All Forum Posts by: Chris Lopez

@Jason H.

I'm by no means an expert fix and flipper. I've done one and realized my time was better spent creating businesses to create more cash to purchase long term rentals. I think what you're experiencing is very common around Denver.

Someone told me that a lot of investors are in the 83% range now for fix and flips. So tight margins! 

I'm on a few wholesale lists and haven't seen anything great come through. My thoughts are that by the time a wholesaler emails it out to his list (the little players like me!), their "go to" cash buyers have already passed. It's not exactly the cream if the crop. If they have a good deal, wholesalers have no problem with cash buyers buying immediately, sometimes sight unseen. 

Many investors have shifted their focus to popping tops and scraping lots to build duplexes. 

If you're free this Saturday (10/28) come to the  Investor Success Summit. If you can make it, let me know and we shake hands. 

There's one presentation that will be up your alley:

Lon Welsh & Greg Parham: This presentation will provide data analysis on the current investment market with several real life case studies to give you a better understanding of how to find deals, analyze them, and get them under contract and closed. We'll cover the following topics and more. Bring your questions!

Profit margins for Fix & Flips and scrapes, how they have changed over the last 10 years, and what neighborhoods have the highest gross margin.

CAP rates for rentals, and how neighborhood and property type might change your cash flow, maintenance, etc.

Are you setting yourself apart from the competition to get more deals under contact? We’ll explore best strategies and techniques for getting your offers accepted when you find the right deal. 

@Nick Van Sandt are you able to get more specific and share numbers on the investments? Your questions are pretty broad with a lot of room for interpretation.  The more details you provide, the better responses that you'll get.

I wouldn't look at it as an "expensive" property vs an "inexpensive" property. What's going to give you the best rate of return? Are you strictly cash flow focused?

What properties are looking at in Denver? Can you share a few deals that you've analyzed? Is it a single family home or a condo? What part of town?

What do you have saved for a downpayment? I'd compare that amount invested in Denver to two properties out of state. What out of state market are you looking at?

Based on the little bit of info that you provided, I'd say invest in Denver. I'm also biased. There's an advantage to knowing the area you're investing in, being able to drive there, etc. Plus, I'm very bullish on Denver long term. Look at the long term demographics of population growth. 

I want to buy places that are growing, not flat or declining. 

Chris

@Austin Allan lots of great advice from others so far. I'd recommend to also set up keyword alerts for Denver and surrounding areas. It's a great way to learn and start networking "virtually."

Are you getting your license to hunt your own deals or help people sell and buy and using the commissions to fund your own deals? 

@Rick Watt Check your BP inbox!

FYI - There's an event going Sat 10/28 called the Investor Success Summit. It has various speakers and a happy hour networking event at the end. They only charge $20 to cover the cost. The author of the spreadsheet is one of the speakers. If you come out, let me know and we can shake hands.

https://www.biggerpockets.com/forums/521/topics/495654-real-estate-investors-success-summit

@Peter S. sounds like you need to get tighter on your numbers. Have you looked at Zillow and Craigslist for rental comps of your current home? You'll get a really good feel for the numbers. 

Is the 2k/mo counting taxes and insurance? Have you calculated repairs and vacancy?

For the new home, are you renting out the entire home or room by room on Airbnb? Have you looked at Airbnb.com for comps?

Cash out refi vs paying PMI - no right or wrong there. Depends on the numbers and what you're comfortable with.

My biggest worry with real estate and business is running out of cash. Years ago I ran into a cash crunch with a business and it kept me up at night. I never want to be in that position again. My advice, make sure you maintain cash reserves or emergency funds for both properties. 6 months worth for each mortgage is a good rule of thumb. 

I'll send you over a spreadsheet that a local lender put together. It might help with your property analysis. 

This podcast episode is all about house hacking around Denver!

I've talked with quite a few younger, soon to be investors who are planning to house hack for their first property. I pulled in some great experts from around Denver to put together a resource.

This show's guests include:

@Marc Cunningham , property manager and investor to discuss tenant screening and being a landlord

@Joe Massey , lender and investor to discuss favorable financing options and other important information

@Charles Roberts , Realtor and investor to discuss the market and available options.

You can listen to this podcast episode at  https://www.denverinvestmentrealestate.com/podcast-10-house-hacking-denver/ or search for "Denver Real Estate Investing" on your podcasting app (the house hacking episode is #10.)

Questions? Please let me know and we'll get them answered. The goal is to make it a resource that is updated.

We also put together a house hacking guide at  https://www.denverinvestmentrealestate.com/denver-house-hacking/

Next episode: features @Travis Sperr and how he house hacked a triplex in Aurora to kick off his investing career.

Have you house hacked? If you have, let me know if you're up for being interviewed in a future episode!

@Peter S. As others have pointed, there is no right or wrong as it depends on your investing strategy. However, if I were in your shoes, I'd buy a place in City Park or a similar area. Assuming there are no wild curve balls in the world, you'll more likely make a much higher rate of return buying a property in Denver vs a cash flow city.

Have you run the numbers on buying a place in Denver? What will your monthly payment be? What could the potential rents be?

@Scott Lohmeyer - I recommend always following the rule of 3. At least talk with 3 agents to get a feel for personality and investing style match. Having a good relationship is important. 

When I first started out, before getting my license, I talked with about 15 people before I found a good one.

@Dustin Lamica Welcome to BiggerPockets.

First thing I'd recommend is to set up keyword alerts for Denver and surrounding areas. You'll start doing a lot of virtual networking that way (plus learn a ton.)

A great place to network and learn is at the upcoming Investor Success Summit on Saturday 10/28. It's all day educational seminar with a happy hour networking event at the end. It's like $20 to register.

If you're able to make it, let me know and we can grab a drink afterward and I can introduce you to a few other people as well. 

https://www.biggerpockets.com/forums/521/topics/49...

@Bo A Vanecko  how close to are to having 25k a year in passive lost? If you're nowhere near that, don't worry about it now. It's putting the cart before the horse so to speak. 

In addition to the initial expense of getting your license, you'll need to pay some annual fees (at least a brokerage to hang your license at) and get E&O insurance, to name a few things.

Depending on the real estate strategies that you're using, having a license can severely limit the more creative strategies. I don't know DORA's official position, but I doubt having one spouse does the frowned upon creative strategies and then the other spouse do the transactions as an agent would be acceptable in their eyes.