All Forum Posts by: Charles Roberts

@John Blanton Investing strategies have to adapt to what is going on in the market. The strategy we used 8 years ago of buying foreclosures and bank owned properties just doesn't work in today's market.  Any strategy that is "written in stone" is doomed.

Re: Loopnet - It really depends on what you define as a deal and how the numbers work. If it's the "right" property for you, who gives a damn where it came from. You're in the business of building your real estate portfolio, not writing catchy blog headlines or bragging at cocktail properties. I have a client now where we are looking at properties on Loopnet. We're also putting out feelers to other brokers see what's coming up and if anyone has a pocket listing. 

If you get a pocket listing or know a distressed apartment owner, yes you'll most likely save money. How long do those relationships take to develop? I'd bet that the opportunity cost in waiting over buying a retail property off of Loopnet is going to cost you more in the long run.

Research as many properties as possible and talk with as many brokers as possible.

@Donovan R. Well said.

@Christine Humphrey Thank you! If you're ever like many of your fellow Californians and "escape" to Denver, reach out. 

@Danny Farrell Thank you. Yes, please reach out with any questions. I'm really enjoying all the back and forth with people from around the country.

@Erik W. Exactly. If there is a will, there is a way.

@Nina Nation I'm so glad to you got value out of it. If I can ever help out, please reach out.

@John Gooch I work with investors (and new agents) who already have a jammed packed schedule. I wish I had a magical time management system to recommend, but I don't. My advice is the same that I said on the podcast, "work harder, not smarter." You get up at 6AM? Get up at 4 or 5AM. I haven't seen anything mentioned about your weekends. Look at properties then like many home buyers do. On your two hour commute, start calling wholesalers or real estate agents and see who you can find. You may be surprised at what can happen. I've worked with many clients that are busy like you, and I've helped them buy properties sight unseen because I know what they are looking for and we have a good relationship.

Good luck! let me know if I can help out.

@Dave Foster Well put on defining "retail." I'm copying and pasting that to use in the future.

@Mike Hoskins thank you! Glad you got value out of it. Let me know if I can ever help.

@Isaiah Green Glad to hear it was helpful. Please reach out if I can ever be of assistance.

@Dennis Vo You are welcome!

@Mary White Glad you enjoyed it! What you're saying about your approach is what I preach all the time. It's about finding the right strategy for each person. I sleep very well at night with 0% leverage!

@Andrew Syrios thank you!

@Eric James I was an investor for years before becoming an agent. Perhaps there is some subconscious bias on my part since I'm an agent, but it's small part of why I say that. In my hundreds of transactions, I've worked with investors all across the spectrum. The average, part-time investor is usually better off buying a good deal off the MLS. Now, I'm not saying go buy the first thing you see. Absolutely not! Hunt around, and find a good deal. Part time and beginner investors don't have the knowledge, time, or resources to door knock, start direct mail campaigns, look up absentee owners, etc. Working with wholesalers is intimidating for many since many require a 5 to 10k non-refundable earnest money, with a quick close (usually cash.)

I've seen many people spend months to years trying to find the perfect deal. The time that they spent on the sideline has opportunity cost (rents, loan pay down, appreciation, etc) compared to if they just bought something off the MLS.

I won't work with investors who have an investment horizon less than 7 years. I'm very much a buy and hold guy. So are my clients.  In all my years, with that approach in mind, the people that bought (even the ones that paid full retail) have made money. Would they have made more money if they bought the house at a discount, of course. But for everyone that would have bought, how many would have missed out on buying anything because they were hunting for a "great" deal?

Here's an example:

In 2008, I showed a property to an investor client of mine who was looking to buy his first rental. It was a pretty beat up property in a tough neighborhood in the depths of the downturn. The bank was asking $79,900 for it (at the height of the market in 2006 it would’ve sold for about $140k). They wanted an as-is offer with cash or a 30 day close.

We wrote an aggressive offer at $66k, close in 30 days with a strong local lender and sent it in. A couple of days later we got a Counter Offer from the bank at $68k. My client told me,you always make your money on the buy and said he would not go a penny over $66k. He felt that $66k is what it was worth and was happy to play chicken with the bank.

He didn't close on it. With his permission, I took it to another investor. 

I explained the entire situation to investor #2 and he had me write up an offer for $66k.The bank reviewed it and Countered at $68,800. My buyer accepted it with no hesitation and we got it under contract. After closing, it rented for $800.

