All Forum Posts by: Bob Vollmer

Hi Cathy,

As both a CSU grad and a real estate professional, I can tell you that the U+2 rule does make things more complicated in regards to housing. That being said, it is definitely doable. With the holidays approaching, now is a great time to start looking for a property that would meet your daughters needs. The big question is, are you looking for a SFR, condo or townhouse? A few friends parents did this when I was still at CSU and it has definitely paid off for them. Especially since they had a couple children live in the home over the years. However, they did buy during a slower market. But like in any market, a smart purchase is what makes the deal.

Another great aspect of this is approach is that it teaches responsibility. It is a good intro to being a "landlord" and helps prepare students for the "real world". As I'm sure you know, another great thing about Fort Collins is that most parts of town have easy access to CSU and there are tons of options with student housing. 

As far as being economically worthwhile, rents have been skyrocketing all over Northern Colorado. Fort Collins alone has seen a tremendous rise in rental rates. Appreciation has also been playing a large role in housing prices in Fort Collins. If you plan on financing, rates are still low. However, CO has seen a new rule go into place that can put back closing dates. 

There are a lot of variables to factor in when making this type of decision. It's important to remember that it is a COLLEGE HOUSE. Parents often take the approach of "only the best for my child", which can mess up the numbers in a hurry. Let's face it, a college home doesn't need granite countertops, hardwood floors and vaulted ceilings. how long would plan on keeping the house?

Sorry for the long, drawn out speech here, but i just want to emphasize how important it is to view a decision like this from all angles. Long story short, I think it's a great idea. And if your daughter wants to stay in FOCO after school, even better. 

If you want to talk about this a little more, feel free to give me a call. I've been in the Fort for some time and can help shed some light on the topic. (970) 988-4927

Hi Lindsay! It's crazy how things change, isn't it? I graduated from CSU with a degree in Natural Resource Management and another in Recreational Tourism. I've worked as a Park Ranger, Land Reclamation Specialist, etc. But growing up in a "real estate" family, I guess I've returned to my roots! It's an exciting time for RE here in Colorado and Fort Collins is a great city! I'm not sure I'll ever leave! BP is easily one of the best places to learn all about the different strategies and methods of investing. Hope you find what you're looking for! Feel free to contact me with any questions or concerns!

Hey BP! I've decided to do something new and document my entire process of learning about, vetting, buying and selling foreclosures in Northern CO. I've just purchased my second property out of foreclosure, and for any newbie who hasn't done this, it can be absolutely terrifying. As a newbie myself, I've definitely had more than a few sleepless nights because of crazy dreams about the real and potential problems with the property. 

So how do I learn about the properties going to auction? In CO, all foreclosures go through the counties public trustee. Every Monday, the public trustee posts which homes are going to auction that Wednesday. Once that initial list is posted, I do a quick internet search on the homes (Most of the time I use county records and zillow/trulia simply because they are at the top of the search). I'm also a licensed agent, so I go onto the MLS and check it's history and run a VERY quick CMA. Most of the time, homes do not make it past this initial step. If the numbers aren't right, don't force it. If a property seems like it has potential and the numbers could work, I plug it into one of my spreadsheets. Due to my financial constraints, I only look for homes to flip or that I could use the "BRRR" model on.

If a property has made it through my spreadsheet, I'll drive by it and try to get a feel for its condition and whether or not it's occupied. My first foreclosure flip had been owner occupied, and let's just say it got interesting. I still walked away with a good profit, but the headache of dealing with an eviction makes you think twice before buying an occupied foreclosure! One thing I learned from that flip is that it isn't always a good idea to be the "good guy" for the occupant. One thing I like to do if I'm unsure of occupancy is call the utilities. If power, gas and water have been shut off, far more likely the property is unoccupied (But not guaranteed!).

Only once I have my initial numbers run and I have driven by the property to check it's condition will I run an O&E.  I know they're cheap, but I don't like spending money that I don't have to! For some, an O&E is the first thing they check, I just operate a little differently. I think nearly everyone will agree that THIS IS THE MOST IMPORTANT STEP! Having a O&E run is the saving grace on any purchase. Lucky for me, the guy I purchase my O&E's from is a friend and I can rely on him for anything I'm uncertain about. It's amazing what some people will file a lien for!

At this point, I've put in a fair amount of work and I'm considering bidding on the property. Problem is, the NOCO market is so strong that there are a bunch of other people who are doing the exact same thing! Most of the time, my conservative numbers get blown by once the auction has started. But when I do start bidding, my nerves definitely get rattled. Whoever wins at auction must have all funds to the office by 1pm and if you don't show up, they can ban you from the auction. Unfortunately, I have seen people fail to do their due diligence and win a property on a foreclosing second. They didn't show up with their money... Once your money is paid, you get the pleasure of sitting on pins and needles for 8 business days waiting to see if any junior lien holder decides to redeem. If the property is occupied, they get 3 days after the 8 to vacate the property. If they don't, only then can you start formal eviction. 

And this is where I sit right now. On my couch, spewing out this information, waiting for the deed to a property I just purchased. A property that I've never even seen the inside of! The home is not formally occupied, but I have spoken with the previous owner who was moving old belongings out. I should be getting the deed today and (ideally) possession tomorrow. I did give the previous owner an extra day to remove some left over clutter. 

