Thursday, July 17, 2014

JUST SOLD! Seller Financed Fixer-Upper Breadbox

I recently listed and sold this property:

This home is located at 3506 Eccles Ave. in Ogden just about a block from Weber State University.  The owner of the home recently reacquired it after it was returned when the previous owner defaulted on financing provided by the current owner.

The property came back needing some significant TLC.  The home had previously been sold in 2009 for a price of $92,000. You can watch a video tour of the property below:

We listed the property at a price of $76,900 and the seller expressed the desire to sell the property at $75,000 while providing seller financing.  I placed the home under contract shortly after it came on the market but the first buyer felt the repairs were beyond what he wanted to do.  A couple weeks later, we placed the property under contract with a second buyer and this is the contract that we just concluded.

The seller provided financing with a $7,500 down payment.  Investment properties right now require 20%-25% down with conventional financing even if they need repairs.  So, seller financing has provided the seller a quick way to liquidate their home and an investor the opportunity to conserve funds while they spend capital on improvements.

Congratulations to my buyers and sellers on a successful win-win transaction!

If you are looking for investment property or want to discuss the nuances of seller financing when selling your property, CONTACT ME, and lets have that conversation.

Tuesday, July 15, 2014

Community Improvement: Painting Ogden's Historic Gems

With the Ogden Temple scheduled to open soon, Ogden's historic neighborhoods have been buzzing with service projects to give the neighborhoods a fresh face. We recently participated in a one such project.

This property is located on the 21st block of Adams Ave.  In this photo, it had been power sprayed in preparation for our work.  The cream and white two tone paint job was sprayed on about 10 years ago.

Here I am scraping the gable.  It was amazing how much paint scraped off.  The previous paint job clearly just sprayed over any loose paint that existed.  We spent quite a while making sure we got rid of any flaking paint.

Unfortunately, we also discovered that the paint on the brick was oil based.  We had purchase latex paint.  Since they were incompatible, we had to apply a bonding primer to the whole house in preparation for our colors.  This slowed us down quite a bit.

Finally, we were able to start applying colors.

There was quite a large group of volunteers that came to help bring the project together.  Even the kids were helping.

The final product turned out very nicely.

Monday, July 14, 2014

The Rental Rule of Three

Ogden Utah Real Estate Rental Property Vesta Real Estate

I have many landlords ask me about how we keep our rental properties full and running smoothly.  No doubt, keeping a rental operating trouble-free can be a challenge at times.  However, my experience has taught me that most of the problems can be avoided at one critical junction in the property management process.

Most landlords think that vacancy is their biggest challenge.  While vacancy certainly takes the 'income' out of income property, this focus on vacancy often leads to rash decision making when it come to tenant screening.  These hasty decisions often lead to property damage, unpaid rents, and expensive evictions.

To avoid these pitfalls, I follow a hard and fast rule on my rental properties.  To qualify to rent, all of my tenants must have a verifiable monthly household income (i.e. social security payments, salary, commission, child support, etc.) that is at least three times the monthly rent amount.  So, if I want rents of $900 per month, my tenants would need to earn at last $2,700 per month to qualify.  The math is pretty simple.

While this rule is not a guarantee of perfect performance, following this guideline avoids many of the problems created by ignoring natural economic laws.  In today's economy, people can afford to pay about 1/3rd of their income to housing.  However, I have seen situations where tenants pay half of their income towards rent.  When I interview landlords about how things are going with these tenants, inevitably they admit they receive rents late, that the tenants have vacated early and unannounced, or there is some other ongoing and time consuming crises.  

While the tenant may technically owe the landlord what is due in the lease agreement, collecting on debts from broken leases is a tedious exercise at best.  After all, you can't bleed a turnip.  I have found it is better policy to help tenants avoid placing themselves in such undesirable situations...especially when the outcome is very predictable.  Everyone benefits when this is the case.

So what does a landlord do if everyone who applies to rent cannot meet the Rule of Three criteria?  In these cases, I have found that it means the rents are too high.  I have often lowered rents to accommodate this rule and make sure my tenants have enough wiggle room to pay rents even if they get sick or have a financial setback.  The last thing I want is a flu to put them permanently behind on rents and ultimately usher in their early departure.

So, if you are a landlord looking for some guidance on how to run your income property business, the Rule of Three is an important and wise place to start.

Otherwise, if you are looking for superior property management services to maintain and protect your income property, CONTACT ME, and lets talk about what we can do for you.

