http://blueoliveproperties.com/ Blue Olive Properties - Blog RSS Feed 2.0 en-us Thu, 09 Apr 2026 09:36:32 GMT Thu, 09 Apr 2026 09:36:32 GMT http://blueoliveproperties.com/blog/11540/Denver-Homeowners-Earn-Back-Equity blog According to a recent Zillow report, the number of Colorado homeowners with negative equity has fallen to 11.9% from last year's 22.2%. These numbers show that the market recovery is continuing and the outlook for a strong Spring market is promising. The trend is predicted to continue through the third quarter of 2014. "Zillow predicts that negative equity among all homeowners with a mortgage will fall to at least 11.3% by the third quarter of 2014." News like this helps build confidence, and many sellers who were on the fence will enter the market in 2014, increasing inventory and keeping prices steady. Let's Talk   Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11540/Denver-Homeowners-Earn-Back-Equity http://blueoliveproperties.com/blog/11541/Colorado-Real-Estate-By-the-Numbers-2012-2013 blog $15,783 – The increase in the average sale price from Dec. 2012 to Dec. 2013. – recolorado.com 65 – The average days on market in Dec. 2013. Down from 72 in Dec. 2012. – recolorado.com 10.3% – The decrease in new listings from Dec. 2012 to Dec. 2013. – recolorado.com $327,379 – The average list price in Dec. 2013, up from $311,663 in Dec. 2012. – recolorado.com 33.3% – The increase in sales from Dec. 2012 (3,415) to Dec. 2013 (5,126). – recolorado.com 32% – Percentage of sales that were all cash in Dec. 2013, same as 29% in Dec. 2012 – realtor.org 27% – Percentage of home buyers in Dec. 2013 that were purchasing for the first time. – realtor.org Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11541/Colorado-Real-Estate-By-the-Numbers-2012-2013 http://blueoliveproperties.com/blog/11542/Foreclosures-No-Longer-Dragging-Down-Denver-Real-Estate-Market blog A new report released by RealtyTrac in December of 2013 indicates a strong recovery nationwide and in Colorado from the foreclosure crisis. Overall, the study indicates that a total of 9.3 million properties are underwater now, in January 2013 the number of homes underwater was 10.9 million. The peak of homes in foreclosure was in May 2012 with 12.8 million homes underwater. In Colorado itself, only 10% of properties are defined by RealtyTrac as deeply underwater, meaning that the homeowners owe at least 25% or more over the estimated value of their homes. While some of these numbers may seem a bit staggering, it is important to consider that throughout the nation, the average percentage of properties that are "deeply underwater" is 31%. According to Daren Bloomquist, Vice President at RealtyTrac, "This is a strong indicator that the crisis is over," adding "the foreclosure floodwaters have receded in most parts of the country, although lenders and communities continue to clean up the damage left behind." Although the news is overwhelmingly positive as it likely means an end to the foreclosure nightmare experienced across the United States, the reality is that there are still 9.3 million Americans who may find foreclosure the only option to get out from under properties that have negative equity. However, the statistics show a strong recovery that should develop into a complete transformation in the months to come. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11542/Foreclosures-No-Longer-Dragging-Down-Denver-Real-Estate-Market http://blueoliveproperties.com/blog/11543/5-Topics-to-Watch-for-in-Housing-for-2014 blog 1) WILL INVENTORY RISE? Prices have risen largely because of shortages of homes for sale. While there is growing evidence that inventories hit bottom last year and that some markets are moving back in favor of buyers, the number of homes for sale remains relatively tight still. Foreclosure-related listings have plunged, and traditional buyers haven't flocked to list homes–at least not yet. New construction, meanwhile, won't be back to normal historical levels for years. The consensus view is that price growth continues at a somewhat slower pace, but that consensus view could be wrong–for the third year in a row–if there aren't more homes for sale. 2) WHERE IS THE NEW CONSTRUCTION RECOVERY? While home prices have recovered strongly, new construction activity hasn't. Part of this lack of new builds may have to do with the fact that home prices are still too low to justify construction, particularly given land, labor, and materials costs. For smaller builders, credit may also be harder to come by. Some economists say new-home demand could remain muted because many move-up buyers don't have enough equity to trade up to a new home. Key issues to watch here: What happens to household formation, and do builders begin to throttle back price gains in favor of selling more homes in 2014? 3) WHAT HAPPENS TO MORTGAGE CREDIT? Lenders could begin to ease certain "overlays" or additional credit and documentation checks that have been imposed over the past few years. Mortgage insurance companies are getting more comfortable insuring loans with down payments of just 5%. So don't be surprised if, at the margins, it gets a little easier to get a mortgage–especially if you have lots of money in the bank. Even if it gets easier to get a loan, by no means a given, borrowing costs and fees could rise. Banks also face new mortgage regulations that could keep most of them cautious. Borrowers with more volatile or harder-to-document incomes, including the self-employed or those who make a lot of money on commissions, bonuses, or tips, could continue to face tough sledding. 