Castle Pines North will celebrate its first full year as an independent city today.  Castle Pines North development was started 25 years ago, and Mayor Maureen Shul is impressed with the formation, implementation, and achievement from the newly formed city municipal government.Castle Pines North today has over 3,400 homes, 10,000 residents and commercial development along Castle Pines Parkway.  Located in Douglas County, Castle Pines North recently secured the Lagae Ranch development that calls for building 600-700 new homes.  Additionally, a new church, school and park are also under construction.Also, as of today, the private contractor C2HM Hill will take over public works services from Douglas County which has handled those tasks in the past.  However, South Metro Fire Rescue and th... 02/12/2009

Knowing what some of the usual situations our consultants discover during an inspection allows you to be a well-informed buyer. Over the years, and borrowing on over a half million inspections, here’s what we’ve discovered as the top 10 defects in most homes. Repair and replacement costs for such items could cost you thousands of dollars!    * Roof leaks due to poor flashing and / or roof material failure due to poor installation    * Water penetration in the basement or crawlspace due to poor surface water control    * Electrical safety issues due to age of home or homeowner alterations    * Deterioration of the interior wall material behind shower and tub surround areas    * Safety concerns associated with improperly installed decks, stairs or railings    * Heating unit and distributi... 02/09/2009

Castle Rock is filled with charm from the historic buildings or the warm and friendly small town atmosphere.  One of my very favorites is an historic restaurant right in the heart of downtown Castle Rock.  The Castle Cafe is know for their family style portions and firendly staff but most of their fame comes from their fried chicken.  It would be hard to find better fried chicken but be prepared to wait, the 1/2 lb chicken dinner could take as long as 30 minutes as every piece is cooked to order.  If you find your self in Castle Rock the Castle Cafe is a must stop! The Castle Hotel and Bar was the gathering place for quarry workers, ranchers and travelers during the 1890's. In those days, the bar was one of the wildest in the area. Although reports of shootouts were not confirmed, brawl... 01/17/2009

Here is is the full 2008 real estate report. The year in review for The Meadows in Castle Rock. This report will show you all the homes that sold/closed, are under contract as of January 1, 2009 and currently active. Status: A=Active, U=Under Contract, S= Sold Concession Amount=A concession is the amount the seller contributes to the buyer for closing costs and prepaid items. I have also added the original asking price and the final sales price. This should show you the difference between what the seller initially wanted versus what they actually received for the house. See the full report and Market Report Spreadsheet here. 01/07/2009

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 Castle Pines 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 com... 12/28/2008

Investing in Real Estate 8 - Condo Conversions This blog will discuss a type of real estate investment, fix and flips, in the Castle Pines 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 criti... 12/28/2008

Investing in Real Estate 7 - Fix and Flips This blog will discuss a type of real estate investment, fix and flips, in the Castle Pines 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 renovati... 12/28/2008

Investing in Real Estate 6 - Lease Options This blog will discuss a type of real estate investment, lease options, in the Castle Pines 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... 12/28/2008

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 Castle Pines 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 proc... 12/28/2008

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 Castle Pines 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... 12/28/2008

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... 12/28/2008

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... 12/28/2008

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... 12/28/2008

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)-         ... 12/28/2008

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... 12/21/2008

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... 12/18/2008

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,... 12/18/2008

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... 12/18/2008

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... 12/18/2008

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 ... 12/18/2008