All Forum Posts by: Rodolfo Canon

@Aaron Moore,

I have been working with investors in the Denver market for the last six years. We have watched the value of rental units steadily increase. As the cost of single family homes grows faster than the income of the population, rental property investments are more attractive. House Bill 1279, approved last year by the legislature, stipulates that legal action against a builder for alleged construction flaws can only proceed when more than half of all homeowners in a condominium complex agree to it. But the Homebuilders Association says that two issues still must be addressed: binding arbitration for dispute resolution, and and the high cost of insurance for builders. Even if these issues are addresses we still have the high cost of construction and the labor shortage. 10-years ago, condos represented 20% of housing starts. Today they represent 3%. It will take a long time to recover the deficit in condo construction. 

Our investors in apartments are not worried about the impact of apartment conversion to condos, or a sudden rush of condo development. If a large swath of apartments were converted to condos, what would happen to rents? All apartment investors would be happy.

A long term view driven by smart investment decisions in good properties in proper locations and efficient and fair asset management makes for an excellent long-term future. 

Joe Massey, Castle & Cook Mortgage, Denver. https://www.castlecookemortgage.com/location/denver/

To get the OZONE tax benefit (at least until now) Buyer must:

1. Use capital gains to invest in

2. A qualified Opportunity Fund and

3. Hold the property for five-years to increase his basis by 10% and seven-years for another 5% increase in basis and

4. Separate the value of the building from the land and "substantially improve" the building during the hold period. Basically, this means doubling its value...

David,

Before you choose a lender, I suggest you attend a seminar conducted by Joe Massey at Castle & Cooke Mortgage. Joe is a fantastic mortgage broker and he shares his market knowledge for free. Further, they are focused on making deal s work. If they cannot help you, Joe will tell you. http://www.castlecookemortgage.com/location/denver...

https://yourcastle.com/training/

Here is a website that addresses the issues:

https://fitsmallbusiness.com/bandit-signs/

Jonathan:

In the Denver market three is a free resource for investors that you should take advantage of. The resource is the seminars offered by Your Castle Real Estate on investing. Lon Welsh, Charles Roberts, Chris Lopez, and Joe Massey are some of the most knowledgeable and open and kind people you will meet in this industry. Their seminars cover first time investing, advanced investing, BRRR, house hacking, market trends, financing, etc. They are offered every week for free. These guys are serious investors and believe it is a good thing to share their knowledge with anyone who wants it. There is no obligation nor any commitment on your part. Just sign up and attend and you will wonder why you didn't do this long ago.

All real estate is local. Real estate markets are efficient. Supply and demand determine prices and rent rates. 

The chart I posted below looks at the business growth across the US in all markets. It clearly shows to where business are starting and to where they are migrating. Colorado looks good. The Denver MSA looks great. Population growth follows the business growth. "Hey, I can get a job in Denver. Unemployment rate is 2.6%, inbound population migration has been strong and steady."

Denver entered the 2008 real estate crisis earlier than most cities, fell less in value, and returned to growth quicker than other cities of similar size. Why? Because of local economic drivers. 

There is on such thing as a 7-year nationwide real estate market cycle. In Denver, over the last 45-years, the average "cycle" has been 17-years. 

Understand your local market, the economic drivers behind its success or failure and make your decision. 

This chart is from the Economic Innovation Group.

Go to the area in which you are interested. Look for listings in those areas that interest you. Call the realtors that have those listings and set up showing appointments to see their listings. Tell them you are a buyer without a realtor. At the showing interview them. Ask them a series of questions that will give you the information you need to make a decision on choosing a realtor. How long has he or she been a realtor in that particular area? How do they find their listings? What type of market analysis do they typically do to determine the sales price? Do they work with investors like you who want X, Y, and Z? Do they have investor references? Can they set up an automated search for you? 

Tell them you want to contact multiple agents to find the ideal property and you therefore do not want an exclusive representation. Show them that you are prepared to buy. You have the bank approval for your financing. 

If they find that unacceptable, move on. There will be an agent who knows what you are looking for and who will agree to your terms. 

Keionna Troupe, 

How you choose your realtor depends upon what you are looking for. You should decide the market segment in which you want to invest. Is it commercial? If so, what subsegment? Industrial, office, multifamily, retail, hospitality? Is it residential? Single family, duplex, triplex, or four-plex? Above four units moves to the multifamily commercial realm.

After you have chosen your subsegment, choose your geography. Once you kn ow where you want to invest, search for the realtor that specializes in what you want. For example, do not ask a very successful realtor who specializes in high-end single family homes to find you a six unit apartment building in a section 8 market. That won't work. 

I would also recommend that you find the realtor in your desired segment who has specific analytical capability with up-to-date market data. He or she must have experience in analyzing the types of deals in which you want to invest. 

Regards,