4) WHAT WILL INSTITUTIONAL INVESTORS DO WITH RENTAL HOMES? A handful of institutional investors have purchased tens of thousands of homes that are being rented out. These homes tend to be concentrated in a few of the regions that have been hardest hit by foreclosures over the past five years. Investor purchases played key roles in stabilizing prices, especially because investors were wolfing up homes at a time when supplies were already dwindling. A key question now is what happens after the initial rush to invest subsides. More lenders and investors are extending debt financing to some of these property owners, which should help boost returns. Can owners perfect the expense management associated with maintaining and leasing tens of thousands of individual homes?  5) WHEN DOES HOUSING HIT A TIPPING POINT ON AFFORDABILITY? Rising home prices are a double-edged sword, especially in pricier coastal markets such as San Francisco and Los Angeles. On the one hand, rising prices are giving many homeowners equity in their homes again, which is an extremely positive development to the extent it means these borrowers are less at risk of foreclosure. But price inflation is making housing less affordable. This will be a bigger problem if cash buyers retreat from the market in 2014 and/or if interest rates rise in a meaningful way. Consider: In Los Angeles, prices have jumped by nearly 30% in the past two years, to a median of $448,900 in the third quarter. Assuming a 20% down payment, the monthly payment of principal and interest on the median priced home has jumped from $1,255 in the third quarter of 2011 to $1,823 in 2013–a 45% increase. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11543/5-Topics-to-Watch-for-in-Housing-for-2014 http://blueoliveproperties.com/blog/11544/Avoid-4-Key-Mistakes-When-Buying-Rental-Real-Estate blog Buying cash flow real estate to hold is still one of the best financial strategies in today's market. However, avoiding costly mistakes is crucial, especially with beginners. Here are 4 key mistakes to avoid when buying investment real estate: 1) Leaving out management, vacancy, maintenance in calculating cash flow We see this mistake a lot in investor projections. Some investors only use rent amount versus PITI to calculate cash flow. If you do not have room for 8-10% in property management, 4-6 % for vacancies and 6-8% for maintenance, then you could end up losing money over time. It is much more accurate to take 70-75% of the rental number to calculate cash flow. 2) Self-Managing and/or hiring the wrong managers Many do it yourself landlords choose to manage properties themselves, which is great, but most DIYers have no idea what is involved in properly managing and maintaining rental real estate. Tenants walk all over them, do not pay rent, and do not properly maintain the unit. Maintenance gets deferred and potentially dangerous situations crop up, creating a huge liability exposure to the property owner. All of these problems can be avoided by using a professional property manager who manages the tenant relationship and actively cares for your investments. Employing great managers will allow you to generate passive income and free up your time to look for more profitable investments. 3) Adding too many property upgrades Do not overdo upgrades for rentals. Stay within the neighborhood norm. You are not living in the home or flipping it. Only do those upgrades that will increase rent, get tenants faster, keep good tenants longer, or prevent costly future repairs.  Do major upgrades before you sell, not before you rent. Consider heavy cosmetic changes such as carpet, paint, lighting and plumbing fixtures. Make sure mechanical systems are running smoothly and safely. 4) Only buying a home you would live in or that is near your home We frequently get calls about the "foreclosure right down the street." Usually the numbers don't work, but many people are more comfortable investing in their own neighborhoods, so I understand why they do it. But your motivation should be to buy a rental because the numbers work, not because you feel comfortable. Never bring emotion into investing. As always, we are here to help our investors when it comes time to buy another rental property. And remember to avoid these 4 key mistakes and you will be successful in your real estate investing activities. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11544/Avoid-4-Key-Mistakes-When-Buying-Rental-Real-Estate http://blueoliveproperties.com/blog/11545/TENANT-ARTICLE--Beware-of-Rental-Scams--Take-These-Steps-to-Avoid-Problems blog Rental scams. Nobody ever falls for them right? Well, as a seasoned property manager with over 15 years of experience, that's what I used to think. Then I got a call from an irate father calling on behalf of his 20-year-old son who had sent $1000 via Western Union to some nice property manager...in Nigeria. The son saw "my" ad on Craig's List which featured a 2000 square foot house listed at $1000 a month. Well the actual price was $1900 a month, and I had my sign posted in the yard and plenty of fliers, with the correct rental amount on them, in the box on the sign. It was advertised by me at the proper