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at Your Castle Real Estate (Denver Lakewood Wheat Ridge Littleton Jefferson Cty Gilpin Cty)

Have you noticed a trend in the sales offerings in Condominium? On a price per square foot basis, Condos can be less the price of a house. Cash purchase and deep discounts appear to be the norm in the Condo Market today, While it still holds true that you get what you pay for (usually deeper discounts mean more fix-up), we also see a trend in the health of the HOA.
In the upper end Condo market (over $350K) in our district I am seeing more and more short sales plus the foreclosures are increasing. History has proven in the entry market, as soon as the unit is listed as a Short Sale, the owner typically ceases to pay the monthly HOA fees. Some Shorts remain on the market for many months, (I know of one near me that has been listed as a short sale for almost 18 months. The legal owner moved away long ago and when this unit sells or goes to foreclosure then – and only then will some of the lost HOA fees be recovered. (See: http://pzeller.wordpress.com/banks-foreclose-then-abandon-ownership/ . This is an old article about houses, but we are seeing the same pattern in condominiums now, with the added HOA losses too.)
The reality is that the HOA management can only collect a limited amount of back condo fees from the bank at sale under a super lien. As a result, many of these HOA’s are not in healthy financial shape. Coupled with the fact that lending rules often refuse loan-for-purchase in complexes that have a high tenant to owner ratio, what might look like a great deal may turn out to be a fiscal nightmare after you purchase.
In the end, because lenders are not writing many loans to owner occupants, we may see an even higher foreclosure ration than in the housing inventory. Even people who want to live in the condo they buy will most likely have to pay cash and wait the market out. Additionally, there is the risk of huge ‘special assessments’ if the HOA needs funds to make up the losses from non-paying owners and / or capital improvements.
Does this mean you should buy a house instead? Not necessarily. There are methods of identifying the Condominium Complexes that are low risk for this activity. It does mean plenty of advance research plus touring buildings to target your top 5 – 6 Condominium complexes. Then, if a unit is not readily available, you wait for the unit to come available.
There are processes to engage / retain your Realtor and Lender to help you while you are in this holding pattern. I feel that these professionals, especially a good lender, would appreciate that you will not be wasting time and resources falling in love with a Unit that will not pass underwriting.
Penelope Zeller is a Business Development Specialist with expertise in change management, community stabilization, and real estate. She can be reached through http://royalkingdomassociates.com/

Tags: condominiums in Denver , Denver condos , Denver Real Estate , Homebuyer education , Royal Kingdom Associates

I recently attended a walking tour of historic Denver and was inspired by the beautiful fall colors. The tour, guided by local writer and historian, Phil Goodstein, was sponsored by the Colorado Chapter of The Daughters of the American Revolution.

Tags: buy homes in Denver , buy houses Denver , Cheesman Park , Denver Colorado , Royal Kingdom Associates , walking tour of historic Denver

Is this the 4th real estate investment opportunity?
As the Nation tries to move forward in economic recovery for the overall health of the local, small and medium sized businesses, we are witnessing an increase in commercial foreclosures. Like residential foreclosures, these small, and potentially affordable, commercial parcels are not immediately made available for sale to the open market.
Think local. Think bread and butter – strip mall, barber shop, corner restaurant. Call your CPA to learn about your tax and depreciation benefits in owning your business real estate or becoming a small commercial landlord.
This past spring, owners of the Bowl-ero Lanes in Lakewood Colorado were evicted by the Bank foreclosing on the building and land. Their lease was vacated and, (I’m told), all efforts to negotiate a purchase were spurned. This crushed a growing, profitable, local enterprise. Plus, the eviction put full and part time employees out of work.
The land and building is now an eyesore along W. Alameda in Lakewood. Who would want to operate a business or buy a home near this abandoned property?
At this time, Businesses that do not control their land are at serious risk, no matter the health of their business. Unless they are in a position to place a substantial cash deposit, or even purchase the building and land they lease outright, control of their business is out of the purview of the Business Owner.
Growing, even stable, small businesses may not be able to buy the property they lease. Potential opportunities for you as a landlord or even partner in one of these opportunities are evident.
In decades past, towns erected statues of the Town Founder, who was almost always the Town Real Estate Developer. These men were local heroes. They were the architects of their Community, lived and shopped there and went to lengths to re-invest in the Town they built.
If not us, then who? Isnt it time for some local heroes in the world of real estate?
Then there is that opportunity to buy a 16 unit apartment filled with old ladies and cats who never move out. the old ladies, that is.

