Denver real estate is actually selling, despite the reports one might read in the newspapers. We at The Berkshire Group have noticed there are 
two segments of our market that are selling right now. They are homes for first time buyers and investment properties.
Investment real estate is rife with experts telling you how to do it. One doesn’t have to go to far to be literally bombarded with information. The bookstore has weighed down shelves full of volumes of “Get Rich Quick in Real Estate” books. Turn on the TV any late night and you will find at least one if not more of real estate gurus telling you to purchase their wiz bang kit and you too will be driving a Mercedes that you park in your wrap around driveway by the pool.
Well last week The Berkshire Group launched a counter attack. Well not exactly an attack, but we decided to add our two cents. For what it’s worth, we have lots of talent in our little company. Better yet, we are willing to share.
The format of our sharing is unique. Are you ready?
- We meet in existing investment properties
- We talk about the aspects of investing, both pros and cons (yes, there are cons)
- We invite questions
- We do it for free.
Our first meeting was terrific. Rusty and Frances Wehner hosted our group at the duplex they have owned for 14 years. They purchased it with the intent of holding it to raise capital to pay for their two sons college. The time has come to sell.
Just to give you some background, Rusty is a very conservative guy. He’s second generation real estate, both in sales and now lending. Rusty has a spreadsheet for everything.
The spreadsheet he shared with us on Sunday was very informative. We could see his profit and lost over the years and his projected earnings. It was very helpful to see the actual numbers of what it takes to make an investment property work and work well.
Some of the tips that came out of the MeetUp:
- Use Rent.com to advertise the property. They will come out take the photos and even store them for future use. This is a great service for investors who hold properties and find it necessary to rent them to new tenants.
- Do smart repairs, the kind that will increase your investment
- The Owner should pay for the water, as incentive for the tenant to care for the lawn
- Go for long term tenants. The Wehners have tenants in their properties as long as 15 years!
- Look to buy properties where there is an existing “rental pool”. The Wehner’s prefer hospital neighborhoods because they get many hospital workers to rent.
- Always pull a credit report. Take a good long look at it. There’s nothing more apt to spoil your day, month, year than a bad tenant.
- Paint yearly, keep the property up
Our Denver Investment Property Strategies Workshop is a great place to come, learn, contribute. We would love to have you join the group, so please consider this your personal invitation to come hang with the DIPS! RSVP for the MeetUp Group here.
Hope to see you soon.
P.S. Did I mention the handouts for the last meeting are posted on the MeetUp site? You may go download them for your use. Please let me know if we can assist you in finding a good investment property, or perhaps sell the one you currently own.
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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Kristal Kraft
4 Comments
Hi Kristal,
As a fellow Realtor I have to say that I love your blog site and your activity on active rain. Do you know of any localized blogs for the Denver real estate market alone, a place similar to active rain but just specific for the Denver market? I’ve searched but only come up with a handful of Realtor’s personal blogs, such as yourself, but nothing comparable to the active rain forum. And if not, have you ever considered creating such a forum for local realtors to talk to other professionals about the local market? Thanks, and keep up the good work. You’re representing our profession well.
Kristen ~ Thank you for your compliments, I appreciate the fact you take the time to tell me your thoughts!
As per a localized forum, that is really a good idea. Nothing quite comes close to the success of AR, but as you say, it isn’t local.
Maybe we should get MetroList to sponsor a forum. They need some extra work!
2-4th 2009
Hi my name is Gary Brown. I have sold a house to my investor friend and he is looking for a loan. Are contract is to close in 30 days. He had a pre-qualify letter from Charles Schwab and they said they had changes and cannot get the loan done. The reason being he has 6 houses. One is his resident and 5 rentals. His credit score is over 740.
If you can help please send me an e-mail and I will send it to my buyer and he will contact you.
Thanks Gary Brown
303-668-3012
Gary-hawk@msn.com
Hi Gary, I have forwarded your question on to a lender who might be able to help.
The rules for income property have recently been changed, allowing investors to hold more properties.
The trouble is, the investor must also have enough cash in reserves for each property. This is where many are finding it hard to qualify.
Best wishes for you and your friend on this deal. It is too bad you must start over.
kk