All Forum Posts by: Chris Lopez

Hey Jordan,

I strong encourage to investigate house hacking - buy a home/rent out the rooms or a small multi family and rent out other units. I think it's perfect for new investors.

- You need a place to live - you'll either be paying rent or a mortgage.

- You'll get the best interest rates and down payment packages for owner occupied property over investment property. 

- You'll get a great education in managing your property and tenants. 

Chris

Nathan,

In terms of "Educational" resources for real estate, $50 is not a lot to waste. Don't sweat it. Wait until you go to seminars and your lunch assignment is to call all your credit card companies to "negotiate" up your credit limit so you can afford the $25,000 mentoring package later!

1) If you haven't read BP's "Ultimate Beginners Guide"

2) Scour the forums and setup keyword alerts for Denver.

3) Find some local groups in Denver to network with. Google "Investment Club of Rockies" - I just met Troy Miller, who runs the show last week. I was very impressed with his organization. I talked with a few investors who spoke highly of it as well.

Not sure if this applies to your situation, but I usually get better results with my wife when I pass along information for her to watch or read, rather then me trying to regurgitate it.

 Chris

Eric,

Welcome! Couple of random pointers:

1) Don't get into "paralysis by analysis" as you start reading. There's only so much you can learn until you've hit diminishing returns.

2) You're young, you have time on your side. Don't rush any deals or get in the mindset "If I don't buy this deal, I'll miss out!" There are always deals out there.

3) Get your personal finances in order, that'll have a big impact on everything you do in investing - from getting financing to running a good business.

4) Get plugged into local networking events and meetings. If you're free Sat May 6th, check out the Denver Investor Success Summit. It's only $20 with a networking event afterwards - http://www.denveriss.com

Chris

@Alex Velasco - I'm currently doing a fix and flip in northern Denver, just north of the 36 and 25 interchange. The margins are tight. I'll post numbers once it's completed and sold.

Look into south Aurora, as properties are still cash flowing well there. 

Don't discount the MLS for deals. You're right, there will be multiple offers of pretty much every property. The same is true for all the investors who are doing their own marketing. Inventory is tight everywhere. Unless you're already experienced at marketing or networked in, you're going to have a hard time competing with the experienced investors, especially since many are bringing cash to the table and close quickly with no contingencies.

I feel too many people get hung up on finding the "perfect deal", that they overlook "good" deals on the MLS. When I buy a property, it's going to be until I die. In 40 years (hopefully longer!) I'm not really going to care if I paid retail vs saving a few points. Again, the numbers, risk, etc have to work for your portfolio.

When I lived in Reno, NV I picked up a foreclosure for $67,000 from Fannie Mae. Other people were bidding on similar condo's one or two thousand below the asking price and not getting it. The condo is worth $200,000 now and cash flows well. Do you think that I care that I paid the asking price of 67k vs trying to negotiate down to 66k? My regret is not buying more!

In 40 years, I'll probably have the same feeling towards Denver - wishing that I bought more property.

Connect with Charles Roberts at Your Castle Real Estate. He's done a lot of investing himself and has helped clients close a bunch of deals over the years. Google "Your Castle training calendar" to see all the investing classes they teach for free in the area. 

Disclosure: I'm starting to work with Charles as a broker myself... he's the real deal and knows his stuff. 

@Matt M.

It'll be for both. I plan on cranking with retail buyers and sellers. I'd also like to carve out a niche for people looking to house hack. The more I thought about it, the more I realized it'll help with my longer term plans:

• Faster market familiarization 
• "Being in the trenches" and seeing the emotions/hot buttons of buyers/sellers will help with optimizing flips and holds.
• I'm very good at generating leads and creating sales funnels and systems. Longer term I'd like to build a team and can feed them leads, creating another stream of residual income. But can't do that without cranking myself first!
• I have strong residuals from previous businesses, any commissions go into RE investing.

That's the executive summary.

Chris

I'm looking for recommendations for good employing brokers in the Denver area. I recently decided to get my CO broker license as it fits well with my background and into my longer term investing plans. 

The most important quality I'm looking for in a broker is solid mentorship. I've had tremendous success in past businesses (similar to broker/agent relationships.) I contribute my success to having a solid mentor and working my butt off. I'm a producer, good at marketing and sales, and am not greedy. Having the best commission split is not my top priority. My previous mentors helped me make a lot of money and therefore made a lot of money themselves. 

Any recommendations are appreciated!

Thanks

Chris

@Jared Bouzek Thanks for the heads up on the potential mortgage fraud - I would have been committing it! 

I'm flabbergasted from the lender I've been working with. Weeks ago when he first mentioned using a second home loan for the property, I asked if that was allowed for investment properties. His response "Yep. As long as you're more than 50 miles away and you don't spend more than 6 month a year there."

After your comment, I had him send over sample paperwork. The second home ride is pretty damn clear to me:

"6. Occupancy. Borrow shall occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the property available for borrower's exclusive use and enjoyment at all times, and shall not subject the property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires borrow either to rem the property or give a management firm or any there person any control over the occupancy or use of the property"

After reading it, I asked him 6 different ways if it ok to buy the property with the intention of renting it with a second home loan. His response "Yes, we have people do it all the time."

The second home loan plan is out the window... along with the lender! 

Jared, I owe you a beer and also your help on getting a mortgage. Once I adjust my numbers for a 20% down investment loan, I'll be reaching out to you!
Thanks

@Account Closed comment about potentially toeing mortgage fraud has got me concerned. Getting up to speed on that is my plan for the day. Any input is appreciated.

chris

Jared - Thanks, I'll definitely have to clarify things again with the mortgage broker that I'm working with and possibly change the down payment.  I have zero intentions on committing fraud!

@Jeff Rabith - Thanks for sharing the information, especially the appraisal value. I'll send you a private message with the address and my contact details. 

No, it doesn't have any views of multifamily. Once you're at the house, it feels like a nice, typical suburban house. 

Thanks

Chris