What Type of Real Estate Investment is Right for You?

August 17, 2017 By

Real estate investing entices the savviest of personal equity capitalists – and for good reason. Homes hold their value and provide a wide variety of investment opportunities for those who put in the leg work, but which type of real estate investment is worth your valuable time, money, and effort? Use this guide to help you hone your approach to real estate investing. You’ll see the requirements for each investment category, including necessary equity, required credit score, and estimated time commitment.

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Requirement Charts

Carefully consider your current financial, credit, and available time situations before selecting a form of real estate investments. The Charts below can assist you in identifying your ideal first step into the real estate investment world.

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Real Estate Investment Categories

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Rental Condo or Rental Home

Most landlords begin their investment careers by purchasing a rental condo or home, then lease the residential property to tenants on 6-12 month lease-terms.

Small Apartment Building (2-4 Units)

After getting your feet wet with individual condos or homes, you may want to jump into the pool by purchasing a duplex, triplex, or quad. It goes without saying that the investment will be higher for a purchase like this, but the cash flow is sure to flow more freely.

Large Apartment Building (5+ Units)

Buildings with 5 or more units are considered commercial properties and require hefty down payments and healthy credit scores. However, economics of scale often provide the means to hire a property manager, minimizing the investor’s time commitment in such a project and optimizing profit.

Fix and Flips

You find a fixer-upper, fix it up, then sell it for the largest profit possible. The “fixing” process can range from cosmetic updates to “down to the studs” remodels.

Conversion of Apartments into Condos

This option provides tax advantages as compared to fix and flips and often offers impressive financial returns. You purchase an apartment building, renovate it, then sell each unit as a condominium.

Scrapes, Pops and New Construction

Purchasing a small home within an affluent community can have its financial advantages. A small home may have square footage added (via horizontal expansion or a pop-top project) or could be bulldozed to create room for a new home.

Assignments

If you don’t have much equity to invest as a down payment, and/or if your credit power is limited, assignments could be your foot in the door of real estate investing. What you will need is charisma and sales skills – you’ll rely on an investor to foot the bill for an investment contract sourced by you. You get paid for doing the groundwork and the investor you’re working with makes a solid real estate investment through little to no time investment.

For more information about investment opportunities by neighborhood, download our free price change map HERE.

*This blog is an adaptation of a chapter from The Practical Guide to Colorado Real Estate Investing by Lon Welsh, Charles Roberts, Greg Parham, Tony Girard, and Joe Massey. The entire Ebook can be dowloaded for free by clicking HERE!

*Read the original post here.

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Last Days of Summer, Welcome Autumn Events

Although summer is coming to a close and the first day of autumn is rapidly approaching (September 22nd, is case you are wondering) There are still many events to attend around the Denver Metro area to take full advantage of all the beautiful weather the Colorado has to offer.

On September 6th take a short drive to Keystone and enjoy Oktoberfest. Admission is free and it runs from 2-6pm. With food booths and beers from around Colorado breweries, enjoy the crisp mountain air and live music.apple

September 13thapple lovers gather in Salida for Apple Fest. A day filled with farm tours, apple picking and of course an apple pie contest!

Pedal the Plains comes back to Denver for the third year on September 19th -21st. You can enjoy cycling culture, good food and riding with friends and family. Registration is open now to join in on the event. untitled

If you are more of the running type Color Fun Fest 5k is happening on September 20th in Denver. Run in color and dance along to the music!

A summer in Colorado would not be complete without a trip to Estes Park and the perfect time to head out is on September 20th-21st during the Autumn Gold Festival. You can enjoy live music food and drinks and be surrounded by all the beauty Estes has to offer.

                                              Looking for a day to spend with your dogs? Steamboat Springs was named Dog Town USA for a reason, apoochynd on September 21st thePoochy Paddle gives you and your pups a day at the Old Town Hot Springs! Make sure to bring a donation of dog or cat food to share.

 

To round out the month of September everyone could use a little Chocolate therapy. Vail is helping with their Lionshead Wine, Spirit and Chocolate Festival on September 26th– October 5th. Tastings and dessert samplings created by local pastry chefs and outside vendors will be on hand.

 

Summer may be coming to a close; Colorado still has beautiful weather and plenty days left of sunshine! Get out there and take advantage of all the events Colorado towns have to offer.

