Denver Metro Small Multi Family Income Property

Numbers, Numbers, More Numbers

2012-02-29T19:20:00.000-08:00

2012 Economic Forecast for Metro Denver
To be or not to be,that is the question....

Gas Price History
Historical Price Charts

Denver at #6 in the Gallup-Healthways Well-Being Index.
Hawaii No 1 & West Virginia still sucks!

National Association of Realtor numbers .
NAR (sometimes suspect) pendingSales ###'s

US National Debt numbers.
This freaks me out!

SocialSecuity already running deficits.
Social Security Is Running Out Of Money At Least 5 Years Ahead Of Schedule

58 % Increase in Capital gains tax and a 3.8% Medicare tax.
Cap Gains and Medicare Increases

How Can You Profit From Housing Growth in Denver?

2012-01-29T09:03:00.000-08:00

Denver to Lead the Way!

Greg Rand tells the world on FOX News the benefits of Denver's Small Income Property market!

'nuff said!

Words of Wisdom from the Jan 22, Sunday Denver Post Business Section

2012-01-23T08:10:00.000-08:00

There is a ton of info in the Sunday Denver Post this week for the Small Income Property Owner, both locally and in the Wall Street Journal Sunday section. My fav being the real estate reference in the WSJ - How to Play the Big 5 'What Ifs' of 2012.

Condos' Lapsed FHA Approval.

http://www.denverpost.com/business/ci_19789026

Condo Projects Lacking FHA Approval. This is a big problem!

Fed Ignored the Obvious. http://www.denverpost.com/businessheadlines/ci_19788681

The Fed was oblivious to coming housing bubble. Another examination but a little weak from the way I see it. It all goes back to the lowering of the qualifying standards.

WSJ Sunday

How to Play the Big 5 'What Ifs' of 2012. http://online.wsj.com/article/SB10001424052970204468004577166810581681478.html

Check out the second paragraph of #2. What if the Us Housing Finally Improves -

You'll know real estate is improving when you see rising prices in combination with greater sales volumes of housing units. For that to occur, "lots of other good things need to be happening," says Barry Ritholtz, CEO of FusionIQ, a New York-based research and asset-management company.

and then look at the numbers in the

2011 Small Income Property Review. http://www.keithabees.com/resources/downloads/2011%20Income%20Prop%20Review.pdf

Navigating a Tight Rental Market http://online.wsj.com/article/SB10001424052970204542404577158641068356490.html Tidbits on what tenants should look for in a good deal when shopping!

You Don’t Have to Start Out Rich to Build Wealth. http://online.wsj.com/article/SB10001424052970204468004577166723997091352.html Investing Basics has good starter ideas for anyone who has not yet started to take advantage of an IRA or 401(k) savings plan!

2011 Small Income Property Review

2012-01-20T11:38:00.000-08:00

The 2011 Small Income Property Review is completed and ready for your review. Contact me for a 'hot off the press' copy of this annual look back at last year’s Denver- Metro Small Income Property market and a peek into 2012.

Sales - Up

Prices - Mostly Up

Average Sales Prices - Mostly Up

Average Price per Square Foot - Mostly Up

Day on Market - Up

Rents - Up

Vacancy – Down

Foreclosures - Slightly Down

Interest Rates - Down

For an in-depth look at the numbers and trends reach me at a contact below!

Keith A. Hurtubise
RE/MAX 100 Inc.
Broker Associate
Registered Real Estate Appraiser (Inactive)
710 Kipling St., Suite 110
Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-808-8202 mobile
keithabees@aol.com

Happy Holidays!

2011-12-21T06:49:00.000-08:00

Do Your Homework before Considering Commercial Investment

2011-12-06T10:29:00.000-08:00

If you’re thinking about investing in commercial real estate, always keep in mind the “five P’s”:

Prior planning prevents poor performance.

“Most people who invest in rental or commercial real estate don’t spend near enough time thinking about what their intent is and what they expect, nor do they do enough research to help ensure a successful venture,” says Adam Whitz, Broker/Owner of RE/MAX Commercial Group in Lansing, Mich.

To help you determine which commercial sector - and ultimately, which specific property - to invest in, Whitz advises you to consider these things:

Why are you investing? Retirement? A steady stream of income? Long-term growth? College funds for your children?
How much cash do you have for a down payment?
Where is your investment capital going to come from?
What return on investment do you expect?
Do you want immediate income or a return years down the road?
Do you have a plan for managing the property?

Without knowing the answers to these questions, Whitz says, you’re flying blind and have little chance of a satisfactory outcome. But once you have these factors in mind, you can get more serious.

A good first step is to contact a local expert.

. Keith Hurtubise, a RE/MAX Broker in the Denver Metro area says, “Find someone familiar with the local markets. A good broker will refer you to an expert in whatever market you are comfortable in. An experienced commercial real estate professional can be a valuable member of your team, which should also include, at the minimum, an attorney and an accountant.”

“Most investors get caught up in the glamour of the transaction, but a good real estate professional can do the detail work that needs to be done,” Whitz says. “There are many commercial sectors to choose from – including retail, office, vacant land, manufacturing, and warehouse, medical and multifamily residential. We can help you evaluate your specific needs and choose the right investment for you.”

Commercial real estate professionals also know their market.

“Is it an ascending market? Very few are right now,” Whitz says. “Of course, that doesn’t mean you shouldn’t invest, but you must go into an investment with your eyes open.”

You also must understand aspects of your market’s demographics – whether the population is growing or declining, the average age and income of the populace, and so on. And you must understand critical factors in the commercial marketplace, including economic trends, vacancy rates, lease/rental rates and so on.

In all these areas, a commercial real estate specialist can be a valuable guide and counselor.

“You know the old adage: Ready, Fire, Aim,” Whitz says. “That doesn’t work out too well. We can keep you from going off-track.”

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX office and may not be applicable to all areas.

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX real estate offices and may not be applicable to all areas.

Contact Keith Hurtubise for a referral to an expert in your area.

Keith A. Hurtubise
RE/MAX 100 Inc.
Certified Distressed Property Expert
Broker Associate
Registered Real Estate Appraiser (Inactive)
710 Kipling St., Suite 110
Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-808-8202 mobile
keithabees@aol.com

203(k) Loan - Combine Purchase, Repair Money In One Loan

2011-12-05T06:50:00.000-08:00

So you've found a home, perhaps a foreclosure, that's in the right location at the right price. You'd love to buy it, but it needs some work. And the seller, which may be a lending institution or the U.S. Department of Housing and Urban Development (HUD), is not offering to help pay for the fix-up. Is there a way to finance the repairs so that you don't have to come up with what may be thousands of dollars?

There is if you're going to be using an FHA-insured loan. Through what's known as the 203(k) program, you can add the repair costs into a primary mortgage and finance it over the life of the loan - at a much lower interest rate than with conventional alternatives.

