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Find out what down-payment assistance programs you may qualify for!


Housing in 2018: Where Are Home Values Headed?

via Housing in 2018: Where Are Home Values Headed?

Meeting about an assisted living facility we have under contract with a potential investor who has "8 million" currently earning a "guaranteed 5%", the inevitable subject of overvaluation came up, to which my response was, not quite.

Buoyed by many positive trends, such as the nation's first Olympic museum, projections of our being the nation's cyber security capital, expansion of direct flights to and from the Colorado Springs airport and more, there's also this:

 

http://www.corelogic.com/about-us/researchtrends/corelogic-home-price-insights.aspx?WT.mc_id=crlg_171205_C6yzN#

Historically just a few years behind the Denver MSA, which may have plateaued as of this writing, it seems the Colorado Springs market has up to 5 years of upswing left.

Specializing in locating, analyzing, acquiring and management of quality rental assets, we are standing by and have significant experience helping investors build long-term wealth with real estate. Please contact us at 866-6REALTY or 303-242-2980 for the personalized attention you deserve.


Investment Analysis and Net Operating Income

via Understanding Net Operating Income in Commercial Real Estate

Investment Analysis

No one has a crystal ball. However, to "make your money when you buy", real estate investment analysis requires a careful look at variables, perhaps most important being projected gross income, at the time of purchase.

Net Operating Income

The amount left over after subtracting expenses from gross income, Net Operating Income (NOI) is crucial. Using a formula known as IRV with the income capitalization approach, NOI helps us to find value as follows:

Net operating income (I) ÷ capitalization rate (R) = value (V)

To find NOI, use income and expense statements for the subject and similar properties to first estimate the potential gross income, then subtract vacancy and collection loss. From this, estimate expenses and subtract them from the effective gross income.

Cap (Capitalization) Rate

Similar to a rate of return, the capitalization rate is the percentage investors hope to get from an investment. With as little information as recent sales data for comparable properties, the formula used to find Cap Rate is as follows:

Net operating income (I) ÷ Sales price (V) = Cap rate (R)

Local Expertise

Together with expert market knowledge, this analysis helps us make reasonable projections that help our clients make informed purchase decisions every time.

Reach out to us for a consultation, we look forward to serving you.


How to Say Goodbye to Renting and Hello to Home Ownership – Realty Times

How to Say Goodbye to Renting and Hello to Home Ownership

via How to Say Goodbye to Renting and Hello to Home Ownership

Specializing in helping clients build rental portfolio's, at Atlas Real Estate Group we like to change the heading to "...Hello to Building Long Term Wealth".

With a clear understanding the money is made when you buy, we use market knowledge to analyze pricing and project cash flow so that our valued clients make informed decisions going in.

From single family to large apartment buildings, our in-house experts have devised a formula to success over the last decade that works and look forward to serving you.


Invest in real estate

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"It's amazing what 10 years of good hard work will do."

Source: How to start investing in real estate - Business Insider

A mortgage loan professional starting in 1997 and a licensed real estate broker today, it should come as no surprise I am a huge proponent of real estate. Using lease options, land contracts and traditional financing, I have personally experienced the joys of home ownership, building (and losing) equity and, in inaugurating many into the club, have also shared this joy with others.

For many others, getting started is no easy undertaking, starting with financing, especially when it comes to using conventional, FHA/VA or similar institutional financing. The three C's of credit (character, capital and capacity, not necessarily in that order) requires would be home owners (investors) submit to an increasingly thorough examination of DTI, employment history, credit use...that read like lions, tigers and bears, right? Yes, not only can it be brutal, but also an exercise in futility for many, especially the non-owner occupied type.

Enter hard (and private) money, which mostly and sometimes only cares about the property...what it is or will be worth in the future in comparison to how much it's selling for today, that is. They don't call it hard money for nothing, as the cost and fees (double-digit interest rates when owner-occupied is in the low single digits, 4% of the loan amount, application fees) associated with this strategy can hurt yet, so can a vaccine when you tense up in anticipation. Right? But when in the hands of a learned professional, look away and, not only do you barely feel a thing, it's all better in no time, except for when you get sick from it, but I digress.

Take the median home, $240k in the Colorado Springs market. Being short-term financing (3 - 12 months, max), held for 12 months the total interest at 14% is $33,600. Add 4% in points and 10% in holding costs, and the cost is an admittedly hurtful $100,800 AKA a real kick in the pants. You might ask, what logical investor would want to pay $100,800 in fees and costs to acquire a $240,000 asset? One who understands the time value of money, that's who.

