All Forum Posts by: Chris Lopez

Join Chris Lopez and Ryan Watts from Red River Development. We explore their first build-to-rent project, Trulo Jenks in Oklahoma, from land acquisition to stabilization.

Key highlights:

•Finding the right location and navigating zoning challenges

•Overcoming supply chain issues during COVID

•Delivering 138 homes on time and on budget

•Exceeding rent projections by 20%

•Insights on unit mix, amenities, and financing

Whether you're an investor, developer, or just curious about the build-to-rent space, this episode offers valuable insights into the entire process.

There are three ways to get the details for this episode #520:

• 🎧 Listen to it on the "Denver Real Estate Investing" podcast
• 🎥 Watch the YouTube video
• 🖥 Read the Blog post

Enjoy!

Chris Lopez
Investor-Friendly Realtor
Envision Advisor
303-548-0846

Join Chris Lopez and Brandon Scholten for a webinar covering legal updates and strategies for landlords in a rapidly changing regulatory environment.

Give Us 1.5 Hours And We’ll Reveal…

✅ The latest changes in landlord-tenant legislation you can't afford to ignore
✅ State-specific regulations and new compliance requirements you need to know to avoid costly legal pitfalls
✅ Exciting opportunities arising from zoning reforms
✅ Step-by-step guidance on evictions, security deposits, and rent control measures

Date:
Wenesday, 24th June 2024 at 12:30PM MST

Register today to reserve your spot!

Don't miss out on this invaluable opportunity!

Want to know how to make serious money in real estate development without decades of experience or millions in capital?

Nathan Adams of redT Homes reveals how the “Developer Incubator Program” has helped novice investors tackle projects worth up to $1.2 million and build portfolios of over 500 units. With nearly 20 years of experience and involvement in close to 1500 units of development across almost 100 projects, Nathan knows the tools for succeeding in today’s challenging market.

In this eye-opening episode, Nathan breaks down:

1. 1- How to access a pipeline of pre-vetted deals with 20%+ profit margins in a market where most developers are struggling to hit 17%.
2. 2- The “sweet spot” timeline for smaller development projects that could see you delivering units just as interest rates drop and the market catches fire.
3. 3- A clever strategy for leveraging bank financing at up to 80% LTV, allowing you to maximize returns while minimizing risk.

This episode provides a comprehensive look at how aspiring developers can enter the real estate development sector, even amid high interest rates and market uncertainties.

There are three ways to get the details for this episode #517:

• 🎧 Listen to it on the "Denver Real Estate Investing" podcast
• 🎥 Watch the YouTube video
• 🖥 Read the Blog post

Enjoy!

Chris Lopez
Investor-Friendly Realtor
Envision Advisor
303-548-0846

In the latest Bigger Pockets video, Chris uses our Property Llama software to break down a critical decision many investors face: whether to keep, refinance, or sell cash-flowing rentals.

Watch Chris Leverage Property Llama to:

• -Compare 4 detailed scenarios for portfolio optimization
• -Visualize Return on Equity and Internal Rate of Return (IRR) over time
• -Analyze the impact of raising rents vs. selling and reinvesting
• -Explore tax implications of various strategies

Property Llama's advanced analytics help Chris data drive decisions, demonstrating how Property Llama transforms your real estate investing approach.

Click here to watch the full video

Want to know how a little-known real estate trend is generating 30-40% rent premiums over traditional apartments?

This “horizontal multifamily” strategy allowed one company to achieve 95%+ occupancy and 8-10% annual rent increases, even in secondary markets.

Ryan Watts, co-founder of Red River Development, discusses key factors behind successful build-to-rent (BTR) communities – a game-changing approach that’s attracting billions in institutional capital. After selling his previous company, Ryan partnered with real estate veterans to capitalize on this lucrative opportunity, growing to $400 million in assets under management in just a few years.

In this episode, Ryan breaks down:

1. How to identify ideal secondary markets for maximum returns
2. The proven formula for community amenities that command premium rents
3. Why empty nesters are flocking to these communities alongside young families

Discover why BTR is being called “the future of rental housing” and how savvy investors can get in on the ground floor of this booming asset class.

There are three ways to get the details for this episode #516:

• 🎧 Listen to it on the "Denver Real Estate Investing" podcast
• 🎥 Watch the YouTube video
• 🖥 Read the Blog post

Enjoy!

Chris Lopez
Investor-Friendly Realtor
Envision Advisor
303-548-0846

Think 1031 exchanges are just for the ultra-wealthy? Think again. This tax-deferral method has helped countless investors build fortunes over the past century, and it's not going anywhere despite rumors to the contrary.

