Wednesday, November 30, 2011
Watch "Stunning Home For Sale in Beac...
Watch "Stunning Home For Sale in Beacon Point" at http://ow.ly/7JL9t
Watch "Stunning Home For Sale in Beac...
Watch "Stunning Home For Sale in Beacon Point" at http://ow.ly/7JL9t
Watch "Stunning Home For Sale in Beac...
Watch "Stunning Home For Sale in Beacon Point" at http://ow.ly/7JL9t
Tuesday, November 29, 2011
Check out my latest real estate colum...
Check out my latest real estate column titled "It's Christmas Time in the City" at http://ow.ly/7Iwwc
Check out my latest real estate colum...
Check out my latest real estate column titled "It's Christmas Time in the City" at http://ow.ly/7Iwwc
Check out my latest real estate colum...
Check out my latest real estate column titled "It's Christmas Time in the City" at http://ow.ly/7Iwwc
It's Christmas Time in the City. By Dan Polimino.
What does Christmas Time mean for buyers and sellers in the Colorado real estate market? To be honest, it's a mixed bag and here is what I mean.
Buyers: Expect to see less choice on the market. The metro area has been struggling with having enough supply of homes all year and at Christmas, inventory drops even further. Many sellers will take their home off the market in December because they don't want to be bothered with showings when guests and relatives are visiting. The Holidays are busy enough and keeping your home in show ready condition to sell can make life harder. There's good news here though for buyers. Homes on the market over Christmas are motivated sellers. You may be able to negotiate a better deal at this time of the year then during peak selling season.
Sellers: You may be asking yourself, "Does anyone go to look at and buy homes in December?" The answer is yes and only the serious ones. Most of the time, people looking at homes over the Holidays are the ones that must buy now, like a relocation client that needs to start work January 2nd. If you get a showing over the next four weeks, at least you can rest assured that it's probably not a looky-loo. The other option here is for you to take the home off the market for 30 days and take a break. The rest might be good for you. Put the home back on the market after the first of the year, you'll get a new MLS #, and it will appear as a new listing. The real estate business should pick up again around the 15th of January.
Finally, I love showing homes over the Holidays. I love looking at how everyone decorates and how they celebrate the Holiday. Coloradans do an amazing job with their homes and Holiday decorations.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at dan@danpolimino.com and www.coloradodreamhouse.com/denverpost
Buyers: Expect to see less choice on the market. The metro area has been struggling with having enough supply of homes all year and at Christmas, inventory drops even further. Many sellers will take their home off the market in December because they don't want to be bothered with showings when guests and relatives are visiting. The Holidays are busy enough and keeping your home in show ready condition to sell can make life harder. There's good news here though for buyers. Homes on the market over Christmas are motivated sellers. You may be able to negotiate a better deal at this time of the year then during peak selling season.
Sellers: You may be asking yourself, "Does anyone go to look at and buy homes in December?" The answer is yes and only the serious ones. Most of the time, people looking at homes over the Holidays are the ones that must buy now, like a relocation client that needs to start work January 2nd. If you get a showing over the next four weeks, at least you can rest assured that it's probably not a looky-loo. The other option here is for you to take the home off the market for 30 days and take a break. The rest might be good for you. Put the home back on the market after the first of the year, you'll get a new MLS #, and it will appear as a new listing. The real estate business should pick up again around the 15th of January.
Finally, I love showing homes over the Holidays. I love looking at how everyone decorates and how they celebrate the Holiday. Coloradans do an amazing job with their homes and Holiday decorations.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at dan@danpolimino.com and www.coloradodreamhouse.com/denverpost
Tuesday, November 22, 2011
Check out my latest real estate colum...
Check out my latest real estate column titled "You Can Change Your Life With A Pen" at http://ow.ly/7BzVT
Check out my latest real estate colum...
Check out my latest real estate column titled "You Can Change Your Life With A Pen" at http://ow.ly/7BzVT
Check out my latest real estate colum...
Check out my latest real estate column titled "You Can Change Your Life With A Pen" at http://ow.ly/7BzVT
You Can Change Your Life With A Pen. By Dan Polimino.
