cherry hills village fix an: Cherry Hills RE Trends: Pop Tops, Scrape and Builds... - 12/29/08 02:13 AM
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 Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills RE Trends: Condo Conversion Investing - 12/29/08 02:12 AM
Investing in Real Estate 8 - Condo Conversions
This blog will discuss a type of real estate investment, fix and flips, in the Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills RE Trends: Fix and Flips - 12/29/08 02:11 AM
Investing in Real Estate 7 - Fix and Flips
This blog will discuss a type of real estate investment, fix and flips, in the Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills RE Trends: Lease Options - 12/29/08 02:11 AM
Investing in Real Estate 6 - Lease Options
This blog will discuss a type of real estate investment, lease options, in the Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: Investing in Aparment Buildings II - 12/29/08 02:10 AM
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 Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: Investing in Apartment Buildings I - 12/29/08 02:09 AM
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 Cherry Hills Village 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 … (0 comments)

cherry hills village fix an: Cherry Hills RE Trends: Rental Homes, Condos, Etc... - 12/29/08 02:08 AM
Investing in Real Estate 3 - Rental Condo or Rental Home
This blog will discuss a type of real estate investment, rental condos or rental homes, in the Cherry Hills Village area in Denver.
 
What this investment is:  Purchase of a residential property to be rented out to tenants, usually on a 6-12 month lease term.  This is how most new landlords get started.  You can hire out all of the property management functions, but in many cases you will do many of them on your own.  There are smaller down payment requirements than for larger rental buildings.  The purchase … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: Assignments - 12/29/08 02:07 AM
Investing in Real Estate 2 - Assignments
This blog will discuss a type of real estate investment, assignments, in the Cherry Hills Village area in Denver.
 
What this investment is:  An investor who is interested in Assignments gets a property under contract for an attractive price then assigns the contract to another buyer, usually another investor.  The first investor will be paid a fee for the work.  If you don't have much equity to work with, and/or if your credit power is limited, assignments can be a way to get started in real estate investing.  You will need to have … (0 comments)

cherry hills village fix an: Cherry Hills RE Trends: First Quarter Recap and Lesson Learned... - 12/29/08 02:06 AM
Recap of First Quarter 2008 Home Price Performance The average home price in Metro Denver increased +2% in the full year 2005 to the full year 2006, from $309,000 to $317,000. Comparing 2006 to 2007, the average home price across the metro dropped 2%, to $311,000. The first quarter of 2008 was $278,000 vs. the first quarter of 2007 was $296,000: a 6% decrease. Note that prices in the first quarter are usually a bit less than the rest of the year. This is because families that tend to purchase larger, more expensive homes tend to move in the summer months … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: Light Rail Impact? - 12/29/08 02:05 AM
Home appreciation near T-Rex light rail line stations have out-performed the marketOther cities such as Portland found that homes near light rail lines have out-performed the market in terms of price appreciation. The newest light rail line on the south east corridor (it was built during the T-REX I-25 expansion) bears this out. In the last two years, the average home within two miles has appreciated 4% while the metro Denver average is off 8%. We've shared this with our clients, and many decide to try to purchase homes near future light rail stops in anticipation of future appreciation.
(0 comments)

cherry hills village fix an: Cherry Hills Village Investing - 12/08/08 02:41 AM
Loan Considerations for Buy and Hold Investors
 
As far as investment loans, little or no money down loans are impossible. However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment. Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower’s debt-to-income ratio). Thus, we have clients leveraging themselves … (0 comments)

cherry hills village fix an: Cherry Hills Village Investing - 12/08/08 02:37 AM
Loan Considerations for Buy and Hold Investors
 
As far as investment loans, little or no money down loans are impossible. However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment. Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower’s debt-to-income ratio). Thus, we have clients leveraging themselves … (0 comments)

cherry hills village fix an: Cherry Hills Village Investing - 12/08/08 02:36 AM
Loan Considerations for Buy and Hold Investors
 
