Why You Should Be Investing Your Money In Real Estate

As consumers have more disposable funds to invest, and as entrepreneurs find success with their business ventures, many search for the best investments for their profits. The decision making process may rest on risk tolerance, need for liquidity, and/or the amount of money available to invest.

One of the primary reasons to invest in real estate such as rental property is to take advantage of the appreciation over the long run. Historically, real estate appreciates in value, especially as a long term investment strategy.

Real estate is one of the few investment vehicles where using OPM (Other People’s Money) creates leverage. By leveraging your capital, the increase in overall return on investment is generally higher.

Tax free cash flow is another reason for investing your money in real estate. As a result of depreciation and mortgage interest deductions, your cash flow should be tax-free, or at least tax deferred. The majority of the time, an investor will never pay taxes on their cash flow and can wait for capital gains on the sale of the property in the future.

Rental property is a forced retirement plan. Rental investments help offset the lack of self-discipline many people have in depositing money into their IRA or 401K retirement accounts. Rental investments are a significant commitment that you are required to commit to and maintain.

Most people don’t get rich overnight. It takes a long-term investment strategy and a diverse portfolio that includes real estate to increase personal wealth.

Please note that this article was in the June 3rd Hometown Happenings and written by Cathie Elliot of The Clarke Agency.

Response to Aspen Daily News Article

“Dear Editor:   I beg to differ with Christine Benedetti’s opinion of Lake City – that it is a town that ‘wouldn’t keep one entertained for weekend’ and her description of our collective, in particular, as a ‘showcase for a mapmaker and a glass blower.’ [Aspen Daily News 5 Sept 2014]. To the former, I feel compelled to point out Lake City’s nationally recognized historic district, the largest in the state, alone consists of over 200 buildings and structures from Victorian mansions to outhouses. The history that defines the West can still be found here:  in the 1877 Courthouse (scene of the first Alferd Packer trial and still used today – same chairs and all), the 1880 Findley Building (now museum), the 1883 Armory, the cemeteries; at the homes of former slaves, developers, merchants, miners, prostitutes and other pioneers; by the rustic tourist cabins and quiet lodges; in the simple town park; along the boardwalk; under the old cottonwoods; and in the eyes and voices of residents who talk to strangers and listen to neighbors. Better than mere entertainment, in my book, and not to be rushed through in a single weekend. The Artists’ Collective is a synthesis of much that is Lake City. Based in an 1877 building along the boardwalk, across from the town park, it was founded by three local citizens to be a social and financial benefit to the community. Its gallery now carries the work of over 14 year-round residents whose media ranges from fiber to fractals to photos to pen and ink to graphite and paper to jewelry to woodwork and, yes, to art glass and digital restoration and reproduction of historic maps. It is the workspace for all the glass blowing and printing and stays open all year. It offers printing services that are not available in an other 50 miles. It throws public receptions that regularly draw nearly 20% of the town. The artists range in age from 8 to over 70 and most would have little chance to share their work without the collective. A tourist could spend half a day there just talking history, let alone, perusing the pieces or watching the work being done. We showcase a lot more than maps and glass and hope your readers find out for themselves.  Sincerely, Schuyler Denham, The History Hut at The Artists’ Collective”

Aspen Daily News 9-5-14

Check out the Aspen Daily News Article, Secret of the San Juans, written by Christine Benedetti about Lake City.

AspenDailyNews (2)

About Hinsdale County Government

Hinsdale County is the third least densely populated of the 64 counties of the State of Colorado of the United States. The county population was 843 at 2010 census. The county seat and the only municipality in the county is the Town of Lake City. Hinsdale County is named for George A. Hinsdale, a prominent pioneer and former Lt. Governor of Colorado.

According to the 2000 census, the county has a total area of 1,123.14 square miles (2,908.9 km2), of which 1,117.68 square miles (2,894.9 km2) (or 99.51%) is land and 5.46 square miles (14.1 km2) (or 0.49%) is water.

Hinsdale County is one of the most remote counties in Colorado and the United States. The county is covered by mountains, including multiple fourteeners, and contains one of the most roadless areas in the country. The continental divide crosses the county twice. Most of the county is divided among several different national forests and the Weminuche Wilderness area.

