Newbie from Denver, Colorado

12 Replies

Hi BP Community, 

My name is Taylor Fortini and I have been listening to BP podcasts for several years now but just now finally signing up. 

I am a real estate broker in the Denver Metro area but really looking to begin investing more for myself. Last year during the pandemic I completed my first fix and flip project that was a huge success and I hope to do more this year!

I am currently 28 years old, I am married and have a baby on the way.

We are currently in the process of turning our first house into a rental property and buying a new home. I know that is the right thing to do but still have these mixed feelings of excitement and nerves. 

Our goal is to have 200+ front doors by the time we are 60 years old ( I think we can blow this goal out of the water). 

I am looking forward to being an active member in this community!




@Taylor Fortini Congrats on signing up for BP, it has made a huge difference in my investing success and portfolio.

What a great fix and flip for your first one!  That will be tougher to come by again this year, but it is definitely doable with a solid marketing campaign. 

That's a fantastic goal, and you can definitely achieve it, probably way sooner than 60 via 1031 exchanges and looking at out of state markets to scale up. 

If you are only looking at only Denver metro, I would suggest house hacking your way along the way to grow your portfolio because you benefit from owner occupied financing, consistent appreciation (6% last 40 years on average) and long-term economic prospects for Denver. Your goal would be harder to achieve here without significant equity or debt partners.  



Thanks Jeff! 

I do expect to diversify in some out of state markets and house hacking is along the lines of what I am doing now with my primary. 

That fix and flip was a great find and just doesn't compare to the deals that I see come through from the local wholesalers so thinking I do need to start some sort of marketing campaign to source more of those deals. 

Way to "represent the 303" there, @Taylor Fortini !  You've got one more fan here rooting for you to get to 200+ doors.  And congrats on the child!

What areas do you feel like you need to learn (or want to learn) most about?

@Sean Ross I am actually curious to learn more about 1031 exchanges. I have helped several clients with them in the past but I would love to learn more about the ins and outs to better advise future clients. 

@Taylor Fortini   Very happy to help  I'll send  you an invite and we can connect whenever you have any questions.  If you have any simple questions of course we can cover them here (where others can see too). 

@Taylor Fortini , Careful - after you get into the 1031 side you may decide that fix n flip wasn't as good a deal as it feels :) That was my exact experience with my first flip on a Sloans Lake  duplex in Denver 25 years ago.  When I realized my silent partner uncle Sam was going to make as much money as I was I was so disgusted I went and found the 1031.  And that makes all the difference.

In your line of work you'll find those deals that would make good fix n flips.  If you do it that way you'll have two consequences - first you won't grow doors as quickly because you're selling as fast as you're buying.  And second, you won't be able to use the tax to buy more doors.  

This is where the 1031 comes in - instead of a fix n flip mentality.  Turn it on its head and go the infamous Brrrr route.  Don't buy fix and sell.  Buy, rehab, rent , and refinance (or buy rent then rehab and sell doing a 1031).  When you do it this way you're actually adding doors while your properties season so you can 1031 them.  And when you do the 1031 you will not sell one and buy one.  You'll sell one and buy two or more using the proceeds from the sale as down payments.  

The really powerful thing about the refinance option is it gets most of your cash back out so you can be off looking for your next acquisition.  It won't take you long before you've to a nice portfolio and are turning over 20-30 1031s a year like a few of my clients.  That's not only a lot of doors.  It's a lot of doors producing rental income and amortization of the loans!  A tweak of the model is all it takes.

Like the ambitious plan.  If you structure so you can use the 1031 option and gain access to the buying power of the deferred tax you'll light your strategy up!

Originally posted by @Taylor Fortini :

Hi BP Community, 

My name is Taylor Fortini and I have been listening to BP podcasts for several years now but just now finally signing up. 

I am a real estate broker in the Denver Metro area but really looking to begin investing more for myself. Last year during the pandemic I completed my first fix and flip project that was a huge success and I hope to do more this year!

I am currently 28 years old, I am married and have a baby on the way.

We are currently in the process of turning our first house into a rental property and buying a new home. I know that is the right thing to do but still have these mixed feelings of excitement and nerves. 

Our goal is to have 200+ front doors by the time we are 60 years old ( I think we can blow this goal out of the water). 

I am looking forward to being an active member in this community!




You are in the right place Taylor!

 

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