Investment Options: Flipping vs. Long-Term Ownership

Investment property owners: Is it better to flip a house or to own a rental home long-term? Today I’ll discuss.

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If you’re in the market for an investment home, you might have come to a point where you’re struggling to decide whether to flip a home and sell it or to just hold the home and rent it out to tenants.

One of the most important things to consider when deciding between these two options is the return, or cash flow, you could get.

In the Denver market, for example, a good fix-and-flip property could get you between $20,000 and $100,000.

If you rented out a good single-family home you own for $2,500 a month, but your mortgage on the property is only $1,500, you’re cash-flowing $1,000 a month for life. Rents will go up and down over time, but the overall trend will be upward. You also might have repairs to contend with, so keep that in mind. 

Consider the profit margin for both options and how much work you’re prepared to do to make money from the property.

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So would you rather make a quick $20,000 to $100,000, or the $12,000 a year for life? Flipping properties is an intensive project upfront that yields a quick return, and you’ll have to go out and find more properties if you want to continue making money that way.

Ultimately, consider the profit margin for both options and how much work you’re prepared to do to make money from the property. Whichever way you decide to go, I’d love to help you figure out the best fit and how to finance your next investment. Give me a call or send an email, and I’d be happy to start that conversation with you. In the meantime, have a great day!

6 Things for Millennial Homebuyers to Consider

Millennials: there are six steps you need to think about before you start the process to purchase a home. Learn more here.

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As a millennial homebuyer, here are the six steps you need to consider before you begin the home buying process:

1. Commitment. Commit to the fact that you’ll no longer be a renter—you will not throw away your money by giving it to a landlord so they can profit while you get nothing in return. This mindset will better prepare you for the homeowner mentality.

2. Finances. Consult with a professional to help you better understand your finances. What does it mean to buy a house? How much will you need to put down? What will that look like, tax-wise? What will your monthly payment be like? And how does that all help you grow your home’s equity?

3. Credit score. Similarly to the above point, figure out your credit situation. Make sure you understand what credit really means, how important it is in terms of your loan payment, and how it will affect your down payment.

Commit to the fact that you’ll no longer be a renter—you will not throw away your money by giving it to a landlord so they can profit while you get nothing in return.

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4. Lender. Should you just go with your bank, your friend who’s been in the lending business for a year, or someone your Realtor recommends? Do your research to find a skilled lender you can trust to help you.

5. Real estate agent. Finding the right agent to help you in the process of purchasing a home is vital. Consider the value of a real estate agent by assessing how much you personally know about the process.

6. Interview potential agents. It may take interviewing multiple agents before you settle on the one, but it’s worth it if you find someone who understands you, listens to you, and really cares about your wants and needs. A great agent should take the time to teach you about the market and negotiate on your behalf once you go under contract on a home.

If you think you’re ready to begin the process of becoming a homeowner or are even thinking about making this transition, reach out to me. I want to be one of the agents you interview, and I can show you what we’ll do to cover you during the process and to make your life better because of real estate. I hope to hear from you soon!

4 Neighborhoods That Combine Great Living & Great Food

Looking to move to an area with a great restaurant and bar scene? These areas should be on your short list.

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If you’re looking to move someplace in Denver that’s nice and close to some foodie hotspots, here are the four areas I recommend:

1. Washington Park. This is always a classic choice. A number of great restaurants have been in this area for a long time, and it’s within reasonable walking distance to Downtown Denver.

2. LoHi (aka Lower Highlands). Located in downtown Denver right next to Sloan Lake, this area has so many new restaurants pop up, I can’t even keep track of all of them. But that’s the beauty of it—living here means you can walk to Downtown Denver for work and walk to all these great restaurants without ever seeing all of them.

If you know of any awesome restaurants I should be aware of, don’t hesitate to reach out to me.

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3. RiNo (aka River North Art District). This is a sprawling district on the east side of I-25 that features a slew of cool dive bars and restaurants.

4. Littleton. If you’d rather be further removed from the downtown scene, Littleton has some great restaurants as well. Old Littleton, specifically, has staples like The Melting Pot, Kate’s Wine Bar, and Jake’s to choose from. It’s an amazing location that also allows you easy access to Santa Fe Drive.

If you know of any awesome restaurants I should be aware of, don’t hesitate to reach out to me. I’d love to feature them in a future video, and if I do feature a restaurant you tell me about, you’ll receive a gift card to that same venue.

As always, if you have any real estate questions, feel free to give me a call or send me an email as well. I look forward to hearing from you.

Showcasing a Beautiful Littleton Home

One of Colorado’s premier properties has just hit the market, and you won’t want to miss this video tour of it.