price on over 50 websites. The father told me the son had actually driven by the property, pulled my flyer, then knocked on the door. The owner let him, his wife and young baby into the house. (A serious security breach by this owner, but I will cover security in another article.) Obviously they loved the house, especially for $1000 a month. But instead of calling me from the phone number on the sign or the flyer, this young man decided to beat the competition and send his money to Nigeria. Wow. Live and learn I guess. Of course there was nothing I could do but sympathize with the man's father. I'm sure that young man learned a very expensive lesson. Seems there are a bunch of scammers out in cyberspace with too much time on their hands. And although we all think we can sniff out rental scams, sometimes people get caught in them. When I post a rental ad online, a scammed ad literally shows up within the hour, usually on Craig's List. (Nothing against Craig's List. It is a great site, but you need to be aware of what you are reading there, and on other free sites.) When I needed an admin assistant recently, I thought about calling one prolific scammer to see if he wanted a job. He put rental ads out fast. So how do you avoid falling into these rental scam traps? Follow these simple guidelines: 1) Always deal locally and meet the leasing agent or owner face-to-face at the property. (Try not to go alone. Think personal safety first.) Drive by the property. Take a flyer from the box. Always walk through the house. 2) Never, ever, send money via wire transfer, Western Union, Pay Pal, or any other such service. Most property managers are going to ask for a cashier's check or money order for the first month's rent and security deposit. 3) Be skeptical. If that beautiful 3500 square foot house you see online is renting for $1000 a month, it is probably a scam. Become familiar with the prices and kinds of properties in your potential rental market. 4) Watch for advertising written in broken English with lots of grammatical errors. Check reputable, paid sites such as rentals.com to see if the property is listed there. 5) Never send any personal information via email to anybody. A legitimate property manager will give you an application in person, or online, and must have your signature before running the application. Again, deal locally to be sure of who you are sending the completed application to as well. Remember there is a lot of confidential personal information on rental applications. Make sure these documents are handled properly, especially in emails and online. With a little bit of caution, we can all avoid these rental scams when trying to rent a house. Or you can ignore the warnings and support that lonely property manager in Nigeria. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11545/TENANT-ARTICLE--Beware-of-Rental-Scams--Take-These-Steps-to-Avoid-Problems http://blueoliveproperties.com/blog/11546/OWNER-ARTICLE--Professional-Property-Management-Can-Make-Your-Life-Enjoyable-Again blog So you took the plunge into real estate investing. Are you prepared to be a landlord? Is managing robbing your free time. Golf game suffering? Wife, husband, boyfriend, girlfriend, kids, dog, bugging you to spend more time living and less time managing properties? Many investors don't have the patience or expertise to manage properties. Do you know how to advertise properties, then find and screen tenants? What about collecting late rent, or dealing with problem tenants, evictions, collections? Is maintenance becoming a problem, costing you time and cash? Are stress and lack of knowledge pushing you to the brink of giving up? It is time to seek professional property management Successful real estate investors know their time is better spent finding deals rather than managing properties. Ask management companies these questions during your search: First, ask how much the company's services will cost. Pricing varies so be sure you understand what services are covered. Most management companies charge a monthly fee and a leasing fee. Some companies claim to not charge a leasing fee, but be careful. They may call it a set-up or sign-up fee, but there will be some expense involved. Nobody works for free. Be sure to ask about any mark-ups on maintenance and other services. Companies that offer "free" services will make up revenue in other ways. Next, ask about the company's background. Ask what kinds of properties they manage, and where they are located. If you own a single family home in Highlands Ranch, find a company that manages such homes and works in Highlands Ranch. Ensure that the company is close enough to your property to care for it properly. Be sure the company is licensed and that they have experience in managing your type of property. Ask for addresses and drive by some properties. Ask for references from people who own the same kinds of properties you do. Third, ask when you will receive your rental proceeds and how. Do you prefer a check in the mail with your statement, or a direct deposit to your bank and an emailed statement? You should have choices. Some companies hold rents for several weeks. Seek a company that will disburse payment quickly. Ask how the company pays for repairs and expenses. Preferably, the company holds back a maintenance fund, and has your authorization to pay expenses up to a fixed amount, say $250. This