  • County Seat                                                                     Lake City
  • Cities & Towns                                                                Lake City
  • Elevation (Lake City)                                                     8,671 ft.
  • Population (2010 Census)                                            843
  • Public / Private Lands Ratio                                        95.3% Public / 4.7% Private
  • Wilderness                                                                       49% of Public Lands & 47% of County Total
  • Miles of County Road Paved / Dirt                             4 Paved / 245 Dirt
  • Actual Property Value 2011                                          $309,205,991
  • Assessed Valuation 2012                                              $    61,631,960
  • County Budget 2012                                                      $      4,715,264
  • County Mill Levy 2011                                                   17.252
  • County Revenue from Property Tax 2011                  $     1,065,610
  • Sales Tax Revenue 2013                                                $        223,901
  • Vehicle Registrations 2011                                            2,057
  • Voter Registrations 2012                                               734
  • County Employees                                                          35 + 7 Elected
  • Average Yearly Precipitation                                        16.6 inches
  • Days of Sunshine                                                             300 +
  • Mean January Temperature                                          15 degrees F
  • Mean July Temperature                                                 65 degrees F
  • Average Cost of a Single Family Home                       $384,580
  • Top Employers                                                                  Service Industry, Construction, Government, School District, Bank

This information taken from the Hinsdale County website.

History of Rose’s Cabin on the Alpine Loop

Rose's Cabin 015

The area in front of you was once the site of a lively inn known as Rose’s Cabin. Though little remains today, Rose’s Cabin was once an important wayside which offered food, lodging, and entertainment to miners and travelers for many years.

Rose’s Cabin has had a long and colorful history. In 1873, Ute Indians signed a treaty opening up the San Juan Mountains to mining and settlement. With the treaty signed, the mining rush was on.

One of the earliest pioneers in this area was Corydon Rose, who built a one-story inn in 1874. Rose carefully located his inn; it was about halfway in travel time between the new mining towns of Ouray and Lake City, a convenient stopover site for miners traveling this route. Nestled among the trees, the site was also a safe distance from deadly avalanche chutes.

Rose built his cabin to last. Hand-hewn logs were carefully fitted together, then chinked with mud to keep out the ice, winter winds. Because of his cabin’s sturdy construction, Rose is known as the first permanent resident of the Lake City area.

In 1877, Otto Mears constructed a toll road linking Ouray, Animas Forks, and Lake City. The toll road, which passed in front of Rose’s Cabin, increased business here dramatically. No longer used by miners and their mules, today this road caters to 4-wheel drive enthusiasts as it crosses the spectacular Engineer Pass, at an elevation of 12,800 feet.

With the toll road complete, Rose’s Cabin became the principal stop for the daily stagecoach run between Animas Forks and Lake City. The fare for this bouncy trip over Engineer Pas was $2.25. When the dusty stage pulled in, those who wished to spend the night hurried into the cabin to secure their accommodations. Rose himself usually wore a high hat and a long, black coat and often met the weary traveler at the door with a “Howdy, stranger!”

Once, inside, the visitor could unwind from the bone-jarring trip. A bar running the full length of the cabin quenched the thirst of many tired travelers and miners. After drinks, dinner, and perhaps a brisk game of poker, visitors retired upstairs, where partitions formed twenty two bedrooms. After a filling breakfast the next morning, from a “table that was always supplied with the best in the markets”, those who wished to continue over Engineer Pass to Animas Forks, Silverton, or Ouray, or down Henson Creek to Lake City, could catch the appropriate stagecoach.

The Rose’s Cabin area continued to grow through the 1880s. Several miners, hoping for a quick strike, built cabins nearby and worked mines in the surrounding hills. At its peak, a total of about 50 people settled in the area immediately around the cabin. By this time, the cabin served as a bar, restaurant, hotel, store, and post office – all under one roof. Rose’s Cabin truly was the hub of civilization in the upper Henson Creek region.

The cabin was also an important transportation link and supply source for local miners. During both summer and winter, miners packed gold and silver ore from mines in the nearby hills to Rose’s Cabin by burro. The ore was transferred to wagons here and shipped down to Lake City for processing. Rose kept 60 pack animals in a stable near his cabin to ship supplies up to the miners, and to carry ore down to the cabin.

Activity at Rose’s Cabin and in much of the San Juans dwindled with the downturn in mining during the late 1800’s, led by the silver crash of 1893. By about 1900, the cabin’s role as a place of rest and refreshment had died.

Little remains of Rose’s Cabins today. The large metal object rusting in the meadow was once owned by postmaster Charles Schafer. Schafer’s name at one time was embossed on the safe in gold letters; today, the safe sits empty. The only standing structure, the old stable, lies to the right. The cabin itself was situated to the left, keeping silent watch over this once-lively settlement.

Help preserve Rose’s Cabin and other historic areas in this region so that future generations may enjoy them. Please take only pictures and leave only footprints.

Bureau of Land Management

(information from www.lakecity.com, 2011)

*Please note that the Schafer Placer Claim where Rose’s Cabin sits is PRIVATE PROPERTY and listed for sale with Hall Realty, Inc.*

 

Old West Legends: Poker Alice – Famous Frontier Gambler

“At my age I suppose I should be knitting. But I would rather play poker with five or six ‘experts’ than eat.”

