Most of you financially savvy folks out there learned early on that homeownership is an important step in achieving long-term financial security. This, generally speaking, is a truism that is pretty accurate. In the process of keeping a roof over our heads, homeowners, with each mortgage payment, are investing in our financial future. Fiscal discipline is a virtue that is often lacking in our society (just look at how our federal government has behaved for the past eight years) so this kind of automatic equity-building is a good thing.

But before you build that McMansion consider this: like aspirin and fine wine, more of a good thing will not necessarily lead to a superior outcome. Yes you should own your own home, but if you supersize it then you’ll be paying a cost.

Continue reading Is it better to go bigger? There’s a cost to living large…

“The way you make money is not following the herd. Lower prices mean greater investment opportunities because there are more motivated sellers and more deals coming on the horizon. Now is definitely the time to buy … but to buy smart.”

That philosophy, spoken by Robert Shemin — Wall Street Journal best-selling author, nationally renowned speaker and major real estate investor — is at the root of successful foreclosure investing in the market today.

An increase in foreclosures translates to more available investment opportunities. And more available investment opportunities creates competition, driving down real estate sales prices across the board.

Continue reading Savvy Investors Find Great Opportunities

It’s no surprise that the current real estate crunch is hitting some markets harder than others. Wobbling prices and sales volumes have sent a lagging shock to the rental markets, but it has been interesting to note that supply and demand have pushed different markets in different directions.

The conventional wisdom has it that foreclosed owners will be scurrying for somewhere to live, pushing up demand and, therefore, rental rates. In some areas this is exactly what has happened.  Landlords in these areas are sitting pretty.

In other areas, however, the situation is the reverse. Tightness in the financial markets has pushed many first-time buyers out of the market. Sellers, unable to find buyers, have converted low end houses into rental. Voila – supply goes up, and the glut of properties pushes rental rates down.

Continue reading How’s the rental market in your area?

We’ve been reading about how farmers and scientists are worried about our country’s vanishing supply of honey bees. Well I don’t know about you, but here in Houston those honey bees are finding my properties just fine.

For the third time in as many years I’m having to hire a guy in a bee suit to pull a hive out of an investment property. This is a pain. Bees aren’t like other garden variety insects. You can’t just throw some spray around and call it a day. You have to find the hive, get rid of the queen, and caulk the living daylights out of the opening so the next wandering swarm doesn’t take up residence a week later.

Continue reading Fun with bees

Back in December I wrote a post on the impact that immigration reform would have on real estate investors. In that article I mentioned a nasty negative local campaign for State Representative that was being waged between Talmadge Heflin(R) and Hubert Vo (D). At the time I skewered Hefflin, the Republican, for a spamming our neighborhood with a particularly stupid mailing in which he implicitly accused Vo of issuing a Texas driver’s license to Osama Bin Ladin.

Vo won the election. But now it’s Vo who finds himself in the news. And this falls squarely into the “what was he thinking?” category. Vo, as it turns out, is a genuine card carrying slumlord.

Continue reading Landlords are public figures

Absorption Rate is defined as: An estimate of the rate at which a particular classification of space - such as new office space, new housing, new condominium units and the like - will be sold or occupied during a specific time frame.

This is an important number for Buyers because it gives you a general ideal of the market conditions in a given area. Equally important for Sellers as it is a good indication, (when used in conjunction with our pricing grid) of what to expect in terms of “Days on Market”. Higher rates are an indicator of better market conditions.

March 2008 Absorption Rates

Continue reading Colorado Springs Real Estate Absorption Rates For March of 2008

Here is a SWOT analysis of the Colorado Springs Real Estate market as of the end of quarter 1 2008.

StrengthsWeaknessesRelocation Season is Late due to delays in military relocations to the area (specifically seasonal Air Force Orders). Relo buyers seem to value strong condition & price creating opportunity for sellersBuyers relocating into the market are more likely than ever to have a contingency clouding their ability to close on a property they wish to purchase hereMost areas offer excellent selection and sellers will often pay some (or all) buyer closing costsBuilders are hesitant to start new developments that are already approved due to slow sell-through on their existing developmentsInterest rates are very near all-time lows. This helps purchasing activity, but anyone in an adjusting mortgage with some equity should consider now as “the time” to re-finance. This could have positive effects in slowing foreclosures locally and nationally.Interest Rates have been ridiculously volatile adding stress to many transactions. A buyer’s qualification at time of contract must be verified and secured with a locked rate as quickly as possibleOpportunitiesThreatsLiterally everywhere. The only way to know the market has reached bottom is when you see it in the rearview mirror and you’re moving away. If you’re a buyer, there are 20% fewer buyers operating at a time when sellers must be realistic in price and outstanding in condition.It appears more likely than not that Colorado is already in a recession. Lack of job growth slows buying traffic. Lack of income growth slows demand. Neither slows listing stimulus. While listing stimulus has eased 9 of the previous 11 months, recession impacts could heat up inventory again.Long-Term Rental Property Investments. Rental rates are clearly headed up and the low financing is a great opportunity. Financing not available in 2004 that is available today are investor mortgages that are a mere 1/8 percent higher with no additional closing fees than a primary residence mortgage.Securing the Olympic Training Center was extremely positive news on the job front. Until further new announcements show up though, most managers and most employees will likely remain negative on the overall economy.If you’re willing to stomach buying now and seeing another 6 to 12 months of market volatility, some of the good buys in the market make sense to considerThose that are risk averse will wish to sit on the sidelines to see sustained proof of market improvement.

Continue reading Colorado Springs Real Estate Market-SWOT analysis Q1 2008

If you would like to find out how to “Crack The Code” to making money online or how to make $1000 a month online following a simple proven adsense system, then please just keep on reading my friend… ‘Cause today I’m going to share a fantastic PLRPro interview with you guys that you’re absolutely going to love! For sure.

Unless, of course, you don’t:
- like a great online success story
- want to find out how to “Crack The Code” to making money online
- want to learn how to make $1000 a month online following a simple proven adsense system

Continue reading PLRPro - How To Make $1000 A Month Online With PLRPro

Here’s a little insight from our good friend Ben Day: This comes from the ERA Shields Stat Pack. Ben and his team do some great work on this every month….Thanks, Ben

HERE IS WHAT IS GOOD TO KNOW, GOOD NEWS, BAD NEWS:
GOOD NEWS: Listing Volume was off 18.9%. That’s really good news. The trend of listing stimulus building up our supply may be near completion.
BAD NEWS: Demand was off the same amount, with sales at 722, off 19% from March 2007, a bad March for most sellers and REALTORS.
BAD NEWS: Our average selling price in March was only $236,503, off 7.2% year to date
Continue reading Colorado Springs Real Estate-Sales Summary 3/07-3/08

The Belltower Condominiums have broken ground and framing has begun. The Belltower Condominiums are a welcome addition to the Southeast Colorado Springs Real Estate market. This project will feature seven different floor plans starting in the $120’s. Square Footages range from 843 to 1,272 square feet, smaller units feature 1 bedroom and 1 bathroom. Larger units feature 2 bedrooms, 2 baths and lofts and Garages are available as an upgrade.

Continue reading Colorado Springs Real Estate-Belltower Condos