way, you are not bothered by maintenance requests, and you are not constantly writing checks. Fourth, ask how the company mitigates vacancies. The biggest killer of return on investment is a vacancy. Do they charge a fee for showing vacant properties or new tenant move-ins? Do they charge the management fee when a property is vacant? The answer should be "no." The first two services are included in the leasing fee, and if your property is vacant, no fee should be charged. Also, if a tenant renews a lease, no leasing fee should be due. Ask how much notice the company requires from tenants to move. A proactive company will require a 60-day notice, and will advertise the property as soon as notice is given. If done correctly, you will move one set of tenants out and a new set in with no vacancy or lost revenue. For a smooth transition, the company must require outgoing tenants to professionally clean carpets. If the house is clean, new tenants can move in quickly. Any repairs should be done in the last weeks of the outgoing tenants' stay. Don't wait for the property to go vacant. If the property needs painting, a good management company will make arrangements for a quick turn-around. Next, ask how the company advertises your property for lease. Most good companies use online advertising, taking advantage of free websites. However, smart investors pay for premium advertising on sites such as rentals.com and rentalhomesplus.com, both of which show in the top 5 in Google. Your property can be listed on the management company's website with other properties, but it must be placed on multiple websites on its own. Ask how long a property stays on the market before a new tenant is found. A clean property, priced right, should take one to three weeks to rent. Properties priced between $1000 and $2300 a month go fastest, usually two weeks or less, with properties over $2400 a month taking a week or two longer to rent. And lastly, ask the company how many times per year they enter your house. Ask if they conduct inspections. You must physically inspect the property at least twice a year. Ask who conducts the inspection, what is covered, and how much it costs. A good management company will offer low cost inspections performed by a certified inspector, with a written report. Inspections are essential in keeping your property in top condition and your maintenance costs low. If you are feeling overwhelmed by trying to manage investment properties, consider professional management. If you follow these six steps, you will find a great company to manage your investments. Kevin Mackessy owns and operates Blue Olive Properties, a full-service property management company located in Highlands Ranch, and serving all of the South Metro Denver area. Kevin can be reached at 303-956-3507 on cell or via email at kevin.mackessy@blueoliveproperties.com He works with new and experienced real estate investors alike, offering professional property management solutions Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11546/OWNER-ARTICLE--Professional-Property-Management-Can-Make-Your-Life-Enjoyable-Again http://blueoliveproperties.com/blog/11547/Real-Estate-Investors--Don-t-Hide--the-Time-to-Buy-is-Now blog Apparently the sky is falling. At least that is what we're expected to believe after reading many of the alarmist articles now circulating about the demise of real estate in America. But remember, much of what you hear through the media is based on national statistics. The only way to accurately assess our Denver market is to look at local market data. This simple idea seems obvious, but many people are not seeking local data in this market. One of the most common questions real estate investors ask is "Should I be buying now?" Indications are that yes, this is a great time for investors to buy. The Colorado market is not in the kind of trouble faced by many other areas of the country. Denver's inventory of homes has decreased this year and is considerably lower than last year. Pockets in the metro area are actually seeing appreciation too. Interest rates for investor financing are at historic lows, there are many bargain properties out there, including  REOs, short sales, and other distressed properties. And the rental market is hot, with rents increasing dramatically in the last two years, while vacancy rates flirt with all-time lows. Denver's market clearly looks to be well-priced. The FHA loan revival will help moderate income households buy their first homes. Builders have been  limiting oversupply conditions. So the timing seems perfect. Right? In his best selling book, The Millionaire Real Estate Investor, Gary Keller talks about market timing, which is one of the least understood investing concepts. "When people say timing is important, they are correct," Keller says. "Timing is not only important, it's critical to investment success. The economy is cyclical. Markets are cyclical. Buying and selling opportunities are created by the ebb and flow of the cycles. What is misunderstood is the way timing is accomplished." Area investors can learn about market timing and the current Denver market by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company. "What Mr. Keller says is true. Market timing is about being active," Mackessy says. "Great opportunities cannot be found sitting on the sidelines watching. The best deals come from the best