Tipping Neighborhoods means to:
1. Find a shabby neighborhood that appears to be in the natural inevitable path of gentrification.
2. Somehow purchase and get a large percentage of the homes spruced up and rented.
3. Join the neighborhood group to meet and encourage your neighbors to reinvest in their homes.
4. Watch as the neighborhood "tips" toward respectability and higher values.
5. Make a lot of money without being viewed as a "greedy developer".
posted by Kevin Dickson @ 8:15 PM
3 Comments:
Sounds awesome. The only problem I see is with #2 and the word “somehow”. How?
I like your idea on tipping and have been seeing a need and potential in my own neighborhood. South Broadway near Arapahoe Rd.
Homes are 1957-60 brick ranches with full basements. No insulation in framed walls, mostly ungrounded wiring but easy to rewire. Otherwise nicely built with hardwood floors and good layouts 1,000 to 1,150 Sq ft. Perfect for senior living which is a big emerging market. The smaller 3rd br's are easy to convert to main floor laundries either temporaty or permanant. I'd buy and get to work on all that I could if I had the finances to do so. I've updated my own and added on an Apt. for my 84 Y.O. mother. and have flipped three small Aurora homes with very good success in the past 1.5 years.
But see a better opportunity to Improve the environment, my own neighborhood, and my own income along with partners if I could find them. If you know of a group that could use a person like me let me know.
Ronald,
The market has turned this spring, but it's hard for investors to get money.
"Hard money lenders" will give you 6 months at 11%. Since selling is quick these days, if you can fix in two months, then extra costs of this bad funding wouldn't really be significant.
Locally owned banks are another source.
Steele Street bank will loan at around 6% for five years at 60-65% LTV. High Plains bank has been at 7%, up to 70% LTV
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