colorado: Private Real Estate Lending in Colorado - where we have been!
- 10/31/12 02:48 AM
Since 2006, when we formalized our years of informal lending experience into our loan fund, we have made loans all over our great state of Colorado. It’s really fun and our serious investor borrowers value our insight and ability to understand their complex real estate transactions to fund their deals.
Our loans are always for business, investment, or commercial purpose.
Our loans have been made to Corporations, Trusts, Estates, Limited Liability Companies, Partnerships and, of course, Individuals.
We have made loans secured by Industrial, Office, Retail, Land, Special Use Commercial, Multi-family Residential, Condos and, of course, Single Family … (0 comments)
Ok, you are an investor and you may be calling on local banks to see what they have in their portfolio that may interest you. You are fishing for distressed properties from the most distressed sellers in town.
It’s completely natural to think to yourself…”Gee, they are a bank, so they will be happy to finance my purchase.” Good thought. Frankly, however, many of these banks are under such severe threats and criticism from the regulators that they are not ALLOWED to make a single loan. That’s right. NO LOANS.
I have argued in prior posts that the Government has created a Housing Cartel which controls the rate at which foreclosed or seriously delinquent homes are liquidated and the requirements to receive a government loan to buy your home. The major banks, which now are the main originators of government mortgages (read virtually all mortgages), are under the government’s regulatory thumb and move not a muscle unless they get the word from the White House that they are “free to … (0 comments)
Many years ago I learned the difference between Risk and Uncertainty. Here’s my take. Risk is the probability of drawing to an inside straight in poker, or rolling 7 in a game of craps. You know the odds and either you win or you lose.
Uncertainty makes a game much more difficult to play. With uncertainty, you don’t know whether you can draw another card or not, or if a card will disappear from your hand, or even if your cards may change faces before your eyes! Or, you may not … (0 comments)
For fix and flip investors, who take virtually unsalable homes, make them new again for consumers and sell them, the last couple of years has presented a challenging environment. The cartel is withholding properties from the market (hoarding!) and declining to sell them at prices that allow them to be properly rehabilitated for a potential homeowner to purchase.
For rental investors, the market is also difficult. While rental demand is very strong, financing is a challenge and suitable homes are slow to come on the … (0 comments)
Face it, the Federal Government has effectively nationalized the housing finance industry. This is true for new loans and for how FNMA, FHLMC and FHA are liquidating their foreclosures and negotiating short sales. The government has acted to make obtaining a mortgage much more difficult, and is holding enormous numbers of Colorado and Denver homes, in particular, in inventory, waiting to sell them at better prices – they hope – in the future. If the big banks were to write down the value of their houses and mortgages to prices at … (15 comments)
Upside down housing pie is about as tasty as eating humble pie, yuk! If you owe more than your house is worth on the Denver market today, you are eating “Upside Down Housing Pie” every month when you make your mortgage payment – making a payment on a loan that is larger than value of your home. Two key factors are at work here: if you have a job and your personal finances are OK, you are likely to keep making the payments simply because you need a place to live for you and … (1 comments)
According to CoreLogic’s December statistics for Colorado, December 2011 delivered 1,870 short sales and bank real estate liquidations (applause!). However, December 2011 had 2,130 completed foreclosures, 260 more foreclosures completed than distressed property liquidations (boo, hiss!). The Statistics for Denver, Colorado are very similar. So, for this recent month foreclosures completed outpaced liquidations by 14%! PLUS, there were 4,359 pre-foreclosure filings – meaning foreclosures started. Wow. Foreclosures started were 105% larger than foreclosures completed. These numbers seem to conflict with the “low inventory” claims from the Denver (Dinosaur) Post. It is … (0 comments)
The current market in Colorado and nationwide relies on this basic stool. The first leg is Distressed Sales v. Foreclosures; the second leg is the folks who owe more than their home is worth; and, the final leg is the rate at which the Government and major banks feed properties onto the market, effectively controlling prices waiting for better times to help them liquidate foreclosed houses from their books. Over the next few days, I will discuss each of these legs. I will also lay out my assessment of … (0 comments)
colorado: The Real Story in the Denver Housing Market: What goes down May stay Flat!
- 03/08/12 09:18 AM
Chapter 1: Dinosaur Roars! We just read in the Dinosaur Post (Denver Post, March 6, 2012) that “Housing sales up, inventory levels down in metro Denver.” In essence, the sources and the writer are painting a rosy picture of home sales in Denver to boost sales in the upcoming Spring and Summer selling season. The Dinosaur Post has become a booster for realtors in the community.
While there are good reasons to buy real estate, low inventory of homes listed for sale hardly proclaims the boom that one source said, “We’ve got a market that’s really moving.” Although, he … (3 comments)
colorado: Mobile Homes, Modulars, purged Titles and More about Houses
- 02/21/12 06:59 AM
Talk about confusing! Mobile Homes, Modular Homes purging titles, vehicle titles,you name it. Factory built housing creates lots of confusion, so here are a few rules of thumb: Modular homes are factory built homes that are transported in pieces to the building site and erected on the foundation. Unless you know a fair amount of construction, they will look like a traditional frame house and they are built to the same code as a site built home, usually a little better structure to allow them to be transported, picked up by crane and deposited on the foundation. They are always attached … (4 comments)
colorado: How to Succeed with Offers on Bank/Asset Manager Properties
- 02/10/12 11:11 AM
Frankly, I feel pity for the Asset Managers charged with maintaining, listing and liquidating foreclosed properties. They have a tough job and must do it almost entirely through others' eyes, with no opportunity to jump in their car and check out the property. Additionally, they don't really have any long term business relationships in your market, which go a long way toward smoothing out the relationships during the process. We don't deal directly with these folks(even though our qualification letters invite any one and everyone to call us with questions they may have about our loan), since our borrowers are negotiating through … (4 comments)
Since 2006, when we formalized our years of informal lending experience into our loan fund, we have made loans all over our great state of Colorado. It’s really fun and our serious investor borrowers value our insight and ability to understand their complex real estate transactions to fund their deals.
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