opportunities, and the best opportunities go fast. Investors need to buy in a way that lets them afford real estate cycles, and investors must know where they are in the current market cycle. And the best way to find out about the market is by talking with local market experts. We track every possible statistic for our market." Denver's resale home inventory has decreased slightly, with a 2 percent decrease since February 2012. Foreclosures and short sales remained the same as a percentage of the total market in March. The median listing price in Denver went up from February to March. There were a total of 50 price increases and 371 price decreases. Lawrence Yun, National Association of Realtors, chief economist, said the market has been fairly steady but at a lower than desired level. "Home sales have been stuck in a narrow range despite several improving factors, such as job creation, rising rents and high affordability. Many people who are attempting to buy homes are thwarted," he said. "A higher rate of contract failures has held back sales recovery. Recent contract failures jumped to 33 percent but were only 8 percent a year ago, so we should be seeing stronger sales," Yun added. Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from low appraisals, or other problems including home inspections and employment losses. "Other recent factors include disruption in the National Flood Insurance Program and lower loan limits for conventional mortgages, which force some of the most creditworthy consumers to pay higher interest rates," Yun said. Investors should take such words to heart, especially in Denver. All of these factors are making our market a very attractive place to invest. Investors in other parts of the country have noticed that leading indicators are lining up for a good market to emerge in Denver. "I'm working with investors from California, Arizona, Nevada and Florida right now," Mackessy says. "Investors in these areas and others have made some good investments in the last several years, and as their markets failed, they were looking for promising areas in which to invest. Right now all signs point to Denver. For the lucky few investors who live here in Denver, opportunity awaits." Let's Talk   Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11547/Real-Estate-Investors--Don-t-Hide--the-Time-to-Buy-is-Now http://blueoliveproperties.com/blog/11548/Law-of-Momentum-Compounds-Real-Estate-Investing-Success blog In real estate investing, everything big starts small. New investors often think that it will take "forever" for their investments to amount to anything. When considering their first real estate investment, most people find it hard to justify the time, money and effort for the returns they see. It can seem crazy to work so hard to find a rental property that may only yield a couple of hundred dollars a month. The short-term benefits just don't seem to justify the sacrifices. In his best selling book, The Millionaire Real Estate Investor, Gary Keller encourages readers to step past short term thinking and look at the implications of small investments. What you must understand is that there is a natural growth curve to momentum, known as compounding. What starts small and grows slowly builds in size and momentum over time. Area investors can learn about the power of momentum and compounding by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company. Mackessy shares his own investing experience in creating momentum with his investors. To illustrate the power of compounding Mackessy tells the story of an employee who negotiates a compounding pay scale where his pay doubles every day, but starts at just one penny. The employer quickly agrees, thinking he's getting a deal. Unfortunately for the boss, if you do the math, 30 days of doubled pay that begins with a single penny ends with an invoice for $10.7 million.   Any form of investing is about putting your money to work and letting it work for you over time. Real estate investing is no different. What distinguishes real estate from other investments is that the original value of your asset tends to be large, and through the power of leverage, properties can be purchased for less out of pocket capital. For instance, if you bought a $100,000 investment property each year by putting 10% down, and achieved a modest 5% return on the total value of the assets, you would be a millionaire in less than a decade. With each property you add to your portfolio, your portfolio grows. As your investments grow, so do your buying power and investment knowledge. That is the foundation for bigger and ever-increasing investments. "Over the years, we have seen absolute beginners use our system and investment strategies, to build very nice, cash-flow generating real estate portfolios," Mackessy states. "They started small, buying a single property." No matter what your current financial situation looks like, financial wealth is available to you. No matter how little money or knowledge you have in the beginning, a great ending is possible. The trick is to get started and then let the power of compounding take over for you. If you can believe that it is both possible and probable for you, it's time to take the plunge and change your future. