All Forum Posts by: Garrett Balsick

Investment Info:

Other buy & hold investment.

Purchase price: $360,000
Cash invested: $110,000

The Burdick ranch is 480 acres connected to our homesteaded ranch and we have rented it for the last 12 years. We sold a house that we fixed up and 1031'd the proceeds into this long term ranch investment. There is some hay ground, a nice creek with good ponds, a 100+ year old stone barn, a newer shop, great coyote hunting, and a very good water system. But best of all it will not turn into neighbors across the road from my house! We currently run cattle and hay on this piece of ground.

What made you interested in investing in this type of deal?

This piece is a vital part of our cattle operation. We couldn't let a piece like this go to be developed into 40 acre home sites. Plus every acre we add to the large portion of the ranch increases the overall value of the land. Cashflow doesn't look good on this property, but there is no depreciation on bare land. This is a multi-generational investment.

How did you find this deal and how did you negotiate it?

We knew we were going to sell our house we were fixing up and asked if he would sell to us. He agreed and worked with us. The fixed up property ended up taking over a year to sell, and he patiently waited for it to close! With the 1031 we closed within 30 days on the land after we sold the house.

How did you finance this deal?

We used a 1031 exchange with the sale of a foreclosed property and Farm Credit of Southern Colorado. We worked with the Limon office.

How did you add value to the deal?

The previous owner wanted to sell to a multi-generational ranching family and we had created a good relationship with him over the last 12 years stewarding over his land. The value we added to the property itself is connecting this 480 to another 1500 acres. The larger size of the single piece is all the value we needed to add. We will soon create a venue at the old stone barn and old homestead.

What was the outcome?

We own a great property with a cool old barn and great coyote hunting. We plan to pass this piece on along with the rest of our ranch to the next generation as soon as we finish paying it off aggressively.

Lessons learned? Challenges?

Closings fall through on unique properties. We went through 2 realtors and 3 contracts to finally close. It was a mess and thank goodness the previous owner was patient with us.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I will recommend Empire Title in Colorado Springs and Farm Credit of Southern Colorado in Limon for land loans. I will also recommend Taylor Cornell with Lifetime Properties as a realtor (on the house we sold to finance this purchase).

Investment Info:

Other buy & hold investment.

Purchase price: $360,000
Cash invested: $110,000

The Burdick ranch is 480 acres connected to our homesteaded ranch and we have rented it for the last 12 years. We had the chance to buy it and jumped at the bit! We sold a house that we fixed up and 1031'd the proceeds into this long term ranch investment. There is some hay ground, a nice creek with good ponds, a 100+ year old stone barn, a newer shop, great coyote hunting, and a very good water system. But best of all it will not turn into neighbors across the road from my house! We currently run cattle and hay on this piece of ground and do not plan to ever sell it.

What made you interested in investing in this type of deal?

This piece is a vital part of our cattle operation. We couldn't let a piece like this go to be developed into 40 acre home sites. Plus every acre we add to the large portion of the ranch increases the overall value of the land. Cashflow doesn't look good on this property, but there is no depreciation on bare land. This is a multi-generational investment.

How did you find this deal and how did you negotiate it?

We knew we were going to sell our house we were fixing up and asked if he would sell to us. He agreed and worked with us. The fixed up property ended up taking over a year to sell, and he patiently waited for it to close! With the 1031 we closed within 30 days on the land after we sold the house.

How did you finance this deal?

We used a 1031 exchange with the sale of a foreclosed property and Farm Credit of Southern Colorado. We worked with the Limon office.

How did you add value to the deal?

The previous owner wanted to sell to a multi-generational ranching family and we had created a good relationship with him over the last 12 years stewarding over his land. The value we added to the property itself is connecting this 480 to another 1500 acres. The larger size of the single piece is all the value we needed to add. We will soon create a venue at the old stone barn and old homestead.

What was the outcome?

We own a great property with a cool old barn and great coyote hunting. We plan to pass this piece on along with the rest of our ranch to the next generation as soon as we finish paying it off aggressively.

Lessons learned? Challenges?