It's important to note that I cannot sell your home. That's right. Even though I am a Realtor, I cannot sell your home. My name is not on the deed, I can’t sign the contract, and I can't even decide on the terms or the price. That is your sole discretion as seller and owner. Once you are presented an offer, you can decide your future with one stroke of the pen.
You see, many people get confused on the role of a Realtor. Our job description includes helping you prepare your home for sale, help you price it properly, market the home, follow up showings, and encourage offers. Once the offer is made, you decide on the price and terms. Yes, we do negotiate on your behalf with other Realtors to get you the best deal possible, but in end, you decide if it's time to sell and move on.
Many times, sellers do not like the offers I bring them. I understand that. No one likes to take less for their home than they think its worth, but it's reality in today's real estate market. Sellers are in a tough position because the main thing they have to decide is to take the lower offer or wait for a better one. None of us has a crystal ball to be able to predict the future. Whether or not a seller will get another offer if they turn this one down, and whether or not the next one will be higher is a game very few people can master. If you are lucky in today's market, you'll get one to two offers, and if you got two or more that is 95% better than most.
Sometimes, the best choice is to take the lower offer and move on with your life. Many people have told me, "That's easy for you to say because it's not your money," and you would be correct. What's the alternative? You could be holding that house and all of its expenses much longer and a better offer may not ever come. In fact, the odds say that as time goes on, the offers get worse and not better.
Oh yeah, and one last job duty that I have is to give sound advice. I try to do that with all of my clients and again, you decide to take it or leave it. It's your future, your choice, and we always pray that you make a good decision.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
You see, many people get confused on the role of a Realtor. Our job description includes helping you prepare your home for sale, help you price it properly, market the home, follow up showings, and encourage offers. Once the offer is made, you decide on the price and terms. Yes, we do negotiate on your behalf with other Realtors to get you the best deal possible, but in end, you decide if it's time to sell and move on.
Many times, sellers do not like the offers I bring them. I understand that. No one likes to take less for their home than they think its worth, but it's reality in today's real estate market. Sellers are in a tough position because the main thing they have to decide is to take the lower offer or wait for a better one. None of us has a crystal ball to be able to predict the future. Whether or not a seller will get another offer if they turn this one down, and whether or not the next one will be higher is a game very few people can master. If you are lucky in today's market, you'll get one to two offers, and if you got two or more that is 95% better than most.
Sometimes, the best choice is to take the lower offer and move on with your life. Many people have told me, "That's easy for you to say because it's not your money," and you would be correct. What's the alternative? You could be holding that house and all of its expenses much longer and a better offer may not ever come. In fact, the odds say that as time goes on, the offers get worse and not better.
Oh yeah, and one last job duty that I have is to give sound advice. I try to do that with all of my clients and again, you decide to take it or leave it. It's your future, your choice, and we always pray that you make a good decision.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Monday, November 21, 2011
Friday, November 18, 2011
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Savory Spice Shop, Denver, CO" at http://ow.ly/7xPei
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Savory Spice Shop, Denver, CO" at http://ow.ly/7xPei
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Savory Spice Shop, Denver, CO" at http://ow.ly/7xPei
Yelp Review for the week - Savory Spice Shop, Denver, CO
This week we are going to see Yelp reviews of Savory Spice Shop, situated at 200 Quebec St, Bldg 600, Unit 101, Denver, CO 80230. Few of the top reviews are given below:
Cheryl from Parker, CO says, "OMG! I'm in heaven every time I walk into this shop. I love everything about it - the smell, the taste, and the people that work there. They are so helpful and are quick to offer suggestions and feedback. $1 spice jars can't be beat and you can buy small quantities so that if you don't use things very often that they won't go stale. Their spices are all organic and very fresh. Just wonderful. If you haven't had a chance to go in please do."
