All Forum Posts by: Ted DeKowzan

It's undeniable that Denver market is getting a lot of action right now. With more buyers in the market there are less deals and the margins are slimmer. In order to get the good deals you have to think outside the box. I'm not the typical Colorado investor looking for a pop top in the Highlands. I'm more interested in the properties outside of town, especially the small acreage and horse properties. I'm also interested in larger lots and agricultural acreage you can build on. If there are any wholesalers out there that have any deals that fit this model I would like the opportunity to connect with you.

Ted

I appreciate everyone’s responses and input. While looking at a lot of fix and flip deals I’ve come across some opportunities to subdivide larger lots or scrape the house and build new. I’ve also found some great vacant lots in desirable areas. Some of these lots are larger ½ to 1 acre lots just outside the city limits and would be great candidates for Annexation. At this point I’m not ready to do big subdivisions but rather focus on infill and constructing on properties such as the one I mentioned. Start small but think big.

Karen @Karen Margrave you’re right that it would be a big benefit to have an experienced developer/builder to partner with to learn the ropes. I’ve been in construction most of my life and made connections with a few Spec Builders. I would like to network with people that are doing similar types of deals. Hopefully they can share some challenges and suggestions through their experiences.

As @Jon Holdman mentioned it can be tough to do deals on the outskirts of a city. You need to find specific buyers that are looking to live in that area. Some of the agents I work with have buyers that are looking to move to the Denver Area that have might have a horse or they want to build a big shop on the property. These buyers are willing to live on a property that is a little farther out. Living outside the city limits comes with a different type of construction that might include a well rather than city water and a septic system. There is a lack of quality inventory in the Denver area that fits this model. In my opinion most developers look past these types of opportunities. They rather focus on getting as many buildings on a piece of property that a city or county will allow, which I agree creates you optimum value of the land. Some areas just are not ready for this yet.

Bill @Bill S. I think I might live in one of the Mini-subdivisions in Golden you are talking about. In Golden we have a lot of people that like open space and appreciate larger lots. There are multiple small subdivisions that have been here for years that have 1 acre + lots with good sized home. I sure this made a lot of sense when Golden was considered the outskirts of Denver. Now there is higher density housing being built to surround these mini-subdivisions. Do you think there is opportunity to step a little farther out, say Firestone or Brighton, and create similar communities with larger lots and good sized homes?

Again I appreciate everyone’s input and look forward to any advice you can provide.

I currently have a property under contract in Arvada Colorado. If you're not familiar with this area it's about 30 minutes from Downtown Denver and 20 minutes from Boulder. It's a great area with good schools and a lot of new development. There are a lot of higher end homes and small horse properties in the area.

The property is in bad shape but the bones are there. It's a 3200 sqft above grade house that sits on approximately 2 acres.The interior need a total gut and remodel but the layout is nice. There is an issue with mold in the basement which will need to be remediated, although I'm planning on leaving it unfinished. The exterior of the house needs paint but the siding and roof are in decent shape. There is some site grading and possible drainage work that needs be done as well.

I have the property under contract for $325K and the comps are supporting a $675K ARV. I'm currently getting bids on the project and trying to nail down a good budget to complete the work.

I'm reaching out to private money and hard money lenders that would be interested in funding this project and similar projects. I would like to build a working relationship where both parities are comfortable with the projects. I have great credit and some reserves I can bring to the table.

Please let me know if this project fits your parameters and what type of loan packages you can offer. Any information on interest rates, points, fees, terms and percentages would be very helpful. If you have any questions please don't hesitate to contact me. I look forward hearing from you and hopefully we get the chance to work together.

-Ted DeKowzan

Hello Bigger Pockets,

I’m new to the site but enjoyed all the great info and ideas. I wanted to reach out to everyone in the hopes to connect with people that may be interested in similar deals and projects. I’ve currently come across several small acreage properties on the outskirts of the Denver Metro area. These properties are typically an older house that could be scraped with a few acres or in some instances vacant land in a great location. Some of these properties would be perfect candidates for individuals that are looking to have a little property, maybe have a horse or two, but still within commutable distance to the Denver Metro area. Other properties I have come across are within the development path of local cities and are ready to be subdivided into several lots. I have a network of realtors that are looking to fill the demand for these types of properties and have provided me with a few deals. One of the challenges I’ve run into is securing the lending in order to get these projects put together. If its a new construction project the process could take up to a year. Other properties could take longer if it requires an entitlement process. I’m looking forward to any advice, suggestion, or connections Bigger Pockets has to offer.

-Ted from Golden Colorado