All Forum Posts by: Charles Roberts

Thanks Chris.

Steve, nice to meet you. Feel free to touch base if you want to talk about real estate investing in metro Denver, it's what we do!

Welcome to the club Doug! All the comments are above are great and I totally agree with them, lots of terrific folks on this chain. There's a lot of interesting learning to be done but one thing I'd add to the mix is you can learn only so much from books, blogs and forums, there is simply nothing like actually going out and looking at properties. It's where the rubber truly meets the road. Once you have some basic metrics under your belt like cap rates and cash-on-cash returns I'd suggest you start looking at properties, a lot of properties, so you can understand what the pros and cons are of a 6.5 cap verses an 8 cap; a 4 percent c-o-c verses a 15. Once you truly understand that you'll be well on your way to learning how to invest for long term wealth building. For example, I closed yesterday on a property in the First Creek neighborhood of Green Valley Ranch with a client on his first rental. It was $243k, $1,895/rent with a 7.2 cap. The cap was a bit lower than what we usually do but we love the complex and the property was perfect so it perfectly met his criteria. It's part art and part science, happy to have you on board!

I've been investing in Denver for 20 years and actually just picked up another 6 properties in the past year to add to my portfolio. Surprisingly, though the prices have escalated so have the rents so the cap rates are very solid. Especially for such an outstandingly strong market as Denver. Great comments and feedback throughout this thread, if you want to talk more about Denver real estate feel free to message me. 

Hi Billy, over the past 20 years I've had several partners in real estate, some good and some bad. I'd suggest using partners and attempting to build a group together if you simply can't do it on your own. Otherwise, you might want to keep things simple and just proceed by yourself. The best partners provide something to the business you don't have, and work with you because you provide something they don't have. Otherwise, they tend to wither away, sometimes dramatically with poor results. The replies above have lots of great advice on how to connect to others if you want to try to create a group, just know it takes a lot of work to put together and maintain a successful group so make sure it's really what you want to do!

Great topic, here's my 2 cents! Bill, I agree that our crystal balls are a little hazy these days. That said, over the long (long, long long!!!) term this construction defects bill may begin to affect the market. Bill is right, there are clauses in most developers' insurance agreements that say they won't convert to condos for a number of years or their insurance may be canceled. More than that, it is very difficult to know exactly what any single developer will do with this new legislation, much less handicap how hundreds of developers will react and making your investing decisions from these guesses. Teaching lots of Real Estate Trends and investing classes around town this is the number one question I've gotten over the past couple of years: how do I use construction defect legislation to my benefit? My answer is simple: you don't. I purchased an additional 6 properties for my portfolio in the past year and the last thing I did was think I can figure out the future well enough to buy/not buy condos/not condos and make money that way. I make money the old fashioned way - earning it over the long term. I advise my investors (I closed 52 deals in 2016 so I work with a lot of investors) to not think we have enough insight or data to play the construction defect game. At least I know I don't! But I'm always happy to discuss this with anyone who can help me figure it out.

My take is in a world of bleed to lead journalism this one is outright, outload laughable. The 4700 block of Argonne will go down by 1/3 in 2022? It’s like a parody of real news, like an SNL Weekend Update punchline it’s so ridiculous. But super-specific completely-actionable predictions are exactly what the public wants (much to their discredit) so it’s what is given to them when you have to sell advertising. I’m glad I’m not a journalist and am held accountable for what I say.