Rob Kelly

Finally! some "bailout" type money coming to Colorado...

Colorado will receive $34 million from the U.S. Department of Housing and Urban Development to deal with the effects of foreclosures and declining home values, under a plan approved Monday by HUD Secretary Steve Preston. The funding is coming from HUD's national $4 billion Neighborhood Stabilization Program, which provides emergency assistance to specific neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight. "It is critical that we work closely with state and local governments to put this money to work as quickly as possible," Preston said in a statement. "Stabilizing neighborhoods is what this program is all about. HUD will continue to work closely with the state of Colorado to make certain these funds are targeted to neighborhoods with the greatest needs."

Rob Kelly

www.RobKellyColorado.com

www.DenverForeclosureTour.com

Twitter:@RobKellyCo

If any of you folks like to work with investors, here's a quick article by RE/MAX Times about a few of the programs that we are operating...we were interviewed a couple of weeks back, here is the finished article...

	RE/MAX Times Online

Here are 4 Ways to Connect with Investors By Deborah Ball, RE/MAX Times Associate Editor People looking to invest their hard-earned money in property that builds long-term wealth undoubtedly want to work with a real estate professional who knows the ropes. You can be that agent, says Rob Kelly, a veteran investor and a Sales Associate with RE/MAX Alliance in Louisville, Colo. Kelly works mostly with investors, helping them purchase homes to gain self-generating income. But operating in this niche, he says, involves more than just getting clients to the closing table. "Our main goal is to educate investors and show them - through different promotions - what investing is all about," Kelly says. "Many people come to us with preconceived notions of how easy it is based on what they see on TV, but if you don't know what you're doing, it can be a lot more dramatic than it seems." With four major promotions and activities geared toward investors, Kelly has made a name for himself in Boulder County's investment circles. As an owner of five investment properties, it's no wonder he gravitates toward the niche. "Investing is relatively easy if you have the education," he says. "Investors can be tough clients because they want to put the world into these properties. But if we can get them to understand the reality of it, they come around. Some of our best clients come from the training we provide." Are you ready to connect with this group of buyers? Here are four things Kelly does to tap this niche: Investor "tag along" - Why not show and tell clients how an investment purchase gets rehabbed and reborn into an income-generating property? Unlike TV shows such as "Flip This House," rehabbing most investment properties takes a carefully planned budget, time and the right remodeling team. That's why Kelly brings up to 20 potential investors to fix-up homes so they can see the process from purchase to resale. "For two hours on a given Saturday morning, the investors come with me to visit fix and flips or fix-and-hold properties and see how it's done," says Kelly, who uses his own properties as examples. "They get to speak with contractors and vendors, share budgeting ideas and see the progress from start to finish. It opens a dialogue, and we've had a lot of fun with it." Foreclosure bus tour - While some real estate offices let foreclosure bus tours fizzle out toward the end of 2008, Kelly was just getting started. For $20 - a portion of which is donated to the local Habitat for Humanity - anyone can tour foreclosed homes with Kelly and his team of housing and legal experts, which includes an attorney, a home inspector, a mortgage broker and a property manager. Not only do tour participants see what's selling in the market and for how much, they also learn the legal and construction intricacies of purchasing foreclosed properties. "The tours allow them to see what's on the market and what kind of bang they can get for their buck," Kelly says. "Having a team of experts on hand to answer questions and provide insights not only benefits the investors, it also boosts your business-to-business networking and referrals. Make sure you choose people you know do good work and with whom you have a solid business relationship." Game night - Who says board games are for kids? Robert Kiyosaki's "Rich Dad, Poor Dad CASHFLOW 101" is a board game that teaches real-world investing with play money. Kelly calls it "Monopoly on steroids." Kelly hosts a game night for two dozen seasoned investors and curious novices at a local bakery so they can learn how to create long-term passive income and financial freedom. "The game nights are a hit. Everyone loves it," Kelly says. "We have to limit participation because we can run only four games at once. The game teaches you the basics of fundamental investing and how to take control of your personal finances, build a business through proper cash flow management, and learn how to invest with greater confidence in real estate and other businesses." Investor clubs - If you want to be known as an investment expert and network with the right people, then join investor clubs, Kelly suggest. Not only does it help you stay abreast of local investment activity, but it provides an opportunity to speak to the group and boost your credibility. Who knows? They may become your clients. Visit the RE/MAX Times Online every week to read new feature articles, top-producer profiles, stories about valuable resources and more. Comment on this story E-mail your thoughts to editor@remax.net. Please include your name, RE/MAX office, city and state or province. Comments, slightly edited for length, flow and punctuation, will appear below. Comments (0) Copyright © 2008 RE/MAX International Inc. 12/29/08 "Thinking of Real Estate? Think of Rob!" www.RobKellyColorado.com www.DenverForeclosureTour.com Twitter:@RobKellyCo

Interested in following a residential flip project in real time? Welcome to our "Investor Tag Along"! Your chance to view a flip project in person or via the web.

We are about 75% complete on our Northglenn, Co fix and Flip project. Initial schedule projected a 4 week project, we look to be on time. Holiday breaks are cost us a couple of days, but overall progress and quality is good and we have encountered no major problems to date.