Tags: buy homes in Denver , buy houses Denver , buying foreclosures in Denver , deals on houses , Denver Homes , Denver houses for sale , Denver Real Estate , Royal Kingdom Associates

What about Investment Opportunities?
Have you tried to find a good home or apartment to rent lately? In the Denver Metro area, vacancy rates currently hover in the 3.25% – 4%. This is a Landlord Market and we predict it will continue to be such for some 5 – 6 more years. No permits to build apartments are in play now and even though the TOD lines are being built out, much of the increase in residential and business density along those lines are not planned to develop (own or rent) for at least a decade.
So, there is opportunity for the second home buyer or even the first home buyer who plans to move up in less than 7 8 years. Again, if you decide to invest, take a conservative, well educated approach to purchasing a home for rental and cash flow.
Even with HUD’s new First Look Program competing in the low priced housing market, there are still some great opportunities, sometimes in your own neighborhood, to purchase and become a landlord. If you do not know how to build a business as a landlord, attend business classes or hire a business development consultant who knows real estate and property management. It is part of the cost of doing business…
Other Realty and Investment Opportunities
While areas of the Denver Metro real estate market are increasing in price, we see mountain and resort real estate continuing to devalue. Foreclosures are on the rise and the opportunity to own a vacation home for less than the cost of 2 cups of Starbucks coffee each day is appealing. Here is some general math about this subject:
A colleague recently purchased a one bed / one bath fully furnished ski-in / ski-out condo for $219,000 in Summit County. The condo sleeps 4 and is rented to vacationers by the Condo Management Company mostly during the ski season and sometimes in the summer. The average rental per year on this property is 114 nights, which generates $20,400 in net annual income for my colleague. Plus, his family can enjoy 200+ nights of personal get-aways from the city.
Basic math on Resort Condo:

5. Taxes = $87 per mo
Less income from rental, tax benefits and MI write off, the monthly cost for his vacation home is $228 per month – if he doesn’t privately rent to friends or use VRBO too.**
This equates to $7.31 per day – less than 2 cups of Starbuck’s specialty coffee drinks!
If you are interested in learning more about how to invest in real estate at a local level, give us a call. We would be pleased to have you join in the discussion and planning for your future!
Stay tuned for Part 3 – We will talk about Business Foreclosures and steps to consider in protecting local businesses.
**Always obtain the advice of a qualified financial expert regarding business structure strategies and tax benefits.

Tags: 1st time buyer , 1st time home buyer tips , buy homes in Denver , buy houses Denver , Denver houses for sale , Denver Real Estate , Royal Kingdom Associates , smart home buying tips

Really? Given the incredible values plus the historically low interest rates, why havent Buyers flocked to the closing table like it was 2003 again?
Well, the boys at Think Big, Work Small, may have hit the nail on the head in a September 2010 news show: They think that 70% of Americans believe its a good time for someone else to buy real estate!
So, are there still decent opportunities for home ownership and / or small real estate investment? The answer, I believe, is a resounding YES! It is a simple matter of homework (groan) learning how and who to hire in lending and realty plus understanding where the opportunities are!
Many people tell their Realtor they will wait to purchase because they believe the home prices will continue to fall (my big mistake in the 80′s!). For those of you who missed the real estate bust in the 1980′s here is the bottom line: a typical 2.5 story Victorian home in central Denver sold for about $35,000. It usually needed another $35K in fix up but interest rates on the mortgage were 18% and credit card or HELOC rates topped 21%. This same Victorian home sold in late 2007, (depressed market) for $670,000. It had been beautifully remodeled and the owners enjoyed living in it for more than 15 years.
So where are the opportunities? Right in front of you. Perhaps the home prices will dip a bit more, but industry experts predict that the interest rates will be rising very soon. So let’s look at the math for a