"The 203(k) is becoming very important right now, because there are so many bank-owned homes on the market, you can't work with the sellers to get homes repaired," says Sherri Hopper of RE/MAX Properties in Colorado Springs, Colo. Hopper has worked with several clients who have used the 203(k) in their home purchase.

The FHA (Federal Housing Administration) doesn't actually lend money, but insures lenders against a loss if a borrower defaults on a loan. FHA-insured loans require lower down payments (3.5 percent) than conventional mortgages and have more flexible requirements, allowing borrowers with less than perfect credit to obtain a loan with a competitive interest rate.

Hopper provides these tips for buyers interested in a 203(k) loan:

Work with a lender that has expertise in the program; not all do. A professional real estate agent should be able to help you identify such a lender.
Be aware that closing a 203(k) loan will take longer than a conventional loan, so patience is a plus. Lenders may request additional paperwork throughout the process, so you need to be fully engaged.
The amount of the loan will be based on the appraised value of the home after repairs are made.
Contractors can't be related to the buyer, real estate agent or lender. And they must be validated by the FHA. You should make sure any contractors you're interested in using have filled out the paperwork to get validated. The contractor may be validated in as little as 10 days. The FHA can provide names of contractors who've already been validated.
For some types of repairs, you can perform the work yourself if you're qualified. However, you can't be paid for the work.
You're not required to get multiple bids, but it's in your interest to do so. After all, you'll be paying it off over 15 or 30 years.
You can't use a 203(k) loan as an investor; only as an owner occupant. You can use the program for dwellings up to four units, provided you live in one of the units.
You can use the 203(k) to fix up a condo, but only the interior.

It may take a little more time and effort, but a 203(k) loan can help you get into your dream home at a bargain price.

Read more about the 203(k) program.

Contact Keith Hurtubise at RE/MAX 100 Inc with any questions regarding using the 203(k) loan program in the local Metro-Denver area.

Keith A. Hurtubise
RE/MAX 100 Inc.
Certified Distressed Property Expert
Broker Associate
Registered Real Estate Appraiser (Inactive)
710 Kipling St., Suite 110
Lakewood, CO 80215
303-202-2221 direct
303-808-8202 mobile
keithabees@aol.com
www.keithabees.com

Building and Maintaining a Great Credit Profile

2011-12-02T08:15:00.000-08:00

Your credit report represents how well you manage your financial responsibilities. The good news is that your negative information drops off over time but the positive information remains. Building a strong and consistent history of responsibly using credit is the foundation to building a great credit profile. Although it’s relatively easy to gain access to new credit such as credit cards, there are many best practices to use and common traps to avoid. Here are a few easy tips for effectively building your credit history.

Applying for new credit

Don’t apply every time you see an offer. Getting too much credit too quickly can hurt your credit profile.
Don’t build your credit profile through trial and error. Consult an expert such as a credit coach to develop a plan based on your short- and long-term needs.
Print clearly when applying for credit. If your application information is entered inaccurately it can create variations of reported information on your credit report.
Consistently use your complete name without any variations. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file.

Once you have credit

Pay your bills on time. Most lenders look at the most recent information on a report. So if you've paid your accounts on time for the last two to three years, the lender may weigh that more heavily than a series of late payments from five years ago.
Set up a budget, and follow it. This is so much easier said than done! A credit coach can help provide you guidance on creating and managing a budget based on current income and debt as well as your short- and long-term credit needs. In the age of self-help and empowerment, managing your finances should top your list. The key is not to over-extend yourself.
Develop and follow a plan for the type of credit you have, how you use it, and the type of credit you may need in the near future.
Review your credit report periodically throughout each year.
- At least 60 to 90 days before making a major purchase (such as a home, car or large household goods) you should prepare by reviewing your credit profile to help ensure it is optimized.
- Continual evaluation of your credit profile is necessary to ensure you are not paying unnecessary interest expenses (i.e., you could qualify for lower rates and better terms). The average homeowners spend an estimated $300,000 in their lifetimes on unnecessary interest expenses.
- Ensure no fraudulent or erroneous activity has occurred related to credit profile. An estimated one in eleven families was a victim of identity theft last year.

Getting help

A personal credit coach can be incredibly valuable whether you understand credit or not. Having a credit coach is similar to an asset manager except it’s for your liabilities. A coach will work closely with you to explain your credit profile, provide you guidance with ways you can more effectively manage it, and can help you evaluate it on an ongoing basis. Changes continually occur for all of us. Jobs change, unforeseen expenses happen and so on. If you begin to fall behind on your payments.

Contact your lenders. Ignoring the situation will only add to your problems. Many lenders will work with you to set up a different payment schedule or interest rate. It never hurts to ask.
Pay your bills when they're due. If you have an overdue bill, unpaid debt, tax lien or judgment, pay it off. You may find it easier to pay one affordable consolidation loan rather than several separate accounts. Your credit coach can help identify what options may be available to you.
Stop using credit, if possible, until your finances are under control. Consider going to cash purchases only based on your budget. This will STOP the financial bleeding while you pull your credit management plan back into place.
Look to professionals like the ApprovalGUARD Service. Your credit coach is experienced in explaining your credit and indentifying ways to optimize and manage debt.
AVOID credit repair agencies. "If it’s too good to be true then it often is!" Most credit repair agencies typically charge you high prices to artificially "fix" your credit. This unfortunately often amounts to "band aid" work that manipulates loopholes in the system and often results in the credit issue returning to your credit report within months after it was supposedly fixed. If you have inaccurate information on your report, your ApprovalGUARD credit coach can help you identify it and specifically provide you with the proper methods for getting it addressed.

It’s important to note that The Credit Repair Organization Act is a federal law that prohibits credit repair clinics from taking a consumer's money until they have fully completed the services they promised. It also requires such firms to provide consumers with a written contract stating all the services to be provided and the terms and conditions of payment. Consumers also have three days to withdraw from the contract.

The ApprovalGUARD Service - Is the first and only service of its kind. Each ApprovalGUARD customer is assigned a personal credit coach to help them understand, evaluate and optimize their credit and debt profiles. The ApprovalGUARD Service additionally provides each Full Service customer with credit reports, credit scores, continual informative credit tips and education, and tools to more effectively manage and analyze their credit and debt profiles. Go to www.ApprovalGUARD.com and use the promotion code: REMAX1 for your free 30 day, no obligation trial.

FHA Changes Loan Limits Again!

2011-11-30T08:08:00.000-08:00

The FHA had decided in September to lower the loan limits on FHA insured loans.

I am not sure what changed since then, but now they have decided to raise the limits again to what they were before September 2011.

I guess they must feel that you are a better risk at a higher loan amount in December vs. September.

