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.