Wanda from Denver, CO says, "A friend introduced me to the shop in Boulder last year and I have been in love ever since. If you have any interest in cooking, then the Savory Spice Shop is the place for you. All of the spices are so fresh and so much better than the pre-packaged spices that you purchase in a grocery store. Imagine looking for cinnamon and finding 5 or more different varieties. I love that you can purchase a small plastic bag of a couple of ounces, a smallish glass jar (that can be refilled) or larger sizes, as you prefer. I went in to the Lowry location on my way home from work looking to make tacos and I didn't want to buy another taco seasoning mix. The people in my household are very exacting, so it was great to be able to pick up a couple different types of taco seasoning and let the "men" pick out which seasoning they would prefer with the evening's tacos. I purchased two 2-oz packs for under $5 and tried them out. Everyone enjoyed the taco seasoning and we were pleased with the flavorful quality. The Savory Spice Shop also carries several blends that are already set up in glass jars for around $5 each. We really enjoy the new flavors that their spices have given to our food. Just enjoy and be happy. Good spices, flavor and happy staff. Can't go wrong here."
Cheryl from Parker, CO says, "OMG! I'm in heaven every time I walk into this shop. I love everything about it - the smell, the taste, and the people that work there. They are so helpful and are quick to offer suggestions and feedback. $1 spice jars can't be beat and you can buy small quantities so that if you don't use things very often that they won't go stale. Their spices are all organic and very fresh. Just wonderful. If you haven't had a chance to go in please do."
Wanda from Denver, CO says, "A friend introduced me to the shop in Boulder last year and I have been in love ever since. If you have any interest in cooking, then the Savory Spice Shop is the place for you. All of the spices are so fresh and so much better than the pre-packaged spices that you purchase in a grocery store. Imagine looking for cinnamon and finding 5 or more different varieties. I love that you can purchase a small plastic bag of a couple of ounces, a smallish glass jar (that can be refilled) or larger sizes, as you prefer. I went in to the Lowry location on my way home from work looking to make tacos and I didn't want to buy another taco seasoning mix. The people in my household are very exacting, so it was great to be able to pick up a couple different types of taco seasoning and let the "men" pick out which seasoning they would prefer with the evening's tacos. I purchased two 2-oz packs for under $5 and tried them out. Everyone enjoyed the taco seasoning and we were pleased with the flavorful quality. The Savory Spice Shop also carries several blends that are already set up in glass jars for around $5 each. We really enjoy the new flavors that their spices have given to our food. Just enjoy and be happy. Good spices, flavor and happy staff. Can't go wrong here."
Thursday, November 17, 2011
Read "HARP program for underwater hom...
Read "HARP program for underwater homeowners: Will the sequel be better than the original?" at http://ow.ly/7wMfC
Read "HARP program for underwater hom...
Read "HARP program for underwater homeowners: Will the sequel be better than the original?" at http://ow.ly/7wMfC
Read "HARP program for underwater hom...
Read "HARP program for underwater homeowners: Will the sequel be better than the original?" at http://ow.ly/7wMfC
HARP program for underwater homeowners: Will the sequel be better than the original?
Most of the time, the sequel to a movie is never as good as the original. Recently the federal government announced that it was reviving the Home Ownership Refinancing Program (HARP) allowing homeowners who owe more their home is worth to refinance. Always the optimist, I feel that this program will be better than the original, if only because the original was such a dismal failure. Not to harp (no pun intended) about how bad the original program was, but I have read from a variety of different sources the success rate was around twenty percent. Based upon what I have witnessed firsthand, from speaking to many disillusioned homeowners, I wonder if the real number was not closer to ten percent.
Supposedly, the new improved HARP program will not have a loan to value (LTV) cap allowing more homeowners to qualify for the program. Under the old rules the maximum LTV was 125%. This means that if the property was valued at $200,000 the existing mortgage would need to be $250,000 or less. This program is for existing Fannie Mae or Freddie Mac mortgages that were originated before May 31, 2009, either owner occupied or rental properties.
One important fact to remember is that existing FHA mortgages may, in most cases, be refinanced without an appraisal and very reasonable guidelines on income etc. This applies to both owner occupied properties and homes that were converted to rentals. I am closing a loan this month where the homeowners filed bankruptcy two years ago and their home has dropped in value. They were convinced they were stuck with a six percent interest rate, but fortunately they listened to a relative who insisted they call me to check if their were any options. A borrower should never pay an upfront fee to look a potential refinance to see if it is viable.
