All Forum Posts by: Rory Korpela

Hey Dan!  I'm in Longmont and have been meaning to come to this sometime.  Would it be possible to go with a 4:00-6:00 time for a future meeting?  Fridays are hard as I have kids and we're usually doing dinner around 6:00.  But I could knock off work a little early and pop over.  Wibby is great and I live only about 10 minutes from there.

@Peter Morgan

Listen to the Self Directed IRA podcast and then read their book (2nd edition, easily obtained from Amazon). The information and straight forward advice therein is fantastic for anyone looking to self-direct their IRA.

@Jacob O'Malley

While I love Longmont (currently live here) and Colorado in general, much of Colorado including Longmont is red hot and getting super pricey. There is not much in the way of multi-family in Longmont. You'd be better off going to Colorado Springs for that though honestly, Colorado Springs isn't very close to the mountains for skiing/snowboarding. Here's some spots that may be worth a look, though.

1) Granby or Hot Sulfur Springs, Colorado

- these are both mountain towns in Grand County. They are relatively near a couple of big ski resorts (Winter Park and Steamboat Springs) that also offer mountain biking. The communities are 4 season communities with outdoor fun to be had year round. Hot Sulfur Springs is cheaper than Granby and may have some multi-family options. Full disclosure, I'm building a vacation home in Granby that I'm going to Airbnb and have some serious appreciation since I broke ground last September.

2) Hayden, CO

- Hayden is 25 miles west of Steamboat Springs and is one of the few communities near a serious ski resort that has yet to really pop but it's on the verge.

3) Ogden or Provo, Utah

-mountain fun in Utah is very accessible and the snow is even better in Utah than Colorado.

-real estate is cheaper in Utah

-easy to find friends that don't drink much (Mormon country)

 Thanks for the thoughts on this Bryan.  I did look into some of the local, community banks to see about getting some lending on this.  Unfortunately I've yet to find one that is interested in this type of loan or has it as a part of their portfolio.  If we bought the land from the township, it's likely we could borrow against the underlying value of the lots to put at least some of the infrastructure in.  

I agree that we'd probably have to give away quite a bit of equity to get that limited partner.  That would keep us though from having to bring our own funds to the table so we'd be able to borrow against the land to begin building houses.  It's a balancing act that would give us a solid footing to get into a bigger project after this one is complete.  

We build single family homes, either for spec or for specific clients. An opportunity has arisen whereby we could acquire upwards of 52 lots (mix of townhome and SFR) from a local municipality. These lots are in an existing subdivision.

The one hitch is that the infrastructure (water, sewer, curb and gutter, asphalt roads, and electric) are not in.  When the original developer of the neighborhood went under in the mid-2000s, those items stopped at their current location.   They need to be extended, about a 1,000 lineal feet, to open up the single family lots.  The townhome lots will require about another 500 lineal feet of similar infrastructure but will need parking lots instead of roads.  

Have any of you out there partnered with others on the infrastructure for land development?  What kinds of agreements/arrangements have been successful for you?

Thanks, Rory

Run up against a potential opportunity to finish out a subdivision. There is about 1,000 lineal feet of water and sewer lines to be run, electric to be dragged (along with additional transformers installed), curb/gutter, and asphalt roads to install.

For the price of $50K, we would get 50+ lots ( mix of single family and townhome) from the town but we would need to finish out the infrastructure in prior to building homes. The original developer of the neighborhood went under over 10 years ago and this part of the neighborhood was never finished.

We're looking into nailing down pricing but I'm wondering what folks are paying for infrastructure currently.

@Steve K.

Ha!

Biases aside, that unit would do will in Airbnb. The woodwork, the size, location, etc, will really appeal to couples, friends traveling together, families, etc. It looks like almost nothing need be done to it and with 20% down, the monthly mortgage (even with the HOA factored in) would be quite reasonable. Even with only 50% occupancy on AirBnB this should cash flow north of $350-500 a month.

If I wasn't tied up in building projects, I'd probably go buy this myself.

@Clayton Sneider

You're welcome. This one, https://www.coloproperty.com/listing/details/1223816, would probably be a better AirBnB in Longmont. Easy walking distance to main street restaurants and everything downtown.

@Clayton Sneider

That's not a great neighborhood/location (my two cents) for an AirBnB. There's not much to walk to or restaurants to go to other than a couple fast casual restaurants. If I recall correctly, there's a mobile home park right there too. Bigger houses do well on Airbnb or VRBO in the area, though, as church gatherings, traveling term sports teams, etc are usually looking for bigger places to stay. One house on our block (SE Longmont) saw the homeowner make $5K a month last year and his house is 6 bedrooms.

The 17th and Princess location, though, would probably be better for a long term rental depending on the price of the property.

Hey @Brandon Bonfiglio,

I live in Longmont and work at CU Boulder. I agree with others that Longmont is too far for CSU students but it is close enough to Boulder for CU students.

What are your investing goals and why Colorado if you're in New York? Colorado is red hot right now but there are some college towns to invest in where your $250K will go a lot further. If you want to chat, let me know. I've been in Colorado a long time. My investments are more geared to new construction (that will become short term rentals) and land rather than buying rentals out right.