Live Where You want and Invest Where the Numbers Make Sense
Have you been singing the “low inventory” blues? Based on the countless questions I receive from ICOR members across the entire front range and beyond, many are singing the same tunes—when will inventory return, or what will inventory levels look like by the end of the year, with the narrow margins should I sit on the sideline until the market makes sense to my investing criteria?
If you were listening to January’s panel discussion, our market experts screamed and shouted from the rooftop that there is a ton of opportunity for everyone depending upon what your investment strategy is, OR if you have the skill set to get ultra-creative where the current market numbers become more palatable.
And one of those creative opportunities is out of state investing.
For many of us, the idea of investing out of state looks desirable (affordability, potential cash flow, and more). But then the anxious feeling of pulling the trigger in a “new-to-you” real estate market creeps in. As the saying goes, good in theory…poor in execution. The very first time I presented this programming, I read an article about a California based investor who came into Canyon City, CO, purchased a property without knowing the details and what is driving the market. The California investor in question lost his shirt because he did not choose the appropriate exit strategy, got eaten alive in holding costs, and then had to switch lanes to make it work for him. Knowledge and due diligence are essential to this investment opportunity.
That’s why in February, ICOR is going to focus on all things “Out of State” (and some in-state markets that may seem out of state like Pueblo, Grand Junction, and other secondary/tertiary markets) real estate investing that will allow you to walk into any market and sometimes, sight-unseen, to be able to see where and what opportunity looks like. Remember, the skills you learn here in your local market do not change, only the variable in the equation do!
ICOR is dedicating this month to sharpening our skills that will not only make us better investors…but allow us to discover out of state opportunities and make an informed decision on if this is right for you or how to confidently evaluate a property or marketplace. After all, why buy only one $300,000 house in Colorado (with negative cash flow) when you can buy three $100,000 houses in a city and enjoy positive cash flow without any of the landlord headaches. And why it’s important to understand why you are buying what you are buying…appreciation? Cash flow?
For our February meeting on February 10th, David Nielson, Boomerang Capital will share experiences working with investors in out of state markets across the US. From his vantage point, you’ll see not only investors like you venturing into the “unknown,” but you’ll know how a lender evaluates a deal and marketplace…which shouldn’t be too much different than you.
Later in February, the Out of State Investing Summit returns to ICOR after a 4-year hiatus. This event is a hands-on lab where we will bring a group of investors who have made a career for themselves, identifying, evaluating, pinpointing, executing, and closing on deals across the US.
Join ICOR for its 2021
"Out of State Investing"
This is a two-day learning lab & marketplace | Day 1: Learning & Day 2: Doing
February 27th & 28th
Click Here to Register & Full Details
At the Out of State Summit, February 27th & 28th, you will learn, practice, and evaluate deals in hot markets across the US, including:
- Scoring Neighborhoods, in conjunction with comping, will give you more control in evaluating a deal sight unseen with eleven key variables.
- Using Hidden Market Deal Finding Skills in new to you markets.
- Tools and resources that will add color commentary to traditional means of comping properties.
- And lastly, building your team on the ground, including lenders, title, contractors, and property managers
We look forward to you joining us on this real estate expedition across the US, and hopefully, we’ve got the answer to those “low inventory” blues!