assets will be critical. For a commercial loan, your net worth should generally be at least as much as the loan you are seeking. The good news is that the commercial loan usually does not show up on your credit report, so it doesn't count towards the "four investment home limitation" from Fannie / Freddie.
Importance of credit: Essential. A 720 FICO is a must. A 740 would be better.
Importance of experience with contractors: Critical. If you have never done it before, start with an easier "paint and carpet" project to build your skills. The more sophisticated the project, the better your contractor management skills must be to make money. Not surprisingly, the simpler projects have lower profit margins than the complicated projects. Make sure you can take the time to really focus on the project. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Important of experience with property managers: Generally not important for this type of investment.
This blog will discuss a type of real estate investment, fix and flips, in the Arvada area in Denver.
What this investment is: A synthesis of the fix and flip and rental operations - purchasing an apartment building in a neighborhood dominated by owner occupants, then converting the building from apartment building to condominium. Often requires renovation of the units to meet the expectations of owner-occupant buyers in that area. Complex and time consuming, but has wonderful tax advantages compares to fix and flips and often has superior returns to all other asset classes. Ideally suited for the sophisticated investor with extensive experience.
Equity needed: Being able to document your income and your assets will be critical. For a commercial loan, your net worth should generally be at least as much as the loan you are seeking. The good news is that the commercial loan usually does not show up on your credit report, so it doesn't count towards the "four investment home limitation" from Fannie / Freddie.
Importance of credit: Essential. A 720 FICO is a must. A 740 would be better.
Importance of experience with contractors: Critical. If you have never done it before, start with an easier "paint and carpet" project to build your skills. The more sophisticated the project, the better your contractor management skills must be to make money. Not surprisingly, the simpler projects have lower profit margins than the complicated projects. Make sure you can take the time to really focus on the project. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Important of experience with property managers: Not important; the majority of our clients manage their own rentals when they get started. Ideally you will have started with some smaller investment rentals and built property management experience. Now, when you have to finally manage a property manager, it will be easy since you have done the job yourself in the past.
This blog will discuss a type of real estate investment, fix and flips, in the Arvada area in Denver.
What this investment is: Purchasing a home that needs work. The scope can range from the basic "paint and carpet" to extensive overhauls to scraping a decrepit property and completely starting over. Usually does not involve tenants, and the objective is to get in and out of the property as quickly as possible. Great for beginners with the right skill sets or the willingness to learn.
Equity needed: With hard money loans (defined in next paragraph), potentially 0% and they'll finance the construction costs, too. Expect a LOT of strings to be attached. A small local lender might give you 75% of the purchase price and the renovation budget, and the terms will be a lot more pleasant than the hard money option. Or you can do 20% down and get a convention, non-owner occupied loan and pay for the renovation with cash or your Home Depot credit card.
Importance of credit: If you get a hard money loan, your credit will not matter as much. These are harder to find than they were last year. If you get a traditional loan, it'll be a non-owner occupant loan, credit score will be very important. A 720 FICO score would help a lot. Being able to document your income and your assets will be critical. A hard money lender will lend you money based on the value of the property you are purchasing. If the property is worth $200,000 and you are able to purchase it for $150,000, a Hard Money Lender will probably give you a loan regardless of your down payment or credit score. However, the fees and the interest rate will be much less desirable than more conventional forms of financing. Hard Money Lenders can usually close very quickly, and from the Sellers' point of view, you are purchasing with Cash.
Importance of experience with contractors: Critical. If you have never done it before, start with an easier "paint and carpet" project to build your skills. The more sophisticated the project, the better your contractor management skills must be to make money. Not surprisingly, the simpler projects have lower profit margins than the complicated projects. Make sure you can take the time to really focus on the project. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Important of experience with property managers: Not important.
This blog will discuss a type of real estate investment, lease options, in the Arvada area in Denver.