Maybe Buy Later: $240,000 home at 6.375% = monthly P/I of $1497
You save $10k by waiting for the home to devalue (if it is still available) but you’re spending almost $250 more a month – that’s $90,000 more over the life of the loan!
In this example, it costs $90,000 to save $10,000
This exercise does not factor in the cost of rent for the time you are waiting for the home prices to fall – if they will, nor other outside or incidental costs
If you plan to purchase for a primary residence, whether you buy now or later, the best possible plan would be to make conservative purchase choices. Do you really need to buy the home that has $50K in cosmetic upgrades? Can you shop for a home that is in the neighborhood of choice but might cost less because it doesn’t sport granite in the kitchen? What about buying a Condo or Townhome in a complex with a healthy HOA? (You will see the logic in this in an upcoming Blog.)

Tags: 1st time buyer , 1st time home buyer tips , buy homes in Denver , buy houses Denver , deals on houses , Denver houses for sale , Denver Real Estate , Learn to Buy Homes , Royal Kingdom Associates , smart home buying tips

Thousands of people joined in the celebration of Italian culture as Belmar hosted the 7th Annual Festival Italiano this past weekend in Lakewood. The event offered an exotic flavor of Italy with its wide variety of music, food, art and entertainment.

Highlights of the festival included the GLI SBANDIETORI – flag throwers from Florence who delighted the crowd with their expertise and the ever popular Children’s Grape Stomp sponsored by local winery Balistreri Vineyards. With several stages throughout the event, there was ongoing music and entertainment for all ages.

A large crowd of family, friends and toe-tappers gathered to watch members of Dance Boulevard perform numerous routines. At the end of their perfomance, members of the troupe invited the audience to participate in a final, lively dance.

On Sarturday, chalk artists began making their grids on the street and sidewalk as they worked to create their masterpieces. By Sunday afternoon, visitors were in awe of the beautiful creations that would soon disappear from the pavement.

Throughout the celebration, people could participate in wine tastings, Chef Demonstrations, Italian lessons and bocce tournaments. The streets were lined with booths ranging from fresh produce, bread and pastries to pizza and sausage sandwiches.
As Sunday evening approached, people lingered, not wanting to leave what truly seemed like a weekend vacation in Italy.

Yesterday, August 26, 2010, I had the wonderful opportunity to attend the ground breaking ceremony of the East Corridor of RTD FasTracks. The event was held on the south grounds of the Jeppesen Terminal building at Denver International Airport and was attended by well over 100 people.

Speakers included Senator Mark Udall, Congressman Ed Perlmutter, Congresswoman Diana DeGette, Denver Mayor John Hickenlooper, Aurora Mayor Ed Tauer, Kim Day with DIA, Phil Washington and Lee Kemp with RTD. Christopher Martinez, RTD Board, acted as MC.

Lakewood Mayor Bob Murphy attended as well as RTD Board member Matt Cohen who also is a member of the Jefferson County Association of Realtors.

At the end of the ceremonies, six pieces of heavy equipment were cranked up and performed a symbolic, choreographed dance of digging up dirt and twirling around to the delight of the crowd.

Each guest participating in the Groundbreaking ceremonies received a ticket to ride one of the first V.I.P. rides on the RTD FasTracks East Corridor Line from Downtown to DIA scheduled to open in 2016.

