Call Now: 303-768-8255
Echo Summit Named Fastest Growing Company by Denver Business Journal

Industry Blog

Harvard – State of Nations Housing 2011

Scott Lukes - Thursday, December 14, 2017


 An incredibly detailed look at both the home sales and home
 rental markets nationwide. Great proof-points as to why the recent ‘boom’ in rentals is not really a boom at all.  Indeed, WHO is renting and WHY they are renting has evolved, but since the study began, between 35% and 38% of households rent… as they still do.











Analyzing Deals and MLS Listings

Scott Lukes - Friday, December 08, 2017
This report gives valuable information on how to do a fast and thorough analysis of potential deals; a critical skill for finding the hidden treasures. This detailed analysis shows a foolproof step-by-step technique. 



Great Website for Zip Code Demographics

Scott Lukes - Saturday, December 02, 2017
Here’s a great website where you can find all kinds of information about a particular zip code anywhere in the country. You enter a zip code and you’ll find types of information like: population demographic, typical living expenses, homes for sale and rent, tons of information on school districts (like teacher to pupil ratio, etc), crime rates, sales tax, job growth, job openings….and the list goes on! You will love this.



Advanced Purchase Techniques

Scott Lukes - Sunday, November 26, 2017
Ask not IF it can happen, but HOW it can happen. This is one of the guiding principles at Echo Summit. It is easy to say ‘no’ to an apparently complicated deal or situation. This is what most people do. This is also what helps set Echo Summit…and most of our clients apart. The tips in the below link are proven strategies for acquiring, refinancing and even leasing properties.



Investor Competition Heating Up – Time for Turn-key Rentals?

Scott Lukes - Monday, November 20, 2017
Competition for Denver residential single-family investment homes, at least at the wholesale level, has picked up dramatically in the past 2 months. We understand this is due largely to a massive amount of out-of-state money moving in, making cash offers, sight unseen with no inspection contingencies. It is very hard to compete with this, though Echo Summit is still having success via its network of investors.

Given this phase of the market, it is probably time to start thinking about purchasing turn-key rental properties, and aiming for cash flow, rather than short-term cash-on-cash return. Obviously, almost any property held for a minimum of 5 years will produce some form of cash-cash return based on appreciation alone. What I am a suggesting is to focus away from the masses who are hoping for quick returns on a wholesale flip, and target areas/property types that they are not.

Without getting into the boonies, I recommend focusing on transportation corridors (SSE is off the charts) and anything feeding into the Cherry Creek School District (for those of you who don’t know what bond proposals 3a and 3B were for in recent elections… study up. They passed, and will have significance for property valuation in the coming years).

Minimizing Out-of-Pocket Closing Costs

Scott Lukes - Tuesday, November 14, 2017
Instead of offering $97,000 for a property, offer “$100,000 with $3,000 in Seller closing costs and/or prepaids.” This allows you a ‘free’ way to finance your closing costs, and not pay for closing costs with expensive post-tax dollars.

Not only will this maintain higher property values for the area, but it really makes no difference to the Seller (they get $97k regardless… likely tax free).

Contesting County Property Assessments – 60 percent of All Assessed Property is Over-Assessed

Scott Lukes - Tuesday, November 07, 2017
Statistically, 60% of all assessed property is over-assessed, and over half of homeowners who appeal are granted some form of concession. Fewer than 2% of taxpayers appeal, though. Especially if you have property in depressed areas (such as Aurora), you are likely giving free money to your local government.

Tips:
  • Find your county assessor at www.naco.org.
  • Write to your county assessors office and show your assessment is higher that recent comps in your neighborhood (found at www.domania.com and other sites).
  • If possible, have a professional Realtor (such as yours truly) prepare an official assessment… this will hold more weight with the assessor
  • National taxpayers union www.ntu.org has a booklet on how to fight property taxes as well

Did You Pull a Permit for That?

Scott Lukes - Wednesday, November 01, 2017
You are touring through a nice home and are admiring the custom enclosed porch, which has been included as a part of the properties square footage. Any time a properties structure has been modified (or even a new furnace installed), make sure that the Seller has pulled the appropriate permits and has performed all necessary inspections before making an offer.

Why is this important? Let’s say a fire starts in the wiring junction box of an addition that was built without permits. In most cases, your insurance company will not cover losses to any part of the property if they are caused by the addition. Also, if a fire breaks out in the main part of the home, damages to the non-permitted addition will also likely not be covered.

When you ask, make sure they deliver the actual signed permit paperwork. As a sanity check, visit county records to make sure any additions have been properly recorded. This is a good signs that the appropriate permits have been pulled.

Real Estate Investment Analyzer

Scott Lukes - Thursday, October 26, 2017
This easy-to-use Excel tool features effective metric calculations like  FastFlip and BUYandHOLD analyzers.  Excellent for simultaneously comparing up to 6 properties. Includes CAP rate, Cash-on-Cash return, Cash Flow and other key metrics.  

 

For this spreadsheet please Click Here 

Hot Denver Real Estate Investment Opportunities

Scott Lukes - Friday, October 20, 2017
Fitzsimons
While $billions have already poured into the project and the area, about $7 billion more has been committed for the next decade। This area, if you are not aware, will become the premier bio/healthcare-sciences research park and medical center in the country. The key point about Fitz is that the investments are now starting to become evident in the form of hotels and larger corporate presence (think Chipotle, etc). Property values should soar in the near future. At ~$155k for a good 3/2 SFR, you can easily get you into this neighborhood and cash flow with only 10% down. More investors will flock to this area when they see the investments and the physical changes to the area, so for Fitz, you should buy soon.


Walnut Hills
Simply put, Walnut Hills is one of the least expensive neighborhoods you can still be: 1) close to I-25, 2) in the ‘good’ part of the Cherry Creek School district, 3) walking distance to light rail and 4) walking distance to world-class shopping and entertainment (by Elephant Bar and CB & Potts off of Arapahoe)। I recently picked up a mint $275k property for ~$230k, which is literally walking distance to the Arapahoe lightrail stop (and feeds into the Campus Middle School and Cherry Creek High School). Rent is ~$1,550… phone rang off the hook the day I put it up for rent.


Cherry Creek Vista
Next to CC reservoir, walking distance to Light Rail and Del Frisco’s, good CC schools and streets with $500-600k houses, $700-900k houses, and $260-350k houses… ALL NEXT TO ONE ANOTHER. In the near future, the $260-350k houses are likely to experience a dramatic upward swing. In the meantime, this neighborhood feeds into the best schools in the state, has a brand new swimming pool and rec center, is a fantastic place to live, and has VERY FEW rentals. You could likely get into this neighborhood and cash flow with 20% down.

Echo Summit | 6535 S. Dayton St, Suite 1050 | Greenwood Village, CO 80111 | 303-768-8255
Copyright © 2017 Echo Summit Property Management. All Rights Reserved. Website built by PMW | Sitemap