In 2017 he wanted to sell the property.  He put 10k into it to fix it up, listed it at 225k. We went under contract at 228k the next day.

9 years later, who gives a damn if they paid 68k or 66k in this scenario? Not only did he make money on the appreciate, but years of rent and loan pay down.

@Dave White If you want to grab coffee or can make it to a class, please reach out!

@Ahmed Iqbal - thank you! Yes, teaching is a passion of mine. That's how I've built my business. Educate people!

@John Gooch - A lot of real estate is done during non-business hours. Most people buying a home for their primary residence view homes in the evenings and the weekends. I'm out almost every weekend showing properties. If a good property comes on the market and my client can't make it (either because they are out of Denver or busy), I'll take a video and email it over or facetime. I realize that everyone is busy in life, but I've found that people make time if they want do something.

@Ryan Proffit. Thanks! It's been fun emailing back and forth.

@Mark Hughes Well said!

Great question , it's something we talk about in the real estate biz a lot. It all comes down to what you want to do with your time and money, and what your risk tolerance is working with companies you don't have a history with. Personally, I only  invest in metro Denver where I live and work, that's best for me. I don't trust a 3rd party turnkey organization out of state with my money. Paranoid? Maybe. But I've seen too many folks lose all their money during downturns when they invest in areas they aren't familiar with, with groups they don't know, in properties they know nothing about. It's not that there aren't honest turnkey groups out there, I'm absolutely certain there are. It's just that when the inevitable downturn comes to any market you're in, you're going to be the last one to see the money. Everyone who is closer to the source of money will get paid first, the property manager, the contractors, everyone. No doubt there are positives as well to having a 3rd party manage everything for you and do all the work, just proceed with caution.

You'll love it , it's warm, dry and sunny! Let us know when you get into town, I and others on this thread can point you in some good directions to check out property and learn more about the Denver real estate market.

Hi ! I'm from Massachusetts but have lived in Colorado the past 25 years so we share a few connections. If your home is in Concord I suspect it's worth a pretty penny and from a monthly cashflow perspective you can do a lot better. Let me know if you'd like me to refer you to a realtor in MA, happy to put you in touch with someone. Like others said above, Denver's prices have risen such that our cashflow is ok, but you can certainly do better from that perspective in places like Detroit and Albany where home prices are much cheaper. Just depends on what you're looking for. I added 6 properties in the past 15 months to my portfolio because I like the market and the cashflow was reasonable. What you'll want to do is investigate our market and compare it to other alternatives. I'd start by going out and actually looking at properties on the ground as soon as you can, there's a limited amount you can learn without actually seeing and touching the properties and experiencing the neighborhoods they're in. Lots to learn, keep asking great questions, this forum is a great place for folks like you!

Hello ! There's tons of different way to invest in real estate and I've done many of them in the past 20 years but I've found buy and hold to be the simplest and most straight forward approach to wealth building. You just need to decide what's right for you but that's what I've settled on after doing many different real estate investing approaches over the years. I'm still buying in this market because the rents have kept pace with the price of homes so the returns are pretty much what they were even during the downturn. You should check into other market for sure and decide what's right for you. There is no obvious or automatic answer, it's going to be what you feel is right for you. Regarding a downturn in the market, we look at the data very closely and I'm not seeing anything on the horizon that is worrying me. That said, it is practically impossible to predict a downturn (or an upturn for that matter) and anyone who tells you different is selling you something. Don't get too caught up in trying to predict the future. You can't. Get caught up in deciding whether you want to invest in real estate, determining what your longterm goals are, and controlling everything you can control to achieve the outcome you want. Remember, the best way to predict the future is to create it.

Absolutely agree with you Bill, too many moving parts = a potential disaster in the making. Seen it many, many times.

Great to have you on board! There's a lot of good learning you can do but sooner rather than later I'd suggest you begin to go out and actually look at properties to begin to get a real feel for them. The other thing I'd suggest you do is get comfortable with a basic cashflow/cap rate spreadsheet so you understand the returns you'll get from different investments. What you want to be able to do is understand what a 6 cap in metro Denver looks like versus an 8 cap. All the books in the world can't teach you the on the ground analysis you'll need to determine what types of investment property might make the best sense for you. Feel free to touch base if you want to know more. I added 6 properties to my portfolio in metro Denver in the past year, I still like this market a lot for the right segment of properties.