There are tons of different strategies and ‘plays to run’ within investment real estate. I know a lot of them and am savvy enough to create new ones when I see fit. Here are the top three strategies that I use on a daily basis.
The multi-family investing strategy is my favorite because it allows you to earn a return while you sleep and you will see the pay checks every month. If you are new to investing, multi-family investing is acquiring residential real estate that is able to house… multiple families, also known as, duplexes, triplexes, quadplexes, and larger. The main objective of this strategy is to collect multiple rent checks per property that amount to an excess of the mortgage payment. This excess is your CASH FLOW. Multi-family investment properties are generally held for longer time periods than fix and flips or new builds, usually 3-5 years.
Have you ever watched HGTV and thought to yourself “Wow, I could do a fix & flip and make an extra $50-$75,000?!? That sounds great”. Well let me tell you… it is not that easy! As much as I love this strategy, I only recommend it to more experienced real estate investors. The basics of this strategy are: finding a home that needs repairs, buying it cheap enough to spend the money on the repairs it needs, and then selling it for a profit. I have worked with and advised several investors in this area and while there can be a lot of risk, it can be very profitable in the short term. These properties are generally held 2-6 months.
Are you on the hunt for your next buildable lot? I can help you find it. This is one of my favorite types of properties to search for - homes where the land value has become greater than the current structure that sits on the land. This strategy is also only recommended to seasoned investors that have the capability and funds necessary to carry a large project for 12-18 months. The neighborhoods I would recommend in Denver for this investment strategy are: University Park/Observatory Park, University Hills, Platt Park, East Washington Park and West Washington Park, Hilltop, Cory Merrill, Harvard Gulch, DU, Crestmoor Park, Cranmer Park, Cherry Creek, Mayfair, Park Hill, Highlands, Berkeley, Sloans Lake, and Sunnyside.
Before we head out to look at any properties together, I have a consultation with all of my potential clients either over the phone, over zoom, or in person so that we can discuss your personal investment history, objectives, future goals, timelines and more.
Once we have determined the investment strategy or strategies you are looking to pursue, I will set up a search within the several different listing sources I have access to. We will likely be looking at many different opportunities that are both on and off-market.
When we find the property that fits your needs and strategy, I will fully analyze the deal for you to determine what the acquisition price should be, the possible renovation/rehab budget, the exit strategy and timeline. We will review this analysis together to determine the negotiation points to put the property under contract.
Once we have the property under contract, we will begin our formal due diligence phase. This will entail reviewing any documentation they have for the property including leases, surveys, title work, mechanical owners manuals, proposed architectural drawings, etc. We will also conduct a physical inspection of the property assessing the condition of the exterior, interior, major mechanical components and systems. If all of these items check out, you CLOSE.
The work has only just begun once you close on the property. And just because you have closed that does not mean that our relationship is over. I am always a phone call away and love to see the progress that my investors make as they improve their properties.
As you work to renovate, stabilize, and possibly sell your current project, we will meet to understand and help you plan your next investment. Time is money and you want to keep your money working all the time.
Steve is awesome to work with. He’s experienced, caring, and trustworthy.
Steve is an expert in his craft and his craft is helping people buy and sell. Steve goes above and beyond what’s required to make sure he is your trusted advisor each step of the way. 10/10 would recommend him to help buy or sell.
I have had the opportunity to work with Steve on several transactions as a mortgage lender. He is a master of finding value and negotiating favorable terms even in this impossible market. If you are looking to build equity or invest in real estate at any level, I cannot think of a better person to work with.