I know this post lacked detail, but it was long. Maybe I'll give some details once I've seen the interior and decide on what I'm going to do with the property!

Wish me luck BP! 

Hi Paul!

As a recent CSU grad myself, welcome to BP! It's a great site for all levels of investors. It's incredibly important to focus on your niche. There are a lot of people who don't like the idea of renting to students, but it can be incredibly lucrative! (Think parent cosigners, bulletproof rental agreements and a firm hand). But since you are thinking about Fort Collins, please do not dismiss the U+2 law. It's a big source of contention and can carry harsh penalties. 

Systems are your best friend in this business! I'm an agent at coldwell banker as well as an investor, so let me know if you would like to meet up and talk about our local market! 

Hi Jarrod,

While I do not know much about the D.C area, I do know quite a bit about the Colorado market. In particular, the northern front range. Where do you plan on moving when you get out here? That will be a large factor in finding an investment-priced property. Being both a realtor and an investor, I can tell you that right now, buying an investment property is very difficult. We are experiencing a very strong sellers market, and finding anything at a reasonable price for an investment property has been tough. It is possible, but patience and the ability to act fast is crucial. Luckily, time is on your side. If you have a questions or concerns with CO real estate, please feel free to message me! Good luck and thank you for your service!

 I agree that things change far too much and too fast to compare apples to apples. It changes drastically within city limits, let alone different towns all together! However, it is always nice to keep your finger on the pulse of the surrounding communities. 

 I can see how higher end homes would be desirable to investors given the tight market. Not only do you remove a lot of the competition, but I'm sure the margins have the potential to be quite nice!  

I would really like to get together and chat over some coffee sometime soon. I will be in touch!

Good morning from the Fort!

I will start off by admitting that I don't spend as much time on this site as I would like to, but when I do make it on, I notice that there is little talk about the northern Colorado market. As an agent and an investor, our market can be challenging for old and new real estate professionals alike. The median home price has skyrocketed almost everywhere along the front range and the competition is very strong. While we've seen the market cool somewhat with the onset of fall, it is still very much a sellers market. New construction remains a large part of the Fort Collins market, but with limited space and high land prices, it will be interesting to see who can afford new builds. 

So here is a call out to all of my fellow Colorado folk. Where is your market and what trends are you seeing right now? Investors: What are doing to find below market value properties? Are you looking for fix/flips or buy and holds? Agents: How do you prefer to get leads if you're not working off of referrals? How are you structuring your offers in order to gain leverage on a  popular property? 

Just thought we should keep the conversation alive on BP. Let's hear any of your questions/concerns/comments.

Hello BP'ers!

I've hit a lull in my career and I could use some words of wisdom!  While I know that getting your license can be a source of contention among investors, I have decided that it is the correct path for me to take. I just closed on a flip last week (it went great!) which opened up a lot of time for me. In that time, I have been going full bore trying to knock out the pre licensing courses. I plan on taking the exam mid-July and have already started talking to brokers where I can hang my tile. My question to you is, what broker is not only investor friendly but a great place to learn and grow?

I would truly appreciate hearing your opinions and stories as I have no biases or preconceptions to go off of. I'm truly the blank slate looking to take big action with a great company!

I think we can all agree that the housing market along the Front Range is very strong. Maybe a little too strong? I know that I'm finding it very difficult to track down a deal. If you follow the Public Trustee auctions, they are few and far between with stiff competition bidding them up (Only one foreclosure in Larimer County this week, 2 in Weld County). I'm finding that my target area (Fort Collins, Loveland, Windsor, Wellington) is becoming increasingly difficult to work in. What avenues have others taken that have produced results? I've mailed out to NED's and a few absentees with 0% return rate. I would love to find something under FMV, but at this point, if it's slightly above I'm considering the property...

This leads me to my next question, which might be right up Mark Ferguson's avenue. I've really started to look into the Greeley market, but due to my lack of knowledge with that area, I'm very hesitant. I just closed on a flip and the seller was moving from Greeley to Loveland. Well of course I started to pick his brain about different neighborhoods and areas within Greeley. He said that he would not go any further east than 16th ave. I am familiar enough with the area to know that the further east you go, the more "problematic" the area is, but should I rule out those neighborhoods because they tend to have higher crime rates? I think that Greeley, Eaton and Evans are next up for the "big boom" and I would really like to get in now if the right opportunities presented themselves. Does anyone have any suggestions/recommendations for investing in these areas?

Lastly, I am currently studying to get my brokers license in the hopes that it will expand my knowledge in RE as a whole while also giving me direct access to the MLS. The issue I'm facing is, should I pursue working under a large brokerage? maybe a builder? Possibly a smaller brokerage or a management company? While working for an organization that allows me to grow as an investor would be ideal, I'm sure all avenues would provide great insight into the world of Real Estate Investing. And that is why I have to ask the question, "What makes the most sense for someone who wants to become a full time investor?". Being so new to the Real Estate world, I'm fairly overwhelmed with the variety of options as well as this raging bull of a market.

Any way you put it, the next few months should be very interesting!