 

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Indepence Day Your Way!

July 4th is just around the corner and with so many events going on around the Denver Metro area, we at the Monica Perez Real Estate Team thought we would give you a rundown of some of our favorite events to attend. Whether you are looking for family friendly, on a budget or a night out on the town there is something available for you!

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Park Hill 4th of July Parade

4th of July just isn’t the same without catching at least on parade- so head over to Park Hill for their FREE 4th of July Parade. You can watch the floats go by, gymnasts and acrobats twirl and leap as well as hear all kinds of music play.

 

Frozen at Skyline Park

If you haven’t heard the song Let It Go enough yet, here is your chance to get another dose.

Skyline Park is showing Frozen on July 5th

COST: Free

Frozen tells the story of Princesses Anna and Elsa and their adventures in the icy kingdom of Arendelle.

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Fireworks, Fireworks, Fireworks

The Rockies, Rapids and The Outlaws will all be shooting off fireworks at their games this year.

The Colorado Rockies taking on the Los Angeles Dodgers on July 4th but tickets sell out fast!

Colorado Rapids are playing the Columbus Crew on July 4th and the Denver Outlaws are going head to head with the Boston Cannons Independence Day.

 

Pikes Peak Art Fest

The art festival runs July 4-6 from 10am-6pm daily and if you want a change of scenery this is a great option! The art fest is FREE and open to the public and also includes three days of music performances. Head to Colorado Springs and enjoy the change of pace.

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City Park Jazz

After all the festivities over the weekend come to a close, it may be a good idea to relax on the lawn of City Park and take in some good tunes. City Park Jazz is FREE and you can come listen on July 6th. Soul singer SuCh will be featured, make sure to bring a picnic to enjoy with friends and family!

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Colorado Irish Fest

Already thinking ahead? Don’t miss out on this year’s Irish fest! The festival is held at Clement Park. The festival is filled with music, food drinks and includes and cultural village. Visit the website for more information on admission cost.

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Bungalows versus Ranch Homes

Whether you are watching HGTV, or looking to buy a house you may have heard of the term ranch or bungalow. Whatever the case may be some terms for homes can be confusing. This blog post will help you tell the difference between the two.

The Bungalow:

                The bungalow is typically square in shape and only made up of one story. The largest room is typically the living room and it will consist of small windows and the sleeping rooms leading off the main room. The kitchen will typically be towards the back of the home. Bungalows will also be detached homes with no garage. It is said that the bungalow became popular in the early 1900s and that the first American bungalows were built in the Northeast. Many believe that bungalows can be easier to care for as well as more private then most homes.

In the Denver metro area there are many bungalow homes in neighborhoods like Washington Park, Berkeley, Sloan’s Lake and City Park. To modernize bungalows, many contractors are opening up the wall between the living room and kitchen to make the floor plan a more open concept. They are also constructing detached garages.

The Ranch:1070 S Newark St - Front #2

                Ranch homes are typically rectangular in shape with a more elongated floor plan. The sleeping rooms are set further from the main living room area. There are typically more windows then there are in a bungalow and they are usually larger as well. Ranches can also include an attached garage in the floor plan as well as vaulted ceilings which bungalows do not include. Ranch homes can provide more interior space and can be more convenient for larger families. The first ranch homes were said to be built in California around the 1930’s and became popular in the 1950’s.

In the end it all depends on what you are looking for in a home. Both bungalows and ranches have great things to offer in a home. They are both convenient in the sense that there are no stairs which make them both very accessible. Many can have basements for additional living space. They can also both be found in a variety of different prices ranges throughout the Denver Metro Area depending on the neighborhood. If you are interested in buying a or selling a ranch home or bungalow I can help, call me at 303-912-3320

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5 Tips to Becoming a Successful Homebuyer

In today’s competitive seller’s market, homes are selling in a matter of days. In a large number of cases they come on the market and get 4-8 offers within hours.  As a seller this is a dream come true, but what about buyers? It can be very frustrating. How can a buyer win the home they like in today’s market? Here are some tips you might find helpful in becoming a successful home buyer.you-are-pre-approved

1. Be pre-approved not just pre-qualified:

To be prequalified you will need to talk with a lender, run your credit and give the lender a verbal account of your income and expenses. The lender will tell you an estimate of the amount of home you can afford given the information you have provided. Taking the next step to be pre-approved will make you a much stronger buyer. To be fully preapproved you will need to turn in all of your financial documents, such as your pay stubs, tax returns and bank statements. The lender will not only review them, they will also send the documents to the underwriter who makes the final decision on whether or not the loan will go through. With the underwriter’s approval you are a very strong buyer. Often your loan will be able to close sooner if you have already completed this step, which is an additional bonus.

