Denver’s housing sector has mojo.
The foreclosure crisis that dragged down Colorado’s residential real estate market is fading. And the long-awaited turnaround in Colorado’s residential real estate market seems to be taking hold — particularly in Denver.
Denver’s residential real estate market is on track for growth in 2013, according to experts we interviewed for the December issue of RealtyTrac’s award-winning Foreclosure News Report.
Here’s an excerpt:
Every day, Robert J. Moses goes bargain hunting for foreclosures in the suburbs of Denver. Moses, who fixes and flips foreclosures, bagged a trifecta last year: three small, adjacent school buildings he bought for $112,000 each. He turned them into three single-family units and sold one for $274,000 and the remaining two fetched $284,000.
“We don’t cut corners on our fix and flips,” said Moses, owner of Maximus Investments/Roofing LLC, a 17-year flipping expert who hunts for foreclosure bargains throughout the Denver metro area. “We pull permits and fix everything: electrical, plumbing, framing, tile work, flooring and new roofs. It took me years and a lot of hardship to learn this business. The past 12 projects we’ve done have gone under contract in less than two weeks and we’ve gotten full price. Our goal is to make a $100,000 profit on each deal.”
Six years after Colorado’s housing bust turned the Rocky Mountain housing market into a Wild West affair, Moses and his REO listing broker Steffen Kaufman, stand to profit, sometimes lavishly, from the region’s housing woes.
“I’m working with 15 cash investors right now,” said Kaufman, a broker with RE/MAX Professionals in Englewood, Colo., who buys and lists Moses’ refurbished properties. “I’ve closed 45 deals this year. But the spreads are narrowing. We’re not able to make the profit we use to. And the inventory is tight right now.”
In Denver, the state’s capital and largest city, Kaufman represents Moses on both the buying and selling side of the business. And both Moses and Kaufman said demand for residential foreclosures is outstripping the supply of distressed homes.
“In core Denver, we were buying at $60,000 to $80,000 and selling at $150,000 a few years ago,” said Kaufman, referring to south Denver. “Now we’re buying in the $200,000 range and selling for $400,000. We only buy two-story, ranch-style properties. We’re looking to make $100,000 on each deal.”
Further west, in the outer suburbs of Denver, Tom Guest, broker owner of Key Masters Real Estate in Highlands Ranch, Colo., is seeing more move-up and foreign buyers entering the marketplace.
To read the full article, subscribe to the Foreclosure News Report and receive the December issue free if you subscribe before Jan. 15.