Why is this information important? 

For several reasons: Being more conscientious is the way to be.  It’s the right choice.  The eco evolution is not only taking over Boulder but it’s blossoming throughout the world.  We drive Priuses, shop locally, and remodel with the consideration of the environment. 

You’re not only saving mother earth but yourself as well; indoor contamination causes health problems and the community is becoming more aware of its harmful risks. 

 It’s really not that more expensive to do a earth loving remodel and it will positively increase the value of your real estate.  Buyers are looking for those green qualities in a home so here are the basics. 

Part One of “What is an eco friendly renovation?” covered flooring because it’s one of the most important investments in a remodel which can tie the whole look together.  There are so many options, I think you’d be surprised.  Part Two is going to cover everything else -from insultation to paint.

Water efficiency

Why Build An Eco House?states that one of the most popular eco friendly building trends is water efficiency. Techniques used to conserve water are dual plumbing, low flush toilets, low flow shower heads, grey water systems that use rain water, and other eco friendly kitchen trends. 

Don’t forget about the Water Heater Timer, digital programmable thermostat, and Tankless Water Heaters.  These not only save on energy, they SAVE you MONEY!!!!   Also, pertinant to this catergory…… Xeriscaping: xerogardening refers to landscaping and gardening in ways that reduce or eliminate the need for supplemental irrigation. It is promoted in areas that do not have easily accessible supplies of fresh water, and is gaining acceptance in other areas as climate patterns shift.

Insulation

Very important and a great way to begin after demolition because when it comes to keeping heating and cooling costs in check, insulation is the first line of defense. Sierra Club agrees and adds: in the winter, heated air moves from living spaces to attics, garages, and the great outdoors making heating systems fire up to replace all that lost heat. In the summer, air conditioners kick on as heat moves from the outside in. Insulation in the attic, exterior walls, and floors can help resist this heat flow, making homes more comfortable and slashing energy bills and pollution. HA! Environmentally friendly!   Homes built today are usually well insulated, but many older homes–even those built as little as ten years ago–can benefit from added insulation.  Types include cotton, recycled, and non-toxic duct work.

Painting

According to the EPA, the concentration of pollutants inside your home is several times higher than what you’ll find outside, due to the lack of ventilation in rooms compared to the open spaciousness of the great outdoors.  Without proper ventilation, airborne chemicals collect indoors and eventually cause damage to our bodies.  Headaches, dizziness, fatigue, asthma, cancer, and heart disease are all potential side effects of indoor air pollution.  Although the contamination cannot be attributed to any single source, paint and paint-related chemicals play a significant role inside a typical home. 

The airborne chemicals released during painting, after the paint is dry, and as paint is removed, fall into a category of pollutants known as volatile organic compounds (VOCs)—potentially carcinogenic carbon-based chemicals that evaporate easily and contribute to indoor air pollution.  Harmful compounds in the VOC category range from formaldehyde to pesticides to cleaning chemicals.  They can be up to ten times more concentrated indoors than outdoors, in both rural and industrial locations.  However, VOCscontribute significantly to air pollution out of doors as well.  VOCs are released in the highest concentrations during paint application, but most paint will continue to emit harmful fumes for years afterwards.

You’ve got to be convinced by now.  Remodelling with the earth in mind will also increase the value of your real estate.  It’s healthy and trendy.  To learn even more about buying and selling green property, let us know.

It has been a while since my last blog and I am trying to get over a severe case of writers block.  With the holidays and my writers block, blogging just wasn’t working for me, so this one is a little out of date, but definitely something that needs to be discussed, so here we go.  I hope it finds everyone well and enjoying the first part of 2009.

Last month I had the opportunity to go to the Boulder County Tax Lien Sale at the Boulder County Courthouse.

Boulder Courthouse

I have always wondered about buying tax liens and the process and how one might benefit from it. Every year I see the list in the Daily Camera, but I never have actually gotten off my butt to go and see what it was really all about.  You always see those late night infomercials about the couple who made millions off of tax liens, or “BUY A HOUSE FOR ONLY $500″ and things like “I WAS A SCHOOL TEACHER MAKING $40,000 A YEAR, BUT MY HUSBAND AND I NOW OWN 15 PROPERTIES AND HAVE A NET WORTH OF $5,000,000, THANKS TO THIS BOOK ON PURCHASING TAX LIENS.” You see all this stuff and assume it is all just a big crock.  Well, it mostly is… but there is opportunity to be found in this whole mess.

An investor friend of mine knows that I am interested in all aspects of real estate and investment, so he called me up and asked if I would join him at The Boulder County Tax Sale.  Of course I would!! How could I say no to getting to the Boulder County Courthouse at 8am on a 9 degree Boulder morning to watch a bunch of people bid on delinquent taxes?  My ideal morning. Truly!