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11548/Law-of-Momentum-Compounds-Real-Estate-Investing-Success http://blueoliveproperties.com/blog/11549/Successful-Real-Estate-Investors-Maximize-Net-Operating-Income blog Ever notice how some real estate investors always have positive cash flow and meet their monthly expenses with room to spare. This wondrous fact is no accident. These professionals run their real estate investments like a business and follow sound practices to maximize net operating income (NOI). NOI simply put is what you have left from your gross rental income after you have accounted for vacancies and paid operating expenses. So how do you maximize NOI? Three simple ways: increase gross rental income, control expenses and minimize vacancies. Area investors are invited to learn about NOI and other aspects of real estate investing by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company. Increase Gross Rental Income So how do successful investors consistently increase gross rental income? The best way is to include a rent escalator in all leases. Using an escalator means the rent will increase without question or negotiation. An escalator, when presented at the time the lease is signed, prepares the renter for scheduled increases up front. Another way to increase NOI is to make strategic improvements to the property to make it stand out, drawing  tenants willing to pay a premium for nicer kitchens and bathrooms, or washers and dryers. "We always get premium rents for the homes we buy and manage," Mackessy says. "We improve them slightly above the neighborhood norm. We make sure the houses are painted, if needed, and quickly updated between tenants."   Control Expenses Controlling expenses is a natural way to increase NOI and is usually only a matter of record keeping and attention to details. Setting up a book keeping system or using a qualified property management company makes record keeping easy. Keeping the costs of repairs and improvements under control is essential in maximizing NOI. Having a viable network of professionals ready to help always saves time and money. "We have a strong service network that we have built over the years," Mackessy says. "We share our network contacts with our investors. We keep our expenses in check with volume pricing and the loyalty of our service providers." Improvements are a tax deductible expense, and the right ones add value to your property, increasing equity. The wrong ones are just deductions. There are four kinds of improvements: those that are necessary and add value, such as a new roof or flooring; unnecessary but add value, such as landscaping and cosmetic enhancements; necessary but don't add value, such as plumbing and foundation repairs; unnecessary and don't add value, such as expensive fixtures or amenities. "The best landlords know how repairs and improvements impact NOI," Mackessy says. "Good investors know that it is not always smart to minimize operating costs at the expense of income and equity gains." Minimize Vacancies The key to minimizing vacancies is having a plan to keep tenants longer and market vacant properties faster. You must be ready to rehab, clean and market your vacancies quickly. You must know the rental market, or hire professionals who do. "The Denver rental market is strong right now. We specialize in finding two, three, four, and even five year leases," Mackessy says. "Making a house appealing for a long term tenant is crucial. Also, scheduling rent increases keeps your longer term leases from harming your NOI." So remember, run your rentals like a business. Keep good records and good tenants. Control your expenses. Use professionals. Once you learn these easy ways to increase your net operating income, you too will experience more cash flow and enjoy your own investment success. Let's Talk Thu, 03 Dec 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11549/Successful-Real-Estate-Investors-Maximize-Net-Operating-Income http://blueoliveproperties.com/blog/11538/Beware-of-Rental-Scams--Take-These-Steps-to-Avoid-Problems blog Rental scams. Nobody ever falls for them right? Well, as a seasoned property manager with over 12 years experience, that's what I used to think. Then I got a call from an irate father calling on behalf of his 20 year old son who had sent $1000 via Western Union to some nice property manager...in Nigeria. The son saw "my" ad on Craig's List which featured a 2400 square foot house listed at $1000 a month. Well the actual price was $1900 a month, and I had my sign posted in the yard and plenty of fliers, with the correct rental amount on them, in the box on the sign. It was advertised by me at the proper price on over 50 websites. The father told me the son had actually driven by the property, pulled my flyer, then knocked on the door. The owner let him, his wife and young baby into the house. (A serious security issue, but I will cover security in another article.) Obviously they loved the house, especially for $1000 a month. But instead of calling me from the phone number on the sign or the flyer, this young man decided to beat the competition and send his money to Nigeria. Wow. Live and learn I guess. Of course there was nothing I could do but sympathize with the man's father. I'm sure that young man learned a very expensive lesson. Seems there are a bunch of scammers out in cyberspace with too much time on their hands. And although we all think we can sniff out rental scams, sometimes people get caught in them. When I post a rental ad online, a scammed ad literally shows up within the hour, usually on Craig's List. (Nothing against Craig's List. It is a great site, but you need to be aware of what you are reading there, and on other free sites.) When I needed an admin assistant recently, I thought about calling one prolific scammer to see if he wanted a job. He put rental ads out faster than we did. So how do you avoid falling into these rental scam traps? Follow these simple guidelines: 1) Always deal locally and meet the leasing agent or owner face-to-face at the property. (Try not to go alone, too.) Drive by the property. Take a flyer from the box. Always walk through the house. 