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Today I’m going to take you along for a virtual tour of 426 McArthur Drive: one of Colorado’s most incredible properties. This 6-bedroom, 4.5-bathroom home boasts an 8,000-square foot floor plan and is the perfect blend of comfort and elegance, with incredible views both indoors and out.

Whether it's preparing a meal for loved ones in the massive, modern kitchen, enjoying the mountain scenery from one of the property’s several walk-out decks, perusing your very own wine cellar, or entertaining at the full bar in the basement, there is no shortage of ways to enjoy this marvelous home.

The property even comes with its own driving range. In short: This house just may be the perfect place for you to call home.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Benefits of Living in Castle Pines Village

If you’re looking to buy a home in a gated community that offers plenty of great benefits, Castle Pines Village may be the place for you.

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Today I want to tell you about one of my favorite neighborhoods in all of Denver: Castle Pines Village.

If you’ve never heard of Castle Pines Village and you’re a homebuyer, there are plenty of benefits to living there. Over the past few years, my team and I have done a lot of business in this area. In fact, it’s where my family and I call home.

Castle Pines Village is one of the only gated communities in Denver that has a lot of pine trees, which are great for privacy and create an escape from the otherwise open landscape of Colorado. I moved here from California, and it really reminds me of the coastline forests of that region. Since it’s a protected area, you’ll also find a lot of neat wildlife roaming about.

If you’re an avid golfer, there are two executive courses within Castle Pines Village that offer full-package memberships that include the use of a variety of top-notch facilities.  

Over the past few years, my team and I have done a lot of business in this area.

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Every house in this community offers amazing views, but you still have quick access to the highway. There are also a ton of amenities located right outside the gate, including shopping centers and quick routes to the mountains.

Unless you’re a resident, you can’t get inside Castle Pines Village without a real estate agent, so if you’d like to take a tour of the neighborhood, give me a call and I’d be happy to be your guide. 

As always, if you have any other real estate questions, don’t hesitate to reach out to me as well. I look forward to speaking with you.

How to Find the Best Schools in Denver for Your Kids

I work with a lot of clients who are relocating to Denver with their families and want to find the perfect school for their children. Here’s what I recommend that they do.

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If you are thinking about relocating to Denver from another area in Colorado or another area in the country, you likely have a lot on your mind. If you also have kids, you’re probably also wondering about the school system and wondering about where your child should go.

There are a lot of options. Public schools, charter schools, private schools, specialty schools, religious-based schools, wilderness schools, and more.

When I’ve been asked this question from my relocation clients, I often point them to schooldigger.com or greatschools.com so they can do their own research. In addition, I wanted to introduce you to a really cool company: Emerging Consulting.

You can find them right around DU, which is right in central Denver, and they take a really cool, holistic approach to figuring out what kind of education you want your child to have. I highly recommend it and I’ve had clients rave about it in the past. If you’re interested, send them an email to info@emergingconsulting.com.

I’ve had clients rave about Emerging Consulting in the past.

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If you have any other relocation or real estate-related questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

How Real Estate Improves Your Life, Part 3: Your Commute

Today, let’s talk about your daily commute.

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How is your daily commute going?

If you work from home, then it doesn’t matter.

But suppose you work downtown every day: Do you commute across town, fighting the Denver traffic on a daily basis? If you have to travel hours each day to get to work, I bet you’ve been thinking about how you can change your commute: “How can I relocate? How can I find a better way, short of getting a different job, that allows me to work from (or closer to) home?

For those who want to keep their current job but fix their daily commute, I encourage you to think about the benefits of owning real estate closer to work—it can make your life better.

We always ask our clients how owning real estate could make their life better. How will buying a house help your life, and in what ways? Is it going to increase your quality of life?

It’s not even just your money that your long commute is eating up—it’s also consuming quality time with those you love.

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If you’re commuting 45 minutes to an hour (sometimes even two hours) every day just to go to work, purchasing a home closer to work is something to consider. Think about other areas in town that might shorten your commute and save you a ton of money in the process. Imagine all the money you’re spending on gas or public transportation every single day.

And it’s not even just your money that your long commute is eating up—it’s also consuming quality time with those you love, whether it’s with your kids, your spouse, your family, or your friends. If you could have more time to spend with your loved ones AND live in a great property from which the commute to work would save you money, wouldn’t it be worth it?

You have all sorts of options. Yes, it may mean a sacrifice in some areas, but I encourage you to take some time to reflect on what’s most important to you and how real estate could help improve your quality of life.

