Are you looking for a way to achieve financial independence and retire early? Do you want a new way to save money for your future and make the most of your time? Denver real estate investing can be the answer.
Denver is a rich real estate market, and with the right information, tools, and connections, you can make investing work for you. The Real Estate Financial Planner™ and the library of resources here on site can be your key to success.
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Not sure where to start? Follow our guide to learn what you need to know to become a real estate investor. We’ll take you through the process step-by-step.
Make an Investment Plan
Your first step should be to make a plan. Real estate investing can involve a lot of big numbers and real collateral like valuable property, and you don’t want to make the mistake of jumping in without knowing how to make it all work for you. You’re already headed the right direction by reading our guide!
Determine Your “Why”
Why are you interested in real estate investing? The team behind Real Estate Financial Planner™ has heard it all. Here are few common answers:
- Financial independence
- Early retirement
- Wealth
- More time with family and friends
- Funds for charitable causes
- Passive income
- Buying an island
Okay, so the urge to buy an island isn’t what drives most people to real estate investing, but many of the other answers on that list come up in the classes we offer. If one of those options speaks to you, great! You likely still have a little more digging to do. You need a reason to keep you motivated when things get tough, which is why we encourage you to keep asking yourself “why?” until you find a reason that lights you up and makes you want to go to work.
What Is Your Goal?
Now that you know why you’re becoming a real estate investor, it’s time to connect that with something real. You want financial independence — what number in your bank account do you have in mind? How many properties do you need to achieve the passive income you want? Start the process of becoming an investor with this end in mind, and build your plan for how to get there.
Do a Financial Check-Up
Investing isn’t only for the rich. There are plenty of approaches to choose from, but a key part of creating your investment strategy is having a solid grasp of your current financial situation. Take the time now to do a deep dive into your finances and write down some numbers. It’s important to not only know what you have to work with, but also what you plan to work toward.
Choose Your Real Estate Investing Strategy
There are plenty of ways to approach real estate investing. There is no one right way, but there is likely a right way for you. Learn more about the three types of real estate investors who can benefit most from the Real Estate Financial Planner™, and explore what strategy works best for you and your goals.
What Kind of Investor Are You?
Buy-and-Hold Investor
Buy-and-hold investors typically buy a property to maintain ownership and rent it out for income.
Nomad™
Nomads are buy-and-hold investors with a twist: they acquire properties and live in each for a period of time. Most lenders require owner-occupants to reside in the property for at least a year before they can move on to a new place and rent out the old property.
House Hacker
House hackers are another kind of Nomad. To optimize the income they earn from owner-occupant properties, these investors typically rent out part of the property they are living in. For example, a house hacker may rent out other units in a duplex they own or rent out other bedrooms in a home where they also live. Then, they can move on once they meet the lender’s requirements and rent out the entirety of the previous property!
The Real Estate Financial Planner™ is designed to make life easy for all of these types of investors. With our software, you can model your investment strategy in a wide variety of conditions so you can feel confident in your plan — and your back-up plan — as you move forward. Get started with a “forever free” account!
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Build Your Team
No one succeeds in real estate investing alone. Your best chance at success is to surround yourself with supportive, competent, and helpful people. Keep reading to learn who you will want on your side throughout this process!
Supportive Family and Friends
What do the people closest to you think about your new venture? We hope they are as excited as you are! Having family and friends who support your step into investing can make a big difference, especially when things get tough. They may even become partners down the line!
Real Estate Agent
All the best investors have a real estate agent or Realtor® they trust. How do you find the right fit for you? Check out our class on finding the right real estate agent, and remember that someone you want to work with will make the investing process all the better! Look for someone who understands investment properties and is ready to build a relationship with you. Need recommendations? We have a few ideas!
Investing Mentor
Are you feeling a little nervous about taking the leap into real estate investing? Find someone who has done it all before! A mentor can help you learn the ropes and avoid beginner mistakes. Join the Northern Colorado Real Estate Investing Group to start making connections, and read our tips on finding the right mentor for you.
Mortgage Broker or Lender
For most of us, a mortgage broker or lender is essential to buying property. Putting time, thought, and energy into finding the right lender can save you plenty of headaches down the line! You want a lender that understands investment properties and can streamline the process with each purchase. Not sure how to evaluate all the potential mortgage brokers and lenders out there? Not to worry — we have a class for that!
These are going to be very important people in your life as you step into real estate investing, and your team will likely grow with time and experience. You may eventually expand your circle to include:
- A real estate attorney
- An insurance agent
- A home inspector
- A title agent/closer
- A CPA
- A maintenance team
Explore our online class library and keep an eye on our blog to learn more about building a team that will support your investment goals and dreams!
Start Your Property Search
Get Pre-Approved Financing
There are a few things you should take care of before jumping into a property search. For example, you will need to qualify for a loan and get a letter of pre-approval before your real estate agent will start looking at properties on your behalf. No one wants to waste time on homes you can’t afford, so it’s better to have your letter of pre-approval from your lender in hand before moving forward. What financing options are available to you? We’re glad you asked! Check out our class on real estate financing to learn more.
Find the Right Financing for You
Clarify Your Criteria
What are you looking for in an investment property? The more detail you have, the faster you can move on to making an offer. Here are a few guidelines to get you started:
- Type of property
- Location
- Price range
- Size
- Condition
Tell your real estate agent if you’re specifically looking for single-family homes in Fort Collins in rent-ready condition, and they can do the legwork for you in finding a property that meets your needs. Once you’ve narrowed down your options, you can start analyzing each property and determining if it’s the right choice for your investment portfolio.
Make an Offer
What is one thing all successful real estate investors have in common? They take action! Getting your first property under contract can be nerve-wracking, but you’ll never achieve your investment goals if you don’t make a move. Plus, you have the team behind the Real Estate Financial Planner™ on your side. We have hundreds of resources to help you make a strong offer that will benefit your portfolio, along with advice on how to close the deal and make your rental property a success.
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Have an Exit Strategy
If we have one recommendation for beginners to real estate investing, it’s to have an exit strategy before you buy anything! You don’t want to be stuck with a property you had only intended to keep for a few years. That’s why it’s key to plan ahead and take advantage of the tools and resources here such as the Real Estate Financial Planner™.
With our software, you can model a wide variety of conditions, from a real estate market crash to a boom. You can get a glimpse at what your future may look like as a real estate investor, and not only make a plan, but also make a Plan B. To learn more about how to navigate real estate investing like a pro, take the time to watch or listen to all the classes we have available, and create your “forever free” account with the Real Estate Financial Planner™.
