Investment Tips — Boulder CO Real Estate

5 Tips For Choosing A Property Management Company In The Boulder Colorado Real Estate Market

July 3, 2010 By admin Leave a Comment

As Boulder Colorado real estate continues to grow in popularity as an investment outlet, more and more people are beginning to realize that they need expert professional help in handling their real estate investment portfolios. Controlling the cost of ownership while maximizing the revenue are key considerations that only a professional management company can deliver. But how do you go about selecting a Property Management company would that will deliver results to your specifications? Here is how you should go about it.

Find a Property Management company that is familiar with the area where your properties are located. If possible, ensure that the company manages other properties in the same area and are therefore equipped with the necessary infrastructure and knowledge of local market conditions. You would be expecting the company to be familiar with what renters are looking for and to come up with clever cost-effective solutions to improve the property and to enhance its appeal to renters. What you would expect is high occupancy with the highest possible return on your investment.

Ask the property manager to come up with some references that you can check. Nothing gives you a better feel for the quality of Property Management services that being able to speak to actual customers. Ask them a series of questions that are designed to bring out the strengths and weaknesses of the Property Management Company to enable you to decide whether they fit your requirements.

Ask the property manager to come up with a specific plan for your properties. A good property manager will know that every property owners requires a plan that is tailor-made to its specific requirements and budgets. Because a successful plan is critical to the success of a property portfolio, looking at these recommendations will give you a good idea of what quality of management you can expect.

Look for an outstanding level of customer service. Your Property Management Company should be available to you whenever you need them and should constantly keep you updated of developments both in your properties and the local markets. A good way to gauge the level of customer service is to speak to other existing customers. The Property Management Company that is most highly praised by its customers will have the best customer service. A very important aspect of the service is their handling of funds. Rents collected should be in your account as soon as possible so that you can maximize interest earning. Property management companies have been known to retain rents in their accounts so that they earn the interest instead of you.

Look for a good appreciation of the importance of accounting. At the end of the day, you would expect a set of accounts in apple pie order so that you have no problems whatsoever with either the revenue authorities or any local authorities. The Property Management Company should be able to offer you an outstanding level of compliance.

When you own Aurora Colorado real estate properties or for that matter any other city like Superior CO you may need help in managing these properties to maximize the profits while controlling the cost of ownership. Professional property management companies help you do just that. So if you are looking for the right one to manage yoFivur property, the above tips will surely be of help.

Filed Under: Investment Tips Tagged With: Boulder Colorado real estate, property management company, property portfolio, real estate investments

Buying Notes – A Sound Investment Strategy?

February 11, 2010 By admin Leave a Comment

Consider a sound, alternative investment strategy using mortgage notes-an unconventional investment that can pay off. But we recommend going slowly and investigating options carefully. They can be a inventive new way to boost your investment income, but do your homework first.

Mortgage notes are created when homes are sold utilizing private lenders’ money. You’ve also heard them referred to as seller-financed notes, cash flow notes, or carry-backs. Most often they originate when one party who owns a home plays banker for the second party who wants to buy the home.

Why, you are wondering, does a home owner finance a transaction? Isn’t he selling the home for the purpose of unloading it, getting rid of it, or just buying something else? Consider it this way: A home owner can make money the same as the bank does. He accepts a down payment from the buyer, and then he allows the buyer to make a payment to him that includes interest every month.

Sometimes a home owner does this because he knows he will have difficulty readying his home to meet the scrutiny of traditional lenders. Possibly he has someone who has offered him his asking price, but he knows the buyer cannot get financing. For whatever reason, he has the money, and he has a buyer. For all intents and purposes, the transaction is like a promissory note.

But often the original home owner decides to sell the note he’s holding. This takes place in what’s called the aftermarket, the part of the financial market also referred to as the secondary market. A mortgage note buyer buys the note from the original home owner, but he pays a discounted rate. Usually these notes are then guaranteed against default, and they are pooled together. They are backed by the value of the homes behind them. Investors can buy them and sell them at a rapid pace.

