What is a FICO score?FICO stands for Fair Isaac Corporation, a company that created the most used credit scoring model in the United States.  An individual’s credit score is calculated through a statistical algorithm and is used as a factor in determining the likelihood of a borrower defaulting on a loan.  FICO scores are generally used for obtaining mortgages, car loans or consumer credit.  The scores are provided from the three major credit reporting agencies: Equifax, Experian and Transunion.  Typically, there is a variance amongst the scores since each agency has a slightly different scoring formula.  FICO scores range from 300 – 850, with higher scores being considered less risky.  For mortgage lending purposes, any score over a 680 is considered good and above a 750 is considered ... 12/18/2008

TOPIC: Improving conditions in Denver’s  marketThere are some signs of strengthening in our Denver market.  The metro area's inventory of available resale housing decreased 20% to 23,120 units in October from October 2007.  Some of this reduced inventory is attributed to homeowners taking their properties off the market in frustration because their property is not selling, but lower inventory implies a strengthening market.  Remember, the Denver area had housing inventory of 31,989 units in July 2006. Home sales rose 14% to 4,265 in September compared to the same month last year.  This is due almost entirely to the lower-end of the market (under $180K) selling like hotcakes. October's median selling price for single-family homes decreased 12% to $206,000 from the same month of '07, and ... 12/18/2008

This is a market report for real estate and homes sold in Douglas and Elbert County including Parker Colorado for November 2008. This real estate report covers homes sold year to day and monthly sales for November 2008. If you require a breakdown of these numbers or more detail exact neighborhood market information please let me know. You can email me here Steven Beam. 303-941-4663. Please see our other market reports for the Denver real estate market. Notice the average sales price is down 14% from 2007 to date. It does not mean home prices are down 14% it means lower priced homes are selling versus higher priced homes. The absorption rate in months is almost at 12 months worth of inventory. Wouldn't you like to know the absorption rate for your specific neighborhood? Let me know your ... 12/18/2008

Hidden River and Sagewood Real estate and Homes for sale in Parker Colorado. See every home for sale in Hidden River and Sagewood. Sagewood and Hidden River is located in Parker Colorado. Homes are priced from $200,000 to over $350,000. The neighborhood is located off Hilltop Road east of Parker Road. There are approximately 900 homes located inside the two neighborhoods. Steven Beam is a Parker Colorado real estate broker. 12/13/2008

As most of the readers of these pages know, I am passionate about the game of golf. What better time to write this, than a 60 degree, December day?  I am going to be writing more about golf and it’s impact on the local real estate markets, and Colorado’s economy. From the CGC Website It was recently announced that the Colorado Golf Club would be home to the 2010 Senior PGA Championship.  This coming on the heels of the 2008 Senior Championship being played only an hour away, at the Broadmoor, in Colorado Springs.  For the PGA to, so quickly, bring back a Major Championship to Colorado, is a remarkable achievement for a club less than three years old! However, this is no ordinary club.  Designed by Ben Crenshaw and Bill Coore, this is a monster course that will test the best players in t... 12/13/2008

This morning we all woke up to winter and in the Stonegate neighborhood of Parker Colorado we have about 7 inches of fresh snow. With temps only in the 20s our three year old was ready to start his new snowman. We had to tell him to wait until after school but I'm sure tonight we'll be busy building Frosty.   hope to see you all outsie enjoying the snow and your kids!   12/09/2008

Ever want to know how many homes are for sale or what their listing price is for the Horse Creek neighborhhod in Parker Colorado? Horse Creek is located off Jordan Road South near the intersevtion of Hess Road. All of the homes were built after 2004 and mostly by the home builder Richmond American Homes. Click the links below to see the most up to dat information and homes currently for sale. Here you are. Every home for sale in Horse Creek. Neighborhood information on Horse Creek. Steven Beam is a Parker Colorado Real Estate Broker. 303-941-4663 12/09/2008

  Saddlewood and Bonnie Ridge Homes and Real Estate For Sale.; Elizabeth Colorado! Home for sale in Parker Colorado by Price Range and Neighborhood. Parker Homes for Sale $200,000-$500,000. Most searched price range. Parker Homes for Sale $200,000 to $300,000. Parker Homes for Sale $301,000 to $400,000. Parker Homes for Sale $401,000 to $500,000.   Parker Real Estate for Sale $500,000 to $700,000. Parker Colorado Luxury Homes for Sale $701,000 to $900,000. Million Dollar homes in Parker Colorado Stonegate All Homes for Sale Idyllwilde Neighborhood Homes for Sale.       12/07/2008

  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 loudly before entering.  Stomp your feet a little. Yell "Hello!" a couple ... 12/06/2008

    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. Therefore, before you start cutting into the concrete fou... 12/06/2008

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 tenants to pro-rate their share if you pay... 12/06/2008

There are some signs of strengthening in our Denver market.  The metro area's inventory of available resale housing decreased 20% to 23,120 units in October from October 2007.  Some of this reduced inventory is attributed to homeowners taking their properties off the market in frustration because their property is not selling, but lower inventory implies a strengthening market.  Remember, the Denver area had housing inventory of 31,989 units in July 2006. Home sales rose 14% to 4,265 in September compared to the same month last year.  This is due almost entirely to the lower-end of the market (under $180K) selling like hotcakes. October's median selling price for single-family homes decreased 12% to $206,000 from the same month of '07, and was down 4.7% from September's median of $216,1... 12/06/2008

This blog will discuss a type of real estate investment, scrapes, pops and new construction, in the Parker 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 commercial loan usually does not show up on your credit report, so it doe... 12/06/2008

  This blog will discuss a type of real estate investment, fix and flips, in the Parker 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 critical.  For a commercial loan, your net worth should ... 12/06/2008

This blog will discuss a type of real estate investment, fix and flips, in the Parker 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 renovation budget, and the terms will be a lot more pleas... 12/06/2008

This blog will discuss a type of real estate investment, lease options, in the Parker 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 to let you re-lease the property to another tenant, it can be a lot o... 12/06/2008

This blog will discuss a type of real estate investment, large apartment buildings, in the Parker  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 process.    Equity needed:  Being able to document your income and your a... 12/06/2008

This blog will discuss a type of real estate investment, small apartment buildings, in the Parker 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 maintenance and showing empty units.  The financing process is only sli... 12/06/2008

Looking for a quick and easy day trip from Parker? When we need a place to go or things to do away from Parker we head to Westcliffe, Colorado. It's a little over two hours but well worth it. In the summer warmer months they have great shops, festivals, a rodeo and parades. Kids actually like walking around the town since there are plenty of kid shops, bakeries and ice cream stores to keep them busy. We love it and enjoy visiting there anytime of year. The valley is beautiful and the mountains are often compared to the Alps. No kidding! There's plenty of hiking, biking, horseback riding, 4 wheeling and 4wheeler trails and whatever else you can hope to find in a small Colorado town. Directions. Head south on I-25 to the Springs then west on 151 to Florence. Follow the signs from Florence... 12/03/2008

Yes! Good news. Mortgage apps are up and rates are down. Hopefully some of these will be buyers and not refinance loans. In the past week the rates have dropped and held below 6% and I think this should kick start the market for a small boost for the end of the year and for early next year. Who knows.       12/03/2008