Even though you still only have to come up with 3% for a home loan down payment, you must look better on paper! With my best John Stossel imitation, “Give me a break”!

Confused?

Don't be.

I have decided there is really no need to understand it. You only need to know what the loan amounts are if you are going buy with an FHA loan. Denver County went from $406,250 to $368,000 and now is back to $406,250 for a single family home.

The new Denver limits are:

SFH $406,250 Duplex $520,050 Triplex $628,650 Fourplexes $781,250

To search for your counties loan limits, go to:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Put in your County and, for now, set the Limit Year to: CY2010

The site has not updated the 2011 year end amounts as of today, 11-30-2011.

Or,

Contact me with any Real Estate related questions. I am always here for you!

Bankruptcy: Your Last Resort

2011-11-27T07:15:00.000-08:00

Bankruptcy should be your last option if you're in financial trouble. However, if your financial situation has been deteriorating for a long time, your credit standing is probably bad enough that filing for bankruptcy won’t do much to make it worse, says ApprovalGUARD President and CEO Jeff Mandel.

Keep this in mind, though: A bankruptcy remains on your credit report for 10 years. Also, creditors know that once you file for bankruptcy, you cannot do so again for seven years.

ApprovalGUARD is a credit service that assigns a personal advisor to each client to help them understand, evaluate and optimize their credit and debt profiles.

Types of Bankruptcy
A Chapter 13 bankruptcy filing, sometimes referred to as reorganization, does not discharge your obligations. It does allow you to work out a plan for paying off debts in amounts and timeframes that you can manage.

"Chapter 13 is designed to provide a solution for people who have suffered a short-term financial challenge due to a job loss or illness," Mandel says. "Although it will have a negative effect on your credit report, some creditors will view this as a demonstration of your willingness to pay your debts rather than to discharge them. In some cases, this may help you obtain new credit within a year or so."

From a credit standpoint, Chapter 7 bankruptcy is the darkest mark you can have. While it absolves you of the debts you owe (except for child support, alimony or unpaid income taxes), it makes obtaining new loans or credit cards extremely unlikely for at least a year or two - and perhaps longer.

One common problem people emerging from bankruptcy face is the catastrophic long-term impact it has on their ability to be approved for new credit at a reasonable cost. Many creditors will not lend to you for one to two years. When you finally begin to qualify again, you will typically be categorized as "extra-high risk," which often leads to lower credit limits and very high interest rates.

"The good news is that nothing credit-related is forever," Mandel says. "The effect of a bankruptcy on your credit score can start to diminish the day your case is closed."

Tips for Recovery From Bankruptcy

Plan your credit recovery. Take it slow and easy; don’t exceed what you can afford.
If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.
If your problem was over-spending, create a written budget and stick to it.
To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as loans for autos, education or a home.
Consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100 percent of your credit line in case you miss your payment.
If you don't have enough funds to survive a setback, get serious about saving for an emergency fund. In the current economy, you need at least 12 to 16 months.
If your problem was related to medical bills, seek out an insurance solution.
The rebuilding process requires you to use credit responsibly. Use only a small portion of your available credit line (30 percent or less) and make a full payment every month.

You may be able to apply for a home loan in as little as two years after the discharge of your bankruptcy. However, you should expect to pay higher fees and interest rates.

Adding Real Estate to your Retirement Accounts

2011-11-24T07:15:00.000-08:00

Spooked by the stock market? Wondering what kind of return you’ll get with bonds? Getting minimal return in your money market fund?

Here’s an option you may not know about: The U.S. Internal Revenue Service allows you to have real estate investments in a self-directed IRA retirement account.

“It’s a wonderful way to increase your retirement fund,” says Ruthann McBride (CDPE, CIAS), a real estate agent with RE/MAX Estates in Estero, Fla. “You can take any or all of the money that you currently have in an investment fund and buy real estate.”

You can invest in any type of real estate – single-family homes or condos, multi-unit properties, commercial real estate, even vacant land – through your retirement account.

“I have helped many clients over the years with small income property, single family homes and small commercial property sales. All of these are appropriate,”said Keith Hurtubise, RE/MAX Hall of Fame member from RE/MAX 100 Inc. in Lakewood, CO.

The critical factor is that the investment must be in the name of your IRA – not your own name.

Taxes are deferred
As with any tax-deferred retirement account, income and capital gains accumulate tax-free until you tap into the funds. Once you do so – you can begin withdrawing funds with no penalty at age 59½ – you pay taxes on the gains. Rent or lease payments, then, flow directly into the retirement account. Expenses – maintenance and repair, costs for finding new tenants and so on – are taken directly from the IRA.

“This is for your retirement,” McBride says. “Not for income that you can use right now.”

Restrictions on real estate investments in retirement.

The limit on the amount of new money you can invest ($5,000 annually if you’re under 50, $6,000 if you’re 50 or older) applies to real estate, just as it does to any other tax-deferred retirement investment.

The property must be a true investment. Neither you nor your spouse can live or vacation in it, nor can lineal family members (parents, grandparents, children, grandchildren, great-grandchildren) or their spouses.

You can’t write off expenses or losses on your taxes.

The investment must be in care of a government-approved custodian, which holds the investment. (Only a small number of such custodians exist in the U.S.; I have been involved with several different 1031 accommodators and can help you find one.) And a separate administrator must handle record-keeping and tax reporting.

If you sell the property and make a profit, the gains go into the IRA, not to you. If you choose to re-invest the profits in real estate, you can do so – but still in the name of the retirement account

Such investments aren’t for everyone, McBride cautions.

“Liquidity might be an issue if you’re concerned about needing your money before retirement,” she says. “Like any other real estate investment, it may take time to sell. Your money is not liquid.”

Hurtubise says, “For someone with a couple of different retirement accounts, it may make sense for them to consider converting one to a self-directed account for real estate investments.”

McBride enthusiastically endorses real estate investments in an IRA.

“It’s the best of all worlds,” she says. “The beauty of it is, even when you begin withdrawing funds, you still have the underlying asset – the property – which can continue to appreciate in value. Over the long-term, real estate traditionally has been more reliable and made more money for investors than more traditional retirement investments. Another advantage is this: Suppose I buy stock in a company that folds. That money is gone. But real estate will always be there.”

Realtors aren’t qualified or authorized to offer tax advice, so you should consult an accountant or other tax expert before deciding whether real estate makes sense as a retirement investment – and how to structure the transaction.

When you do decide to invest in real estate, contact Keith Hurtubise to help you find and purchase the right property.

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX real estate offices and may not be applicable to all areas. Contact Keith Hurtubise for a referral to an expert in your area.

