NextStep Property Solutions

Recent Project Added: Fix and Flip Parker, CO

nextsteped — Thu, 26 Apr 2012 03:44:01 +0000

This project was set up as a flip from the beginning and went relatively smoothly. The rehab took about a month and the property went under contract after just 2 days on the market! We welcome feedback and questions….

Fix and Flip Parker, CO

Latest Housing Report (Press Release from U.S. Census Bureau)

nextsteped — Wed, 29 Feb 2012 02:38:49 +0000

RESIDENTIAL VACANCIES AND HOMEOWNERSHIP IN THE FOURTH QUARTER 2011

National vacancy rates in the fourth quarter 2011 were 9.4 percent for rental housing and 2.3 percent for homeowner housing, the Department of Commerce’s Census Bureau announced today. The rental vacancy rate of 9.4 percent was approximately the same as the fourth quarter 2010 rate (+/-0.5 percentage points)* and 0.4 percentage points lower than last quarter (+/-0.4). The homeowner vacancy rate of 2.3 percent was 0.4 percentage points lower than the fourth quarter 2010 rate (+/-0.2) and 0.1 percentage point lower (+/-0.1)* than the rate last quarter (2.4 percent).

The homeownership rate of 66.0 percent was 0.5 percentage points (+/-0.4) lower than the fourth quarter 2010 rate (66.5 percent) and 0.3 percentage points (+/-0.4)* lower than the rate last quarter (66.3 percent).

Read the rest of the press release here

Strong Rental Market in Denver ARTICLE

nextsteped — Tue, 28 Feb 2012 19:57:28 +0000

Here’s a great article on the strong rental market in Denver.

Are we becoming a nation of renters?

Maybe—at least for now.

But that depends upon how you interpret recent real estate trends and statistics from several different sources. A Feb. 9 report from the federal government said that one out of four American homeowners are under water on their mortgages, making refinancing either difficult or impossible and increasing the chances of foreclosure. Many former homeowners have already fled to the rental market, escalating demand and hiking rents in urban areas.

An end-of-year report from the Colorado Division of Housing shows that apartment vacancy rates in metro Denver hit their lowest mark in over a decade and rents have climbed accordingly. Vacancy rates dropped to 5.4% in the fourth quarter of 2011, the lowest since 2000, when they reached 4.7%. At the same time, average rents in Denver last year spiked 2.8% to $870 a month.

Check out the rest of the article on the strong rental market in Denver here

New Meetup: Determing the Best Rehab / Exit Strategy for Latest Fix and Hold Aurora

nextsteped — Tue, 28 Feb 2012 19:49:26 +0000

Click here to attend Meetup

I’ve scheduled this meetup to share ideas and insight amongst fellow investors. We’re getting ready to close on our next project (which happens to be a fix/hold) and the property is a bit unique in that it supports a number of different exit strategies.

The property is an SFR and is currently a 2bd/1ba/1car with an unfinished basement. I’m getting the property (from a fellow wholesaler) for $76k and the ARV is about $135k assuming you turn it into a 4bd/2ba. Initially I figured the only way to do it was to go ahead and add a bathroom and finish the basement but now I’m rethinking things.

What happens if you were to do a bare-bones rehab and leave it as a 2/1? Your ARV and estimated rent drop BUT your cost basis is significantly less. I’ve put together a couple scenarios to understand what happens with different levels of rehab and project length, it’s interesting to see what happens to the cash requirement and returns, you may be surprised.

I think I’ve got a pretty good idea of what I’m going to do with the property but I’m not completely set. I look forward to your input and discussion on the different options available. I’ll bring printouts of the different scenarios I’ve come up with.

Hope everyone can make it!

(303) 870 4749

Click here to attend Meetup

Fix and Flip / Fix and Hold – Project Punch Template

nextsteped — Tue, 14 Feb 2012 17:15:22 +0000

In order to find and lock up a great opportunity you have to look at A LOT of properties, especially these days!! What that means is that you have to be able to get a pretty good idea of a property’s condition and what it would take to get the property to your target ARV quickly. I’ve used several different punch templates but just came up with this version. I use it for my very first walk through which is, many times, on my own as apposed to with a contractor. This form only takes a few minutes to fill out and makes it easy to take notes and begin getting an idea of budget.

Hope it helps, let me know what you think!

Ed Prather

Project Punch Template – PDF

Project Punch Template – Excel

Mint.com – You got to check this out!

nextsteped — Mon, 13 Feb 2012 20:35:51 +0000

I know mint.com has been around for a while but it has taken me this long to finally take advantage of this awesome resource. I’ve been using Quicken Rental Property for the last couple years to keep track of my rental properties, and more recently, my personal finances. Quicken was okay but always seemed to take forever to enter transactions and further categorize all spending and income, I found myself continuously falling behind in my accounting. As I was just getting started catching up on all my accounts (that I had neglected for almost 2 months) a buddy of mine mentioned mint.com and how great it was.

