New Member - Realtor and Builder looking to take first steps into RE Investment

Denver, Colorado
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New Member - Realtor and Builder looking to take first steps into RE Investment

Keith McDougal
Member since 2025 · 4 posts · 3 votes

I just finished Brandon & Joshua's book, How to Invest in Real Estate, so thought I'd get active on their BP site.  I'm located near Aspen Colorado in a small Mountain town.  Real Estate is very expensive here, but also a very secure investment.  

I've been a commercial construction manager for 20 years and a Realtor for 5 years, so I believe that I have the skills set and knowledge to be successful in REI.

Thinking a spec home or fix & flip for my first attempt at it... or maybe a townhome fixer-upper that I can hold and rent.   Any recommendations to get started in an expensive market?

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  • Clayton Silva
    Lender · CA · Member since 2018 · 638 posts · 393 votes
    1y

    First of all, welcome to BP. First things first, I would say know your market (sounds like you do). Understand the costs, the ARV's the exit plans you have. Secondly, be patient in expensive markets. I think a lot of good deals are coming (especially near end of year for tax purposes) so make sure you enter at a good price. Lastly, make sure you have a pretty clear understanding of any holding costs (loans, taxes, insurance, etc.) and with that know your timelines - best and worst case. A lot of builders have great deals on paper, and then the project drags too long and eats up most of the margin right now.

    0Reply
  • Drago Stanimirovic
    Real Estate Coach · Miami, FL · Member since 2024 · 1k+ posts · 484 votes
    1y

    Keith, you're in a great spot with your construction and real estate background. In a high-cost market like Aspen, your edge is finding value others miss.

    A spec home could work if you manage costs tightly and know what buyers want. But for a first deal, a fixer-upper townhome you hold and rent might be smarter lower risk, long-term upside, and room to learn the game.

    Focus on comps, off-market leads, and zoning, there’s hidden opportunity in mountain towns. Let me know if you want to run some numbers or dig deeper into strategy.

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  • Keith McDougal
    OP
    Member since 2025 · 4 posts · 3 votes
    1y

    Thanks Drago!  I've run some number on Spec homes that clients built.  It seems to be quick (1-2 years) profit but it's also a big initial investment.  Being more conservative for a first deal is probably the best option for me.

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  • Greg WeikBusiness Member
    Property Manager · Denver, CO · Member since 2020 · 264 posts · 327 votes
    1y

    Hey @Keith McDougal, welcome and congrats on getting going!

    Are you set on your local geography, or are you willing to branch out?

    We are seeing sales prices plummet in the greater Denver area, and there are starting to be some deals out there for long-term buy-and-hold strategies.

    Many of our new clients are throwing in the towel on selling their homes and starting their journey (albeit reluctantly) down the road of becoming landlords. 

    I will say that statewide, legislation has made owning rental properties a much higher stakes proposition.  We are seeing more lawsuits than ever before from tenants regardless of how well we manage units.  We've always been law-adjacent in property management, but we are finding ourselves sliding closer and closer to the law and having to defend our landlord clients against frivolous suits at every turn, not to mention we have to constantly re-learn landlord tenant law with all the ins and outs of new legislation. 

    In any case, all of this is to say, that even being a licensed broker, I suggest hiring a professional PMC if you do buy and hold.  It's still worth it in the long run to own rentals, it's just more challenging now. 

    Good luck! 

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  • Keith McDougal
    OP
    Member since 2025 · 4 posts · 3 votes
    1y

    Thanks Greg.  I definitely need to brush up on how hard the Colorado State legislature has made it on Landlords.

    To get started I'm going to focus on the Roaring Fork Valley, where I know the market and can make more informed decisions.

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