Keith A. Hurtubise
RE/MAX 100 Inc.
Certified Distressed Property Expert
Broker Associate
Registered Real Estate Appraiser (Inactive)
710 Kipling St., Suite 110
Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-808-8202 mobile
keithabees@aol.com

Lowering the Energy Bill

2011-11-22T15:07:00.000-08:00

Want to save a buck?
If you are willing to spend a few dollars on supplies and do a little work, you can lower your heating bills and enjoy a toasty home this winter!
Check out the following article for some ideas on keeping the nasty cold out of your home.
If you are interested in saving a few more bucks on your supplies or on any Lowe's purchase, contact me about my Client Appreciation Program.

9 Ways to Keep Lid on Energy Bills

Prices Fall as Homes Sit on the Market

2011-11-04T09:13:00.000-07:00

The latest Credit Suisse Realtor Survey, in which I am a member, had the following summary of the Denver market for the month of October;

Home prices remained under pressure in October, as our home price index came in at 34 (from 33 in September), short of a neutral reading of 50 and pointing to lower prices over the last 30 days (readings below 50).

Prices continue to fall despite four consecutive months of lower inventories. Our home listings index improved to 81 from 70 in September, with readings above 50 pointing to lower inventories.

However, the time to sell increased, remaining a drag on home prices, as our time to sell index came in at 42 from 35 in September, closer toward a neutral reading but still short of 50 (readings below 50 point to an increased time to sell).

We view the increased time to sell as a negative indicator of future pricing and remain concerned

over shadow foreclosure inventory.

RE/MAX Among Top 20 Military Spouse Friendly Employers

2011-11-02T13:38:00.000-07:00

For the fifth year in a row, RE/MAX has been named among the Top 20 Military Spouse Friendly Employers by Military Spouse magazine.

Finalists for this year's Top 20 were selected from a pool of more than 5,000 large companies, and RE/MAX was the highest-ranking real estate company on the survey. RE/MAX is joined on the list by other high-profile organizations like USAA, T-Mobile, Kelly Services and Sears. The survey is featured in Military Spouse magazine's October 2011 issue.

"We’ve always supported members of the military and their families; it’s part of our effort to give back to the communities where we do business," says Gail Liniger, RE/MAX Co-Founder and Vice Chairman. "Our offices hire military spouses because they become dedicated, organized employees who work hard to get the job done right."

RE/MAX, in cooperation with the Department of Defense, created an initiative in 2006 called Operation RE/MAX. The program matches members of the military community with volunteer RE/MAX brokers who have made a commitment to coach, train and mentor military personnel.

As a result of the success of Operation RE/MAX, the company was honored in 2007 with the Office of the Secretary of Defense Exceptional Public Service Award.

Denver Commercial Numbers Continue in the Right Direction –Slowly

2011-11-02T09:40:00.000-07:00

According to an article by Dennis Huspeni in the Denver Business Journal, quoting a from the Newmark Knight Frank Frederick Ross’ (NKFFR) Market Trends report, the Office, Retail and Industrial vacancy rates and absorption rates continue in the right direction.

The office market still seems to be “upgrading” with Class A properties showing absorption and Class C buildings showing vacancies.

Retail and Industrial moves were dominated by some big names. Wal-Mart and IKEA in the Retail market and ConAgra, Lincoln College and SMA Solar dominated in the Industrial market.

Read the whole story here.

THE BLOG IS BACK!

2011-11-02T09:36:00.000-07:00

I tried the email blast route for market updates but realized that the blog route is more efficient.
So here we go again!

Short Sale Fraud Plagues the Housing Market

2011-07-17T11:26:00.000-07:00

Fellow Real Estate brokers running short sale scams!

Short Sale Fraud

Make sure you know who you are dealing with!

Early money is not always smart money but smart money is usually early money!

2011-06-28T07:55:00.000-07:00

What’s this, another report of a new project in Denver? One week after the announcement of The Gaylord Resort and Convention Center to be built in Aurora, Penny Parker reports in the DENVER POST that another project is slated for development. An announcement like this every week would show a ton of faith in Denver’s future.

Parker reports, at the corner of I-25 and Hamden, D.H.Friedman will build a retail project and another builder will develop 350 apartment units on the north side.

Although this is nowhere near the size and scope of the DIA /Gaylord project, these types’ of developments start the inflow of money, jobs and new businesses into the community.

Is this early or smart money? Probably both, but the most important thing is the money is flowing the right direction!

Great Job Aurora!

2011-06-22T19:14:00.000-07:00

If you are getting tired of the depressing numbers you read lately.
Check out these figures!

$800 million = Western-style convention hotel

$300 million = an incentive package

1,500 = rooms

400,000 = square feet of exhibition and conference space

1,900 = construction jobs

1,800 = permanent, on-site jobs

3,200 = direct and indirect jobs.

$5-billion = impact over 30 years.

Add these numbers up and what do you get?

The Gaylord Resort and Convention Center

For those of us who have lived through the peaks and valleys of the Denver economy, this may bring a smile to your faces. Remember all the excitement of building DIA, getting the Rockies baseball team and building a new stadium. How about the convention center?

Great Job Aurora!

Insurance Savings

2011-06-12T10:32:00.000-07:00

Re-Examine Auto Coverage .

This short article from the WSJ about re-examining ones auto insurance reminded me of my reviewing all of my insurance policies earlier this year. The article states that we need to make sure we have the proper policies and not overpay for unneeded coverage.

I have been telling all my clients and customers that they should shop their insurance business every year to make sure that they are getting the best deals and the coverage they need. After all, lower expenses increases value!

But… or more like Butt... I have not been following my own advice. For several years I have listened to my friendly insurance agent assure me that I am getting the best deal compared to what is available from his competitors.

This year I actually followed my own advice and was surprised to see the needed policy changes and how much I was leaving on the table. Buy shopping around switching from one company to another, I saved over $400 annually and ended up with better and more coverage. I achieved this by switching my homeowners, mountain rental and an umbrella policy. I also switched a couple of cars where the savings were minimal but doing so helped with the total cost savings.

I have another out state rental and 2-3 motorcycles coming up for renewal, I have already looked into these and have found similar savings.

Getting off my BUTT and listening to my own advice turns out to be the right thing to do!

If you want more details, give a call.

New Web Site

2011-06-05T16:17:00.000-07:00

http://www.keithabees.com/

The new web site is up and (obviously) the old blog is here.

Thanks Steve and Josh at Hot Listings, http://hot-listings.info/ for making what had become an ugly transition much smoother and easier. I was struggling for a year to convert from the old platform before deciding to just start over.

Since we are starting from scratch, this means the site is bare bones right now but will be updated as we go forward. I hope to continually update with valuable info for small income property and commercial investors, as well as being able to help with all your residential real estate related needs.

We were able to get the special TAX APPEAL comparable sale section up in time to help with 2-4 unit tax appeals. I wish you all good luck in getting your assessment lowered.