Friday, June 27, 2014

Photo Gallery: When Houses Warn You In Advance

I have the opportunity to view a lot of houses.  Sometimes, the houses come with a message.  Here are several examples:

Nothing says "Home" like the promise of immediate passage into the afterlife.

Of course, the home becomes easier to sell if the the promise of death is limited to just one room of the house.  Plus, the threat isn't taken so seriously because they can't spell and still get their 'b' and 'd' confused.  Definitely an easier sell.

And finally, while doing the home inspection, it makes things much easier when the home tells you where to look for problems.  This was a helpful sign for my clients.

Thursday, June 26, 2014

FOR SALE: Renovated Historic Victorian

I just listed this awesome Victorian era home for sale:

This home was constructed in 1887 and has been fully renovated from the ground up.  It has a new roof, windows, electrical, walls, plumbing, kitchen, bath, etc., etc.  The home has four bedrooms and three bathroom with elegant tile floors and new carpet.  The home still has its original 12-foot ceilings and stair banister.

Here is a video tour:

Here are the details about the property:

If you are in the market for a historic house, CONTACT ME, and lets find an architectural treasure for you to call home.

Tuesday, June 24, 2014

JUST SOLD! Historic Jefferson Ave. Victorian

I just closed with a client on the purchase of this property on Historic Jefferson Ave. in Ogden, Utah.

Located at 2633 Jefferson Ave. this home was constructed in 1890.  The home is 2700 Square Feet and was subdivided into a triplex at one time.  After the area was dedicated as a Historic District, the home was slated for consolidation.  The roof failed on the home within the past 10 years and caused extensive damage throughout the building.  Nevertheless, the property is situated in a very desirable location and has a lot of architectural appeal.

The home was originally listed for sale in April 2007 for $134,900.  In November 2007 the price was reduce to $129,900.  The listing expired in November 2008 and the property was relisted in July 2010 for $114,995.  The listing expired again in October 2012 and the property was immediately relisted for $99,000.  The property went under contract in April 2013 but the contract fell apart in August of that year and the listing expired shortly thereafter.  The property was listed for the last time in January of 2014 for $88,700.  My client began looking at the property this Spring and we submitted our offer at $72,500 to test the seller's motivation.  The seller wanted to break even on the sale so countered back at $86,920.  My client was eager to get going on the restoration project and accepted the counteroffer.    

The project will be extensive and ongoing.  Here is a video tour of the home in its present condition:

If you are interested in restoring a Victorian or Craftsman home in Ogden, or want to see what beautiful finished homes are available for sale, CONTACT ME, and let me show you what opportunities await.

Thursday, June 12, 2014

FOR SALE: Elegant South Ogden Two Story Home

I recently listed this beautiful home for sale in South Ogden.

Located at 2021 E 6225 S, it is conveniently located near shopping and amenities.  The home has been recently painted in two-tone and freshly carpeted.  New contemporary light fixtures have been installed as well.  The home makes excellent use of space and provides an open floor plan and graceful transitions.

Here are all the details on the property.

To give you a taste for the interior of this property, here is a slideshow tour:

If you are interested in scheduling a private showing or want a current price update, CONTACT ME.

Tuesday, June 10, 2014

OGDEN RISING: Before and After Gallery of Ogden's Renaissance

I was recently reading a ZeroHedge article describing the recent wave desolation that has descended on Detroit.  To make their point, the writer made use of Google Street View's new Time Machine feature. If you have a moment, take a look at the article.  It is both fascinating and disturbing.

That is when I started thinking about Ogden's transformation.  Having been derided by the rest of Utah as something of a leper colony during the last half of the 20th century, Ogden has pulled itself up by the bootstraps and made something remarkable of itself over the past 15 years.  The community is blossoming.  The amazing metamorphosis continues as illustrated by Google Time Machine.

The top photo is the southwest corner of 26th and Jefferson Ave. in 2008.  What was once a sketchy fourplex with a decrepit home hosting dozens of cats to the east, has become a beautiful single family Victorian home today.  

Here on the 500 block of 22nd Street we see two dilapidated rental properties.  Due to the handiwork of a pyromaniacal youth, these two unseemly properties have ironically made way for future development.

The 1900 block of Grant Ave. has been the focus of efforts called The River Project.  There is a lot of new construction going on.  This is a site of future apartment housing.

The 2100 block of Jefferson Ave. has had a makeover as well.  In 2009 the multiplexed houses in the top photo were acquired and knocked down to make way for new urban infill housing.  These homes are all owner occupied.