Will keep you posted as I learn more. As always, your questions and comments are welcome.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Supposedly, the new improved HARP program will not have a loan to value (LTV) cap allowing more homeowners to qualify for the program. Under the old rules the maximum LTV was 125%. This means that if the property was valued at $200,000 the existing mortgage would need to be $250,000 or less. This program is for existing Fannie Mae or Freddie Mac mortgages that were originated before May 31, 2009, either owner occupied or rental properties.
One important fact to remember is that existing FHA mortgages may, in most cases, be refinanced without an appraisal and very reasonable guidelines on income etc. This applies to both owner occupied properties and homes that were converted to rentals. I am closing a loan this month where the homeowners filed bankruptcy two years ago and their home has dropped in value. They were convinced they were stuck with a six percent interest rate, but fortunately they listened to a relative who insisted they call me to check if their were any options. A borrower should never pay an upfront fee to look a potential refinance to see if it is viable.
Will keep you posted as I learn more. As always, your questions and comments are welcome.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
HARP program for underwater homeowners: Will the sequel be better than the original? http://ping.fm/ptlel
HARP program for underwater homeowners: Will the sequel be better than the original? http://ping.fm/aILYV
Wednesday, November 16, 2011
Watch this Mountain Home Close To The...
Watch this Mountain Home Close To The Ski Resorts at Conifer, CO at http://ow.ly/7vqsv
Watch this Mountain Home Close To The...
Watch this Mountain Home Close To The Ski Resorts at Conifer, CO at http://ow.ly/7vqsv
Watch this Mountain Home Close To The...
Watch this Mountain Home Close To The Ski Resorts at Conifer, CO at http://ow.ly/7vqsv
Tuesday, November 15, 2011
Check out my latest real estate colum...
Check out my latest real estate column titled "Hard Money Lending" at http://ow.ly/7u2P6
Check out my latest real estate colum...
Check out my latest real estate column titled "Hard Money Lending" at http://ow.ly/7u2P6
Check out my latest real estate colum...
Check out my latest real estate column titled "Hard Money Lending" at http://ow.ly/7u2P6
Hard Money Lending. By Dan Polimino.
If you have been following this column all month, you would know that I have been writing about the fix and flip business as well the fix and rent business. If you would like to re-read any of those columns, you can do so at www.coloradodreamhouse.com/news.
This week, I want to write about a sub business that has developed in the last few years to help the fix and flip guys buy property without all the lending hassle. It's called "hard money lending" and it's been around for years, but it just recently gained enormous popularity because of the new stringent guidelines associated with getting home loans. People with a fair amount of cash on hand or a warehouse line of credit have been lending money out to investors of income properties. Here is how it works:
Let's say that you are a fix and flip guy and want to buy a house quickly to renovate and re-sell. You may be able to make a cash offer to a seller with no appraisal, no inspection, no survey, and a 10-day close. That would be attractive to most sellers and they may likely take a low offer in exchange for the terms you have offered. What the investor does is that he borrows the money from a hard money lender. This individual usually charges 12-16 percent interest on a short-term six-month loan (assuming that you will sell the property in six months or less). He most likely will charge 1-4 percent up front (points) on the amount of the loan. Sound expensive? Yes, it can be, but it needs to be factored into your business model. If you are buying the home right (meaning low) and you are selling it high, the lending fees just become a part of the overall expense of the project. The key here is to fix it in 30 days or less and sell it in 30 days or less. What happens if you get caught at the end of six months and you're still not able to sell the house? Be prepared to find another source of financing because the note becomes one big balloon payment. If you can't pay, chances are that the hard money lender will take the investment home.
This has become a big business and I am working with more hard money lenders these days than I am with traditional lenders. This may be an option for you to start a business or it may be an option for you to purchase that investment home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
This week, I want to write about a sub business that has developed in the last few years to help the fix and flip guys buy property without all the lending hassle. It's called "hard money lending" and it's been around for years, but it just recently gained enormous popularity because of the new stringent guidelines associated with getting home loans. People with a fair amount of cash on hand or a warehouse line of credit have been lending money out to investors of income properties. Here is how it works:
Let's say that you are a fix and flip guy and want to buy a house quickly to renovate and re-sell. You may be able to make a cash offer to a seller with no appraisal, no inspection, no survey, and a 10-day close. That would be attractive to most sellers and they may likely take a low offer in exchange for the terms you have offered. What the investor does is that he borrows the money from a hard money lender. This individual usually charges 12-16 percent interest on a short-term six-month loan (assuming that you will sell the property in six months or less). He most likely will charge 1-4 percent up front (points) on the amount of the loan. Sound expensive? Yes, it can be, but it needs to be factored into your business model. If you are buying the home right (meaning low) and you are selling it high, the lending fees just become a part of the overall expense of the project. The key here is to fix it in 30 days or less and sell it in 30 days or less. What happens if you get caught at the end of six months and you're still not able to sell the house? Be prepared to find another source of financing because the note becomes one big balloon payment. If you can't pay, chances are that the hard money lender will take the investment home.