All the investor help from the old site is still available; searches, comparable sales lists, CMA, 1031 information, eviction help, market trend info, buyer and seller help, etc. Although not all is currently available on line, I am always available to help. Feel free to contact me with any questions!

As we are processing the info to upload to the new site, please let me know what would be valuable to you. I am open to all suggestions.

Let’s have a great summer.

ARMs are the problem through 2012.

2011-04-11T19:21:00.000-07:00

- Number of properties that are 30 or more days past due, but not in foreclosure: 4,659,000
- Number of properties that are 90 or more days delinquent, but not in foreclosure: 2,165,000
- Number of properties in foreclosure pre-sale inventory: 2,196,000
- Number of properties that are 30 or more days delinquent or in foreclosure: 6,856,000

BLAME IT ON THE ARMs - "February's data also showed a 23 percent increase in Option ARM foreclosures over the last six months, far more than any other product type. In terms of absolute numbers, Option ARM foreclosures stand at 18.8 percent, a higher level than Subprime foreclosures ever reached."

NAR reports that existing home sales dropped 9.6%, and the median price hit $156,100, a 10-year low. WSJ says that the stage set for steep discounting in the spring market.
GOOD NEWS in the rental market, as it heats up. The average US apartment vacancy rates dropped to 5% last year from 8%. This has developers salivating over the potential for a multiyear rental boom even with the glut of foreclosed SFRs. Builders will build!

Market Improves for Small Income Property! 2010 Sales Review.

2011-02-05T11:21:00.000-08:00

2010 Small Income Property Sales Review - Lets look at the numbers!

Once again, as I have done annually each January, I researched the previous year’s sales from our local Metrolist MLS for information regarding small multi-family income property.
I review SOLD information from the four counties of Adams, Arapahoe, Denver and Jefferson. Sales are from January through December 2010. The information used for comparison is from small multi-family property sales with less than 20 units. The majority of these sales in the Denver Metro area are in the 2-4 unit range.

Complete sales lists by County of 2-4 unit sales are available for a more in depth look into specific types and neighborhoods.

If you are interested in quarterly updates throughout the year, a Current Market Analysis of your income property or just have a real estate related question - contact me any time at any of the contacts below.

As always, any suggestions, comments, complaints, praise, etc., is truly appreciated.
Your feedback helps to keep me up to date on what is most valuable to you. My satisfaction comes from helping you achieve your real estate goals.

Oh by the way, I am never too busy for any of your referrals.

Keith A. Hurtubise
RE/MAX 100 Inc.
Broker Associate
Registered Real Estate Appraiser (Inactive)
710 Kipling St., Suite 110
Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-808-8202 mobile
keithabees@aol.com
www.keithabees.com

Bye Bye 2010... Hello 2011!

2010-12-31T08:15:00.000-08:00

Have a Safe and Happy New Year's celebration!

I got a better feeling this year than last!

HAPPY NEW YEAR!!!

Anyone Sorry To See 2010 Go? Hell No!

Commercial Real Estate Stats Fluctuating

2010-12-09T04:27:00.000-08:00

Check out this article from CoStar:

Latest-CRE-Price-Analysis-Reverses-Positive-Direction-in-October

Sales Volumes and Future Pricing

Investment grade sales volume, while lower for the month of October, has increased 14% during the last three months and is nearly 70% higher than one year ago. General real estate volumes have declined 6% during the last three months and increased a mere 7% from a year ago.
"We expect the current see-saw pattern in pricing to continue as a result of the relative 'trickle' of properties that are being allowed to come to market," said Dr. Norm Miller, vice president, analytics for CoStar Group.

"Additionally," Miller added, "CoStar has reported increases in average asking rents and positive net absorption for several commercial property markets. However, net operating incomes are expected to continue to deteriorate for a time as rents on existing leases roll to lower market rents. At the same time, the lack of new supply could lead to strong rent growth in the future. Lastly, if interest rates begin to increase, we believe it will be a race between the rate of increase in net operating incomes and the rate of increase in interest rates."

Vacancies Falling but so are Rents on Single Family

2010-12-07T18:00:00.000-08:00

Denver-area renters snap-up homes | Inside Real Estate News

Vacancy rates on Denver-Metro single family rentals are now below 3%. With such demand, we normally have increasing rental rates. Not so right now!
I am hearing the same story from my clients as is being told in the comments of this story at INSIDE REAL ESTATE. I cannot tell you how many times in the last year I have heard; "this is the worst market ever for quality tenants".
I know there is some truth to it because many of the prospective buyers of low priced homes are having the some of the same credit problem issues.
Home owners who develop bad credit and lose their home become prospective tenants with poor credit!

2010-12-06T07:36:00.000-08:00

Short Sales make up a big portion of the Metro-Denver residential and small income property markets.

They are sometimes frustrating and confusing.

Below is a link from LAND Title that explains the basics.

Feel free to contact me at anytime with any questions!

http://ltgc.com/files/technicalbulletins_customers/shortsales_jul06_web.pdf

Electronic Pickpocket

2010-12-05T11:51:00.000-08:00

Shoppers Beware!!

Colorado Foreclosure Timeline

2010-12-03T20:00:00.001-08:00

I hope you never need this but here is how it works!

http://ltgc.com/files/technicalbulletins_customers/foreclosuretimetable_jan08_web.pdf

Sorry for the absence, I hope to get back on a regular posting schedule soon.

Glass Half Full?

2010-10-04T12:09:00.000-07:00

An email from Bill Colangelo, A Downtown Denver Commercial Broker who I respect.

Dear Keith,
I recently ran across this article about the current state of the Commercial Real Estate Market and found it very interesting. I want to share it with you and hope you enjoy it as well.
Please feel free to call me if you have any questions. I would love to talk with you.
Best Wishes,
Bill Colangelo

The State of the Commercial Real Estate Industry
Jay Spivey, CoStar Director of Analytics, teamed with CoStar Director of Advisory Services, Hans Nordby to present findings and forecasts to CoStar clients. Overall, "we think the outlook is better than it has been in a few years", says Spivey.
The U.S. industrial real estate market now appears to be headed into recovery after several quarters of negative absorption. With the economy sending out mixed signals but generally gaining strength, absorption of industrial buildings turned positive in the second quarter following six consecutive quarters of net loss.
Leasing: Activity is Up
The national industrial vacancy rate declined for the first time in two years, according to the company's most recent analysis of industrial property markets.
Little New Supply in Sight
New industrial deliveries as a percentage of total inventory continued to decline in the second quarter.
More properties are being taken out of inventory due to obsolescence and other factors than are being added in new construction.
Lending constraints will continue to keep a clamp on the new construction and the lack of new supply will allow the market to recover more speedily.
Vacancy: Steady Gains Ahead
Given the positive absorption and low levels of construction, the national vacancy rate edged down in the quarter from 10.1% to 10%, the first drop in two years.
Availability (space being marketed even though it may not yet be vacant) also edged down from 14.8% to 14.7%.
As they have since 2008, rental rates continue to fall in the second quarter but at a less rapid rate.
Despite positive news on vacancies and absorption, positive rent growth is still probably a year or two away.
Investments Sales: A Market in Transition
On the down side, sales transaction volume remains low by historical standards.
Liquidity has not returned to the industrial market and the time that properties sit on the market before being sold - and the number of properties withdrawn from the market without being sold - continues to rise.
The second quarter saw a slight narrowing of the gap between asking and actual sales prices, possibly an indication that buyers and sellers are starting to agree on pricing.
(Source: CoStar Group State of the Commercial Real Estate Industry Mid-year 2010 Industrial Review & Outlook.)