What this investment is: A lease option (L/O) is Acquiring control of a property (though not necessarily ownership), then leasing the property to a tenant. The lease is bundled with an option, so the tenant can (but does not have to) purchase the property for a given price within a given time frame. Again you are seeking a tenant for a property, but usually for a slightly longer term (12-18 months) and frequently (though not always) with the goal that the tenant purchase the property from you at the end of the lease. If you purchase the property, then it's an easier process; if you find a highly motivated seller to let you re-lease the property to another tenant, it can be a lot of work to set up. However, the re-lease method doesn't require any cash out of pocket and does not rely on your credit score, so it is appealing to many investors. Great for beginners with the right skills and attitude.
Equity needed: If you get seller financing, potentially just a few thousand dollars for your operating account. If you purchase the property, 10% down (best case); more likely 20% down.
Importance of credit: If you leverage seller carry, not important at all. If you purchase the property, credit is important. A 720 FICO score would help a lot. Being able to document your income and your assets will be critical.
Importance of experience with contractors: Some exposure would be helpful, but you are not likely to encounter construction projects any more difficult than you have maintaining your own personal residence.
Important of experience with property managers: Not important; the majority of our clients manage their own rentals when they get started. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Investing in Real Estate 5 - Large (5+ unit) Apartment Building
This blog will discuss a type of real estate investment, large apartment buildings, in the Arvada area in Denver.
What this investment is: Still targeting tenants for 6-12 months at a time, buildings with more than five units are considered "commercial" property. The loans are more difficult to qualify for, and usually a larger down payment is needed. Uncommon for the new investor; this is usually what landlords with several years of experience "trade up" to. Cash flows on larger buildings are more stable than for smaller buildings, and the economies of scale make it practical (and desirable) to hire a property manager to take over most the work for you. This takes reduces the hassle factor of the landlord process.
Equity needed: Being able to document your income and your assets will be critical. For a commercial loan, your net worth should generally be at least as much as the loan you are seeking. The good news is that the commercial loan usually does not show up on your credit report, so it doesn't count towards the "four investment home limitation" from Fannie / Freddie.
Importance of credit: Essential. A 720 FICO is a must. A 740 would be better.
Importance of experience with contractors: Some exposure would be helpful, but you are not likely to encounter construction projects any more difficult than you have maintaining your own personal residence. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Important of experience with property managers: Not important; the majority of our clients manage their own rentals when they get started. Ideally you will have started with some smaller investment rentals and built property management experience. Now, when you have to finally manage a property manager, it will be easy since you have done the job yourself in the past.
Investing in Real Estate 4 - Small (2-4 units) Apartment Building
This blog will discuss a type of real estate investment, small apartment buildings, in the Arvada area in Denver.
What this investment is: Purchase of duplex, triplex or quadplex to be rented to tenants, usually for 6-12 month terms. Usually what the rental home / condo landlords graduate to. In most markets they cost a little more than a rental home, but are much more likely to cash flow on the average month. Less cash flow risk; if one unit is empty you have other tenants that still help you with the mortgage payment so it doesn't all come out of your pocket. Many owners will start to delegate some of the property management tasks to an on-site assistant (typically the most responsible tenant), such as yard maintenance and showing empty units. The financing process is only slightly more involved than a residential loan. Relatively small down payment requirements make it affordable. The purchase process is also very similar to purchasing a home. It's a good way for beginners to get started.
Equity needed: 20% - 30% down would be typical.
Importance of credit: Very important. A 720 FICO score would help a lot. Being able to document your income and your assets will be critical.
Importance of experience with contractors: Some exposure would be helpful, but you are not likely to encounter construction projects any more difficult than you have maintaining your own personal residence.
Important of experience with property managers: Not important; the majority of our clients manage their own rentals when they get started. If you get a property manager, you'll be able to figure it out easily on this small of a scale. We run classes on how to do this from time to time. Go to http://www.yourcastle.org/events.cfm to see when the next session is.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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