Why, you are wondering, does the original home owner go to the trouble of financing his buyer and then sell the note? Maybe he needs a lump sum of money suddenly-to buy a new car, to invest in another piece of real estate, to pay for a child’s college education, you name it. Maybe he’s just worried that his buyer will default. No matter why he is selling it, he has decided that he needs that lump sum more than he wants the regular monthly payments.

But getting back to the aftermarket, maybe you’ve heard that if you buy high-risk notes and turn them over fast, your profit will be higher. There are a few caveats, however. Most notes are not a great investment. There was a reason in the first place why the note was issued in lieu of a traditional mortgage. The truth is that buying notes generally provides a slow but steady income based on the fact that it’s difficult to assess the risk and value of mortgage notes.

Let’s evaluate what you have to consider if you want to buy notes for investment purposes:

The home(s) behind the note(s) you are buying must hold solid value.
No matter who is selling you the note, the person who is living in the home has to be a good financial risk. If we’re talking a married couple, be certain that both husband and wife signed the note.
Find out if a large down payment was made on the loan.
Weigh the amount still owed on the loan against the value of the property-the loan-to-value ratio. The LTV should be 75% or less.
Just like any loan, consider its length, the interest rate, and so forth.
If your note is on a second mortgage, be certain to have language in your contract that always gives you access to review the status of the first mortgage.

Filed Under: Investment Tips Tagged With: mortgage notes, real estate notes

Investing in a Declining Real Estate Market: A Half-Dozen Happy Tips

February 6, 2010 By admin Leave a Comment

: Image by thinkpanama via Flickr

Is the Boulder real estate market holding still? People are beginning to feel that this depressed market will never end. But there are investment opportunities out there. Land-and the rock it’s built on-will always be a solid investment. So here are our happy tips for investing in a real estate market even if it still seems down in your area:

Patience: One of the first tips you can bet the house on, so to speak, is that new offerings will surface in the real estate market. I promise you: People really are regaining a little of their confidence in the economy. Lives go on and people have to move. This is the time for the savvy buyer to look for sellers who overpriced their homes and now are ready to consider a lower offer. Many of them needed a while to think about accepting a lower price, and now that time has come. They’re ready to negotiate.
Know when to hold ‘em: This is also the season for the long-term investor. Once you find a property you’d like to invest in at the price you want to pay, keep it for a few years before you re-list it. Prices will go back up. Even if they don’t reach the heights of a few years ago-and they probably should not-they will, as sure as salt’s shakin’, rise again.
An ARM and a leg: If you’re determined to flip the house-buy it and then resell it quickly for an immediate profit-finance your purchase with an adjustable rate mortgage. Usually the bane of home financing, an ARM is the perfect strategy for the person who knows he will not still own the property when the interest rate zooms up. So the trick is to have the cash on hand to fix it up a little and be able to resell it while the interest is low.
Negotiate your financing: Talk with lenders-and do talk with several-to find those who are amenable to putting together better loan packages than we’ve been seeing. Lower interest rates give you a few choices. Banks are more willing to make deals on points, or maybe add in some cash on the loan for remodeling.
Deduct and depreciate: If you do want to hang on to a property for a few years, consider using it as a rental unit. Do your research for all tax deductions you can take from leasing a house. For example, some of your depreciation will be over the long term for fixed aspects of the house, and other depreciation will be high-paced and quick-fisted with movable assets like appliances. And be certain to deduct every expense of homeownership.
Do it yourself: Don’t buy a house with the idea of fixing it up for a quick resale unless you can do the remodeling yourself. You’re not really making a profit on the house if you’ve spent tons on the fix-up. So when you’re deciding on a house to buy, choose one that you have the ability to work on yourself. If you can lay carpet, don’t buy a house that’s begging for an exterior paint job. And don’t set yourself out there trying to do work that you really just don’t know how to do-you’ll end up paying out twice as much.