This has become a big business and I am working with more hard money lenders these days than I am with traditional lenders. This may be an option for you to start a business or it may be an option for you to purchase that investment home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Friday, November 11, 2011
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Babylon Floral" at http://ow.ly/7quYb
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Babylon Floral" at http://ow.ly/7quYb
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Babylon Floral" at http://ow.ly/7quYb
Yelp Review for the week - Babylon Floral
This week we are going to see Yelp reviews of Babylon Floral, situated at 1223 E 17th Ave., Denver, CO 80218. Few of the top reviews are given below:
Melissa, from Denver, CO says, "Babylon Floral is my new favorite florist! The shop is beautiful, peaceful and inviting. It took me walking around the store three times before I really felt that I had seen everything, mostly because, with his arrangements, I found the smallest details to be the prettiest and there were a LOT of small details. Arthur was very friendly and when he asked what kind of occasion I needed a fresh arrangement for (my sister is currently bed-ridden after getting into a pretty gnarly scooter accident), and what my budget was ($40) he knew exactly what to put together for me. 10 minutes later, he was done and the finished product was a masterpiece! I came home promptly and told my husband that all future floral purchases absolutely MUST come from Babylon. After seeing the arrangement that Arthur put together, my husband definitely agreed that we'd be working with them again in the future."
Rachel, from Denver, CO says, "After reading all of the wonderful reviews here and in other places on the web, I thought I would pop in to check out the shop and talk with Arthur about our wedding flowers this fall. I really was amazed by Arthur's level of creativity, his vision, and his ability to communicate with me (who lacks both of those things in terms of flowers!!) to provide me with flowers that were simply gorgeous. For the level of service I received from Arthur and his staff, I expected a bill to be at least twice as much as the one we actually paid... I loved every blossom in the building on our wedding day, and all of the guests were equally impressed. Thank you, Arthur!! Your craft is such a gift and you really blew us all away with the incredibly beautiful blooms you made for our special celebration. I am so grateful to you!! Brides, make sure you call this shop if you are looking for something unique and beautiful to make your day as special as it should be!!"
Melissa, from Denver, CO says, "Babylon Floral is my new favorite florist! The shop is beautiful, peaceful and inviting. It took me walking around the store three times before I really felt that I had seen everything, mostly because, with his arrangements, I found the smallest details to be the prettiest and there were a LOT of small details. Arthur was very friendly and when he asked what kind of occasion I needed a fresh arrangement for (my sister is currently bed-ridden after getting into a pretty gnarly scooter accident), and what my budget was ($40) he knew exactly what to put together for me. 10 minutes later, he was done and the finished product was a masterpiece! I came home promptly and told my husband that all future floral purchases absolutely MUST come from Babylon. After seeing the arrangement that Arthur put together, my husband definitely agreed that we'd be working with them again in the future."
Rachel, from Denver, CO says, "After reading all of the wonderful reviews here and in other places on the web, I thought I would pop in to check out the shop and talk with Arthur about our wedding flowers this fall. I really was amazed by Arthur's level of creativity, his vision, and his ability to communicate with me (who lacks both of those things in terms of flowers!!) to provide me with flowers that were simply gorgeous. For the level of service I received from Arthur and his staff, I expected a bill to be at least twice as much as the one we actually paid... I loved every blossom in the building on our wedding day, and all of the guests were equally impressed. Thank you, Arthur!! Your craft is such a gift and you really blew us all away with the incredibly beautiful blooms you made for our special celebration. I am so grateful to you!! Brides, make sure you call this shop if you are looking for something unique and beautiful to make your day as special as it should be!!"
