Castle Rock, CO Real Estate News

By Gene Elzenberger
(Your Castle Real Estate)
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 Castle Pines 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 process and financing process is very similar to what you experienced buying the home you live in now.  It's a great way for beginners to get started.   Equity needed:  Currently 20% - 25% Downpayment.  In some cases you might be able...
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By Gene Elzenberger
(Your Castle Real Estate)
Investing in Real Estate 2 - Assignments This blog will discuss a type of real estate investment, assignments, in the Castle Pines 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 a strong "sales" personality to succeed at it, though.    Equity needed:  None, just earnest money.   Importance of credit:  Not important, since you are not purchasing the property yourself.   Importance of experience with c...
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By Gene Elzenberger
(Your Castle Real Estate)
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 when their kids are out of school. The average price of a foreclosure or short sale dropped -3% to $188,000 from 2006 to 2007. The average price of a non-distress sale increased 5% to $370,000. Sales volume over the last twelve months i...
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By Gene Elzenberger
(Your Castle Real Estate)
Take a look at the first page, for AUN (Aurora North).  Note these positive market trends this year:-          number of active listings steadily declining-          average list price pretty stable (finally!)-          U/C up dramatically-          Number of sales / month up (partially seasonality)-          DOM dropping-          Stability in average sold prices and sold price as % of list-          Sold price as % original price UP a lot - banks are getting better at pricing-          Number of expired listings down Every indicator is improving this year in AUN.  You will see the same trends in DSW (southwest Denver  County), but not as marked an improvement as AUN. By contrast look at DSE (southeast Denver County).  -          listings are up (they should be - seasonality)-         ...
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By Steven Beam, Parker Colorado Real Estate
(RE/MAX Alliance - Parker Colorado Real Estate.)
This report covers the month of November 2008. Homes and real estate sold, actively for sale and under contract. I will also include the absorption rate in months. The absorption rate is the amount of time in months that it should take buyers to buy up all the currently available inventory. If you don't know the numbers for the sales in your area there is no way possible for you to begin to understand what the real estate market is doing or how to price your home when it's time to sell. Check out previous Reports Here. Take special notice of the absorption rate for Douglas County West below! We have gone from a 10 month inventory level to just over 15 months of inventory. Quite a change in one year. The average sales price has dropped from $471,000 to $363,000 in 12 months. This does n...
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By Mike Spector
(Your Castle Real Estate)
Investing in Real Estate 4 – Small (2-4 units) Apartment BuildingThis blog will discuss a type of real estate investment, small apartment buildings, in Timber Canyon. 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 show...
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By Mike Spector
(Your Castle Real Estate)
Investing in Real Estate 3 – Rental Condo or Rental HomeThis blog will discuss a type of real estate investment, rental condos or rental homes, in Timber Canyon. 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 process and financing process is very similar to what you experienced buying the home you live in now.  It's a great way for beginners to get started.Equity needed:  Currently 20% - 25% Downpayment.  In some cases you might be able to do it with 10% down,...
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By Mike Spector
(Your Castle Real Estate)
Investing in Real Estate 2 – AssignmentsThis blog will discuss a type of real estate investment, assignments, in Timber Canyon.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 a strong "sales" personality to succeed at it, though. Equity needed:  None, just earnest money.Importance of credit:  Not important, since you are not purchasing the property yourself.Importance of experience with contractors:  Not important.  Th...
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By Mike Spector
(Your Castle Real Estate)
Topic:  Special considerations for Investor loans The talk around the water cooler these days is all about LOANS. Who can get them? At what price? What if I already have a few loans, do I still qualify?  A year or two ago the question was at what price do I get a loan (those were the days!).  Today it is "am I still in the game?"     Here's the deal:  if you have an owner occupied loan and 3 investor loans you cannot buy any more properties and get Fannie Mae / Freddie Mac financing, meaning you can't get a conventional 30-year fixed loan. Now, my hope is that someone reads this and tells me I'm wrong. That would be great!  But as far as I know that is the case.    Where does this leave you?  You can pursue loans that are warehoused by lenders, meaning they are not sold on the backend t...