2) Never, ever, send money via wire transfer, Western Union, Pay Pal, or any other such service. Most property managers are going to ask for a cashier's check or money order for the first month's rent and security deposit. 3) Be skeptical. If that beautiful 3500 square foot house you see online is renting for $1000 a month, it is probably a scam. Become familiar with the prices and kinds of properties in your potential rental market. 4) Watch for advertising written in broken English with lots of grammatical errors. Check reputable, paid sites such as rentals.com to see if the property is listed there. 5) Never send any personal information via email to anybody. A legitimate property manager will give you an application in person, or online, and must have your signature before running the application. Again, deal locally to be sure of who you are sending the completed application to as well. Remember there is a lot of confidential personal information, such as social security numbers on rental applications. Make sure these documents are handled properly. With a little bit of caution, we can all avoid these rental scams when trying to rent a house. Or you can ignore the warnings and support that lonely property manager in Nigeria. Mon, 09 Nov 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11538/Beware-of-Rental-Scams--Take-These-Steps-to-Avoid-Problems http://blueoliveproperties.com/blog/11539/Professional-Property-Management-Can-Make-Your-Life-Enjoyable-Again blog So you took the plunge into real estate investing. Are you prepared to be a landlord? Is managing robbing your free time. Golf game suffering? Wife, husband, boyfriend, girlfriend, kids, dog, bugging you to spend more time living and less time managing properties? Many investors don't have the patience or expertise to manage properties. Do you know how to advertise properties, then find and screen tenants? What about collecting late rent, or dealing with problem tenants, evictions, collections? Is maintenance becoming a problem, costing you time and cash? Are stress and lack of knowledge pushing you to the brink of giving up? It is time to seek professional property management. Successful real estate investors know their time is better spent finding deals rather than managing properties. Ask management companies these questions during your search: First, ask how much the company's services will cost. Pricing varies so be sure you understand what services are covered. Most management companies charge a monthly fee and a leasing fee. Some companies claim to not charge a leasing fee, but be careful. They may call it a set-up or sign-up fee, but there will be some expense involved. Nobody works for free. Be sure to ask about any mark-ups on maintenance and other services. Companies that offer "free" services will make up revenue in other ways. Next, ask about the company's background. Ask what kinds of properties they manage, and where they are located. If you own a single family home in Highlands Ranch, find a company that manages such homes and works in Highlands Ranch. Ensure that the company is close enough to your property to care for it properly. Be sure the company is licensed and that they have experience in managing your type of property. Ask for addresses and drive by some properties. Ask for references from people who own the same kinds of properties you do. Third, ask when you will receive your rental proceeds and how. Do you prefer a check in the mail with your statement, or a direct deposit to your bank and an emailed statement? You should have choices. Some companies hold rents for several weeks. Seek a company that will disburse payment quickly. Ask how the company pays for repairs and expenses. Preferably, the company holds back a maintenance fund, and has your authorization to pay expenses up to a fixed amount, say $250. This way, you are not bothered by maintenance requests, and you are not constantly writing checks. Fourth, ask how the company mitigates vacancies. The biggest killer of return on investment is a vacancy. Do they charge a fee for showing vacant properties or new tenant move-ins? Do they charge the management fee when a property is vacant? The answer should be "no." The first two services are included in the leasing fee, and if your property is vacant, no fee should be charged. Also, if a tenant renews a lease, no leasing fee should be due. Ask how much notice the company requires from tenants to move. A proactive company will require a 60-day notice, and will advertise the property as soon as notice is given. If done correctly, you will move one set of tenants out and a new set in with no vacancy or lost revenue. For a smooth transition, the company must require outgoing tenants to professionally