In this eye-opening episode, we sit down with Rick Chess, a seasoned attorney with over 30 years of experience in 1031 exchanges. Having transacted over 50,000 apartments and advised on billions in real estate deals, Rick is the go-to expert for navigating the evolving landscape of 1031 exchanges.
Rick breaks down two game-changing strategies for maximizing your 1031 exchange in today's market:

The little-known "DST" method that allows you to invest in $100 million properties with as little as $100,000
The powerful "Tenancy in Common" approach that gives you more control and potentially higher returns than traditional exchanges

Plus, discover why local, state, and federal governments "make out like bandits" when investors use 1031 exchanges - making it highly unlikely this strategy will ever be eliminated.
Whether you're a seasoned real estate investor or just getting started, this episode is packed with lucrative insights that could revolutionize your wealth-building approach.

There are three ways to get the details for this episode #515:

• 🎧 Listen to it on the "Denver Real Estate Investing" podcast
• 🎥 Watch the YouTube video
• 🖥 Read the Blog post

Enjoy!

Chris Lopez
Investor-Friendly Realtor
Envision Advisor
303-548-0846

Adam Fenton joins Chris Lopez to break down Narrate’s $45.8M multifamily development in a Colorado Springs opportunity zone.

🏗️ Learn about the construction costs and deal structure for this 192-unit project.

💼 Discover effective capital strategies employed in this ambitious real estate venture.

📊 Gain insights into the advantages of investing in opportunity zones to defer capital gains.

There are three ways to get the details for this episode #514:

• 🎧 Listen to it on the "Denver Real Estate Investing" podcast
• 🎥 Watch the YouTube video
• 🖥 Read the Blog post

Enjoy!

Chris Lopez
Investor-Friendly Realtor
Envision Advisor
303-548-0846

@Alex Todd In terms of keeping your money working hard and growing fast for you (aka. IRR) you're most likely best selling the property.

I sold two condos earlier this year because the IRR peaked. 

The return on equity (ROE) is 9.5%, which is about the same as historical stock market returns. If I’m dealing with the headaches and risks of rentals, I want higher return than the stock market.

Plus, the internal rate of return (IRR) is going down every year I hold onto it. IRR shows the annual returns over the investment's holding period. ROE shows the estimated returns for the next year.

The condos are in the same complex that I purchased for $195,000 and $207,000 in 2020 with a 25% down payment. Below is a graph that shows the IRR if I sold in that year. The IRR's for both are very similar, so I took the average.

What do you notice about the IRR? It shot up in 2021 and 2022! Since the values peaked in 2022 and leveled-off, IRR will start decreasing every year. I wish I could say it was from value that I added. It's not. It was the gift of low interest rates that made the values dramatically increase. In markets, like Denver, most of the return has been through appreciation (equity gain), not from cash flow. Since IRR takes into account the time value of money, it's no surprise the IRR is highest in the first two years.

I ran four scenarios and raising rent doesn't impact the IRR.

Scenario #1: Keep it and Raise Rents by $500+

Both units had the same tenants in there for the lasts three years. They are great tenants and I had no vacancy or turn costs by keeping them. However, my rents are below market by $250 per unit or about 8%.

Increasing the rents changes the ROE from 9.5% to 11.8%. A 2.3% bump is nice, but it’s still below my 15% ROE baseline target.

An interesting point is that a $500/mo increase in rents has a relatively low impact on IRR. Below is a graph showing the IRR results over the next five years if I held onto the properties and increased them to market rent.

If I hold for 5 more years, the IRR still goes down! Since so much of the return was front loaded in the first two years, IRR will not improve by holding onto the properties.

The only way to tap into equity is to refinance or sell the property.

@Brynn Walden The "Passive with depreciation via a lazy 1031 exchange" is not a real 1031. Rather, it's selling the property and investing in a multi-family value add fund (total ~ 7-10 buildings). I think 2024 and going into next year will represent some great MF buying opportunities. The 17% is IRR's made up of 4-8% CoC, and then selling the properties in 4-6 years.

The Fractional 1031 exchange is into a ~$20,000,000 ground-up construction multifamily deal. Development, in general, offers good opportunities to 1031 as a TIC (tenants in common). The first few years are zero cash flow, but then 5-8% CoC from years 3 to 7 or so. Then, sell around the 7-10-year mark for the big exit to calculate the 15% IRR. They are planning a cash out refi (which is non taxable) which I'm including the reinvestment into the IRR. Since this sheet, I've revised to a 14% IRR.

If you want more details, feel free to DM. Part of my search is for me to place my capital and a few investors in Denver. It's opened a few doors for potential investments,

Grab a coffee and join my team for a fun morning of networking with other house hackers!

This meetup offers a unique opportunity to learn, network, and grow with like-minded individuals in the real estate community. Don't miss out on the insights and connections waiting for you at this event!

Event Details:
Investing Experience: Beginner to Intermediate
Date: Saturday, June 22nd from 8:00 - 10:00 AM
Location: Table Public House, 2190 S. Platte River Dr. 2501, Denver, CO 80223

Click here to reserve your spot!