2. Be flexible on the closing date.

Some sellers will need to find their replacement home. If you arclose-on-home-pice willing and able to let the seller remain in possession a week or two after closing they aren’t as pressured to move out immediately after closing. Another option is to allow the seller to rent back from you for a month until they can purchase their new home.

3. Have reserves to pay your own closing costs.

You can also talk with your lender about rolling the costs into the structure of the loan. With so many competing offers, sellers are not as quick to pay closing costs as they were a few years ago. Closing costs can be $4,500 to 3% of the purchase price. If you have your own funds, great! If not, there can be ways around it. Sometimes your lender can raise the interest rate by a 1/8 of a percent and roll your closings costs into the structure of the loan. This may not be an option for allsavings pig buyers so make sure to talk with your lender to see if it would be beneficial to you.

4. Be quick on the draw!

The good homes are selling so quickly you need to be flexible in your schedule to view homes the same day they come on the market. If you see a home for sale on Thursday, there is a good chance it may not be available when you have a day off of work on Saturday. Talk with your boss about your process of buying a house and ask if they can be flexible to allow you to have an extended lunch and make up the time by staying late. It might make all of the difference.

5. Don’t get discouraged.

You may have to submit offers on several homes before we win the contract. With patience and persistence it will eventually all work out.

Partnering with a lender and Realtor who are experienced, work full time in the profession, and who put your needs first is key!

If you would like more information on how we are successful in winning homes for our buyers please give me a call, 303-912-3320.

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Actualización del mercado de Denver primer trimestre de 2014 Pt.2

Si usted está buscando para comprar una casa, vender su casa o es un dueño de una casa aquí esta la segunda parte de el video que le da informacion sobre la actualización de las tendencias del mercado. Este video le proporcionará información útil sobre lo que está sucediendo en el mercado de bienes raíces en y alrededor del área metropolitana de Denver en el primer trimestre de 2014.

Si desea obtener más información sobre estas tendencias del mercado local, llame Mónica Pérez al 303-912-3320. Monica puede asistir a una función de trabajo o reunión de negocios para darle una presentación.

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Actualización del mercado de Denver primer trimestre de 2014 Pt.1

Si usted está buscando para comprar una casa, vender su casa o es un dueño de una casa, aquí hay información útil sobre lo que está sucediendo en el mercado de bienes raíces en y alrededor del área metropolitana de Denver en el primer trimestre de 2014.

Si desea obtener más información sobre estas tendencias del mercado local, llame Mónica Pérez al 303-912-3320. Monica puede asistir a una función de trabajo o reunión de negocios para darle una presentación.

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First Quarter of 2014 Denver Metro Market Update Part 2

Whether you are looking to buy a home, sell your home or are a current homeowner here is part 2 of the market trends update. This video will provide you with some helpful information on what is happening within the real estate market in and around the Denver Metro Area for the first quarter of 2014.

If you would like more information on these local market trends or general information, call Monica Perez at 303-912-3320. Monica can attend a networking function or business meeting to give you a 15 minute in depth presentation.

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First Quarter of 2014 Denver Metro Market Update Part 1

Whether you are looking to buy a home, sell your home or are a current homeowner here is some helpful information on what is happening within the real estate market in and around the Denver Metro Area for the first quarter of 2014.

If you would like more information on these local market trends or general information, call Monica Perez at 303-912-3320. Monica can attend a networking function or business meeting to give you a 15 minute in depth presentation.

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Que es una vivienda de HUD?

Este video le ayudará a entender lo que es una vivienda de HUD y le dará información acerca de todo lo que necesita saber acerca de las viviendas de HUD.

Si usted necesita ayuda con cualquier aspecto de la compra de una casa de HUD llame a el Equipo de Bienes Raices de Monica Perez 303-912-3320

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