CLAS, LLC dba Poker Alice Pizza logo

Alice Ivers Tubbs; aka: Poker Alice (1851 – 1930) – Perhaps the best known female player in the Old West, Alice Ivers actually hailed from England.  Born on February 17, 1851 in Devonshire, she was the daughter of a conservative schoolmaster who moved the family to the United States when she was still a small girl.  First settling in Virginia, Alice attended an elite boarding school for young women until the family moved again in her teenage years, to the silver rush in Leadville, Colorado.

While there, Alice met a mining engineer by the name of Frank Duffield and the two married when she was twenty.  Gambling was a way of life in the many mining camps of the Old West and when Frank, an enthusiastic player visited the many gambling halls in Leadville, young Alice went along with him rather than stay home alone.

At first the pretty young girl stood quietly behind her husband simply watching the play.  However, a quick study, it wasn’t long before she was sitting in on the games, quickly demonstrating proficiency for poker and faro.

A few years after their marriage, Alice’s husband, who worked as a mining engineer, was killed in an explosion and she was left alone with no means of support.  The few remaining jobs available to women in a mining camp did not appeal to Alice and she soon decided to try to make a living with her gambling skills.  Though she preferred the game of poker, she also learned to deal and play Faro, and was soon in high demand, both as a player and a dealer.  At this time, Alice was a petite 5’4″ beauty, with blue eyes and lush brown hair.  A “lady” in a gambling hall that wasn’t of the “soiled dove” variety was a rare in the Old West, and bedecked in the latest fashions, she was a sight for the sore eyes of many a miner.

Traveling from one mining camp to another, the talented young beauty soon acquired the nickname “Poker Alice.”  In addition to playing the game, she often worked as a dealer in cities all over Colorado including Alamosa, Central City, Georgetown and Trinidad.  As time went on, Alice began to puff on large black cigars while still in her fashionable filly dresses; however, she never gambled on Sundays because of her religious beliefs.  She also carried a .38 revolver and wasn’t afraid to use it.

As her reputation grew throughout the west, she always found willing players and she attracted men looking for a challenge.  As such, she was quickly welcomed in gambling halls because the crowd she drew was good for business.

Alice soon left Colorado and made her way to Silver City, New Mexico where she broke the bank at the Gold Dust Gambling House, winning some $6,000.  Sometime later she made a trip to New York City, which she often did after a large win to replenish her wardrobe of fashionable clothing.

Afterwards, she returned to Creede, Colorado, where she went to work as a dealer in Bob Ford’s saloon – the very same bob Ford who had earlier killed Jesse James.  Alice eventually made her way to Deadwood, South Dakota around 1890.  While there, she met a man named Warren G. Tubbs, who worked as a house painter in Sturgis, but sidelined as a dealer and gambler.

Though she routinely beat Tubbs at the gaming tables, he was taken with her and the two began to see each other outside of the gambling halls.  On one occasion when a drunken miner threatened Tubbs with a knife, Alice pulled out her .38 and put a bullet into the miner’s arm.  Tubbs and Alice eventually married and the couple would have seven children.  A painter by trade, Tubbs, along with Alice’s gambling profits, supported the family.  The couple eventually moved out of Deadwood where they homesteaded a ranch near Sturgis on the Moreau River.

During this time, Alice significantly reduced the amount of time spent in gaming houses as she helped with the ranch and raised her children.  But Alice was doomed to be luckier at cards than at love.  When Tubbs was diagnosed with tuberculosis, she was determined to stay by his side and nurse him back to health.  Tubbs, however, lost the fight and died of pneumonia in the winter of 1910.  Alice then loaded him into a horse-drawn wagon to take his body to Sturgis for burial.  At least on legend says she had to pawn her wedding ring to pay for the funeral and, afterwards, went to a gambling parlor to earn the money to get her ring back.

Alice would later say that the time spent on the ranch were some of the happiest days of her life and that during those years, she didn’t miss the saloons and gambling halls, but liked the peace and quiet of the ranch.  However, after Tubbs’ death, she was required to once again make a living.  She then hired a man named George Huckert to take care of the homestead and she moved to Sturgis to earn her way.  Huckert was enamored with Alice and proposed marriage to her several times.  Finally, Alice married him, saying flippantly, “I owed him so much in back wages; I figured it would be cheaper to marry him than pay him off.  So I did.”  But the marriage would be short, as Alice found herself widowed once again when Huckert died in 1913.

Sometime later, during Prohibition, Alice opened a saloon called “Poker’s Palace” between Sturgis and Fort Meade that provided not only gambling and liquor but also “women” who serviced the customers.  While here, a drunken soldier began to cause havoc in the saloon, destroying the furniture, and casing a ruckus.  Alice responded y pulling her .38 and shooting the man.  She was soon arrested and jailed, spending her time smoking cigars and reading the bible while awaiting her trial.  She was acquitted on the grounds of self defense, but her saloon was shut down in the meantime.