Oh, by the way® ...

whenever you come across people who are thinking about buying or selling a home or an investment property and would appreciate the exceptional service I provide, please forward their name and telephone number to me. I will gladly follow up and offer them the same high quality service that I give my current clients!

Major challenges for commercial real estate

2010-10-04T06:21:00.000-07:00

Vacancies – While office space is slowly recovering it is estimated that a full recovery will take years. According to Moody's Dismal Scientist more than 2.5 million office-using jobs were lost during the recent recession with only 200,000 regained since the fall of 2009. The lost demand is equal to nearly 300 empire State Buildings, according to their report.
Credit – Commercial mortgage-backed securities (CMBS) have been on a 2 year slide and are at a 20-year low. Due to low demand, increase of poor quality loans, and fewer lenders, only the most credit worthy borrowers can obtain new financing.
The FDIC stats show that commercial bank loan delinquency is peaking. But the situation is worse for securitized commercial real estate loans which show 60-day delinquency growing from 1% to 8% over the past 2 years. The worst delinquencies are in hotel and multifamily residential properties (apartment building prices fell nearly 40% from peak to trough).
Short-Term Calls – Most commercial loans have a long-term amortization with a rather short-term call. Considerable destabilization in a market when a properties income (high vacancies) and value have slid, as they have; borrowers’ credit has deteriorated, as it has; and fewer lenders and dollars are in the market.
According to Moody's Dismal Scientist it will take years for the commercial sector to recover.

Milwuakee Views

2010-09-19T08:32:00.000-07:00

The life of a stand-by flier needs to be flexible. Only half of my plan for 2 weekends in Milwaukee worked out. I did get to Milwaukee last weekend but I could not get a seat out of Denver on this past Friday. I was to go to my cousin’s daughters wedding on Saturday the 18th and spend Sunday with my wife’s brother’s family on their boat on Lake Michigan near Chicago.

During my 1st weekend, on the 11th I got to go the Harley-Davidson museum, it’s like a trip to Mecca for an old Harley rider like me. Also, I did get to check out some of the Milwaukee real estate market in relation to our Denver market.

The cities are of similar size with populations at around 600,000. Denver ranked as the 24th largest city with Milwaukee at 26th. Denver’s metro area population is about 1,000,000 larger and raked at #21 while Milwaukee is at #37.

The sales info I received and reviewed for the last month in the City of Milwaukee was interesting. A full 85% of the sales were between $6,000 and $150,000, with only 3 sales between $200,000 and $240,000 and one at $310,000. Many neighborhoods looked much like Phoenix and Denver with For Sale signs everywhere. The local sentiment was that the market was going to stay “as-is” for a while.

The people here seem to take the market ups and downs more matter of fact-ly than in Phoenix, where the anxiety from the bust was prevalent. After years of losing jobs in the industrial and brewing biz, they seem to be more resigned to market cycles.

The local buzz regarding the possibility of Harley pulling the manufacturing plant from Milwaukee was a big topic. After I left, the company and the unions agreed on a plan to keep the jobs in town.

In comparing Denver to Milwaukee and Phoenix, I think Phoenix is still in a down trend and waiting to buy there will probably get you a better deal. Milwaukee will probably offer more deals in the future but probably not at a much lower rate than now.

Denver has been in the top percentile nationally of holding prices or slight increases and may be closer to the road out of this recent bubble explosion.

Go Denver!

We Suck Less?

2010-09-09T08:27:00.000-07:00

I have in been in Phoenix three times in the past month and a half or so.

Although we are experiencing a less than exuberant real estate market, Phoenix really sucks.

Local buzz there is they are about to experience a double dip in real estate prices. After the median price hit a low of $119,000 in April of 2009, recently it has slowly risen to just above $130,000.

Pending sales show that the median is heading down and could get near the April 2009 low in Sept.
They have 43,000 on the market, up from 41,500 in June and up from 37,000 a year ago.

We have 33,000 homes and 8,400 condos on the market and our median sales price was $217,740 in June. This is up from $213,000 in May but still well below the June 2006 median of $247,569.

Over the next 2 weekends I am going to Milwaukee WI. I am curious to see how there market is compares to ours.

After the reviews of the Phoenix market, we may look beat up but you should see the other guys!!!

Looking for ANY good news!

2010-08-29T14:35:00.000-07:00

"Existing home sales plunged 27.2% in July to an annual rate of 3.83 million units. This was the lowest level of sales since 1995 and the third and by far the largest decline since expiration of the homebuyer tax credit at the end of April. With the July decline, existing home sales are now 25.5% below their year ago level and off a stunning 47.2% from their September 2005 peak. With the tax credit pulling sales forward it seems like the housing market has to find a new bottom all over again. Home sales need to be revived again, not by government programs and tax incentives but by the sound fundamentals of job and income growth and economic expansion."

Commercial Real Estate in Distress

2010-08-02T08:39:00.000-07:00

From CNBC Squawk Box, Citigroup global head of real estate Thomas Flexner discussing the state of commercial real estate.

2010-07-14T14:29:00.000-07:00

2nd Quarter 2010 Sales Disappoint

As most of you know, I have been keeping track of the 2-4 unit sales for many years. Last quarter I said “Don’t pop the champagne corks just yet, but the numbers seem to be stabilizing”. Well, store the bubbly for a little longer and buy more PBR, because the 2nd quarter sales figures went in the wrong direction.

For the list of all the 2nd quarter 2-4 unit sales, go to my old website at: http://www.keithabees.com/2010_comps.htm

2nd Quarter Summary

Total Sales were down from both last quarter (13%) and from the 2nd Quarter of 2009 (21%).
Volume shrank 15% from last quarter and 12% from the 2nd Quarter of 2009.
Average price per sale was up year over year but down from last quarter.
Average $/SF has stayed roughly the same at $78/SF
Days on Market went down again to about 83 days. DOM is a bright spot for individual owners trying to sell or thinking of selling.
Bank owned sales are about 47% of all sales in the 2nd quarter. Still a major influence on the market.

