I recently heard a real estate broker tell a group of other brokers that Denver is no longer a “flipping market.” I found it humorous because Vince and I currently make the bulk of our income from flipping houses in the Denver market, and teach others how to do the same. In our opinion, it’s always a flipping market if you learn to adapt to the market’s twists and turns.
That being said, I understand where she is coming from. The market has changed. No longer can you buy and fix under $200k. A Denver flipper has to be willing to buy in $300s, 400s and even 500s. Denver’s housing market is now in the company of cities like New York City, Seattle, Portland and San Francisco – a.k.a. pricey!
That brings us to out of state investing. There are seas of houses throughout the country that you can buy for less than $100k. For flippers, this means you pay less in holding costs and labor on your fix and flips. For landlords, this means you can get more units for your money. This is exactly what got Invest Success thinking about how we can help investors in Colorado expand their horizons.
After tons of networking, meetings and even trips, we narrowed our search to the Cleveland area. This led to our first Out of State Real Estate Investing course in June 2018, which took local investors to Cleveland for a 3-day intensive learning experience. This was not textbook learning, it was hands-on, real-world, get-your-boots-on-the-ground style learning!
Attendees received training from Dave Newman and Marie Makiano, who started investing out of state while living in Denver just a few years ago. They have accumulated over 80 out of state investments, primarily in the Cleveland area. We toured neighborhoods and discussed the different strategies that applied to each area. We also attended networking events hosted by local lenders where we got connected to contractors, property managers, insurance providers and local investors. Our attendees left the weekend well equipped to start investing in Cleveland, or wherever they choose, because the fundamentals apply anywhere. We are already hearing stories from attendees who are finding deals and putting all the pieces together to successfully target and purchase real estate out of state.
Here are some examples of the feedback we have received:
“This was an incredibly valuable class. I believe this gave us a 6 month to 1 year head start on out of state investing.”
“After finishing the class, I feel confident I can use the tools and contacts to make the first step in buying a property here.”
“I truly enjoyed the camaraderie, sharing of knowledge and kindness shown by all involved! This was a fantastic experience and Dave Newman has such a servant’s heart! To share at the level of detail he provided was profound.”
“This was an outstanding out of state investment training course. Well worth the time and monetary investment.”
It was well worth the effort to expand our own horizons while helping others to do the same. We live by the philosophy that there are enough deals out there for everyone and we only gain from sharing our expertise. This was an enriching experience for everyone that attended.
If you are interested in learning more about investing out of state, please let us know. We are considering doing the trip again next year either in Cleveland or elsewhere (maybe even a winter class somewhere warm?). There are so many cities to choose from, so what we look for are the places where we can find some like-minded people who are willing to share what they know about the market, what to do and what not to do.
There is a time to blaze the trail, but why do so when someone has already provided a trail that you can follow? Think about it!