Hi everybody. Welcome to today’s edition of Ask the Colorado Dream House Team, I’m Dan Polimino. Well, wherever you are, whether you’re in Denver or whether you’re in Philadelphia, the purpose of this show is to help you navigate and strategize the real estate market. Two purposes of this show is to give you good real estate database-driven information and to answer some of your questions, like the show says. So, if you do have a question, you can leave on right here on Facebook, and just leave it in the comments, or you can go ahead and email us at team@coloradodreamhouse, or you can even call us. Whatever you’d like to do, and we’ll answer your question.
So I want to give you some information right now about what’s going on in the market, and it’s about money. See, everybody needs money to buy a house, and I think you become really, really valuable when you can help people gain access to money or cheap money. And so one of the great things about The Colorado Dream House Team is that we meet with a lot of lenders. Probably you heard me say this on the last show, we probably meet with 5 or 10 lenders a month, and we’re always trying to figure out what programs they have.
It doesn’t really matter if you’re a first-time home buyer and you don’t have much money to put down, say only 1%. There’s actually a program out there for you. Or you could be a jumbo guy wanting to buy a luxury home, but you only want to put 5 or 10% down because you want access to cheap money. Whatever scenario, chances are we’ve got access to that lender. So if you’re looking for money, and you’re looking for cheap money … Find the money that you need for your particular property or your particular circumstance. Okay? All right, so that’s a little information about the market.
Now, let’s answer some of your questions for this week. First one is,
“Dear Colorado Dream House Team, what is a real estate investment trust?”
Well, they’re called REITs, or real estate investment trusts, and these are large corporations that have pooled a large group of funds, and they go around making offers to 40, 50, 60 homes all at once. And the purpose of doing that is to see which ones are the best ones that they can buy, put in their portfolio, and use as rentals.
The question is should you sell to somebody who’s a real estate investment trust?
And I say no, if you can avoid it. If you can avoid selling to a REIT, or a real estate investment trust, do so. Now the question is why? Well that I’m going to leave you hanging on. I want you to call me at 720-446-6325, and I’m going to tell you why I don’t like selling to a real estate investment trust and what the dangers are.
Number two. Cash offer. Can they switch during the transaction to a loan?
So they presented the contract as a cash offer, and they want to switch to a loan. The answer is yes, they can do that. There’s some language in the contract that says as long as the switch in financing doesn’t adversely affect the transaction or the seller. Now, if they presented themselves as cash, and they’re switching to a loan because they really didn’t have the cash, that’s a problem. That’s going to be a deal-breaker where we can get out of the contract. If they have the cash, but they just decided they wanted to borrow money because money was cheap, that can happen, too, but then there’s a lot of circumstances that we’ve got to talk about, like the loan conditions deadline, the appraisal deadline, because those probably were not written in the first contract. So, more questions about switching financing in the middle of a transaction, contact us at coloradodreamhouse.com.
And then number three. “Dear Colorado Dream House Team, during which months in Colorado do you have the most sales?” Well, June is the high mark. That is when the most closed units occur. So if the homes are closing in June, when did they go on the market? They went on the market in April or May. So people put all of their homes on in April and May, and they close in June, and that’s why June has so many closed sales. Conversely, what we see in the fall is that people put their homes on the market in late August, early September, and then October, slash, the beginning of November are usually big months for closing.
All right, I hope that answers your question. I also want to mention our featured property of the week. Go to coloradodreamhouse.com, click on the featured properties, and look for 1 Cherry Lane. Amazing luxury property in Cherry Hills Village. 10,000 square feet, 2 1/2 acres, big pool, big pool house, the whole backyard is like Disneyland. You’re going to want to look at the pictures online. Incredible luxury property. Check out 1 Cherry Lane at coloradodreamhouse.com.
All right, that’s it for this week, everybody. Have a great week. We’ll see you again on Thursday.