Wednesday, November 9, 2011
Denver Real Estate Weekly Market Upda...
Denver Real Estate Weekly Market Update titled "Do I Keep My House On The Market Over The Holidays?" at http://ow.ly/7nNX2
Denver Real Estate Weekly Market Upda...
Denver Real Estate Weekly Market Update titled "Do I Keep My House On The Market Over The Holidays?" at http://ow.ly/7nNX2
Tuesday, November 8, 2011
Check out my latest real estate colum...
Check out my latest real estate column titled "Fixing and Renting" at http://ow.ly/7mNS6
Check out my latest real estate colum...
Check out my latest real estate column titled "Fixing and Renting" at http://ow.ly/7mNS6
Check out my latest real estate colum...
Check out my latest real estate column titled "Fixing and Renting" at http://ow.ly/7mNS6
Fixing and Renting. By Dan Polimino.
If you read my column from last week, you would know that I was talking about how hard it is right now to find a good fix and flip home. Inventory is so low that contractors cannot find enough good homes to buy to sustain their fix and flip market. I have resorted to knocking on doors of duplexes that are not even listed for sale. If you want to re-read that column, go to coloradodreamhouse.com/news.
This week, I want to talk about whether or not you should fix and flip the house or fix and rent. Fix and flip has been the most popular during the last several years because cash is king, and people running this as business want to get their cash out of the house as soon as possible. This formula has worked well while homes were easy to buy at low prices. The reduction in inventory has made this business model much more difficult in the last year. So why not buy a fixer upper and then rent it?
I saw a statistic this past summer that there was only a 1.4% vacancy rate in the city of Denver for rentals. That is historically low and tells us that rentals are in big, big demand, so the fix and rent option looks great. In most cases, you'll not only rent it quickly, you'll get top dollar and probably get a long term rental. If you bought the home at the right price, chances are the property has a positive cash flow, meaning, you are covering the mortgage and making a little money from the rental income.
So why bother to fix and flip when you can fix and rent? You may run into a problem when you are initially trying to purchase the property. If you plan on getting a loan, a lot of lenders do not like to lend on investment properties. Those that do may require 20-30 percent down, may ask you to show your history as a landlord, and will in every case charge a higher interest rate. This becomes a barrier to fixing and renting. Chances are that you'll spend the fix up money on the down payment for the lender. If you cannot meet those qualifications, then you will need to buy the investment property with cash. You could take out a home equity loan from your primary home or you could use a hard money lender (I'll go into that in a column next week).
In the end, both approaches have their pluses and minuses. As I have said many times before, it's not that easy of a business. Although if you have good people helping you make the right decisions, money can be made.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
This week, I want to talk about whether or not you should fix and flip the house or fix and rent. Fix and flip has been the most popular during the last several years because cash is king, and people running this as business want to get their cash out of the house as soon as possible. This formula has worked well while homes were easy to buy at low prices. The reduction in inventory has made this business model much more difficult in the last year. So why not buy a fixer upper and then rent it?
I saw a statistic this past summer that there was only a 1.4% vacancy rate in the city of Denver for rentals. That is historically low and tells us that rentals are in big, big demand, so the fix and rent option looks great. In most cases, you'll not only rent it quickly, you'll get top dollar and probably get a long term rental. If you bought the home at the right price, chances are the property has a positive cash flow, meaning, you are covering the mortgage and making a little money from the rental income.
So why bother to fix and flip when you can fix and rent? You may run into a problem when you are initially trying to purchase the property. If you plan on getting a loan, a lot of lenders do not like to lend on investment properties. Those that do may require 20-30 percent down, may ask you to show your history as a landlord, and will in every case charge a higher interest rate. This becomes a barrier to fixing and renting. Chances are that you'll spend the fix up money on the down payment for the lender. If you cannot meet those qualifications, then you will need to buy the investment property with cash. You could take out a home equity loan from your primary home or you could use a hard money lender (I'll go into that in a column next week).
In the end, both approaches have their pluses and minuses. As I have said many times before, it's not that easy of a business. Although if you have good people helping you make the right decisions, money can be made.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Friday, November 4, 2011
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Golf Club At Bear Dance" at http://ow.ly/7j7Ds
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Golf Club At Bear Dance" at http://ow.ly/7j7Ds
Check out "Yelp Review for the week -...