This weekend is interior painting, so we'll have to back off tile install until the air clears. Hardwood floor refinishing is scheduled to start Monday, we'll allow 3 days for patching, sanding and 2 coats of polyurethane. Carpet install to follow.

Status:

• All drywall texture complete
  
• 6 Panel door installation 100% complete
• Upstairs bathroom tile complete
• Tile selected and on site
• Exterior Trim/eaves paint complete

Underway:

• Interior paint
  
• Kitchen Tile
• Basement Bath Tile
• Cabinets coming Saturday
  
• Ordering cabinets and appliances
• Drywall texture in basement bedrooms/living area

This week:

• Refinish Oak hardwood floors
  
• Complete Tile
  
• Install Cabinets
• Order Appliances
• Install Basement Bath/Shower Tile
• Install Carpet (basement)
  

"Thinking of Real Estate? Think of Rob!"

www.RobKellyColorado.com

www.DenverForeclosureTour.com

Twitter: @RobKellyCo

Have you taken down the holiday decorations? Ready to get rid of that tree? Consider calling the in the Scouts!

Christmas Tree Pick Up

Pack 82 Cub Scouts will be picking up Christmas trees from Louisville residents on Saturday, January 10, 2009. If you would like to have your tree picked up, please call 303.335.4998 by 5:00 PM on Friday, January 9, and leave your name, address and phone number.

A $5 donation for trees under 7 feet and a $10 donation for trees 7 feet and over is appreciated and can be left in an envelope attached to your front door. Please leave your tree at curbside and remove all decorations. The trees will be taken to the City’s Branch Recycle Site and turned into mulch for residents to use throughout the year.

"Thinking of Real Estate? Think of Rob!"
www.RobKellyColorado.com
www.DenverForeclosureTour.com
Twitter: @RobKellyCo

REAL ESTATE MARKET UPDATE

An Information Service of RE/MAX Alliance/Boulder Valley

January/2009

The 2008 real estate market followed a similar pattern to the past few years with sales activity across the area experiencing a continuing decline. In 2005, there were 4,725 single-family homes sold in the Boulder Valley area; in 2006 (4,389); in 2007 (4,076); and in 2008 (3,393). Since 2005, that’s a reduction of nearly 40% in the number of sales. During this same period of time, the number of new listings has dropped 22.84%.

For real estate markets to sustain themselves in a positive direction they need to churn. They need to have a consistent influx of buyers and an on-going flow of available inventory. When that happens, home values remain relatively constant or increase at a reasonable rate. When the real estate market gets skewed i.e. too many buyers, but not enough available inventory or too much available inventory, but not enough buyers, two things can happen – home values increase noticeably (demand exceeds supply) or home values decrease noticeably (supply exceeds demand).

Over the course of the past three years (January/2006 to December/2008) the Boulder Valley real estate market has seen the average sales price of a single-family home go from $440,236 (2006) to $456,295 (2007) to $428,326 (2008); an overall decrease of approximately 2.78%. Which means? The local real estate market has been relatively flat during the past thirty-six (36) months in terms of home values. Considering what has happened negatively to other real estate markets across the country, the Boulder Valley real estate market has held its home values during this economic downturn.

The questions then becomes, How did this happen? It’s back to the supply and demand overview noted above. Demand decreased nearly 40% in the past four years; supply decreased nearly 23% in the past four years. If supply hadn’t decreased, and demand remained the same, what would have happened to Boulder Valley real estate home values? Although this is possibly conjecture, it is based on other areas of the country where demand decreased noticeably, but supply continued to increase, home values experienced dramatic decreases.

The Boulder Valley real estate market has remained relatively stable over the past three years in terms of home values simply because available inventory has also adjusted downward. For a variety of reasons, people chose to either take their homes off the market or not put them on the market. Builders stopped building spec homes they couldn’t sell. Potential buyers became renters, resulting in homes for sale being withdrawn from the market. People decided to “settle-in” for the time being to see what happens in the marketplace.

Below is an overview of sales activity for the past two years for single family homes in the various Boulder Valley areas, courtesy of IRES – the Northern Colorado Multiple Listing Service.

2007 2008 % 2007 2008 %

Area Solds Solds Change Average Price Average Price Change

Boulder 939 747 -25.70% $662,320 $655,378 -1.05%

Superior 169 120 -40.83% $411,125 $437,818 +6.49%

Louisville 248 203 -22.16% $392,014 $391,306 No Change

Lafayette 315 252 -25.00% $404,360 $355,934 -13.60%

Longmont 1118 1018 -9.82% $279,404 $252,400 -10.69%

Sub. Plains 571 443 -28.89% $587,845 $526,399 -11.67%

Sub. Mtns. 309 262 -17.93% $456,849 $435,110 -4.99%

Broomfield 407 348 -16.95% $380,019 $396,371 +4.30%

=== === ====== ======= ====== ======

Totals … 4076 3393 -20.12% $456,295 $428,326 -6.52%

"Thinking of Real Estate? Think of Rob!"

www.RobKellyColorado.com

www.DenverForeclosureTour.com

Twitter: @RobKellyCo