clean carpets. If the house is clean, new tenants can move in quickly. Any repairs should be done in the last weeks of the outgoing tenants' stay. Don't wait for the property to go vacant. If the property needs painting, a good management company will make arrangements for a quick turn-around. Next, ask how the company advertises your property for lease. Most good companies use online advertising, taking advantage of free websites. However, smart investors pay for premium advertising on sites such as rentals.com and rentalhomesplus.com, both of which show in the top 5 in Google. Your property can be listed on the management company's website with other properties, but it must be placed on multiple websites on its own. Ask how long a property stays on the market before a new tenant is found. A clean property, priced right, should take one to three weeks to rent. Properties priced between $1000 and $2300 a month go fastest, usually two weeks or less, with properties over $2400 a month taking a week or two longer to rent. And lastly, ask the company how many times per year they enter your house. Ask if they conduct inspections. You must physically inspect the property at least twice a year. Ask who conducts the inspection, what is covered, and how much it costs. A good management company will offer low cost inspections performed by a certified inspector, with a written report. Inspections are essential in keeping your property in top condition and your maintenance costs low. If you are feeling overwhelmed by trying to manage investment properties, consider professional management. If you follow these six steps, you will find a great company to manage your investments. Kevin Mackessy owns and operates Blue Olive Properties, a full-service property management company located in Highlands Ranch, and serving all of the South Metro Denver area. Kevin can be reached at 303-956-3507 on cell or via email at kevin.mackessy@blueoliveproperties.com He works with new and experienced real estate investors alike, offering professional property management solutions. Let's Talk Mon, 09 Nov 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11539/Professional-Property-Management-Can-Make-Your-Life-Enjoyable-Again http://blueoliveproperties.com/blog/11551/Support-Network-Forms-Base-for-Investing-Success blog Want to know one of the big secrets in how to become a successful real estate investor? Build a strong support network. No real estate investor reaches the highest levels without the help of others. All successful investors tap their networks–an intentionally recruited group of people who each play a key role–to add value and increase profits. Denver area residents are invited to learn out how to build a profitable support network by working with successful real estate investor Kevin Mackessy at Blue Olive Properties, a Highlands Ranch based property management and real estate investment company. "We show the investor's support network as a series of three concentric circles," Mackessy explains. "The outer ring is your service circle which is focused on work and results. These service providers will perform specific functions on a particular property. They are the inspectors, electricians, painters, carpenters and others who are physically involved with the property. With a top flight service circle in place, investors are able to secure volume pricing for repairs and other improvements."   "The middle ring is your support circle which provides advice and management," Mackessy says. "These people provide fiduciary services and look out for your interests. These are the professionals such as Realtors, lawyers, accountants, lenders and property managers who will advise you on investments details and ensure smooth transactions." "The inner ring holds your most trusted advisors and brings leadership and advocacy to your life," Mackessy explains. "These are the people who absolutely care about your financial success. The members of your inner circle should have extensive experience and be willing to mentor you. What separates the members of your inner circle from everybody else is not what they do for you professionally, but rather what they will do for you personally." Mackessy advises that trial and error is definitely not the way to go in building your network–too expensive. "Calling somebody for help only when you need it is not a viable way to do business," he explains."You could be a do-it-yourself investor, at least in the beginning. But as your investing business grows, trying to do everything yourself will become virtually impossible. "Mackessy advocates the real estate investing strategies detailed in Gary Keller's best-selling book, The Millionaire Real Estate Investor. Based on extensive research and interviews with millionaire real estate investors, the book reveals the models that successful investors use to create true wealth. Mackessy shares investing techniques based on the book and his own experience as a successful real estate investor. He also shares his personal support network built up over twelve years to guide others along the path to building true financial wealth through successful real estate investing. Call Mr. Mackessy today for a no-obligation consultation, and get your journey started soon. Let's Talk Mon, 09 Nov 2015 06:00:00 GMT http://blueoliveproperties.com/blog/11551/Support-Network-Forms-Base-for-Investing-Success