I am new to Denver as of a few weeks ago and am a regular listener to the BP podcast. I am 23 years old and want to continue to learn more and more about real estate investing. I am an accountant, so the math comes relatively easy. I just finished school so I don't have a bunch of cash sitting around, but I am determined to find a way to move forward.
I know this is a question that gets asked all the time, but how do I proceed? I feel like I am relatively knowledgeable - I have listened to podcasts, read books, and done a lot of general research on components of deals, rules of thumb, and ratios/equations to use in analyzing a deal. I just can't figure out what my next move is.
Does anyone have any experience with this? I appreciate any and all advice I can get!
@Dylan Foley I'm in the same shoes as you. 23 and new to Denver. Would love to see what people say here.
Hi @Dylan Foley
Congratulations on finishing school! Part of the beauty of real estate is you don't necessarily need cash to purchase properties. There are many avenues one can use to buy your first property and subsequent properties. @Chris Lopez co-instructs many classes that can help individuals such as yourself buy properties with little to no money down. His courses include "house hacking" with low down payments and "property analysis spreadsheet" to help the investor decide if the potential property is profitable. Please click on Chris above to find out more!
I second what Joe Massey said. I’m a huge fan of house hacking especially for beginners. Do you own your own home? An Airbnb-able property is a great purchase in the beginning. Keep in mind that in DENVER it must be your primary residence. I have a mother in law suite in my home with a separate entrance and I live mortgage free because the Airbnb pays the entire mortgage! Im a realtor if you’re interested in learning more and I’m always finding homes that work for this. This method enables you to save faster and get your next property sooner. Be patient with yourself and your savings account. The first couple are the hardest and require the most patience.
@Dylan Foley the first step is to stop paying rent. I assume you don't own your own home. Even if you don't do the house hack or AirBnB you still want to get into the place where at least some part of your rent check benefits you aside from giving you a roof over your head. Figure out what you are willing to do (have roommates or not, AirBnB or not) and then do it. The most important step is to do something. The first step to buying is to get qualified for a loan so you know what you can afford to buy.
@Dylan Foley welcome to Denver. I agree with what others have posted about buying a place to house hack and/or Nomad™ (which is a systematic way for buying properties with low down owner occupant financing.) The returns you can get with these methods are almost unbelievable. Yes... even in today's Denver's market.
I just closed on a house hack / Nomad™ #3 property with a client. He ended up putting about $22k down. He'll live for free while he's there and will cash flow when he moves out in a year. I have yet to find a better strategy. Granted, you to have move every year and to maximize cashflow, live with your tenants. If you're young, do it. Your future self will thank you for it.
My buddy @James Orr did a 3 part webinar series where he laid out a financial model for buying (1) 20% down properties, (2) 5% down Nomad™ and (3) 5% down house hack properties. It's awesome stuff! I'll send you the link.
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