investing when real estate prices are really high

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?

1 Reply

53 views

Most Popular Reply

Nazz Wang

Investor · Maui, HI · Member since 2012 · 232 posts · 96 votes

11y

Find a place where the market is not hot and prices are not high yet.

Be an intern for local investors, like a rehabber or a flipper.

Look for other types of RE investing where the prices are good, like multifamily, apartment complexes, etc.

Become a loan officer for the next few years.

Become a real estate agent / broker for the next few years.

3 Reply

See this reply in the discussion

33 Replies

Jump to latestLatest

Sort by

Matt M.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
11y
@Bill S. Too funny. Maybe we all should make it a habit of asking before class who is a member of BP;) I was sitting there thinking that we should have opened the room to what everyone was doing that works, doesn't work, etc.
0 Reply
Marian Smith
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
11y
Real estate has a cycle. Problem is knowing if you're at the peak. One of real estates' adages is " prices are sticky on the way down" which makes sense because most people can't bring money to the table. So if you refrain from investing because prices are high, who's to say they won't keep going up and when they do "correct" in a few years it will be to today's prices. And interest rates will be higher.
So you missed the bottom. Buy a well located property that you can afford and for a price /monthly payment that you feel good about today even if prices go down 10%. And buy where you can keep an eye on it and do some repairs yourself. if your other option are cash or an REIT or bonds or stocks.....its up to you which is riskier. If you don't have 20% to put down then please disregard.
1 Reply
Aaron Norris
Lender · California and Florida · Member since 2008 · 319 posts · 194 votes
11y
Get a Realtor's license and have multiple avenues to a pay check. Not all deals will work for fix/flip or buy and hold. Maybe vacation rentals? I hear there's a whole new industry that's smoking in Colorado (wink). Building those long-term relationships and letting people know you can list but also buy could be great for you. High dollar listing deals aren't a bad paycheck.
I was in Denver in February. I don't think I've ever seen that many cranes before. You guys are seriously building. Still busy?
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Aaron Norris
glad to see you on BP I have met your Dad a few times and of course when he speaks its like EF Hutton the room is quiet...:) Many times folks are trying to figure out what to do in LA and think they need to go to mid west to buy high risk low end rentals.. Many times I mention your company and that their might be a chance that they can invest in TD's with your company.. Are you accepting TD investment capital at this time. And or do the investors need to be accredited.. Etc Etc ....
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Michael Wentzel
Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
11y
@Jeff Libby I'm down here in Colorado Springs. I'm investing primarily in Colorado Springs. I'm using the strategy @Scott Pigman mentioned. I have a cash partner (hard money lender) who gives me the money for the purchase and the rehab. I then take the rehabbed property to a regional bank that refinances it for me. The goal is to get all of my money back out at the refinance or even make a bit of money.
I'm on my third deal of this type and my first purchase from a wholesaler. So far I'm loving working with a wholesaler. You'll need cash, but it was a killer deal and we closed two days after walking through the property.
Mike
1 Reply
Robert Warren
Real Estate Investor · Ridgway, CO · Member since 2014 · 76 posts · 10 votes
11y
Why not broaden the search for undervalued properties? Find areas that typically lag the area that is high. We have just such a situation here in Colorado.
In Colorado the Western Slope is lagging the Front Range. For the buy and hold strategies look toward Grand Junction. The prices there aren't as high - yet.
1 Reply
Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
11y
It higher priced markets, usually wholesaling and flipping make more sense than holding (but not always of course)
Podcast Guest on Show #121
0 Reply
Tyrell Anderson
Rental Property Investor · Colorado Springs, CO · Member since 2014 · 27 posts · 16 votes
11y
@Michael W. which regional bank have you found the most success with down here in the Springs?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.