Now in her 70’s and with her beauty and fashionable gowns long gone, Alice struggled in her last years continuing to gamble but now dressing in men’s clothing.  She occasionally was featured at events like the Diamond Jubilee, in Omaha, Nebraska, as a true frontier character, where she was known to have said, “At my age I suppose I should be knitting.  But I would rather play poker with five or six ‘experts’ than eat.”

She continued to run a “house” of ill-repute in Sturgis during her later years and was often arrested for drunkenness and keeping a disorderly house.  Though she paid her fines, she continued to operate the business until she was finally arrested for repeated conviction of running a brothel and sentenced to prison.  However, Alice who 75 years old at the time,  was pardoned by the governor.

At the age of 79 she underwent a gall bladder operation in Rapid City but died of complications on February 27, 1930.  She was buried at St. Aloysius Cemetery in Sturgis, South Dakota.

In her later years, Alice claimed to have won more than $250,000 at the gaming tables and never once cheated.  In fact, one of her favorite sayings was:  “Praise the Lord and place your bets.  I’ll take your money with no regrets.”

(Written by Kathy Weiser/Legends of America, updated October 2010)

This historical account was taken from the Poker Alice Pizza menu in beautiful Lake City, Colorado – where you can place your bets on great pizza – the house specialty.

Gunnison Country Association of REALTORS 2nd Quarter 2014 Report

Q2 – 2014

Housing seemed to have a slow start to the spring selling season, but appearances deceive. Dig into that spring soil and you begin to unearth differences in individual areas and market segments.  Inventory is slowly rising in some areas.  Activity is picking up in the upper price tiers.  Rents continue to climb in most metros.  Add interest rates are generally lower than a year ago, to the surprise of some and the delight of others.

Local market update for Lake City (81235) comparing second quarter 2013 to 2014 – New Listings were up 36 percent for single family homes and 100 percent for townhouse-condo properties.  The Median Sales Price was up 36 percent to $230,000  for single family homes and Sold Home Listings up 25 percent.

Housing is one part of a broader ecosystem that thrives on a strong economy that churns out good jobs.  First-quarter employment figures were adequate but not thrilling, but second-quarter numbers figure to be more positive.  Access to mortgage capital remains an ongoing concern.  As cash and investor deals fade, first-time buyers typically step to the forefront, but tight credit can and has been a real hurdle.

This information is provided by the Gunnison Country Association of Realtor’s:  Quarterly Indicators Q2-2014

Denver Life Magazine Article 2014

The Town of Lake City was featured in the July 2014 issue of Denver Life Magazine!  Check out the article by clicking here.

Lake City Area Photos by Bobbi McDonald

Bobbi (my Sheriff’s Assistant) shot all of these photos yesterday (June 29, 2014) near Deer Lakes and coming off of Slumgullion Pass.  For those of you unfamiliar with our county, Uncompahgre Peak is incorporated into our shoulder patch (designed by former Sheriff Burton Smith) and our badges (designed by me).  Enjoy.
Ron Bruce, Hinsdale County Sheriff
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Mama and baby moose
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I was hiking up the trail and he was coming down
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Another Moose
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Uncompahgre Peak
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Crystal Peak
 Thank you Bobbi for sharing your gorgeous pictures.

Gunnison Country Association of REALTORS 4th Quarter 2013 Report

Overall 2013 proved to be a good year for housing.  Home sales and prices were better than the previous year in Colorado and across much of the nation.  Foreclosures in Colorado continued to decline, along with the number of homes for sale and the number of days it took to sell a home were also lower.  Multiple-offer situations became commonplace again and prices in many areas rallied to multi-year highs.  This, of course, varied by location and market segment, but the proverbial glass appeared to be more than half full throughout the year.

Within the 81235 (Lake City) zip code, New (residential) Listings increased by 27.8 percent and Closed Sales increased slightly by 4.8 percent.  Median Sales Price for single family homes increased to $298,500 with Days on the Market also increasing to 303 days.  The Percent of List Price Received remains virtually unchanged at 90 percent.

Housing is fortified by confident consumers and good jobs.  2013 was marked by a slowly improving labor market and a stock market up nearly 30 percent from this time last year.  Interest rates remain low (but moving up and prices are still affordable).  It’s no wonder that buyers were active in 2013.  Here’s to more of the same in 2014.

Please note that the above information is based on residential properties.  If you would like more detailed 2013 fourth quarter reports for all Gunnison County and Hinsdale County, please contact [email protected].

Realtor, Equal Housing, MLS