Check out "Yelp Review for the week - Golf Club At Bear Dance" at http://ow.ly/7j7Ds
Yelp Review for the week - Golf Club At Bear Dance
This week we are going to see Yelp reviews of Golf Club At Bear Dance, situated at 6630 Bear Dance Road, Larkspur, CO 80018. Few of the top reviews are given below:
G V., from Colorado Springs, CO says, "Great course. Very challenging. Great time of year to play. Little wind, grass is still green, air is cool and fall colors are popping all around. Greens are quick and very true (although some are a bit rough this year). Driving range is great, balls included. Practice area is nice. Use the practice green to gauge your speed. DONT play the tips if you are over a 5 hdcp....you'll not enjoy it and you WILL slow down play. GPS seem pretty accurate and if you are not from altitude, take into consideration the ball flys quite a bit further. If your lucky the surrounding mountains will have some snow caps. Seen fox, turkey and some small critters out here but never the bear. I heard the bear is with two cubs between 17 green and 18 tee mostly. Watch out."
Christine P., from Denver, CO says, "This might be one of the most beautiful courses in Colorado - and that's saying a lot! The course is interesting and challenging with a number of fairly tight fairways. They say it 7726 yards, but most of the professional tees seemed to be missing. So, it may be a bit shorter than that. There are only a few houses on the course which is such a treat. This scenery need no homes to spoil to it! They have a nice practice facility and club house. If I have friends visiting from out of state, this is the course I would take them to. It is a great course that is quintessential Colorado."
G V., from Colorado Springs, CO says, "Great course. Very challenging. Great time of year to play. Little wind, grass is still green, air is cool and fall colors are popping all around. Greens are quick and very true (although some are a bit rough this year). Driving range is great, balls included. Practice area is nice. Use the practice green to gauge your speed. DONT play the tips if you are over a 5 hdcp....you'll not enjoy it and you WILL slow down play. GPS seem pretty accurate and if you are not from altitude, take into consideration the ball flys quite a bit further. If your lucky the surrounding mountains will have some snow caps. Seen fox, turkey and some small critters out here but never the bear. I heard the bear is with two cubs between 17 green and 18 tee mostly. Watch out."
Christine P., from Denver, CO says, "This might be one of the most beautiful courses in Colorado - and that's saying a lot! The course is interesting and challenging with a number of fairly tight fairways. They say it 7726 yards, but most of the professional tees seemed to be missing. So, it may be a bit shorter than that. There are only a few houses on the course which is such a treat. This scenery need no homes to spoil to it! They have a nice practice facility and club house. If I have friends visiting from out of state, this is the course I would take them to. It is a great course that is quintessential Colorado."
Thursday, November 3, 2011
What is the Ratchet Effect?
The Ratchet Effect is one of the few economic theories that has any relation to reality. As President Harry Truman succinctly observed, if you laid every economist end to end, they would point in every direction, and only be able to explain things after they have happened. In essence it holds that some prices move a lot faster in one direction than another. One example is the price for gasoline, another is long term interest rates for mortgages. While money is still at historic lows, we have seen interest rates fluctuate a lot in the last month. Interest rates always rocket up and float down.
Trying to guess the direction of interest rates, particularly short term rates, is impossible. The way to win is simple. Obtain a mortgage with the lowest possible closing costs. If rates go up you have won. If they drop significantly, you refinance and win again. In most circumstances it is a mistake to spend a lot on front end costs. When we look at the recapture costs associated with a low or no cost loan, it usually takes over five years to break even when you compare the upfront costs and divide by the monthly savings. For example, if the closing costs are $3,600 for a $200,000 mortgage at 4%, and zero closing costs for the same mortgage at 4.5%, the difference in the payment is $60 per month. It would therefore take five years to break even before other factors such as the time value of money, tax effect, etc are considered.