If you’ve thought about finding a way to shorten your commute to work, reach out to me. We can discuss whether that’s even possible, what areas would be beneficial to look into if it is, and how we could go about finding the right property for you. I hope to hear from you soon.

The Value of Real Estate, Part 2: Homeownership

Today I wanted to share another way that real estate can make your life better.

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How does real estate make your life better? The obvious answer is that it allows you to stop paying rent—something that people the world over would love to be able to do—so that you can build equity and to establish a nest egg.

Think about it: No more landlords, no more rent hikes, no more waiting on someone else to make repairs, and no more worrying about whether or not your life is ever going to change.

When you buy a home, it’s yours. You get to explore and design the home to make it what you want it to be, no questions asked. The exception here is if you buy a home in an HOA (homeowners association) because they regulate what can or can’t be done to the outside of the home. But, for the most part, you have complete control over your home.

Owning a house can make your life better because it’s an extension of who you are and who you want to be.

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One thing that my wife and I have been pondering recently is whether our identity right now as homeowners is who we want to be—does our home resemble us? We’ve already done a lot to it already, but now we’re wondering, “What’s the next step to make our home embody who we are as a family?”

For example, maybe it’s more land. I would love to have our house back up to open space with a view of the mountains in the background. I’d love a fourth garage where I could park an RV or a boat someday. I’d also love to have more space for dogs—it’s a crazy idea, but I’d love to have 12 dogs and, with open land, we’d have the space to accommodate them.

Owning a house can make your life better because it’s an extension of who you are and who you want to be. Homeownership is a vehicle for self-expression.

If you’ve thought about owning your own home, or upgrading to another home, give me a call. We’d love to chat with you more about your dream and what your home needs to look and feel like for you.

How to Build Wealth Through Real Estate With the “Two-Year Live and Move” Method

Buying multiple properties may seem like an out-of-reach goal, but today I’d like to share how accruing several houses through the “Two-Year Live and Move” method can help you earn wealth through real estate.

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At the Anderson Group, the idea that your life can be made better through real estate is the foundation of our company.

There are a few different ways this philosophy can manifest. For one thing, homeownership in and of itself can massively improve your quality of life. But what about buying multiple houses? If buying one house is beneficial, is buying several even more so?

Owning a lot of property is, of course, a dream many people share. It boosts your net worth and can even open up opportunities for earning passive income. That said, not everyone has the funds to buy and own more than one home at a time. If you’re on a fixed income, purchasing multiple properties might not seem like an attainable goal.

With all of this in mind, I’d like to share a method that can put this aspiration back within reach: The “Two-Year Live and Move” option. Here’s how it works:

The more investment properties you accrue, the more passive income you gain over time.

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The first step is, of course, to buy a home. The next step is to live in the property for two years, building up equity as you do, and then to move on to your next home. Because your first home will likely have appreciated in the two years you lived there, you will be able to borrow from this equity to facilitate this move. Instead of needing to put 25% down, you’ll be able to buy your second home for just 3% or 5% down.

The catch is that, instead of selling your first home, you maintain ownership but turn it into a rental property. This passive income will allow you to continue paying off the property without dipping into your own personal funds.

The best part is that you can continue this process as many times as you want, accruing more and more investment properties (and, therefore, more and more passive income) over time.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

3 Questions to Consider When Thinking About Buying a Second Home

If buying a second home has been on your mind, there are three questions that’ll help you determine if it’s the right move for you.

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Buying a second home, for some, would be a dream come true—another home away from home. For others, it makes little sense. Those folks wonder, “Where is the value in buying a second home when I could Airbnb wherever I’d like to travel to in the world?” That question is fair, and they’re equally legitimate thoughts on the subject. 

If you’re someone who is leaning toward making this purchase, there are three questions you and your family should consider:

1. Is it going to be fun? A perk of buying a second home here in Colorado is that you’ll never be far from the mountains, and access to skiing, water, and hiking trails could make for long-term enjoyment for you and your family. 

Buying a second home and opening it up for short-term rent when you’re not there is a great way to pay the mortgage and even receive cash flow.

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2. Could it make money for us? I’m speaking from experience, as my family and I bought a cabin for vacation stays and with the intention of renting it out when it wasn’t in use. Following the purchase, it didn’t take long before we had renters coming through, helping us shoulder the mortgage cost. This way, we can make visits when we like (Christmastime, the summer months, etc.) and allow renters to stay short-term for the rest of the year. Buying a second home and opening it up for short-term rent when you’re not there is a great way to pay the mortgage and even receive cash flow.

