All Forum Posts by: Rodolfo Canon

An Aerotopolis is an urban region whose infrastructure, land use, and economy are centered on an airport. In Denver, there are thousands of undeveloped acres surrounding our Aerotropolis. How will it be used? Why is it an attractive development site?

In this podcast episode, Michael Canon shares his knowledge on the Denver Aerotropolis. He is an expert on the subject. In the UAE he was Chief Commercial Officer of Dubai World Central (today known as Dubai South), Dubai’s 140 square kilometer Aerotropolis development around the new Al Maktoum International Airport, which will be the world’s largest when completed.

This podcast is the first of many in our Denver Aerotropolis series.

Listen to it on iTunes / Apple Podcast, our website , or your favorite podcasting app!

Jared,

Forget Florida. Move to Denver, o the mountains and Join Your Castle Real Estate, the fastest growing brokerage over the last ten years. Why has it grown so rapidly to over 750 agents? Because of the training and support a new agent receives. YCRE has free training every day, not only for the agent, but also for the agent's clients. If your spectrum of interests includes investments in real estate, then joining YCRE is an even more critical move. 

Contact Joe Massey at Castle & Cooke Mortgage

David,

Where is this "ghetto of Aurora" located? My perception of Aurora is not that. There are some lower income properties, Section 8 stuff for sure, but ghetto? Aurora is the next boom spot in Colorado. Why? For two reasons: One, in Denver the investment and cap pressure is intense and land is scarce while one-half of the land in Aurora is undeveloped. Two, Aurora contains the top two economic drivers of the Denver MSA, Denver International Airport (37,000 employees) and the Fitzsimmons Campus (24,000 employees). 

Find a deal, rent it out with rent kickers and hold on. Read estate appreciation will make you happy.

At Your Castle Real Estate there are real estate investment seminars every day and they are free.  

If you require the clarification that could be provided by a lawyer's point-of-view (Who could that be???) look at this article:

https://www.natlawreview.com/article/guide-to-oppo...

Tobin:

Get a mortgage. Put 20% down which you extract from your home equity. Understand the return you are going to generate or require. Net Operating Income (NOI) = Capitalization Rate x Value. If you rent it for $2500 per month for 12-months, your gross annual income is $30,000. Subtract from that total 30% for your annual operating expenses and that leaves you with $21,000 per year in NOI. If you divide that number by the purchase price the result is 6%. That is your capitalization rate. That is a good number in the Denver market. However, given the annual appreciation we have in Denver over the last few years (with no end in sight), your greatest wealth creator will be the asset appreciation. Joe Massey at Castle and Cook Mortgage is a great guy to work with. We have an Excel spreadsheet created by Joe you can use to manage all the investment analyses you will require.

For those of you who want a broader analysis of this initiative that just the tax benefits, check out this article.

https://nextcity.org/features/view/will-this-new-i...

I am surprised by some of the areas designated as OZONES by Colorado's governor. In Denver, some OZONES are very close to the city center. 

Another article with a nice summary:

WHAT ARE THE INCENTIVES THAT ENCOURAGE LONG-TERM INVESTMENT IN LOW INCOME COMMUNITIES? The Opportunity Zones program offers investors the following incentives for putting their capital to work in low-income communities:

• A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.
• A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
• A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).

Kimberly,

I just posted a response to a message similar to yours from Christopher Labonte https://www.biggerpockets.com/users/ChristopherL13...

I am in Denver, another tight market, but still penetrable. Hard work, focus, integrity and results have worked for me. The formula is simple. The effort required is monumental. 

I wish you luck.