This has been an excellent opportunity for new investors to get into the business and for seasoned Investors to add their portfolios.
If you own a 2-4 unit and are unhappy with it for any reason (location, size, etc.) but want to stay in the business, take a look a today’s deals. You may have to take a hit on the current property but you can probably find a replacement that has the superior qualities that you are looking for.
Great prices and low interest rates generally show great cash flow. What’s the catch?
The days of the 5-10% down payment for investors of 2-4 units are history. Loans are available for buyers with good credit but require 25% down. Single family investments can be had with 20% down.
From the Sellers stand point, prices have fallen but we are seeing better qualified buyers than in the past. You have more of a chance to have an inspection or an appraisal issue on a deal than with a buyer that can’t qualify at the last minute.

Contact me if you have any real estate related questions or are interested in buying, selling or a 1031 tax-deferred exchange.

Keith A. Hurtubise
RE/MAX 100 Inc.
Certified Distressed Property Expert
Broker Associate
Real Estate Appraiser (Inactive)
710 Kipling St., Suite
110 Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-232-6919 fax office
303-942-3451 e-fax
303-808-8202 mobile
keithabees@aol.com
www.keithabees.com

Breaking into a Garage

2010-06-30T09:03:00.000-07:00

The internet is like an on-line college for criminals.

Learning to break into homes, garages and cars is easy with a click of the mouse. Instructional videos on lock picking and pick pocketing are at anyones finger tips.

We all need to be aware and use the info to our advantage to thwart the bad guys.

A quick fix for the garage door in the video is to remove the cord and replace the spring with a zip tie. This will allow only you to use the emergency release from the inside.

BE AWARE!

Interest Rates Staying Low as Bonds Rise –Gold Continues Up - REIT’s Outperform Market

2010-06-18T19:30:00.000-07:00

Interest rates have a huge effect on Small Income Property. When bonds rise, interest rates stay low.
Liquid investors are still betting heavily on the safe harbor investments.
Tired of cleaning toilets and waiting for your equity to grow? Consider Real Estate Investment Trust ETF’s.

The following info is from Thursdays Investors Business Daily:

BONDS

Treasuries climbed Thursday, with benchmark yields hitting their lowest level in a week after a rise in jobless claims and weaker-than-forecast manufacturing data pointed to only a tentative economic recovery. Consumer prices notched their largest decline in nearly 1 1/2 years, suggesting that inflation poses little threat to bond holdings, while weekly claims for jobless benefits rose for the week and the Labor Department revised higher the previous week’s claims number.
“All the reports . . . are constructive for the Treasuries market,” said Tom Porcelli, senior economist at RBC Capital Markets. “The market is buying into the idea that the economy is softer than earlier this year. We are in a disinflationary mode.”
Bond investors watch inflation data carefully for signs that prices— and therefore interest rates—could begin to rise, thus devaluing government debt. Thursday’s data showed falling prices, while the drop in factory activity and jump in initial jobless claims heralded more choppiness in the recovery.
“We have been complaining about a lack of economic data, and today we got what we were looking for,” said Carley Garner, senior analyst at DeCarley Trading. “The morning was filled with news, albeit disappointing. As a result, investors seemed to be looking to ‘safer’ assets.”

GOLD

Gold neared a record high.
Analysts cited data showing new jobless claims rose last week while consumer prices notched their largest decline in nearly 1 1/2 years in May, suggesting that interest rates will remain ultralow to nurse the fragile economic recovery. Analysts had expected recovery from the deepest recession since the 1930s to moderate in the second half, but commodities investors took Thursday’s weak data as a sign that gold was the only safe market.

REITS

Real estate investment trust ETF's have outperformed the market the past year, even as property values and rents continued south. Many REITs have boosted their balance sheets by raising money through secondary offerings and IPOs in 2009 and this year. Fitch Ratings lifted its outlook on REITs overall, from negative to stable, Wednesday. In a teleconference Wednesday, it cited easier access to money and a “strengthening macroeconomic backdrop, albeit with a lagging recovery in employment.”
Industrial REITs were the only subsector to remain negative.

Commercial Real Estate: Lagging the Economic Recovery by George Ratiu, NAR Economist

2010-06-15T20:10:00.000-07:00

Check out this article - Commercial Real Estate: Lagging the Economic Recovery by George Ratiu, NAR Economist. http://www.realtor.org/research/reinsights/marketintelligence

We should not expect any great positive changes for the rest of this year. We will revisit at the end of this year but I am betting we will not see much change in early 2011 either.

Colorado ranks as the worst or near the worst Commercial Real Estate Sales Volume, Business Opportunities in Commercial Real Estate and New Construction in Commercial Real Estate in the last quarterly survey.

Multi-Family is looking better than the other sectors but there are still many factors holding back any real improvement.

Foreclosures will continue in the single family market until the final ARM’s are taken out of play in 2012. This will continue to affect our small income property market as well.

From the above mentioned article: “Taking the long view, the remaining three quarters of 2010 will likely see continued increases in vacancies and declining rents. However, with multifamily posting signs of improvement, the other core property types should record gradual improvements as employment improves and creates additional demand for space. Based on current the current scenario of economic recovery, a broader improvement in commercial real estate is expected in 2011.”

Call me anytime with any Real Estate related questions, 303-808-8202.

Denver Police Urge Caution

2010-06-09T19:36:00.000-07:00

DENVER POLICE DEPARTMENT

The mission of the Denver Police Department is to deliver high quality public
safety services so all people may share a safe and healthy environment.

PRESS RELEASE

(Denver) Denver Police are warning the community about individuals using fictitious professions as a way to case homes for potential criminal activity.

A recent incident in West Denver where several suspects posed as government employees to gather information from a home owner, only to return later to commit a crime, has prompted Denver Police to issue this warning.

During the early morning hours on Friday, June 4, 2010, two suspects knocked at a victim’s front door. The victim recognized one of the suspects as the person that had been at her residence previously representing himself as being from a company conducting inspections for Denver Wastewater Management. The victim allowed both parties into the home where they robbed the homeowner at gunpoint.

Please report to police any suspicious person(s) that may be in your neighborhood claiming to be conducting legitimate business. To confirm the authenticity of the person, you are urged to ask for proper identification, credentials, and/or contact information for the company. Do not allow these individuals inside your home. If you believe they may be misrepresenting themselves contact police immediately.

2010-06-05T10:50:00.000-07:00

Erin Toll Resigns

Is the Erin Toll saga coming to an end? Could be!

After a tumultuous career as a government regulator, Erin Toll Glover (Glover is her married name) is resigning to become a real estate broker, one of the same people she used to regulate. Is the Principal becoming a Student?

Most are in the ‘love her’ or ‘hate her' camp. If she focused on you, regardless of the severity of the charge, she generally stomped on you right to the end.

I do believe she was good at weeding out some of the problems in our business and I do thank for that.

