Pitts’ Pick Denver Investment Property

I have a client who is a walking non sequitur.  Don’t get me wrong, he’s a client and I treat him with respect and with the fiduciary responsibility that I am bound by contract.  He’s even a likable guy, but I just don’t understand his line of reasoning at times.  Yesterday, we found the THE Denver investment property that he had been looking for.  Remember the one in the Green Mountain area that I blogged about a few days ago?  The short sale that is worth $285k and priced at $175k?  Well, we took a look at it and, despite the price vs value variance, this property is in remarkable condition.  It MIGHT need $10,000 in repairs. So what’s the problem with  $100,000 swing in equity? My client tells me:  ”it’s a buyer’s market, I’m waiting for it to get better.”  DOH!

My answer:  It’s a buyer’s market, but only if you buy. Denver real estate values are good.  Investment opportunities abound in this Rocky Mountain market, as bank reo properties and short sale homes are in plentiful supply.  With weekly announcements of new government programs to assist troubled borrowers, though, who knows how long the plentiful supply of real estate investment opportunities will last.  The time to buy is now, and it is a pretty good bet that those who take advantage of this opportunity could be comfortably retired in a few years.

I was able to help my client understand and we wrote an offer on the property the next day, only to learn that another buyer, who may have learned this lesson earlier, beat us to the draw.  Our search will continue with the frustration of this experience fresh in mind.  Our next “find” should have different results.

I  ‘d like to show my client this property, but it doesn’t match the Denver area in which he wishes to establish his real estate investment portfolio.  So I’ll offer it up here.  This is a 3000 square foot 4 bedroom / 4 bathroom tri-level in Arvada for just $234,900.  That’s just $77 per square foot.  Sure, it needs work.  Most reo properties do. But when you consider that this house is in a quiet neighborhood where the comps value it at over $350,000, it’s a property that would be difficult to pass on the opportunity to look at quickly before an investor who has learned the difficult lessons does.

This Arvada real estate investment opportunity is just a mile from the MyH-O-M-E.com office.  We’ll be visiting this property on our way to work today, so hit us up if you want details of what it’s like or if you’re interested in seeing it for yourself.  We can be reached at 303 650 2866.