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By Mike Spector
(Your Castle Real Estate)
Topic:  Investor Series:  Why sewer scopes are important  A LOT of agents don't advise their clients to get sewer scopes when they purchase a property. This is a major mistake.  A broken sewer can cost between $3,000 - $10,000 dollars to repair and it only costs $99 ($99Rooter - others are more expensive) to have a tech put a camera down the sewer pipe and videotape the sewer all the way to the mainline. This will tell you  and the-buyer what the condition of the sewer is.    So let's see, we pay to have the furnace inspected but a new furnace will only be about $2,000. We pay to have the roof inspected but that's probably a $4,000 job. So why don't we always inspect the sewer?  One reason is because, let's face it,  Realtors want closings. Many figure if they keep their mouth shut and ...
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By Mike Spector
(Your Castle Real Estate)
Topic:  Investor Series:  Estimating Rents A lot of clients ask me how to figure out what market rents are in a neighborhood. This is a critical input into the calculations an investor needs to make in order to determine what their return on investment will be on a rental property. So you don't want to screw this up!  Unfortunately, this is one of the many figures new investors get wrong.   One place people go to get rents is Rent-o-Meter. Rent-o-Meter is billed as an online resource to get accurate market rents. In my experience it is anything but!  However, I have a fairly simple solution. Multiply what you see on Rent-o-Meter by  80%  and you'll probably be close. I can't explain why but I find rents on Rent-o-Meter to be about 25% high, so multiplying their rents by 80% will get you...
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By Mike Spector
(Your Castle Real Estate)
Topic:  Investor Series:  Things to look for when you look at roofs Have you ever driven through Aurora North looking for a rental property and taken a close look at the roofs?   Here's what you'll see: a bunch of 1950's ranches in varying states of repair or disrepair, lawns that are often grassless, old handcrank windows and roofs in almost perfect condition!  This surprised me at first and perplexed me for a long time.  Why, in a neighborhood devastated by foreclosures with properties with massive deferred maintenance are the roofs in such condition?  Really!  Stand in the middle of a typical street and looking at 10 roofs simultaneously, you'll be amazed. Well, it turns out the answer is pretty simple. There was a huge hailstorm in the mid-90's and most of the roofs were replaced by...
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By Mike Spector
(Your Castle Real Estate)
Topic:  Investor Series:  Things to keep in mind when seeing a foreclosed home As investors we face a number of very real and very scary challenges. Making sense of this market is no mean feat and one has to be very careful with his or her investment. However, we usually think about danger as financial. Unfortunately, on rare occasion it can be even worse than that. The majority of the homes investors are buying these days are vacant and once in a while people break in and live in these properties illegally.  The last thing you want to do is walk in on someone camped out in a house, perhaps conducting illegal an activity.    This is no joke, you want to be HEARD when you walk into a property that is supposed to vacant. So make a lot of noise when you're at the front door. I always knock...
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By Mike Spector
(Your Castle Real Estate)
Topic name:  Investor Series:  Understanding Egress Windows  A lot of investors ask what an egress window is and when one is needed. Technically, it's a window for a room below grade that a municipality has deemed large enough to be safe for exit in case of emergency.   While there are some variations, the window needs to be large enough that a firefighter with an oxygen bottle on their back could get in, then carry out an injured person in a fire.  Most often, it's associated with a basement bedroom window, making it a legal bedroom. Basement bedrooms without egress windows are illegal.  Installing an egress window makes them legal.    The confusion is that different cities, counties and agencies have different size requirements and height-above-floor requirements for these windows. Th...
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By Mike Spector
(Your Castle Real Estate)
Topics for Investors:  Basement Kitchens You walk into a property you're looking to buy and rent and you walk down into the basement and voila! you find a full second kitchen.   Great!  You start calculating how much rent you could get if you could rent the downstairs separate from the upstairs and the cashflow is out of this world!  But wait, there are a number of very real problems with this scenario.   First of all, it's illegal unless the property is zoned for more than one tenant and the property has been converted to non-residential use. But there are even more practical reasons why having two separate tenants is often not a great idea. The first is the utilities. Since it's a house there will only be one bill for Excel and water. Who's going to pay it?  Can you really get the ten...