That being said, I usually questioned her sincerity. She loved to go to the media. She seemed to love the publicity as much as any job accomplishments. Not knowing her personally, I could not be sure of that but it seemed to me that the positions at the Division of Insurance and head of the Dept. of Real Estate were just stepping stones. I think the resignation/settlement will put any future government or political plans on hold for the moment.

As a new Real Estate Broker and competitor, I wish her Good Luck and a little advice. Keep your nose clean!

The DENVER POST has followed the story, http://www.denverpost.com/ci_15230723
but John Rebchook has been on top of it through out. If you want the complete story, check out his blog. http://www.insiderealestatenews.com/2010/06/erin-toll-resigns/

Call for Action:

2010-05-21T06:30:00.000-07:00

Small Income Property Owners, Contact your Representatives Today!
Prevent New Tax Burdens on Real Estate

Congress is considering changes to the tax code in order to pay for a number of tax provisions expiring in 2010. Two of these provisions would impact real estate. The first would require all owners of rental properties to file IRS 1099 forms for all contractors they do business with if they pay that contractor $600 or more in any given year. This onerous provision would apply to even the smallest landlord.
In addition, Congress is considering taxing "carried interest" at ordinary income rates instead of capital gains. Carried interest rules govern how general partners in real estate investments pay taxes when the investment is sold.
These new tax burdens will further delay the real estate market recovery. These proposals are ill-advised, inopportune and potentially destructive. Please tell Congress to oppose them today.

Denver Metro Small Income Property 2- 4 units 1st Qrt Sales

2010-04-19T13:34:00.000-07:00

1st Quarter 2010 SOLD figures up a little over 2009 1st Quarter

Don’t pop the champagne corks just yet, but the numbers seem to be stabilizing.

Check the 1st quarter list of 2-4 unit sales on my website at:
http://keithabees.com/2010%20SmallIncomeProperty%20COMPS%201st%20QRT%202-4units.pdf

1st Quarter Summary
Sales were up 10% over 2009,
Volume was up 20%
Average price per sale was up 9.5%
$/SF is up $10
Days on Market went down to under a 100.
Bank owned sales were about the same but up to over 40% of all sales vs 33% for all of 2009.

The increases are good news but because 2009 numbers were so poor, we need to keep the enthusiasm in check for a while. Improvement in prices, volume and days on the market must be tempered by the rising bank owned sales.

Increasing bank owned sales do not expand the market for the current owner but do offer some good entry points for new investments. Bank owned properties tend to be priced more realistically than privately owned properties and lenders negotiate aggressively to get the properties off of their books.

The 1st quarter generally is the slowest quarter. We need to watch the 2nd quarter to see if the trends continue and the 3rd quarter to see if volume and sales will up enough to beat out 2009’s dismal numbers.

Stay Tuned!

FRIENDS- THE END IS HERE / NEAR!

2010-04-11T20:06:00.000-07:00

No, I haven't joined a cult!

I built my web site http://www.keithabees.com in 1997 on the MS FrontPage platform. FrontPage is no longer supported by Microsoft. With it its functionality dwindling, the time has come to retire the ole girl and the equally neglected www.keithabeeshomes companion site. One of the reasons to get this blog going was to help in the transition to a new website platform and a move to using more social media.

If you have any experience converting a FrontPage site, I would love to hear from you. My host has suggested I go with MS Expressions.

I hope to have a new and much more usable site up by June 2010. The intension is to continue with an independent site where I can still keep the Small Income Property Investor up to date with local sales, market trends and useful information. I will also have a companion site for single family homes to replace www.keithabeeshomes. If you have any ideas or thoughts on what to include on the new sites, I would greatly appreciate hearing from you.

As always, feel free to contact me directly.
1-800-573-0002 toll free / 303-202-2221direct / 303-808-8202 cell or text / invest@keithabees.com

2009 Review Summary and Numbers are Complete!

2010-02-05T12:18:00.000-08:00

Click here: www.keithabees.com for Review, Summary, 2-4 Sold Lists and more!

2009 Summary Review

Not a Pretty Market for Small Income Property!

The total number of small income property sales fell again from 408 in 2008 to 349 in 2009. Down from a high of over 600 in both 2004 and 2005!

Total sales volume dropped to the lowest total since I started keeping track in 2003. At close to only $83 million, the total sales volume is at less than half of its 2005 high of over $200,000,000.

The average sales price followed the downward trend, with the 4 county figure at less $240,000. The same four county average was above $350,000 only 3 years ago! Adams and Arapahoe counties are now down to about 50% of their recent highs!

Days on Market (DOM) is the amount of time a property is available For Sale before selling. The average DOM in 2009 for all 4 counties is now over 4 months!

Is there any good news in the numbers?

Foreclosure sales of 2-4 unit properties in 2009 are down from 2008!

In 2007, we had only 70 lender owned sales or about 18% of the market. In 2008, in the 2-4 unit market, the number rose to 154 bank owned sales out of the 347 total sales which equaled 44%.

In 2009 one of every 3 sales was a bank owned deal. 34% of all 2-4 unit sales were lender owned sales versus the 44% in 2008. 99 out of the total 298 sales were from lending institutions.

Adams county was highest at 39% but down from 47% last year. Arapahoe which was at 57% in 2008 dropped to ‘only’ 33% in 2009. Denver and Jefferson County were at 33% in 2008 and came in at 30% and 35% respectively in 2009.

It is possible that foreclosures may trend higher in 2010. Lenders may have held back on starting some foreclosures. Also, the many adjustable rate mortgages made in 2005 will adjust too much higher payments this year.

Sales Concessions are down again in 2009.
Only 23% of sales included any sales concessions. Nearly all the under handed practices that were so prevalent in 2006 have been stopped. Some of the nefarious operators were hoping for concessions at their sentencing hearings, but sadly, many are long gone with their ill gotten profits.

Rents and Vacancies - Mixed
The vacancy rate fell in the 3rd quarter of 2009 to 7.4%. That was the 1st drop in 7 quarters. A slight drop in unemployment and small population increases were stated as the likely contributors. Denver and Arapahoe counties were at 8.5%, Adams at 6.7% and Jefferson at 6.3%. The average rent was up from the previous quarter but still down from the previous year.

1031 Tax Deferred Exchanges
The bankruptcies and closing of several 1031 accommodators in 2008 have helped culled the herd. Several stronger companies have survived and are thriving even in the slow sales market. I am thankful that none of my clients lost any money during this debacle.

Complete Info and more at:
Click here: keithabees2010

Lets get started!

2010-01-31T13:47:00.000-08:00

Lets get started!

Any and all suggestions will be welcomed and considered.

2009 Comparable Sales Info from my website.

http://www.keithabees.com/2009.htm

Click on the County to see where your property slots in with the 2009 Solds.