Finding a home in your ideal neighborhood can be daunting in todays market. Lending constraints and general processes have presented new challenges in the purchasing process. From the REALTORS perspective, it seems like the rules change every week! (Not quite that quickly, but you get idea.)
Point is, buying can be a challenge if you are not well schooled before you start shopping. The success or failure in the process rests on your shoulders.
If you need down payment assistance, there are HUD sponsored classes to teach you how to buy BUT there are no formal Programs to train the rest of the NEW BUYERS!
How can you make decisions on what may be the biggest investment in you life if you only have limited information?
As a Buyer, what can you learn or do before you shop that will actually help the REALTOR you hire perform the best possible job for you?
Three helpful resources to consider:

Tags: 1st time buyer , 1st time home buyer tips , best house value , buy a house , buy homes in Denver , buy houses Denver , Clear Creek County CO , deals on houses , Denver Colorado , Denver Homes , Denver houses for sale , first time buyer , Gilpin County CO , home buying guide , Homebuyer education , Jefferson County CO , Learn to buy Condos , Learn to Buy Homes , Learn to Buy Houses , Real Estate Buying Tips , responsible home shopping , smart home buying tips , socially responsible investing , win best home deals

Updated: 02/10/2010 01:04:37 AM MST
Median home prices in metro Denver soared in January compared with the same month a year ago, even as sales during the same period declined, according to data released Tuesday.
The median price for a single-family home was $210,000, up nearly 16 percent from $181,500 in January last year, according to an analysis of Metrolist data. The median price for a condo was $130,500, an increase of 15 percent over last year’s January price of $113,000.
Read more: http://www.denverpost.com/realestate/ci_14369200

