Tag Archives: real estate

Boulder Real Estate Billion Dollar Deal Inked

Reposted by Michael Hughes article from the Boulder County Business Journal

Boulder, Colo.–Investment specialist ICP Financial has inked a $4.8 billion deal with an unnamed but large European bank to buy distressed properties and mortgage portfolios directly from American banks. ICP Financial describes its partner as a “Top 5 European bank”–a vague description, though if measured by assets, the top five European banks (according to thebanker.com) are France’s BNP Paribas, the Royal Bank of Scotland, Credit Agricole Group (France again), and HSBC Holdings and Barclays, both British.

Regarding the bank, ICP simply says, “They are global, have more than 50,000 employees, are well respected, and have nearly 125 years of banking experience.”

ICP Financial and its deep-pocketed banking partner plan to buy U.S. assets for between $5 million to $180 million a pop. The partnership, the company says, will enable it to leverage the financial fire power of its new backer to take distressed assets off the balance sheets of mid-sized American banks in trouble, so they can start increasing revenue.

Boulder, Colo.-based ICP Financial posits that there are still a lot of willing sellers among U.S. banks holding distressed commercial real estate. “In order to survive and thrive once again, [the banks] need to sell their distressed portfolio’s fast to raise cash, lend again, and avoid being seized by the FDIC,” explains CP Financial Managing Director Brad Wozny in a statement. “In certain cases, we may also arrange for these commercial real estate lenders to receive money in advance of a sale of their assets.”

Though ICP Financial hasn’t detailed its plans according to property type, it is probably looking at distressed multifamily assets, which have been trading in considerable volume in the United States lately. According to a recent report by Real Capital Analytics, in fact, distressed apartment sales totaled $7.8 billion in 2010, accounting for 23 percent of all investment sales in apartments, and well above levels of distressed sales experienced by other property types.

Moreover, RCA says, “the elevated level of distressed sales combined with an equal amount of loan modifications/extensions were barely able to keep up with in-flows of newly distressed situations. … The amount of unresolved distress rose [in 2010] by $2.3 billion to its current $37.9 billion.” In other words, there are still considerable opportunities out there for buyers interested in distressed multifamily assets.

If you have questions regarding this article or have any questions about Boulder, Boulder real estate or would like information about Boulder Luxury Real Estate check out my website. You may also call or TEXT me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO.

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Pushy Real Estate Agents

Michael Hughes  October 3, 2010

When you are thinking you are going to buy homes in Boulder you may want to ask yourself. The day of the pushy real estate agent. Is it over? It seemed as if the plaid coat wearing cousin to the used car salesman had become extinct. But there are still a few of them around. Good ole’ boys. Sometimes called bullies and working by intimidation rather than by enlightening their clients to help them discover and focus in on your true source of home buying happiness/price/completion. Narcissists working only for themselves rather than for their clients. Here’s an example of one:

Maybe this is the reason there were so many foreclosures early on and the shadow inventory while waning still languishes in the marketplace. Work with someone you feel competent can get the job done or simply check out the Boulder MLS.

I can help you. If you have questions about this article or houses in Boulder or Boulder Real Estate give me a call anytime. Michael Hughes-Fuller Sotheby’s International Realty 303-359-6627 or you can visit my website at www.BolderRealEstate.com

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Why Investors Should Use a Buyers’ Agent

Posted by Michael Hughes   February 9, 2010

Reasons for an Investor to have a Buyer’s Agent:

  • That the Buyers Agent is to look out for your best interest (They are legally bound to do so).
  • There is no money savings by using the listing agent as they become (in Colorado) a Transaction Broker only working for the deal not for the buyer or the investor on your behalf.
  • You agree to allow your consultant to be paid a pre-determined finder’s fee from the seller from whom you decide to buy.
  • That the consultant will help you find the best deal. Performance based compensation. If they don’t find you what you want…they don’t get paid.
  • You agree to work exclusively with that consultant. (This helps ensure that there is no pressure on you to buy because that consultant knows that he / she will eventually be rewarded for their effort to help you).
  • You agree to only buy from sellers that will pay your sales person a finder’s fee.

    Buyer’s Agents offer Many Services:

Reliable advice and information is perhaps the key factor in making a “good decision”. As your buyer agent, they will provide you info such as, but not necessarily limited to the following:

  • The original purchase price of the house. The Starting price, how long on the market,etc
  • Evaluating improvements that the sellers may have made to the house and how those figure in to the price
  • Comparative market analysis for similar houses in the neighborhood. Active, Expired and recently Sold.
  • The average closing concessions paid by sellers of other similar houses in the neighborhood.
  • The average drop from list price to sold price and in what time frame.
  • How many days the property has been on the market for sale.
  • A velocity pricing of supply and demand for this type of property in this price bandwidth.
  • Best time of year to buy the property (if any)
  • Computerized what if scenarios on spreadsheets to allow you to make sound financial decisions.
  • Introduction to reliable mortgage lenders, home inspectors, settlement attorneys etc.
  • Let the buyer’s agent worry about finding the perfect house – and they will help you take care of all the small details.

How Exactly Does a Real Estate Investors Buyer’s Agent Get Compensated?
Buyers agents are compensated by the seller of the property.  The listing agent will have made a commission arrangement with the seller for a set amount and the listing agent will offer a co-op fee for the buyer’s agent.  This is paid by the seller.  People who do not wish to pay co-op fees are sometimes FSBO’s (notorious for pricing too high), unscrupulous builders and people that are underwater with their mortgage.  Always work with a reputable investor  buyer’s agent.  It pays in the long run.

