The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Denver SFR Opp

AroundTheWorld

Be in the Moment
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
68%
Jul 24, 2007
2,871
1,950
.
A little birdy told me that housing prices (mostly REO's.) have fallen drastically.

Little starter homes can be picked up for 70K to 90K.

Rents for those houses are $1100 or so.

Great opp for someone that has SFR in the plan.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

reipro

Contributor
User Power
Value/Post Ratio
29%
Sep 27, 2007
154
44
54
Lincoln, NE
So are rents on the increase in the area or a they declining with the house price correction?
 

AroundTheWorld

Be in the Moment
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
68%
Jul 24, 2007
2,871
1,950
.
I don't know how they (rents) are trending.

I heard about this from an acquaintance of mine from the Denver area. He has been in that market for decades.... lived through the cycles... and never seen anything like this before.

The economy (according to him) in Denver is doing well.
 

Bilgefisher

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
17%
Aug 29, 2007
1,815
308
Aurora, Co
Iv been searching for a personal residence in Denver lately and found this to still be very true. Some areas of Denver still haven't bottomed out yet. They lost as much as 22% value in the last year. The beauty for investors is that the prices were artificially lowered due to heavy foreclosure areas. Homes needing as little as 5k worth of work are still selling for 75k. ~1000 sq foot 3/2 with 1 car garage. The fixers have upwards of 100k equity (prior to work of course). Example. I saw a recent house that was selling for 55k needed about 30k work and would be worth 160k when done.

What your friends says is really incredible considering he probably worked through the 1980's Colorado recession. It was pretty bad here for those years. Caused a RE boom in the 90's though. Its got me excited as a new investor. A little easier to jump into the game monetarily.

Denver area rents bargain basement of $650 and average around $1000. Home around $1100.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

AroundTheWorld

Be in the Moment
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
68%
Jul 24, 2007
2,871
1,950
.
I've been curious about the situation there... interesting to hear about it again.

Yes, he was there in the 80's. Lost his shirt.... and I think pants too...


You need knowledge and desire (right Yves?) to make it happen.

You got the knowledge of the opportunity here.
Do you have the desire?

Will you make it happen?


Imagine.... pick up a home for 55K
Rent it for 1100/mo.

Rinse and repeat times 20.

There is your start.
 

Bilgefisher

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
17%
Aug 29, 2007
1,815
308
Aurora, Co
I've been curious about the situation there... interesting to hear about it again.

Yes, he was there in the 80's. Lost his shirt.... and I think pants too...


You need knowledge and desire (right Yves?) to make it happen.

You got the knowledge of the opportunity here.
Do you have the desire?

Will you make it happen?


Imagine.... pick up a home for 55K
Rent it for 1100/mo.

Rinse and repeat times 20.

There is your start.

Its kinda funny, the excitement is building more and more everyday. I really get into things once I understand the process. I still have a 90% to learn, but I can clearly see the path ahead now.

My next big obstacle is to figure out ways to get around that 20% down for commercial loans. I'll make it happen though :icon_super:
 

hakrjak

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
7%
Sep 15, 2007
1,887
127
Colorado Springs
I'll look into this tomorrow -- but being in Colorado Springs, I usually follow the Denver market as well -- and I haven't heard or seen anything to tell me that this is true. Some of the areas up there, i.e. the new art district -- have actually been appreciating slowly over the past couple years.

If this is true, I'll own my first property up there within 60 days -- guarenteed ;)

Cheers,

- Hakrjak
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Bilgefisher

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
17%
Aug 29, 2007
1,815
308
Aurora, Co
Two areas that I have seen aren't exactly Denver. Aurora and Lakewood. Take a look at the Hoffman Heights, Aurora Heights and Lyn Knolls areas in Aurora. The city just went through and demolished a quarter mile of run down business across from the new children's hospital. This to make way for newer buildings.
 

AroundTheWorld

Be in the Moment
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
68%
Jul 24, 2007
2,871
1,950
.
My next big obstacle is to figure out ways to get around that 20% down for commercial loans. I'll make it happen though :icon_super:


My friend is a hard money lender in the area. He started there as REI. Bought a gazillion homes. Lost them all in the 80's. Then went to hard money. He says if he was a young upstart, he would be all over this. If he were to do it, he would buy 10 homes, pay them off agressively, and own them free and clear in 10 years.

As of the date of my first post.... what was that July 07?... his clients were financing the houses through him. All they had to show him was a strong credit score (he wanted to know you could refi). They would put 5K into the home. Rent it out. Then go to a bank and refi for the entire amount. He showed me 5 deals he had done in the last month.

Now, credit has dried up some since then, so the refi may be a little tougher, but with a strong credit score and the strong cashflow, that makes it more likely.
 

hakrjak

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
7%
Sep 15, 2007
1,887
127
Colorado Springs
I did some research last night, and it's true -- there are 45 pages of homes for sale in "Denver" right now for $75k and less. I didn't see any areas that I recognized, so I'm thinking that they're all in the guetto -- But hey, that's ok... Some of my best cashflowers are in the guetto ;) haha.. I don't know about rents though -- I am hooking up with a PM today to discuss.

- Hakrjak
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

AroundTheWorld

Be in the Moment
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
68%
Jul 24, 2007
2,871
1,950
.
Keep us posted!

You can send the finders fee to:

AroundTheWorld
The Lazy Sombrero
Montana

:smxB:


No really, I'll be interested to hear about what you find. It kills me not moving on an opp. I had to print the One Trick Pony and tape it to the ceiling above my bed so that I wouldn't move to Denver.

I will be so happy if someone from the forum jumps on it. It is the next best thing.
 

Bilgefisher

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
17%
Aug 29, 2007
1,815
308
Aurora, Co
Keep us posted!

You can send the finders fee to:

AroundTheWorld
The Lazy Sombrero
Montana

:smxB:


No really, I'll be interested to hear about what you find. It kills me not moving on an opp. I had to print the One Trick Pony and tape it to the ceiling above my bed so that I wouldn't move to Denver.

I will be so happy if someone from the forum jumps on it. It is the next best thing.


I'll be doing that very soon. Currently looking for my personal property and as soon as thats done I'll be looking into buying my first rental. My main concern of the areas I mentioned is crime. Its not ghetto by any stretch of the imagination, (Denver really doesn't have any true ghettos.) but its not exactly the best neighborhood either. Its near East Colfax. Known for its hookers and drugs. Also it got hit really hard by the foreclosures, which has led to some problems. Abandoned houses invite unwanted guests. Police have had to break up a few parties at these places. Those parties destroy the houses more or less. I imagine its cleaned up a bit with the new children's hospital, but it will be something I will check on. Also this area is less then 3 miles from the Stapleton redevelopment project.

Someone mentioned before on this forum, don't rent in an area your not comfortable visiting. I have no problems going through and even stopping in the area, but I am still unsure if I am willing to live there. Just thinking out loud a bit.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top