Real Estate Investing

Real estate investing is a hot topic right now. Interest rates are low, prices are low — what’s not to love, right? If you’re looking to seize the day, keep one thing in mind. Go west, young man … or east, depending on where you sit as you read this. The Lonestar State is the place to be and other western states like Utah, Colorado and New Mexico are also getting some nods. It’s a veritable gold rush for the 21st Century.

Of course, the list of where to invest in real estate varies depending on which you look at. We looked at the Top 10 list compiled by real estate valuation company Fiserv Lending Solutions, the Top 10 list compiled by investment company HomeVestors, and the Top 7 compiled by HousingPredictor.com. One thing all three of these lists have in common is that Texas cities appear in the top three listings. Some say El Paso and McAllen, while others say Dallas, Houston or Austin. Regardless, it’s clear that Texas is the place to be. San Antonio and Ft. Worth are even mentioned in lower spots on some of the lists.

Actually, plenty of developers, second home buyers, snowbirds and vacationers truly are turning their sights from Florida to Texas. This has been a known fact for a while, but home prices are rising fast so capitalize before it’s too late.

Interestingly, Syracuse and Rochester in New York state made one list, with an expected 3.60% and 4.20% price appreciation this year. Asheville, North Carolina made another list because it has seen steadily increasing prices with no signs of slowing down and pro golfer Tiger Woods recently announced his plans to build a golf course megalopolis there. I am an avid golfer, but given the choice, I’d still have to head southwest, where the prices are lower and appreciation forecasts are greater. Grab your gun, boots and spurs — Lonestar State, here we come.

Well, here’s a novel idea. Two Colorado residents, desperate to unload their home, decided to give it away in an essay contest. Wesley Ludlow and J.J. Rodgers, hope to raise $200,000 with the essay contest at $100 per entry. If they are unable to collect their goal of at least 2,000 entries, they will return the entry fees to everyone who enclosed a self-addressed, stamped envelope.

According to the Fort Collins Coloradoan newspaper, the four-bedroom, two-bath home sits on a quarter-acre and has been appraised at $171,900. That means Ludlow and Rodgers would actually get considerably more than their house is worth, if they reach their goal. The essay contest only requires entrants to write up to 500 words on why the home should be theirs.

“Ludlow’s contest promotion said the home would be a ‘great family home, bed and breakfast or vacation rental’ that’s within an easy walk to three lakes,” Coloradoan reporter Pat Ferrier wrote.

There are skeptics about the contest - not just because of its uniqueness, but because the home defies the oldest real estate rule in the book. Location, location, location. Local realtor Terry McNeal told the newspaper that entries may be down because the home is in Red Feather Lakes, a town an hour outside Fort Collins that makes for a difficult commute.

The essay contest does signify a growing trend of homeowners willing to get more creative in their real estate transactions. This might include anything from seller financing and closing incentives to contests and even real estate trades. It’s largely an effort to help prospective buyers get around any financing issues and help buyers avoid what Ludlow was experiencing - the infamous real estate market stall. One thing’s for sure - because these strategies are all legal, they beat arson any day.