You'll need to look at this differently to understand. But first, let me take this opportunity to mention the most important factor here is the need to be working with a motivated (unemployed, bank, divorced, estate, probate) seller because it won't work otherwise. What hasn't been mentioned is this asset was purchased for say, 70 cents on the dollar ($156k) or less. I also left out the part that factors a shorter holding time, say 3 months or just enough time to rehab the property at a cost of about 10% of purchase price say, $16k. Effectively cutting time and fees by 75%, we now have a cost of funds equal to roughly $41,200 including rehab. Get the picture? We "just purchased" a $240,ooo asset for $156,000, added $41,200 in costs and fees and came up with an "investment" of $197k, theoretically netting $43,000 in three months. What's so hard about that? By the way, and where the intrinsic value is different from that of a non-owner occupied investor, any home owner who has looked at a truth in lending statement as they were called will say, "what a deal" as they look at the total interest paid during the life of a 30 year loan, even at 4%!

Of course, the process, including costs and fees has been simplified tremendously but the scenario is real and it works.

Interested in getting started? With our experience and relationship with lenders at every spectrum, including hard money financing at up to 100% of ARV (after repaired value), we are uniquely qualified to you invest in real estate. Just use the contact form in the lower right to get started.


Residential Growth Still Strong

Residential development continues to expand.

Source: Economy Watch: Residential Growth Still Strong—Especially Apartment Development | Multi-Housing News Online


Down Payment Assistance Grants Available

Source: El Paso County, Colorado • Single Family Mortgage Bond Program

Be it your first or your last, buying a home is no small accomplishment. And when you're a first timer, there's so much to learn and so little time, since your lease is expiring and/or you've suddenly realized you'd rather not commit another year of mullah to pay for someone else's mortgage/retirement plan.

Though a tad more difficult to qualify for than the subprime days of yesteryear, for those with verifiable income, relatively stable employment and a decent (not necessarily excellent) credit score, today's borrowing environment is full of unprecedented opportunity.

Here's how.

  1. Market values are climbing, which might mean we have come out of the down cycle. Consequently, barring another economic collapse of course, prices will continue to rise for the next 8 - 11 years of our current real estate economic cycle*.
    1. Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
      1. OK. So, the $100,000 house you just bought appreciates at 20%. In theory, this means the house will be worth about $120,000 year 2, $144,000 year 3,  $173,000 year 4 and so on.
  2. With 30 year fixed rate mortgages at about 4% annually, you are able to finance an asset at a lower interest rate than its projected appreciation! This is like your bank charging you less than the federal funds rate. Or like your three-year old used car being worth more today than it did new. You get the point?
  3. Market rents are pretty high and climbing, sometimes more than relative mortgage payments! For example, the Average Rent Price in Colorado Springs is $1,321***, the principal and interest payment for a $276,000 home, which is slightly above the average home price****.
  4. When you're a renter, consider your housing mullah turns into cosmic dust at about the 1st of each month, never to be seen again in this life, as opposed to the pixie dust that happens to homeowners when appreciation (and principal reduction) come together at about the same time, turning their home sweet home into a long term investment, even retirement tool.
  5. Many renters shy away from buying due to the cost, which includes a down payment, closings costs and other fees, all of which can add up. So for a little icing on the cake, consider the El Paso County Down Payment Assistance Grant contributes 4% of the purchase price towards down payment and closing costs.

Of course, there are property taxes, insurance, maintenance and other costs to consider with home ownership but overall, it's generally better to buy than rent, especially in our current environment.

If you're still reading you can go ahead and admit, it's time to buy a home. Conveniently located at the bottom right of this screen, use the contact form to setup your personalized consultation and see how easy it can be when you hire a knowledgeable professional to help.

Do it now, before the sky falls.

* REAL ESTATE CYCLES: THEY EXIST… AND ARE PREDICTABLE http://bit.ly/1q3duZF

** Colorado Appreciation Rates:  http://www.neighborhoodscout.com/co/rates/

*** Colorado Springs Rental Market Summary: http://www.realtor.com/local/Colorado-Springs_CO/rent-prices

**** PPAR Housing Statistics, Average and Median Sales Prices:  http://www.ppar.com/Statistics.aspx


HUD Section 8 Housing Program

Housing

HUD's Section 8 Public Housing Program offers a true win-win solution to America's housing needs. Capping rent charged to the highest of the following:

- 30% of monthly adjusted income (annual income less deductions and allowances per dependent that - can be as high as $480
- 10% of monthly income
- welfare rent, if applicable
- No more than $50 minimum rent

Section 8 housing provides low income families the opportunity to live in quality housing while providing a strong incentive for property owners to own and maintain them.

HUD's Public Housing Program/U.S. Department of Housing and Urban Development (HUD)


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