There were 26,605 foreclosure filings in the Denver metro area in 2009, a 6.4 percent increase from 2008.
Although the foreclosures last year were the second highest on record topped only by the 27,122 filings in 2007 in the seven-county area there were signs of encouragement, as well as a sea change in where the foreclosure activity is gaining speed.
Denver County, for example, which a few years ago was ground-zero for foreclosure activity, showed a slight increase in filings in 2009 from 2008. Foreclosures also fell in 2008 from 2007 in Denver County, when it peaked with 8,240 for filings. Denver was the only county to show a decrease in foreclosures in the fourth quarter from the same period in 2008.
Adams County, with many lower-priced homes, also has been at center-stage for foreclosure activity in recent years, but filing activity was flat in 2009 from 2008, as well as the fourth-quarter of 2009 compared with the last three months of 2008. Overall, foreclosure filings in the fourth quarter from the same period in 2008 were up 32 percent. Some observers are predicting that another wave of foreclosures could sweep over the Denver area next year.
“Our foreclosure sales are actually down about 20 percent from 2008, and the number of foreclosures being withdrawn are up 17 percent,” said Carol Snyder, public trustee for Adams County.
“That means more people are staying in their homes and not losing them in foreclosures,” Snyder said. “I think that is a more important than the number of filings.”
She said banks appear much more willing to work with homeowners than they have been in the past.
“I think the banks are learning that it is better to modify loans and keep people in their houses than to add more real estate foreclosures to their portfolios,” Snyder said.
Shannon Peer, director of Housing Counseling, agreed, but is still worried that the state may face more foreclosure filings, which could swamp the state and the system.
He said that the Colorado Foreclosure Hotline (877-601-4673), which Brothers manages, has helped a lot of people learn their options, helping to keep many people out of foreclosure and in their homes.
“But there are indications that a second wave of foreclosure filings building,” Peer said, because of the economy. In addition, another round of option-ARMs are set to adjust upward in the second half of the year, which could be a calamity for homeowners barley hanging on with their current payments, he said.
He said a “second or third-wave of foreclosure filings,” could offset the drop in foreclosure sales, as well as drop the increase in foreclosure cures and withdrawals.
Meanwhile, Boulder, Broomfield and Douglas counties have experienced the largest percentage increases in foreclosures, although their overall numbers are still smaller than in Denver, Adams and Arapahoe counties.
“This is the highest number we have ever done. Ever,” said Dianne Bailey, public trustee for Douglas County, where the 2,765 filings in 2009 were almost 27 percent higher than in 2008. Boulder foreclosures rose by more than 38 percent, the biggest increase of the seven area counties.
Bailey was surprised in the surge of foreclosures filings.
“I thought they were going to level off after 2008,” she said. “I guess we thought they just couldnt go any higher.”
More expensive homes entering the foreclosure process is a trend that counselors saw emerge last year, said Peer, of Brothers Redevelopment in Edgewater.
“Over the last year, we have been seeing more homeowners who had higher incomes that we had seen previously,” Peer said. “Were seeing more home values above $250,000 we had seen in the past. In the past, the under $200,000 price range had been the hard-hit market. We have seen homes in Evergreen in the $800,000 and $900,000 range, we have seen homes down south in the $600,000 to $650,000 price range. I would say this is a trend that started a good eight months ago. ”
He said it was possible that owners of expensive homes were able to hold out longer than people at the lower-wrung of the economy, but now they, too, are losing their jobs.
One of the challenges they face is that because much of the jumbo-loan money has dried up, it is difficult to find buyers for homes that have mortgages larger than conventional limits of $417,000.
“They are being pinched,” Peer said. “Their are very buyers out there unless they can pay cash. And there arent many cash buyers.”
Bobby Burnett, principal of Keller Williams Realty DTC, said that while his regular home sales business was way down last year, his short-sale business was up 50 percent to 60 percent from 2008. A short sale is when a lender takes less than the mortgage amount.
Although the prices were “all across the board,” the biggest increase of distressed properties was for ultra-expensive homes.
“We saw them in Parker, Castle Rocky, a bunch in Boulder,” Burnett said. “The only place that seemed semi-insulated was Castle Pines Village. I find properties are still selling there.”
Many of the expensive homes are selling for huge discounts, he said.
He tried to sell one home west of Sedalia for $1.1 million, which previously had sold for $1.4 million. Later, the home went into foreclosure and another broker sold it for $750,000.
Perhaps one of the biggest bargains is a 9,000-square-foot home on 11 acres in Elbert County that was appraised at $3 million three years ago. Its likely now to sell in a short sale for about $800,000, he said.
“The house looks like a southern mansion in Atlanta,” Burnett said.
Denver City Councilman Rick Garcia, who a couple of years created a Foreclosure Task Force, said that he is not surprised that foreclosure activity is rising faster in the suburbs than in the city.
“As I recall a couple of years ago from data from the Foreclosure Task Force, the average price of a home in foreclosure in Denver was around $124,000, far below the median-price of a home in the city,” Garcia said.
Many of those homes, he said, have been purchased with the help of federal funds or have been “gobbled up” by private investors. They have since been “rehabilitated” and put back into the market, he said.
The first round of foreclosures came from “unscrupulous lenders,” who saddled buyers with high-mortgage rates, Garcia said. Many of those homes in Denver have since worked their way through the system, Garcia said.
He said he thinks many more of those kind of loan, as well as no downpayment loans that were not supported by incomes, were made in suburban subdivisions.
“Denver seems to be bottoming out of the foreclosure circumstances,” Garcia said. “Now, I would say we are seeing more of what I would call “traditional” foreclosures, caused by people losing their jobs.”
Ryan McMaken, spokesman for the Colorado Division of Housing, said that the Denver-area data seems to confirm that more expensive homes in suburban areas are now suffering from growing foreclosures.
“Overall, what I would say is that the Denver-area is fairly flat, while foreclosures are rising elsewhere in Colorado,” McMaken said.
Later this months, McMaken will release a report that will show a record number of foreclosure filings in the state. In 2008, there were just under 40,000 foreclosure filings in all of Colorado, but his data will show more than 45,000 filings in 2009.
There are still a few counties to report to the division, but he expects about 47,000 filings when he receives all of the data. “Im already at something like 45,400,” he said.
He noted that when the foreclosure crisis began several years ago, “the Denver-area was driving it,” and much of the area outside of the metro area remained impervious.
That is no longer true, as more populous areas along the eastern plains, as well as a number of Western slope communities, are seeing huge percentage increases in foreclosures.
“Of course, there are other economic factors driving the foreclosures in a lot of mid-sized counties outside of the Denver metro area,” he said. For example, a downturn in mining and exploration is hurting the Grand Junction area, while the failure of Greeley-based New Frontier Bank hurt ranchers and farmer.

Sources: Public Trustees
*Adams County removed “repeat” filings, which reduced the total amount by about 100 each year

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