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By Sheryll White, Denver Real Estate Guide
(Exit Realty Denver Tech Center)
Holidays in The Meadows Celebration this Saturday 1-4 p.m. at The Grange A Meadows tradition, Holidays in The Meadows, will take place this Saturday, December 13, from 1-4 p.m. Santa and Mrs. Claus will make a special visit with all the children. Be sure to be at The Grange at 1:00 p.m. for Santa and Mrs. Claus' special arrival! Other activities include a latte bar, chair massage and crafts. The Meadows Lighting contest will take place that evening from 5-9 p.m. Prizes will be awarded for Most Colorful Display, Most Creative Display, Best Block Light Display, and Best of Show Display. Stop by The Grange to pick up the list of registered addresses. Driving by these houses is sure to put you in the Holiday Spirit! Holiday Hours for The Grange are: Friday, December 19, 10 a.m.- 3 p.m. Wedn...
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By Tim Mancuso, Elite Sales Coach - GROW SMART
(Independent Coach, Trainer & Consultant)
I just got word that the FBI released their 'Most Wanted' widget update. This is available for nearly EVERY site and social network out there (go figure, it's the FBI for goodness sake!) Included are code sniplets and auto placements for: * Facebook * MySpace * MyYahoo *AOL *Email *Standard Embedding * and lots lots more.. Note: I didn't see Active Rain listed in there, nor did I see any AR folks listed in the widget... :-) I think it is very cool that we can add USEFUL widgets like this to our site(s) and in doing so help to keep our country/world SAFER by raising the awareness of criminals and terrorists who may be in our midst!! (Check out the terrorist code/widget that they list on the site, too!) Here's an example of the standard 'embed' code. (note: the 'embed' code isn't working ...
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By Jerry Becker, Littleton, Colorado
(Jerry Becker and Associates)
In this crazy real estate market we're in, I know how easy it is to get scared when you read something in the paper or see it on TV.  When you do, first ask yourself, 'is this a local story or are they reporting on a national trend?'  There's a big difference because here in Denver things are actually getting better.  Our inventory is down and many neighborhoods are showing price appreciation.  The main point I wanted to make is that don't necessarily take the figures you see at face value.  I recently attended a meeting on sales trends where the speaker was making the same point.  For example, he stated how the Castle Rock average sales prices were down 16% in 2008, when compared to last year.  When you get into the figures, they tell a different story.  By breaking the figures down yo...
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By Lisa Sargenti, Lisa Sargenti, SFR, CDPE
(Cherry Creek Properties )
BEING A PART OF A COMMUNITY IS BENEFICIAL TO YOUR REAL ESTATE CAREER.  AS A CO-FOUNDER OF THE CASTLE ROCK EVENT AND WEDDING CO-OP I HAVE HAD THE OPPORTUNITY TO NETWORK WITH SEVERAL BUSINESS PROFESSIONALS IN MY COMMUNITY.  THE CASTLE ROCK EVENT AND WEDDING CO-OP WAS FOUNDED IN 2004 AND HAS TAKEN PART IN SEVERAL EVENTS OVER THE PAST SEVERAL YEARS.  THIS YEAR WE PLANNED OUR FIRST BRIDAL SHOW AND IT WAS A GREAT SUCCESS. CHECK OUT OUR WEB SIGHT AT WWW.CASTLEROCKEVENTSANDWEDDINGS.COM. GET OUT THERE AND BE APART OF YOUR COMMUNITY.
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By Tim Mancuso, Elite Sales Coach - GROW SMART
(Independent Coach, Trainer & Consultant)
We Remember! Veterans' Day * November 11, 2008 Veterans' Day is a day to HONOR our HEROES who put their lives on the line to protect our Nation. Please join me in Thanking a Veteran during this day of remembrance and tribute. It's the right thing to do, and not enough of us do this as often as we should. To all who have served this greatest of Nations - I sincerely Thank YOU for your commitment and sacrifice - on behalf of myself and my family. -Tim Mancuso
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