To read the entire article Investors: Why you should use a Buyer’s Agent By Rob Barney.

If you have questions regarding this article or Boulder Real Estate please call me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO

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Like A Virus, Foreclosures Spread To New Areas

By Michael Hughes  February 2, 2010

While the usual states are seeing the same number of foreclosures in 2010 there is an interesting twist. States that have thus far, had few to no distressed properties are starting to see more and more.

It’s no surprise after having spoken, last week, to asset managers (who spoke only with a guarantee of anonymity) at several large mortgage lenders, that there will be large waves of foreclosures hitting the market. A Tsunami as it were. Legal changes and a lengthening of the redemption period skewed the foreclosure numbers downward for 2009.  When these numbers catch up there will no longer be an artificial number applied to foreclosures and that is part of what we will be seeing in 2010.

Boulder County Business Report said in 2009 that foreclosures in Boulder County rose 39% the only worse showing in Colorado real estate was Mesa County with a 139% increase in foreclosures.  To read the entire BCBR story go here.

The most foreclosure filings will still go to the city of Las Vegas, Nevada where more than 12% of housing units received a foreclosure filing in 2009.  The “sand states” continue to lead in foreclosures.  States new to increasing foreclosure rates are parts of Utah, Arkansas, Oregon, Honolulu, Minnesota and Washington state.

When it comes right down to it the areas with the most unemployment problems will be the areas with the increasing numbers of foreclosures.  It just makes sense.  While the house market has contributed to the economic crisis, the extent of the decline is still unknown.  This will reflect on the speed and the sustainability of the recovery.

If you have questions or need help with a foreclosure, short sale or just have a general comment or question you can reach me at 303-359-6627 or visit my website or email me.  Please leave a comment.

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Real Estate 2010-A Balancing Act

By Michael Hughes  January 28, 2010

What Do I Think 2010 Will Bring?

  • The fallout from the jobs market will continue with an increase in Foreclosures and Short Sales mostly on the coasts and Las Vegas, NV.
  • Look for more foreclosures and short sales in the upper price ranges.
  • Because of the feds’ decision to no longer buy mortgages, starting the end of March, Interest Rates Will Rise. A great way not to stimulate the economy; higher interest rates. We’ll see.
  • The homebuyer tax credit may not be extended beyond April 30th, 2010 and/or may be reduced.
  • 2010 will be a year of recovery. Nothing dramatic but it will be in the right direction. Given the over-reaction of the financial and corporate world in 2008 we are now seeing jobs slowly return.  In Boulder County we are in pretty good shape and 8th in the nation as far as the lowest unemployment.
  • Because we didn’t have the run-ups like some areas we will recover faster than most areas.
  • A balanced market is about 5.5 months of inventory in a given price bandwidth and area. It will continue to be a buyers’ market in most areas of Boulder County with as much as 24+ months of inventory in some areas. But there are some areas of Boulder and in certain price ranges where there is only a 4 month inventory (more a sellers’ market).  The absorption rate calculated for these areas is nothing more than a very handy way to explain supply and demand.

If you have any questions please give me a call anytime Michael or visit me at my website.  Please leave a comment below.

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Aren’t You Glad These Aren’t Your Neighbors!

By Michael Hughes   January 28, 2010

While sometimes it is funny to have Pink Flamingoes in your front yard,  or have a rainbow colored house, try selling a home when you have one of these homes next door.  Check it Out:

Overzealous Broncos Fan

Color Blind, Bipolar, Extremely Happy?

2,083 Flamingos-Oh My

Handyman Special

Aqua Butt Ugly

Hmm?

If you have questions about anything or wish to talk about our written global marketing plan for your home please contact me at 303-359-6627 or my website or my blog.  Please leave a comment.

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FHA, The Good, The Bad and The Ugly

FHA Changes Rules February 1, 2010

By Michael Hughes January 24, 2010

HUD will allow homebuyers to use FHA-insured financing to purchase foreclosed properties starting February 1, 2010. The one year waiver program will only apply to forward mortgages and includes conditions to protect borrowers from predatory “flipping” practices.

Shaun Donovan, secretary of the US Department of Housing and Urban Development (HUD), will temporarily permit buyers to use FHA-insured financing to purchase real-estate owned (REO) property to stave off vacancies. To read the complete article go to: REO’s with FHA

As you may be aware, FHA has decreed that it will also implement changes effective for all FHA case numbers pulled on or after 5 April 2010 that will primarily affect Mortgage Insurance Premium (MIP).  MIP will increase from 1.75% to 2.25% on purchases, refinances and streamlines.  Other changes, including a rumored increase in the down payment from 3.5% to 5% for FHA borrowers (10% down payment required for FICOs below 580), a reduction in seller paid closing costs from 6% to 3%, and a few other changes, are under discussion as well.

The end of March the Feds will stop their $1.25 Trillion (with a “T”) buydown program on mortgages.  This means unequivocally higher rates. See story in the Wall Street Journal Feds.

If you are eligible for an FHA purchase, I highly encourage you to get a loan application going Talk to JenniferAmanda or your mortgage professional.  Also First-time Homebuyers Incentive, and the Existing Homebuyers Incentive, both will expire April 30th for FAQ’s.  Time to get off the fence!

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Call me with any questions or You can reach me a number of ways Michael Hughes or 303-359-6627 or you can email me at Michael

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