Colorado Real Estate Investing

Denver Post reports on CAREI and the new CAREI, College of American Real Estate Investors

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Forbes.com recently named the 10 best “bang for the buck” cities.

Colorado Springs made #9.

Click here to read the entire list.

The 12th Annual Real Estate Investors Wealth Building Convention is this weekend in Denver.

http://www.realestateconvention.com

Three percent of Denver homes that sold during the first half of the year were short sales, according to an analysis of Metrolist data by Re/Max Professionals.

Re/Max broker Stephanie Fix said it’s an indication that many owners are unaware short sales are an alternative to foreclosure and to turning their houses over to the banks.

A short sale is when real estate is sold for less than what is owed on the property. The lender agrees to the reduced price, and it is possible to negotiate the remaining debt as forgiven.

“A homeowner who goes through a successful short sale can, in many cases, be eligible for another home loan in two years,” according to Fix’s report. “A foreclosure can stay on your credit for up to seven years.”

The average sold price for a short sale was $218,477, and homes stayed on the market for about 168 days.

Don’t miss the Fix and Flip Investing Workshop this weekend at the Marriott Hotel DIA.

More info at http://www.fixandflipworkshop.com

The state of Colorado will require carbon monoxide alarms in some homes starting July 1, according to a reminder issued Monday by SAFEbuilt Colorado Inc. of Greeley.

The alarms are mandatory because of House Bill 1091, passed by the Colorado Legislature this year and signed into law by Gov. Bill Ritter in March.

The new law relates to houses that are for sale and rental housing such as apartments that are leased to new tenants. It requires that sellers/landlords of such homes provide well-functioning carbon monoxide alarms near bedrooms, if the home has the following:

• a fuel-burning heater or appliance;

• fireplace; and/or

• attached garage.

Mobile and manufactured homes also are covered by the law.

Any building permit issued for the construction of a new home or upgrades to an existing home is subject to the same provisions.

Alarm installation costs an estimated $40 per unit, according to the state.

Colorado enacted the alarm law partly because of several deaths attributed to carbon monoxide poisoning from November 2008 to the end of last year, including a Denver family spending the Thanksgiving holiday in Aspen.

Roughly 170 people a year die in the United States from carbon monoxide produced by malfunctioning fuel-burning appliances such as furnaces, stoves and water heaters, according to SAFEbuilt Colorado. Thousands more receive emergency treatment.

SAFEbuilt Colorado, part of SAFEbuilt Inc. of Loveland, contracts with several Colorado municipalities to perform services such as building inspections and plan reviews.

Often people fail to make a profit from property investment when they do not understand the true market value of their chosen property, both in terms of resale and rental income.

Investors hoping to purchase a run-down home or off-plan development and sell it on at profit when the work is complete; a practice known as flipping, are often caught out by over-inflated prices or under-estimated renovation costs.

On the other hand, buy-to-let investors can be seduced by suggestions of high rental values and then disappointed when these do not materialize.

Whether you’re planning to flip a property or buying-to-let, it is important to ensure that you do not pay over the odds, as money saved on the purchase price will lower your mortgage costs and increase your profit margin.

Understanding the local market

One of the best ways to estimate the potential value of a property is to understand the local market. Fortunately there are a number of tools to help you do this:

Use the internet.  Websites like Zillow give the price the owner paid and other sales around the property.  If the property was bought for $100,000 two years ago, chances are it’s worth about 10-15% less today.   Don’t pay attention to Zillow’s “zestimate”, but rather the comps.  Drive by the comps to see how they compare.

Browse estate agent listings – Using the internet and local papers, you can soon get an idea of the market value for different types of property in the area. It is also worth arranging a couple of viewings, allowing you to make suitable comparisons when you have decided on a place to purchase.

If you are planning to buy-to-let, it is also worthwhile speaking to a few letting agents to try and gauge the general rental prices that could be expected. Again rental listings on the internet and in local papers will help to verify the amounts tenants will be prepared to pay.

Take your time

Unfortunately there is no silver bullet approach to accurately valuing property and one of the secrets to running a profitable property business is investing time and money to ensure your buy your property at the right price.

The city was granted 4.5 million dollars from the feds to buy up, rehab and sell properties.  According to the Denver Post, the first property was bought and rehabbed for 170k and will be sold for 150k.  Ah, the efficiency of our government dollars at work!

Read the entire story

http://www.denverpost.com/search/ci_12119909