As always do the numbers to determine what is best for your unique, individual financial profile.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Trying to guess the direction of interest rates, particularly short term rates, is impossible. The way to win is simple. Obtain a mortgage with the lowest possible closing costs. If rates go up you have won. If they drop significantly, you refinance and win again. In most circumstances it is a mistake to spend a lot on front end costs. When we look at the recapture costs associated with a low or no cost loan, it usually takes over five years to break even when you compare the upfront costs and divide by the monthly savings. For example, if the closing costs are $3,600 for a $200,000 mortgage at 4%, and zero closing costs for the same mortgage at 4.5%, the difference in the payment is $60 per month. It would therefore take five years to break even before other factors such as the time value of money, tax effect, etc are considered.
As always do the numbers to determine what is best for your unique, individual financial profile.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Wednesday, November 2, 2011
Watch "Green Home of the Year in Colo...
Watch "Green Home of the Year in Colorado" at http://ow.ly/7gMMO
Watch "Green Home of the Year in Colo...
Watch "Green Home of the Year in Colorado" at http://ow.ly/7gMMO
Watch "Green Home of the Year in Colo...
Watch "Green Home of the Year in Colorado" at http://ow.ly/7gMMO
Tuesday, November 1, 2011
Check out my latest real estate colum...
Check out my latest real estate column titled "Fix and Flips Are Hard To Come By" at http://ow.ly/7fuoz
Check out my latest real estate colum...
Check out my latest real estate column titled "Fix and Flips Are Hard To Come By" at http://ow.ly/7fuoz
Check out my latest real estate colum...
Check out my latest real estate column titled "Fix and Flips Are Hard To Come By" at http://ow.ly/7fuoz
Fix and Flips Are Hard To Come By. By Dan Polimino.
There once was a time when there were so many properties on the market that buying a fix and flip was a piece of cake. Just make an offer, even a low-ball offer, and chances are that you had a deal. It's a different story today. As you have been reading in this column and hearing on the news, housing inventory is low in Denver. It's really low when you are trying to buy a home to fix up between $100,000 and $200,000. Don't get me wrong, there are homes to buy in this price range, but remember that they need to be able to fit into the fix and flip model. Here are the criteria:
a. Good location
b. Need rehab
c. Need to buy it low and sell it high so you can make a profit after fix up costs.
Not every 100-200K home fits that profile, so Realtors like me have been working double time to help our clients find properties to buy. This is the first year in many that I have resorted to knocking on doors of properties that are not even for sale. If I see a nice duplex in a good location or emerging neighborhood, I'll knock on the door and ask who owns the property. If the owner lives on premises, I'll ask him or her if they are willing to sell it, and at what price. Most of the time, it doesn't work that easy. I'll have to find out who owns the property from public record and then see if I can track down the contact information for the owner.
Once we have made it that far, then the fun begins. What will the owner sell it for? Does that price fit the business model? Will the owner pay a commission to me, the Realtor? The percentages of this working out are not great and you may have to speak to 10 or 20 to get a real good one, but sometimes, that one good one can make everyone a fair amount of money.
This is what it takes to play in the fix and flip market these days. So if you own a good income property, now may be the time to sell it. There are plenty of contractors out there that need good homes to flip.
Next week, I'll talk about fixing & flipping versus fixing and renting.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
a. Good location
b. Need rehab
c. Need to buy it low and sell it high so you can make a profit after fix up costs.
Not every 100-200K home fits that profile, so Realtors like me have been working double time to help our clients find properties to buy. This is the first year in many that I have resorted to knocking on doors of properties that are not even for sale. If I see a nice duplex in a good location or emerging neighborhood, I'll knock on the door and ask who owns the property. If the owner lives on premises, I'll ask him or her if they are willing to sell it, and at what price. Most of the time, it doesn't work that easy. I'll have to find out who owns the property from public record and then see if I can track down the contact information for the owner.
Once we have made it that far, then the fun begins. What will the owner sell it for? Does that price fit the business model? Will the owner pay a commission to me, the Realtor? The percentages of this working out are not great and you may have to speak to 10 or 20 to get a real good one, but sometimes, that one good one can make everyone a fair amount of money.
This is what it takes to play in the fix and flip market these days. So if you own a good income property, now may be the time to sell it. There are plenty of contractors out there that need good homes to flip.
Next week, I'll talk about fixing & flipping versus fixing and renting.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Subscribe to:
Posts (Atom)
