All Forum Posts by: Daniel Haberkost

Does anyone have any referrals for GCs who build in Pueblo West? This would be for infill development of single & small multi family homes. 

Feel free to message me direct,

Dan

@Keith Parker Gotcha, I haven't heard of that program myself but I would imagine they're going after more than just foreclosures?

I highly recommend coming to the local Colorado Springs investor meetup, I've made quite a few useful contacts there over the years. 

There are several experienced wholesalers there who could help you with finding off market deal too. 

Dan

@Sawyer Smith Haven't found any objects that were especially unsettling but the last house I bought had a felon with a warrant for his arrest, a prostitute he was pretending was his girlfriend (lol) and the helpless dad in it.

Didn't know any of this when we bought the place but when I was tearing up the carpet one day there was a sudden pounding on the door followed by "POLICE, OPEN UP" - in hindsight I can't believe the tenants voluntarily left but am thankful it worked out.

The dad came by to pickup a few things after they'd moved out at which point he told me how upset he was with his son for pretending the prostitute was his girlfriend (no WONDER she was so friendly). 

The house smelled so bad it was hard to breathe before removing the carpet, crazy how some people live!

Dan

 Small multi that cash flows is hard to find here! What part of town is it in?

Dan

 Welcome to the forums Keith, 

Working for the Fix n Flip company is a good start, do you have an opportunity to see how they generate leads for their business? That's the key to everything. 

Would your current house cash flow? If so, could you buy a house hack to move into and put a tenant in your current house? 

Dan

@Paula Agustina Zampallo Ramirez that's awesome Paula! I bought my first property in Parma also at 21. 

Getting started early has panned out very well for me, I expect you'll have the same experience!

Dan

@Account Closed 

@Joe Splitrock hit on several of the points I wanted to make, especially the stopping before ever getting started. Everyone wants to get started in real estate investing but once they realize it takes time & effort they give up (most of the time). Progression in real estate (like anything else) is a matter of slow, incremental steps towards your goals and a lot of what is necessary to be successful is repetitive and unexciting. 

The main point I'd like to add is people underestimate the amount of capital needed. There are so many programs and gurus out there pushing low/no money down deals it gives newbies the wrong impression. Sure, you can buy a house hack or two without much money but at the end of the day this is a capital intensive business. When a furnace dies in winter or a tenant decides to take advantage of an eviction moratorium you better have access to cash somewhere!

Dan

Hi Bradley, I grew up about 45 min SW of Cleveland and know Avon & North Ridgeville very well. 

My first recommendation would be to make sure the property cash flows when you move out. When I say cash flows, I'm of course talking about after factoring in vacancy, cap ex, repairs, etc. Also, make sure you have a good property manager lined up! 

At that price range in Avon or N Ridgeville I'd think you're looking at older homes. If you are, keep in mind your cap ex/repairs & maintenance are going to be on the high end. Investors like to buy cheap rentals in the Midwest because the numbers look good on paper but all too often they're buying century homes that require a lot of maintenance so keep that in mind as well.

Dan

 We're doing this here in Colorado, specifically Pueblo West and I know other doing it in Colorado Springs. 

Specifically, we're building duplexes right now as they cash flow immediately and the risk of unexpected expenses (assuming you screen your tenants properly!!!) is much lower. 

This strategy works very well here because:

1.) Lack of inventory with high demand & existing inventory is old/small/run down.

2.) Land w/ utilities can be bought very cheaply which makes the numbers work.

3.) Surrounding markets have become extremely expensive so more and more people are being driven to Pueblo West.

Dan

@Jorge Rubio I run into this frequently with the new homes we're building, the price people are willing to pay is significantly over the appraised value. However, supply is so low relative to demand where I'm building that we've (several times) had buyers come in with extra cash to make it work regardless. As time goes on appraisals are coming up but they're still not keeping up.

Dan