As far as investment loans, little or no money down loans are impossible. However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment. Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower’s debt-to-income ratio). Thus, we have clients leveraging themselves … (0 comments)

cherry hills village fix an: Cherry Hills Village Fix and Flips - 12/08/08 02:35 AM
Loan Considerations for Fix & Flip / Short-Term Investors
Securing conventional financing on a fix & flip or short-term loan is not recommended. Most conventional lenders sell off their mortgages to investors on the secondary market. If the loan is paid off early (before six payments are made), the investor has not recovered their initial investment. The investor will attempt to recover their loss from the lender, who will ultimately come after the loan originator. The loan originator would then be obligated to pay back any premium paid out by the lender. If such activity becomes habitual with the loan officer, … (0 comments)

cherry hills village fix an: Cherry Hills Village Loan Considerations - 12/08/08 02:34 AM
Loan Considerations for Loan Amounts Between $200K - $417K
 
With all the doom and gloom publications that are mostly exaggerated, many potential borrowers believe that home mortgage lending options have dried up. While underwriters and investors are scrutinizing files more closely, attractive rates and terms still exist for owner occupied purchasers seeking a conforming loan limit (under $417,000). FHA and VA can still lend up to 100% LTV and conventional permits up to 97% LTV. There are certain guidelines to meet when going to these high LTVs, but they are not impossible to surmount. Every home buyer should first … (0 comments)

cherry hills village fix an: Cherry Hills Village: Jumbo Loans - 12/08/08 02:34 AM
Loan Considerations for Jumbo Mortgages
 
For the Greater Metro Denver area, any loan amount greater than $417,000 is considered a jumbo loan. Fannie Mae and Freddie Mac assign different thresholds for various regions across the country. For instance, $417,000 is not considered a jumbo loan in a high cost city like San Francisco, yet there will still be higher rates for going above $417K. Due to the size of jumbo loans, they are considered greater risk for lenders, resulting in higher rates. Rates have fluctuated greatly over the past few years on jumbos. As of today, a 30 year … (0 comments)

cherry hills village fix an: Cherry Hills Village Loan Considerations - 12/08/08 02:33 AM
Loan Considerations for Loan Amounts Between $200K - $417K
 
With all the doom and gloom publications that are mostly exaggerated, many potential borrowers believe that home mortgage lending options have dried up. While underwriters and investors are scrutinizing files more closely, attractive rates and terms still exist for owner occupied purchasers seeking a conforming loan limit (under $417,000). FHA and VA can still lend up to 100% LTV and conventional permits up to 97% LTV. There are certain guidelines to meet when going to these high LTVs, but they are not impossible to surmount. Every home buyer should first … (0 comments)

cherry hills village fix an: Cherry Hills Village: FHA Loans - 12/08/08 02:31 AM
FHA First-Time Buyer Tax Credit
 
In an effort to boost the sagging real estate market and overall economy, first-time home buyers are being offered a limited time tax credit when purchasing a primary residence. The highlights of the tax credit are: • The tax credit is available for first-time home buyers only. • The maximum credit amount is $7,500. • The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: First Time Buyers - 12/08/08 02:28 AM
Loan considerations for a first time buyer
 
Lending guidelines are changing on a daily basis for every type of loan: conventional, FHA, VA & commercial. Nevertheless, there are still very attractive first-time home buyer options available. If you are or will be a first-time buyer, it is critical to speak with a loan officer before looking at homes. It is a crushing feeling to view a home, picture making it your own and then find out that you cannot qualify to purchase it. A loan officer will pull credit, analyze debt-to-income ratios, review assets and income and determine what … (0 comments)

cherry hills village fix an: Cherry Hills Village RE Trends: Improve Your Loan - 12/08/08 02:26 AM
How can you improve your FICO score?
To improve one’s credit score, it’s critical to understand the factors influencing a credit score.  The factors that contribute to a FICO score and the weighted percentages for each are as follows:
35% — timeliness of payments 30% — the ratio of used debt to allowable debt for consumer credit 15% — length of credit history (the more credit history and showing proof of consistent timely payment, the better the score) 10% — types of credit used  10% — recent credit inquiries and recent new credit The greatest driver behind a score is making … (0 comments)

 

Aisulu Gates

Castle Pines North, CO

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