Some investors make it look easy, but a lot of people in the Colorado area have found it extremely difficult to find their very first investment property to fix and flip, and then resell on the active markets. If you are interested in learning how to perform these types of investment deals, then there are a variety of things that you must first consider. First of all, you must immediately figure out how you are going to finance your deals. Will you be working with a traditional lender in your local area, or will you be opting to deal with a hard money lender, which is basically a private individual that loans out there money in exchange for typically high interest rates. These people aren’t hard to find, and you can actually buy a list of hard money lenders from a list broker in your area, you just have to be willing to do the research in order to find them. This is why the most important skill in your real estate investing toolkit is marketing and networking with other investors in your local area. Building these new relationships will give you the stamina and drive that it takes to truly succeed in these local markets, and it will definitely have a large impact on your ability to close deals in as little as seven business days. There are many small neighborhoods that are worth investing in around Colorado, but first you have to perform some market research to accurately determine which ones are the most attractive, most profitable option.
Investing in real estate in the Colorado markets such as Denver and Colorado Springs can be an extremely smart choice for a new investor who is just getting started in these local areas. We have seen some brand new investors come into the marketplace and immediately start doing deals with profits over $30,000 in the first six months. This is something that is completely unheard of in other markets around the country, and it’s probably due to the increasing market values in Colorado, as this is the fastest growing economy in the entire country, and it will likely continue to grow at an extremely rapid pace over the next 10 to 20 years. A lot of people were warning that the Colorado markets might be facing a bubble, but the most recent research suggests that the economy is very stable, and will likely continue to expand at a rapid pace over the next several years. The key thing is to get into these markets now, while they are still expanding, and before they increase any further. If you wait until say 2018 to get into these markets, it may be a little bit too late. There are some markets on the outskirts of town such as in Cripple Creek and Westcliffe, Colorado that may be promising in the future, as more competition heads into the Springs from Denver. Denver has been increasing it’s market price over the past 10 years, and I think some of that economic boom is finally going to trickle down into the Springs area. Only time will tell, so pay close attention in 2016, as this is going to be a very pivotal year in the Colorado real estate markets!