Are you thinking of building, or more likely as most of us are not building contractors, having a home built for you? If buying a lot, hiring an architect and contractor and then having your dream home built sounds good to you, let’s talk about why a construction loan will make it even better…..even if you don’t need the money.

Why should you borrow money you might not even need when building your own home? First and foremost, because the lender helps control the flow of money from the owner to the contractor. Nobody wants their contractor to draw down 70% of the construction tab after doing only 25% of the work. Your lender, who employs engineers as it’s own construction experts to make sure that the home is built according to both your plans and the local building code, is doing so to protect it’s own investment in your project.

Indirectly, however, the lender is protecting your interests in the property’s proper development because your interests and the lender’s interests are identical when it comes to the relationship with the contractor and successful project completion. If you are not knowledgeable about construction, you will sleep better during the process knowing that lender employed construction experts are indirectly working on your behalf and making sure you don’t overpay or pay too soon for various stages of the construction.

There are other advantages to borrowing as well. Whether you are building a primary home, second home or investment property, experience tells me that there is always an investment component involved in the thinking of the folks that are having a home built. Why not leverage the investment, especially in the current environment of rising home prices and even more rapidly rising costs of construction materials.

Let’s say you borrow 80% of the cost of buying a lot and the cost of construction, which adds up to $1,000,000. That means you are going out of pocket only $200,000, in increments during a period of time of probably a year until the home is finished. If housing appreciation in the Vail Valley slows down to just 10% during your construction year, by the time you finish it, the house that appraised at $1,000,000 from it’s plans and specs will be worth $1,100,000 when completed. Your $200,000 investment has grown 50%, to $300,000. Because some of your $200,000 didn’t get spent until the latter portion of the year of construction, the investment return is actually higher than 50%.

Finally, since most financial advisors recommend at least some leveraging of all real estate that we own, to boost return on investment as shown above, most people will get a mortgage anyway. With our new construction to permanent financing one close options, lenders can now convert your construction financing to permanent financing without the cost and hassle of another closing.

Take advantage of our free construction experts, leverage your investment and most importantly, enjoy your new home.

Colorado Real Estate News
Avon may get two new railroad crossings

Avon is one step further along in being allowed to build two ground-level railroad crossings over the now existing Union Pacific tracks in town. The crossing issue was appealed by Union Pacific on safety issues after announcing plans to run trains along the now inactive line through Avon to Minturn.

The State Agency will require Avon to submit plans for the crossing to Union Pacific for approval. Larry Brooks, Avon Town Manager, and John Dunn, Attorney for the Town of Avon, are optimistic the approval will be granted and plans will move the redevelopment along.

The burden of proof was on Union Pacific and the inherent danger of having pedestrians interface with trains. Union Pacific was recommending an underground pedestrian crossing. Having lived in an area where children and adults often ducked around crossing gates with ultimate fatalities, I am wondering what they are thinking. Certainly if it was your son, daughter, parent or friend, who might foolishly underestimate the power of a train, you would wonder why Avon would play the odds and not put the pedestrian walkway in. Just my opinion, but human life trumps cost.

Vail Property Search
Vail Valley Golf Course - Cotton Ranch

Outstanding views, great amenities and terrific value offered at Gypsum's Cotton Ranch. Nestled in the Gypsum Valley, Cotton Ranch is a Pete Dye designed 18 hole Championship course for players of all abilities. This Semi-Private Country Club is located 35 miles west of Vail and 23 miles west of Beaver Creek.

Cotton Ranch offers the longest golf season in the Vail Valley. The exceptional weather, competetive green fees and fantastic golf course conditions are sure to enhance your experience at Cotton Ranch. Take a moment during your round of golf to enjoy Gypsum Creek which travels through many of the holes and the spectacular views of the Red Table Mountains, New York Mountains and Castle Peak.

The Cotton Ranch homes offer the same fantastic views, spacious floorplans and outstanding value for single family living in the Vail Valley. Homesites are still available for those wanting to build their own dreamhome. Walk to the clubhouse for dinner or hit some balls on the driving range after work!

With the rapid and steady growth of Eagle and Gypsum, this area is sure to experience strong appreciation. Come check out Cotton Ranch for yourself today!

The Beaver Creek real estate summer selling season is starting and even as prices reach upwards to one thousand dollars per square foot, the Beaver Creek Marketplace continues to stay strong with little inventory to choose from.

There are less than one hundred properties in total currently listed without deed restrictions in Beaver Creek.

Currently, there are eleven condominiums in Beaver Creek currently listed for sale under two million dollars. This does not include the Beaver Creek Lodge as ownership has a limited use and short term rental requirements. More impressively, there are 36 properties listed over three million dollars and 23 properties over five million dollars. The highest priced property in Beaver Creek is listed at $17,500,000.

There are two new construction projects at the bottom of the mountain; The Gates and Beaver Creek Landing. Both of these have been very well recieved and the majority of the condominiums have been placed under contract with completion still a ways off. Vail Resorts is still collecting buyers names and contact informatoin for the Westin at Beaver Creek as pricing has yet to be announced.

It will be interesting to see how many new properties come on the market bewteen now and ski season. If you would like to recieve daily updates on Beaver Creek properties new to the marketplace.

Vail Banking News
Earnings Down

Vail Banks, Inc. - VAIL today reported diluted earnings per share of $0.26 for the second quarter 2006 compared to $0.18 for the second quarter 2005 and $0.24 for the first quarter 2006. Net income for the quarter was $1,442,000 versus $971,000 in the second quarter of 2005 and $1,313,000 in the first quarter 2006. Core net income (excluding costs incurred related to the pending merger transaction with U.S. Bancorp.) was $1,668,000 for the second quarter 2006, or $0.30 diluted earnings per share.

Vail Demographic Information
Vail Valley Population & Growning Produce

I miss seeing the patchwork of vegetable gardens spotting yards as I drive down the roads. But not as much as I miss walking barefoot to the backyard and plucking a handful of strawberries for shortcake or digging up potatoes for dinner. I would even settle for roadside stands set up to sell fresh corn and melons. But trying to find vegetable gardens in Vail is like trying to find mountains in Indiana.

The high altitude of the Vail Valley makes gardening difficult, even if you’re just tending flowers. The Rocky Mountain climate hosts a shorter growing season, but the cooler nights can have their advantages, said Tony Austin of Austin Family Farms. “Cool nights bring out sugars, making sweeter fruit,” Austin said.

The Austin Family Farms relocated to Paonia from Tennessee. The family brings their southern fare of fruits — cherries, peaches, raspberries and “everything else except citrus” — to the Minturn Farmers’ Market every Saturday.

Even with the advantages of high-altitude gardening, it’s not an easy undertaking, Austin said. When she decided to plant strawberries and blueberries, she treated the soil first with sulfur, peat moss, sawdust and vinegar. None of these were enough to counter the soil’s alkalinity, or saltiness, and she lost a fourth of her berry crop.