The same thing occurred on the 2500 block of Quincy Ave.

Whey Hwy 89 was the only road from Idaho to Salt Lake City, motels sprouted all along the main road through Ogden.  But when I-15 arrived and was placed west of the city center, these motels lost their customer base and most turned into flophouses.  Here we see the notorious Ogden Lodge before and after.

Finally, we have the Ogden Temple whose transformation is reshaping downtown Ogden.  We can see it's original form, its fragile skeletal frame during disassembly, and its reinforced bunker-grade concrete and rebar shell during reconstruction.  

Ogden is reclaiming its place among Utah's great cities and the changes in the streetscape are a testament to a bright future.

If you are looking for a home in Ogden's great neighborhoods, CONTACT ME.  We will find a place that is right for you.

Monday, June 2, 2014

Top 4 Reasons Realtors Choose To Work For Vesta Real Estate

Our office is currently interviewing real estate agents who want to join our team.  Is Vesta a right fit for you?   If you are thinking about getting your real estate license, looking for the right place to grow your existing real estate business, or looking for professional development, here are some reasons Vesta could be the best fit for your success:

Compensating Experience While Providing Opportunity for Growth

We recognize that not all agents have the same business plan.  Some are part-time due to family or other employment obligations.  Others are engaged full-time in real estate and are the only breadwinners in their home.  Some have been in the business for decades while others are just entering the market.

Our goal is to compensate our agents fairly for their experience and expertise while opening the doors for all agents to gain experience and grow their business.  Our commission structures are flexible and based on our agent's experience and personal business model.  Our Agent's commissions are designed to increase as experience increases.  

Want to know what you would earn at Vesta Real Estate?  Contact me and lets set up a time to discuss the possibilities.

Culture Counts

A real estate brokerage is a sales and service organization.  We don't make widgets. We work with real people who have real needs and real emotions.  In such an organization, culture is absolutely important.  Does your brokerage treat you like a human being or as a statistic on a spreadsheet?  Does your broker call regularly to see what needs you have to help grow your business?

At Vesta, we view the agents working at the brokerage as a team.  We have respect for one another and our business goals; and we work together to achieve common interests.  Most importantly, this company culture starts at the top.  Agents working for Vesta can expect true support from their broker and wisdom that comes from over 10 years of experience spanning some of the toughest years in the real estate market.  Agents can expect an advocate and a mentor in their broker.

Want to find out for yourself?  Contact me and let me share with you what Vesta can do for you and your business.

Diversity in Business

Vesta is a full-service real estate brokerage.  We have experience in dealing with many niches such as historic properties, complicated seller finance transactions, REO and bank owned properties, income properties, as well as the traditional buyer and listing transactions that are the bread-and-butter of our business.

This broad range of experience brings opportunities for growth and business to our agents as they learn how different aspects of the market function.  

Vesta also has its own property management arm which is an added asset for our agents and clients. Many homeowners are still upside-down on their homes and do not have enough equity to sell their property without incurring a loss.  That is where Vesta Property Management can help Agent's clients maintain their good credit by leasing the property while they pay down their mortgage.  When market conditions are right again for the property to be sold, Vesta Property Management refers the properties back to the listing agent.

Cool Central Location

Our nicely furnished office is located on Historic 25th Street in Downtown Ogden.  The many restaurants and the historic ambiance of the street make it a great place to wine-and-dine clients.  Meanwhile, its central location makes it convenient to access all of Weber County.  The office will not disappoint visiting clients.

So, is Vesta Real Estate right for you?  If you are interested in expanding your real estate business, working with like minded professionals, or being part of a team effort, give me a call and lets sit down and talk about the opportunity that awaits.  You can reach me (Jeremy Peterson) at 801-390-1480.

Thursday, May 22, 2014

FOR SALE: Historic Short Sale Fixer Upper

I recently listed this property for sale:

This house is a fixer upper opportunity for investors or the ambitious owner-occupant.  The out of area owner contacted me asking for help with a short sale.  He purchased the place back in 2004 when a prominent real estate investment group was reselling properties to new investors.  Things didn't work out and onerous financing on the property has put it into distress.

The home is about 1900 SQFT with a 3 bed 1 bath configuration.  The property could be a real charmer with the right vision and work to bring it back to its original luster.  It is located at 536 23rd St. and is found just a block and a half from The Junction.

Here is a video tour:

CONTACT ME for updates on progress of the short sale and details on the property.