I had tried once before to sign up on the site but could not get the site to find my particular bank. After my buddy brought it up again I decided to try again- I logged in using the info I used to set up my account before (6 mo ago) and there it was, an intricate overview of almost all my finances. I know I fiddled with it a bit before but I’m still not sure how it was able to update my bank information and transactions all of the sudden.

The key difference with mint.com and other resources (at least that I know of) is that mint.com is able to categorize all of your spending automatically. Now don’t get me wrong, I have to manually change certain transactions from time to time but it’s no biggie – if I get gas at King Soopers the site thinks it’s groceries rather than ‘gas & fuel’, understandable if you ask me.

For the first time ever I can actually see where my money is going! I can finally track my income and spending by category without arduously going through statement after statement. In fact, all I have to do is enter my login information and the site does the rest of the work. No matter where you are with your finances I would recommend giving mint.com a shot, you may be surprised.

Cheers,
Ed Prather

p.s. Let me know your thoughts on mint.com and similar resources.

February Newsletter: Inventory Way Down in Denver Metro

nextsteped — Wed, 08 Feb 2012 16:54:19 +0000

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Happy Groundhog Day!

Over a month in and it already seems like 2012 is moving along at a speedy pace. Hopefully the new year has found you and your family in a good place, I think we’d all agree that 2011 was an interesting year to say the least with its fair share of ups, downs, and certainly some Tebow magic to go along with it all.

Along with the rest of the country, Denver is still recovering from the real estate collapse of a few years back. The good news is that Denver Metro real estate is recovering quickly and ahead of the curve for a number of reasons. This video gives you a good idea of what I’m talking about. Jobs and employment are just a couple of the many reasons for Denver Metro's popularity. There are now less than 10,000 active listings in the 5-county Denver Metro area as opposed to over 16,000 just a year ago, that’s over a 40% drop in inventory! We are now seeing the effects of low interest rates and population growth in a big way.

If you take a close look at the inventory in the Denver Metro area what you’ll find are A LOT of distressed properties. Because of what happened before the bubble burst, short sales and foreclosures are abundant here just like everywhere else. What you will not find many of though, are reasonably priced, cared for homes that are not bank owned or in foreclosure. I know it’s hard to believe but we are on the verge of a seller’s market and, unless you're an investor, the pot to pick from seems to be getting smaller and smaller.

There is good news for buyers though, Denver Metro is a great place to live and more great properties are coming! Along with all the popularity that Denver is getting we are seeing a substantial increase in investment activity which is helping rejuvinate communities and provide quality housing on all levels. The home of your dreams is right around the corner!

I have been a broker in the Denver Metro area for over 5 years and an investor for many more. My team and I are passionate about real estate and providing a high level of service to our clientele. If you or someone you know has the need we would love the opportunity to help you sell your home or buy the home of your dreams. We invite you to contact us with any questions you may have or anything else real estate related.

We certainly appreciate you taking the time to read our newsletter. This is the first of our monthly newsletters and we look forward to providing insight into Denver Metro real estate now and in the future!

Sincerely,
Ed

Ed Prather & The NextStep Team
Office: (303) 399 4613
Cell: 870 4749
Ed@NextStepDenver.com
www.NextStepDenver.com

P.S. I'm a real estate guy but not much of a web guy unfortunately. I apologize if the site doesn't function correctly in your browser, I am working the kinks out now.

Becky is now part of the team! I am very excited to announce that Becky Prather (my wife) has joined the NextStep Team. She is excited to help both buyers and sellers achieve their goals in real estate. She is currently in school to get her real esate license but is already having a huge impact on our business and the level of service we provide to our clientele.

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Quick Stats

Active Listings
Adams County: 1,225
Arapahoe County: 1,782
Denver County: 2,570
Douglas County: 1,621
Jefferson County: 2,148

Total: 9,346 (Dec.'11)

*42% Drop in Inventory since Dec.'10 (16,120)

Investors

We've been investing and working with investors in Denver Metro for several years. Please contact us if you're currently an investor or are just getting interested in the investment side of the business.

Stats & Trends

Market stats and trends for both Denver Metro and other local and national real estate markets!

1 Minute Update on Housing Trends

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2010 vs. 2011 – Denver Metro Real Estate Statistics Compared (5 Counties)

nextsteped — Wed, 08 Feb 2012 16:35:12 +0000

These statistics came directly from the MLS and should give you a good idea of the major differences between 2010 and 2011 in the 5-county Denver Metro area. The bottom line?? We have A LOT LESS inventory these days than we did a year ago! Please feel free to share your thoughts.

Market 1 year Comparison 5 County Denver Metro – PDF Version

Interactive National Foreclosure Map from NPR

nextsteped — Thu, 02 Feb 2012 19:22:45 +0000

Check this out, let me know what you think!

Interactive National Foreclosure Map

Just Added: Denver Home Buying & Selling Tips

nextsteped — Thu, 02 Feb 2012 19:20:09 +0000

We’ve just added buying and selling tips to our site, below are the links…. I hope they help!

We welcome you to share comments and additional tips!

Best,
Ed Prather

Denver Metro Buying Tips

Denver Metro Selling Tips