Closings fall through on unique properties. We went through 2 realtors and 3 contracts to finally close. It was a mess and thank goodness the previous owner was patient with us.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I will recommend Empire Title in Colorado Springs and Farm Credit of Southern Colorado in Limon for land loans. I will also recommend Taylor Cornell with Lifetime Properties as a realtor (on the house we sold to finance this purchase).

Investment Info:

fix & flip investment in Calhan.

Purchase price: $35,000
Cash invested: $35,000

"The Harrisville 80" This was an FSBO that had a sign on it for over 6 months. This 80 acre piece has an old gravel pit with an active mining permit on it and has incredible views. The soil is very sandy and at the top of a hill, so we must be very careful with the grass on the property, as to not overgraze it. This will be a million dollar view for someone who wants a house with a walkout basement.

What made you interested in investing in this type of deal?

We are always looking for new land that fits into our ranch. This view this property offered is what made it such an incredible deal for us. We needed a place to keep our bulls for a few months in the late winter early spring and this place does exactly what we need it to!

How did you find this deal and how did you negotiate it?

I found this property as an FSBO driving by one day and made the call on the sign.

How did you finance this deal?

Cash purchase

How did you add value to the deal?

What was the outcome?

We currently have a use for the property, so until it sells we are happy sitting on it. (Plus we have got a couple deer and antelope on the property. It is full of wildlife which makes it a fun property.

Lessons learned? Challenges?

Mining Permits suck and are a major headache and stay away from them unless the gravel is really good and you can find a contract for the dirt.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We used Empire Title in Colorado Springs and recommend them to everyone we can.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $58,500
Cash invested: $17,500

"The Preacher's House" This house is on 6 acres with an outbuilding. It was trashed when we purchased it. We tore down a building, terraced the property, did a full remodel, buried all the trash and debris that was left behind, and still have work to do. We were originally offered this property in September for 200k because I had negotiated a first right of refusal when I was in high school with the current owner. I didn't even make a counter offer to his offer. He called me and said he wanted to sell it to me and after inspecting the house, I didn't know if I even wanted the house. Foundation has issues, roof has issues, siding has issues, electrical and plumbing have issues. But all parts are functional. This property has a brand new well and is on 6 acres that attaches to our ranch. The house was built in 1921 and has been added on multiple times when money was available. Originally my great uncle Mike built and lived in this house. When grandpa bought the farm he couldn't afford the house and we were able to bring it back into the family 2 generations later.

What made you interested in investing in this type of deal?

This property attaches to our ranch, and was owned by our family at one point. I was grateful to get it back.

How did you find this deal and how did you negotiate it?

I negotiated a first right of refusal when I was in high school. When it came to pricing, I found reputable contractors to give me a bid and showed it to the seller to which their jaw dropped and we were able to agree on a price.

How did you finance this deal?

I took a second mortgage on my primary residence to own this house free and clear.

How did you add value to the deal?

Sweat Equity.

What was the outcome?

A rental property that will continue to serve as a cashflow until we decide to sell it to someone we are happy to be a neighbor to.

Lessons learned? Challenges?

Full remodels are more time consuming and expensive than you expect, no matter what.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Farmers State Bank of Ellicott was my lender.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000
Cash invested: $50,000

I purchased my first house on 40 acres in Calhan as a preforeclosure sale. The house appraised at $305,000 when I purchased and with the extra work we have done on it, now appraised at $475,000. This will be my forever home, but the equity has started and will continue to help fund my real estate journey.

What made you interested in investing in this type of deal?

This house was part of the original Balsick Homestead, and the instant equity offered was a no brainer to purchase it.

How did you find this deal and how did you negotiate it?

My Uncle came to me as the bank was foreclosing on this property and offered it to me for what he owed on the property.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Lots of sweat equity and problem solving to get the deal closed as we were on a time schedule with the foreclosure.

What was the outcome?

We have an amazing forever home on the ranch with a bunch of equity to help fund other real estate projects and deals as they come along.

Lessons learned? Challenges?

Always let people in a tough situation you are there and interested, they may take awhile, but will generally take you up on your offer if you are serious.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

It was a transaction without an agent. I worked with Equitable Savings and Loan in Limon, Colorado and Farmers State Bank of Ellicott. I would recommend both places.