We get inside and grab our donuts and coffee and head into the meeting hall, where about 30 people, mostly much older are sitting with their list of hundreds of properties ready to bid (there was a real live auctioneer running it) on peoples delinquent taxes.  There is a formula to it all, which we can get to later.  My friend had already wired $10,000 that he was willing spend to purchase however many liens as he could.  This was his first time as well, so he didn’t want to break the bank on his first at-bat.  I just sat as a spectator on this one.

This year the annual interest on the liens is 11%, meaning the person whose tax lien you are purchasing will be liable to you, the purchaser, 11% of the amount of the tax per year for three years or until they pay it off in full.  The interest is accrues monthly, and if after three years they have not paid, you own the property.  In the past 20 years in Boulder County, only twice has someone received ownership of anothers’ property through this process.  Many think they are going to these sales to purchase almost free real estate.  It doesn’t really work this way.  People almost always pay, which brings me to yet another point.

You could also lose money.  What you bid on is the premium.  The amount over the interest owed that you are willing to pay to receive “ownership” of the lien.  Therefore, if you win the bid, you are liable for the amount of the delinquent lien, plus the premium.  If the lien gets paid back the next day, then you lose whatever premium you paid.  Based on this and the 11% per year potential return, we both felt that about 3-3.5% was a safe premium to pay if purchasing multiple liens.  Chances are, some will pay them back very quickly, and some will take some time.

There are also a few tricks to getting the liens you want and not paying a high premium.  Don’t start bidding on the very first ones that come out.  wait a while, until people start running out of money.  Then, if they are re-juicing their funds or if people just aren’t bidding, that is your chance to strike.  Then, you can offer the minimum and hopefully not have any competing bids.  Know how much of a premium you are will to pay, before going into it, and stick to it.  Don’t get excited by the “deal”.  Don’t go at it trying to win them all.  Know when to back out of a bid.  And definitely, buy more at a lower cost, or if you have the cash, buy a lot of the higher priced liens.  Not as many people bid on them and the premiums are always low.  Make sure the property you are bidding on is actual property and not just mineral rights or things like that.  I know several people who have obtained ownership of things like detached garages incondominium complexes.  These things can be sold or rented and profits can be made if the 3 years comes up and nobody has paid you.  Don’t go into it thinking you are buying a house or property for a few thousand dollars.  It is almost guaranteed it won’t happen, but if you want to take your extra cash out of the bank or out of the stock market, tax lien sales are a relatively safe place to invest.  It is not going to make you rich overnight, but it will get you further than having it in the bank.  I will be back next year with some of my own cash to invest.  Not the most glamorous way to make money, but it is a safe-ish avenue for investment.

I know…I know…how can I possibly be talking about buying investment property with the recent developments in the economy.  The truth of the matter is rates are still at historic lows and it’s a buyer’s market in Boulder Colorado.  With depreciating home prices and a rise in foreclosures, why not try investing in real estate?  Sure, it’s takes some experience but with these helpful strategies, you’ll be ready to close a deal in no time.  Read more to learn some steps to take for real estate investing and take advantage of the buyer market. 

The first important part of this process is deciding on a location and strategy.  You have to choose an area based upon economic research and according to NuWire, this means finding the best neighborhood that suits your individual investment style.  Would you prefer a condo downtown or a single family home in the suburbs?  That decision also depends on the market.  Your agent can help you find the comparable properties and fill you in on what’s hot and what’s not.   Then, you need to decide if your strategy will focus on foreclosures, fix and flips, renovations, or rentals.  Each of which comes with its’ own pros and cons.  

If you haven’t, the third step is creating a checklist of property criteria.  I give my clients a checklist that includes the following; location, type of property, price, square footage, lot size if applicable, basement, garage, beds/baths, age, zoning, and repairs.  If rent is involved, the checklist also has rentals rates, vacancy rate, and potential return based rents.  What’s its’ minimum gross yield (potential rent x 12/purchase price x 100).

Fourth, do a comparative market analysis.  As mentioned before, you need to analyze the market by comparing as many recent sales as possible.  I have never had a client who did this themselves, so it’s something your agent should assist you with.  If there are enough, use only the last three months but not more than six.  I suggest using at least ten comps and determining the days on market, list price, sale price, equal repairs, square footage, and location. 

It is one of the best times to buy.  Rates are low and prices are down.  If you are one of those who have managed to save quite a bit of cash this is the time to use it.  Cash is King in this market and this may help you leverage a much lower price with banks trying to unload their foreclosure inventory before the end of the tax year.  Find a great foreclosure property to buy and you will make money.  Don’t let this incredible opportunity pass you by!