Hard money loans for real estate investors can be intimidating. You’ve all heard how expensive they are. And you’ve been told they are only for the fix and flip investors.
Well, there is some truth to that but like everything else there are always exceptions. Yes, the interest rate and upfront cost are going to more expensive than your typical conventional loan. But if you consider that hard money loans might be one tool in your toolbox that will help expand your ability to purchase more properties or help you to buy properties without bringing in partners, it just might not be a bad idea.
Hard money loans can be used for buy and hold investors as well as fix and flip investors. Before jumping in, learn the ins and outs of hard money loans and see if they are right for you. Sign up for our free webinar on April 6th and you make the decision for yourself.
For those of you that have been impatiently waiting in agonizing pain for the progress on this Buy + Hold Flip, this is for you. (Oh and, for those that are just the normal folk in the world that may have stumbled upon our blog) — Here we are at Day 3 of Pete’s Buy + Hold Rental Property Renovation. Let’s take a quick look back at all items on Pete’s To Do list for his home.
Tear off all wall paper
Paint the entire house, including ceilings, walls, baseboards and doors
Fix the garage
Put up a 6′ fence along one side of the house
Tear up carpet and put new carpet in the basement
Renovate all 3 bathrooms (new toilets, shower, vanities, replace floor in 1 bathroom, fixtures)
New fixtures and hardware throughout the home (door handles, hinges, light fixtures, faucets)
New kitchen stove
Clean up outside
Paint the shed in the backyard
His budget for all of this was $8,365. Stay tuned to find out how his budget turned out, the Dos and Don’ts for next time around and to see the finished product of this Rental Property Renovation.
Denver Residential vacancy rates continue to drop. The overall vacancy rate for the metro area for the fourth quarter of 2010 was 2.0 percent down from 2.9 percent in the third quarter. Gordon Von Stroh, PH.D., of the University of Denver’s Daniels College of Business released their vacancy report for the 4th quarter of 2010. Each quarter, Von Stroh surveys approximately 3,271 units in the seven county Denver Metro area. The survey is limited to single family homes and small mutli-family properties of 1-4 units.
Boulder and Broomfield counties had the lowest vacancy rate of 0.0 percent and Adams county had the highest of 3.6 percent followed by Denver with 3.0 percent, Arapahoe and Jefferson counties 1.3 percent and Douglas county at .09 percent.
Average Days on Market
For the units that were vacant, the average days on the market was 38.2 a slight increase from 36.0 for the third quarter of 2010. That average is down sharply from the fourth quarters of 2008 and 2009 which was 53.9 in 2009 and 45.4 days in 2008.
Average Rents
Average rents decreased to $1,029.82, down from the third quarter average of $1,041.05. The average rents posted an increase from the fourth quarter of 2009 of $1,016.77 and the fourth quarter of 2008 of $995.24. In 2006 which was the beginning of the housing crisis the average was $944.75. That rate compared to the latest quarterly report represents an average increase of 9%.
What Does This Mean for Landlords and Tenants?
It would seem to me with the vacancy rate so low, tenants will not have the housing choices that they’ve perhaps enjoyed in the past. With fewer vacancies to choose from, I would think that many tenants that would normally move at the end of their lease term may not move because they can’t find a replacement home. So perhaps for the landlord, there may be less turnover. With the demand up and the supply of rental homes down, it would stand to reason that rental rates should start increasing.
If you would like to receive a copy of the complete 52 page report, contact us and we’ll send you the report.
Many of you know we have recently held a few Buy & Hold investor webinars, where Dunn and Company talks about the Denver real estate market, where to invest and the type of return you can expect to receive from these investments. We’ve had a pretty big response and wanted to provide a closer look [...]
FREE WEBINAR Presented By: Dunn and Company, LLC, www.CashFlowProperties.com Wednesday – February 16 @ Noon MST Event Registration Online for 4 Steps To A Successful Buy powered by Eventbrite Now, we know from our last few webinars and from the vast amount of inquiries we’ve had, that many of you are dying to get out there [...]
After pouring over figures, rates, and numbers; the Northern Colorado Business Report concludes that 2010 home sales in the region remained “mostly flat”. Whether anyone needed them to tell us the whole story of the housing sector in 2010 is a different story. Mostly everyone “on the ground” could have told you the exact same [...]
Bob Nielsen, chairman of the National Association of Home Builders (NAHB) based in Reno, had this to say about the recent State of the Union address. “As President Obama charts a course for the nation’s economic future, we all need to understand that housing must play a vital role to stimulate job and economic growth. [...]
