Colorado Market

[Amanda O'Mara]

Hi everyone! I am new to BiggerPockets and wanted to introduce myself. I'm excited to get the ball rolling on more properties. I am still very new to this and soaking in all the information I can. I would like to stick to the Colorado market as I live here and am more comfortable with it. However, as I'm sure most of you know, the market has been crazy here! Hard to find a good deal, or maybe I haven't been looking in the right place? I am working on my Real Estate license to have access to MLS listings. Would love to hear any other advise or what you know about Colorado. Thanks guys!

[Bill S.]

@Amanda O'Mara I think you will have more success finding a deal from a wholesaler than building a profitable small multifamily building. People doing building are telling me that it is costing somewhere in the $300 per square foot (all in) to build those types of buildings (small apartment style). The economics of that mean that it's hard to find tenants that can pay what you need to get a return on your investment. Keep in mind, you will also be competing with about 10,000 other units currently under construction. Do your numbers forward and backward before jumping into those waters.

With wholesalers, keep in mind they have mouths to feed as well. I know there are a lot of bad deals being offered and some are getting bought as well. You will find better wholesalers if you have cash in your pocket and know what you are doing. Demand is so high right now that if a wholesaler offers a good deal, it's going to be with someone they know can close. In your case, you need to figure a way to convince them that you are that person. Cash speaks with a megaphone in this case.