Investor · Arvada, CO · Member since 2014 · 52 posts · 12 votes
I've always thought that buying low is one of the key factors in successful real estate investing, so what do you do when prices are not low?
I live right outside of Denver and plan on investing in this area, preferably single family and duplex rentals, but I think if I want to get started sooner rather than later I'm going to need to hold off and try getting into a different area of REI.
What are some ways to invest when the market is hot and prices are high?
thanks Nazz, I was actually thinking about interning or something similar for a bit as I've saved up a good amount of money to invest. Though its not investing directly in real estate, it would be an investment toward it if I were to take an indefinite leave from my current job to learn the ins and outs from a seasoned investor. Fortunately for me, I'd be able to jump right back into my job as soon as I wanted to!
There's always the deal of the century every week. Hot market or not. Surely your not the only investor in your market, how are the other guys finding good deals but your not? Its all about marketing my friend. Spend some money and time on marketing so your phone will ring, or better yet go find a wholesaler or 3 and have them bring you deals.
I've been under the impression that you need a significant amount of money if going through wholesalers as they usually have properties that are not move in ready. Is this true or can you still get financing for them?
You could always look further away...say within 2 hrs. Castle Rock, Colorado Springs, Pueblo, Greeley are some good markets as well, albeit they are a bit pricey as well.
That's an option for sure though I want to exhaust my options in this area before I expand my radius. I really like the idea of investing close to home. I've also thought about trying out of state markets but I think that's something I'll come back to after I get experience here first
It is not good to make investment when market is high. You should make a good investment strategy before making any investment, choosing the type and area of Real Estate is most important aspect of investment.
Denver is super expensive right now. I am in greeley and it is tough to find anything here either. I would attend a few reia meet ups. @Anson Young is very active in that area. If you want to be a serious investor I would consider looking into getting your license.
I was at a class yesterday here in Denver on wholesaling. One of the attendees mentioned that she is having no problem finding houses. Her bird dog uses a "boots on the ground" approach to find deals.
They can be had, but you have to get out there and talk to people.
@Matt M. Which class was that?? I'd like to hear more about it as I'm looking to wholesale here in Denver myself. All I hear is how impossible it is to find deals but I agree with what you said. I think it's very doable as long as you get out there and talk to people and make it happen!
You don't happen to know the name of that attendee do you? Just curious.
@Andrew Johnson Greg Parnham puts on classes regularly for investors, agents, etc through First Alliance Title. This one was all about wholesaling. He is a real estate attorney. Here is the link to their calendar http://firstalliancetitle.com/classes/
Didn't get her name as I was in a hurry to leave for a closing.
@Andrew Johnson Greg Parnham puts on classes regularly for investors, agents, etc through First Alliance Title. This one was all about wholesaling. He is a real estate attorney. Here is the link to their calendar http://firstalliancetitle.com/classes/
Didn't get her name as I was in a hurry to leave for a closing.
Greg is the man, for sure. I need to get his class list, obviously the web schedule is outdated.
@Anson Young I noticed that too. If you are able to get an current list of classes, I'd love to see it. I'm going to try and contact him and get it as well.
I've been under the impression that you need a significant amount of money if going through wholesalers as they usually have properties that are not move in ready. Is this true or can you still get financing for them?
I've never tried it, but one of the strategies that Brandon discusses in his book is to use hard money to acquire the property and cover at least some of the repairs, and then refi into a conventional mortgage after a six month seasoning period.
You could always look further away...say within 2 hrs. Castle Rock, Colorado Springs, Pueblo, Greeley are some good markets as well, albeit they are a bit pricey as well.
I'm in a different hot market (Austin). I can go just a bit out of town and the prices are much better, but there's a lot open land around and that makes me nervous about having developments come in and overbuild the market.
@Scott Pigman if you buy before the developers, they will only make your property more profitable once they finally decide to develop! Buy in the path of progress :)
Have your looked at short sales? Are market has gotten hotter meaning that there was on short sales. Now that prices have gone up "normal" people are selling and short sales are getting harder and longer. So they are actually staying on the market longer
@Scott Pigman if you buy before the developers, they will only make your property more profitable once they finally decide to develop! Buy in the path of progress :)
Sure, if I can buy that ranch first before the developers turn it into 500 cookie cutter houses I'll do well :-) I'm not sure it'll work out so great if I own a couple of last year's houses when all those new builds show up next door.
@Anson Young is correct the list seems out of date. It looks like the same list that Your Castle sends out. You can subscribe here http://visitor.r20.constantcontact.com/manage/optin/ea?v=001PhdQ1BjzXNQYi4BfgpzLew%3D%3D
Jeff Libby Congratulations on getting started! Many have given great suggestions including seeking out less popular areas, interning and getting your RE license, all worthwhile pursuits.
If you haven't already defined your goals and your criteria (based on your goals) that is crucial and will really inform your investment process.
In a hot market it is especially important to differentiate yourself and your strategy. What is everyone else doing? Don't do that! Where is everyone else investing? Don't invest there!
While there are "hot" markets, there are still many places in the country and I'm sure in your state where prices are good and you can get good and even great returns.
Best of luck and keep us updated on your progress!
@Jeff Libby - I was at the Wholesale class yesterday as well. Seems like some folks are having success finding deals. Of course it's all talk in a room full of RE people. Several people are looking in other ponds. There was a couple there from Springs looking to start working in Denver and one guy going out of state to several markets.
I'm sure if you call the First Alliance Title 303-558-6623 they will put you on their email list. I got on their list from the Pine Financial Seminar a few months ago. I think the objective is to get people to know about them.
@Matt M. I think we may have sat right next to each other. I didn't recognize you from your picture. I knew there had to be at least one other BP member there.