3. Can it grow? Don’t be dissuaded by the fact that growth may not be as rapid as it would be in, say, Denver. Instead, look at this purchase as a long-term investment that you can one day pass along to your children—putting the property in their name, creating an LLC, or buying it with your 401(k) are viable options. 

If you have any questions about buying a second home or if you need any help whatsoever with your real estate needs, please give me a call. I’d love to chat with you!

How You Can Buy a Home for Next to Nothing Down

Here’s how you can spin a home seller’s situation into a rewarding transaction for the both of you.

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Today we’ll be looking at an interesting topic: How you can purchase a home for almost nothing down. We’re not talking about utilizing government assistance programs, VA loans, or FHA loans; we’re simply talking about buying a home for less. Here’s what we do to get our buyers homes for cheap.

We find homeowners who don’t have mortgages and are willing to do owner-financed carries with a low down payment. By doing this, the owner avoids the major hit of capital gains taxes.

Let’s say the house is in a great location and worth $700,000. The owners have no mortgage and want to sell it, most likely so they can retire. At this price point, the capital gains on their property will be very steep. If they’re at the height of their professional career, they’ll be paying even more because of their income.

You want your ideal candidate to be someone who wants to sell but doesn’t want to pay high capital gains taxes. They’ll be willing to let you purchase their property for very little down—a fraction of what you’d pay through traditional financing. 

This is a different route you can take when purchasing a home; one that is rewarding for both you and the seller.

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You could potentially negotiate a mere $20,000 down payment and buy this $700,000 home. You then begin paying the mortgage to the seller immediately—let’s say it’s $3,000 a month. You can now turn your purchase into an investment and begin renting out to receive a monthly cash flow. At this point, you’ve put down very little and have your mortgage being paid for you.

And you didn’t have to go through the traditional methods of getting pre-approved. All in all, this is a different route you can take when purchasing a home; one that is rewarding for both you and the seller.

If you have any questions or need more information, feel free to reach out to us. We look forward to hearing from you.

We’ll Find a Home in the Neighborhood You Love

You’ve found the perfect neighborhood, but there’s nothing for sale. We can change that.

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Nothing sums up our abilities more than this: You pick it, we’ll find it. Tell us what you want and we’ll do everything we can to get it for you. Let’s say you really want a home in a certain neighborhood but can never find a home there that’s for sale. This is where we come in.

We sit down with each of our clients and find out exactly what they’re looking for. We use software that allows us to find the names, phone numbers, and email addresses of homeowners in a preferred area. We contact them to find homes that aren’t on the market yet, which are usually pocket listings or homes that aren’t even for sale at the moment. We will find you a home. 

We guarantee we can find you your home.

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If you’re a homebuyer who already has the ideal neighborhood picked out but can’t find a home for sale, put us to work. It costs you nothing, and we can find you a home that would never be found otherwise. We guarantee we can find you your home, and if we can’t, it’s free. We want to make sure you have an amazing home buying or selling experience. Real estate should make your life better, not worse.

Feel free to contact us anytime if you are looking to buy or sell, have questions, or need further information. We’d be more than happy to help. We look forward to hearing from you.

Tips for Getting Your Children Excited About Your Upcoming Move

Moving can certainly be a stressful time, especially for your children. Here are some tips for getting your kids excited, rather than angry or unenthused, about the move.

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I recently had the opportunity to work with two homeowners who wanted to sell their home in our neighborhood. They have several kids each, which was no small aspect of the process. Today I want to discuss how you can prepare your children for a move, whether you’re buying or selling.

Involving kids under the age of 18 with a move can be a challenge for any parent. Getting a child ready to move means, often, uprooting them from their school, their friends, and everything else they’ve grown accustomed to as long as you’ve lived in that house.

My first recommendation is to get the kids involved as soon as possible so that they feel a part of the process. This could mean asking them to stage the house or sorting through their things to donate any unused items. Passing unwanted things down to other kids who might enjoy them should make your children feel good.

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Get the kids involved as soon as possible so that they feel a part of the process.

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Second, get them excited about the next house. Discuss the layout of the new neighborhood, or better yet, drive them to it so they can see with their own eyes. Help them get to know the new school they’ll be attending and the fun areas around that they’ll be able to enjoy. It’s so important for a child to be able to visualize their lives after the change of houses, so doing these things will help them understand just how great the next step of the journey can be.

Finally, ask them what they want their bedroom to look like. Bring them to your new home and let them start making plans for how they want to arrange their new space. Give them options for colors, furniture, and so on so that the move can be a fun, memorable event with lots of good things to look forward to.

If you’re moving soon and have questions about how it will impact your children, feel free to reach out to me. I have plenty of stories and ideas to give you that should help make your move a great transition for everyone.