All Forum Posts by: Chris Lopez

@Josh Hawkins

I don't agree with others about not moving to Denver because the market is tight. Yes it's a hot market now and supply is tight, but it's still relative affordable compared to many costal markets. 

Most importantly, there is growth, which means opportunity!

You're in your 20's, make sure you take the big picture perspective. You've got time on your side. You don't need to make everything happen in the next 3 years. But, when you look at making things happen over a 10-20 year period, you can make a lot of great things happen for you in Denver (or wherever you live.)

Some thoughts for you...:

1) Read Set For Life again. Then read it again. Absorb it. I just finished it last week and it is one of the best wealth creation books I've ever read. I had the chance to talk with Scott earlier this week and came away even more impressed with him, follow his content on BP. You'll learn even more.

Make sure you follow Scott's advice. Figure out how to set up your financial runway. Perhaps it makes sense to stay where you're at for a year while you save 30k. That's a decision that you can make based on your situation and finances. Play the long game!

2) House hack, house hack, house hack! Make sure you set yourself so you can house hack when you move to Denver or soon there after. Understand the income requirements to buy a property, etc. 

3) What skills sets do you have that you can leverage into a real estate career. Awhile back when I was deciding how I wanted to get into real estate, being an agent was at the bottom of the list. But then I realized I could leverage my current strengths (sales, marketing, building systems, etc) and it made the most sense. 

@Jennifer Delmore welcome to BP! 

In addition to listening to the podcasts, set up keyword alerts for terms you're interested in and areas around Denver. I've learned the most this way and have met a lot of great people. It's the 60 seconds to set up!

I'll send you over some investment strategy articles that I've collected from a few investors around Denver. One of the ways I learn is by asking more experienced people to share theirs. Check your BP inbox. Hopefully, they give you a nudge in the right direction~

Chris

@Derek Hutson Post a couple of deals that you've analyzed. You'll get a lot better feedback if you share those. Otherwise, it's really hard to provide you any useful insight.

The prices on multi families have really gone up a lot around Denver. Why multis? I ask because many people say that's what they want because the Internet has recommended it!

@Jared Bouzek gave good advice. Check CS as well. 

@Audrey Cranmer Moini welcome to BP! My favorite resource on the website is setting up keyword alerts for the forum. Set up alerts for areas or topics that you're interested. Best way to way to learn and to do some "virtual networking."

Why Denver? What parts? Most people in CA looking to invest go for more cash flow markets, rather than Denver.

Before Denver, I was in L.A. I did a lot of research before focusing on Denver. 

@Mark Leavitt

How much saved up capital? 10k, 100k, 500k? "Saved up capital" is a very relative phrase. Obviously huge differences in what you can do depending on how much capital that you really have.

Generally speaking, house hacking is a phenomenal way to start investing in real estate. Without know more details about your situation, I'd definitely recommend that way.

To get into more details, what are your goals? What are your plans?  

I wish I did it when I was in my 20's and single. I recently started running a bunch of models because I'm buying a primary residence with a mother in law suite. Not to rent it out, but for my MIL to live in. Of course, I'm always running "what if" scenarios on numbers.

That led me down a path to start building models to help some clients out with getting their REI started. The cash flow numbers and equity building with house hacking are staggering.

Check out the attached screenshot. It's a model of buying a nice 3/2 condo.

Quick scenario:

• Condo is remodeled and move in ready
• You live in the master suite and rent out other two rooms. Essentially living for free.  
• Every 2 years, you move out, keep the current condo as a rental and buy another condo. 
• This is assuming you do it four times over eight years.
• At year the end of year 8, you move out and buy a nice home for you to live in. The numbers look good!

Why condo? Generally speaking, they are giving the best returns around Denver now. For a first time investor, they are the cheapest properties to get into. Plus, it's turnkey with no live-in fix-up required. 

Are condos the best or only way to go? Absolutely not. It's one option.

I have a few more resources I'll email over to help you get the juices flowing.

Also, I just started reading Scott Trench's "Set for Life" book. Really great breakdown of house hacking returns. Worth the read.

The next phase in our house hacking series is to explore condo house hacking.

Why condos? Well, our clients have been buying condos for investment properties as they are giving the best returns in the Denver market.

If investors are buying condos, then we realized house hackers should look at condos as well. After building a house hacking condo model, we were pleasantly surprised at the numbers!

Quick run down:

• Buy a condo for less than $15,000 down (3.5% FHA or 5% conventional down)
• Live for free (or close to it)
• At year 2, move out of condo #1 (rent it for positive cash flow) and then buy condo #2.
• Repeat every 2 years until you own 4 condos.
• By year 8, have 4 cash flowing properties with 500k+ equity.

Condo house hacking is a great way to buy property for less than $15,000 down, live for free, and start building your rental portfolio.

Join Chris Lopez and Charles Roberts as we explore this model and walk you through a model where four condos can set you up for retirement

RSVP:  https://www.denverinvestmentrealestate.com/webinar9

Yes, it will be recorded. Visit the RSVP link afterward to be redirected to the recording.

Resources:

Denver House Hacking Guide:  www.denverinvestmentrealestate.com/househack

Travis Sperr's House Hacking interview: https://www.denverinvestmentrealestate.com/podcast11

@Ryan Blankenheim I agree with @Michael Losasso and @John Knisely 's comments. If you're just looking at becoming an agent to help pay off debt, there are probably better ways to generate income. The fees and time involved for getting setup add up. I'd seriously do a pros and cons analysis to just driving for Uber or something else to generate cash.

However, if you're looking towards the bigger picture of starting a new career when your contract is up or help with your future investments, then it could be a great decision. You most likely won't be profitable for 1-2 years. Which is fine if you're working towards a long term goal. But not a great idea if you're just looking to pay down debt faster.

It sounds like you're on the right track with getting your budget dialed in and living below your means. Way to go!

I've helped my wife and many of her veterinary friends (all 200k+ student debt) come up with financial plans. Look at SoFi for student loan refinancing. Generally speaking, they have the best rates and great service.

@Bryan Cork For the Denver metro, homes have appreciated at 6.3% a year (from 1971 to 2014) and condos at 5.3% (1972-2014). Rents have grown at 4%. The rental growth comes from surveys of apartment buildings (5+ units.) I haven't seen a great data source for rental growth for single family homes. 

I'll send you a link to you BP inbox with all the data.

Chris

@James Jordan

Is that they don't "want to" or "will not."

Big difference in the wording there. Ask them directly.

As Dimitri recommended, definitely setup keyword alerts for Denver. It's a great to learn reading what others post and to do some virtual networking. If you're free tomorrow, come to the Investor Success Summit. It's great education and networking. You'll meet a ton of people. https://www.biggerpockets.com/forums/521/topics/495654-real-estate-investors-success-summit