Many of us are still looking for that next great investment.  The next Apple.  The next Facebook.  As we’ve all come to know, the real estate gains that were made in the past couple of decades will not make a dramatic comeback in the foreseeable future.  Yet, many people still believe that a solid return on investment can be made in residential real estate.  Let me explain:

I’m a two-time University of Denver graduate.  Believe me – I’ve spent immense amounts of time lurking around the DU neighborhood.  From the beginning, I rightly understood how great of an investment a rental home in this neighborhood could potentially be.  Think about it.  You have a consistently replenishing tenant base to fill your four-bedroom house.  Universities like DU don’t tend to disappear.  These students also often sign two-year leases at a time.  Why?  Because the cost of DU’s own housing increases every year, and they don’t want to get stuck without an off-campus residence.  The demand is that great.  Did I mention that the university charges roughly $1,200 per person!  In students’ eyes, renting a house is a steal.

So, what did I do?  Well, I bought at house on Gilpin just two blocks from the university.  It’s a four-bedroom, two-bathroom bungalow right in the middle of the bustling Evanston neighborhood.  You have the original Chipotle just a few houses down, the legendary Kaladi Brothers Coffee shop, and a number of local bar-and-grills.  Within walking distance to Porter Hospital and the historic Old South Pearl Street, it’s the prime locale for both students and young professions.

And what ROI am I experiencing?   If I hold onto the property for ten years, I’ll see a CAP rate of nearly 14%.  Not bad considering it already creates a generous cash flow even with a conventional loan debt service.  I’m not saying that everyone can experience this same return, but there are many roads to the same destination.

As LeVar Burton said, “But don’t take my word for it.”  Have a look at this article in the Wall Street Journal.

“College markets have long been one of the real estate industry best-kept secrets,” says Jim Gillespie, chief executive of Coldwell Banker Real Estate LLC. “Real estate professionals have been investing in college towns for years, often purchasing homes for their children who are attending school.”

Let us know if we can help!

1250 South Garfield Street
Denver, Colorado 80210

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Adjacent to the University of Denver

Few opportunities such as 2320 S. University come along. For the investor, this flat adjacent to the University of Denver campus offers enviable amenities including location, low HOA, deeded parking and potential 7.5% cash-on-cash return while building equity. May I suggest for rental management, Concierge Student Services. For additional information concerning investing in college/university oriented real estate check out:

http://blogs.wsj.com/developments/2009/11/05/looking-for-a-real-estate-investment-try-an-animal-house/

BTW: We do not condone an “Animal House”, just the principals, income and upside potential.

For the owner/occupant, finally a great opportunity to purchase cheaper than rent. With an asking price of $112,900 you will be amazed at what a value this is. The location is prime with easy access to downtown and the DTC as you are just blocks from I-25. In addition to the vibrant DU neighborhood, Cherry Creek is less than 10 minutes north. The expansive top-floor flat has been updated and is most welcoming. Buy now to live and retain as a rental later on; such an opportunity only comes about once every decade. Do not miss out. Owner will carry.

When life gives you lemons, make lemonade.  Alternatively when life gives you snow, make snowmen.  Snowmen always attract attention from passersby, especially if dressed in alternative attire.  I’m thinking of Frosty the Snowman’s Hawaiian cousin.  So, put Aloha Frosty next to the yard sign.  They will promote each other.  But when the temperatures rise, put him in the freezer.  No one wants to someone melt – unless it’s a wicked witch.

As a wiser man than me once said, “Don’t bunt.  Aim out of the ballpark.  Aim for the company of immortals.”  If you surround yourself with angel investors, you’re set!  If not, get your bases loaded.  During cold days, anyone seeing a house is likely to skip the yard and fly right to your front door as quickly as possible.  So, place most of your effort into staging your home.  People want to see themselves enjoying cold days inside your home.  If the atmosphere around them is cold and uninviting, so will be their hearts.  Warm them up with packets of Swiss Miss, mugs, and a Thermos of hot water next to the entryway.  For an extra touch, prepare a thank-note gratifying your potential buyer for their visit.  These simple touches will leave goodwill in their hearts and minds.  Maybe you’ll get a grand slam!

You can only make one first impression.  If you play your cards right, that’s all you’ll need.  So here is my most creative tip: clear your driveway and sidewalk.  If I wanted to go ice-skating, I would have brought my skates.  I’m getting back into my car if your house looks like the rink at Rockefeller Plaza.

Stay warm (or cool) out there!

2133 Race Street
Denver, Colorado 80205

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Author: Kyle J. Leigh

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.

7320 Woodglen Place
Castle Pines, CO 80108

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Madison & Company Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Find out more in this great article from the New York Times: http://www.nytimes.com/2011/01/02/realestate/mortgages/02Mort.html

4465 Stuart Street
Denver, Colorado 80212

Madison & Co. Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Let’s think about this quagmire.  70 miles away. 41 inches and and 38 degrees of difference.  Even Mike Nelson is twiddling his thumbs.  Not even his “tornado dance” can explain this one.

Is it “Global Weirding?”  I don’t know.  All I can get out this is the enjoyment of skiing in the morning, and then drinking mojitos outside on my deck while watching Denver’s glorious mountain sunsets.

2200 South University Boulevard, #204
Denver, Colorado 80210

Madison & Co. Properties – Denver’s Premier Boutique Real Estate firm in Wash Park
www.madisonprops.com
303-771-3850

Earlier this morning, two brokers from the office made the trek out to an industrial park in Aurora where the US Marine Corps Reserve operating Toys-For-Tots is located. With a winter chill in the air the two brokers emptied a car full of toys onto a loading dock.

It is doubtful anyone who donated toy(s) will interact with one of the many recipients. Yet, we all understand the call for and the importance of the cause: to bring a smile and joy to a child who otherwise would be without a gift on Christmas morning.

Again thank you to all who donated! Your generosity is so appreciated. Just know there will be many children in the Denver metro area who will experience a happy holiday season and will believe there is a Santa Claus.

In closing, Happy Holidays and again, THANK YOU!

Madison & Co. Properties – Denver’s Premier Boutique Realty in Wash Park
www.madisonprops.com
303-771-3850

2133 Race Street
Denver, Colorado 80205
http://www.madisonprops.com/listings.html

Madison & Co. Properties – Denver’s Premier Boutique Realty in Wash Park
www.madisonprops.com
303-771-3850

You may have come across collection bins or have heard of the program. For those who may not be familiar with Toys-For-Tots, the program is operated by The U.S. Marine Corps Reserve. Their objective “To help less fortunate children throughout the United States experience the joy of Christmas; to play an active role in the development of one of our nation’s most valuable resources – our children; to unite all members of local communities in a common cause for three months each year during the annual toy collection and distribution campaign; and to contribute to better communities in the future.”

Many of us have been fortunate to pull through this past recession. Yet many families with young children continue to be need. For many families, the choice is between food on the table or a toy at Christmas. Such a choice should NEVER have to be made.

During this most festive of seasons when out at the mall or shopping for friends and family, consider bringing joy and happiness to our most precious commodity, the underprivileged children of our community.

Your donation does not have to be grand. Any new unwrapped toy is appreciated. With the many sales this season, collectively we have the ability to insure many smiles on Christmas morning.

As mentioned our office at 1221 S. Clarkson Street #300 is a drop-location. However, feel free to contact one of our many brokers, we will come and pick up the toy(s). Even better, get your neighbors, friends and families involved. If each person donates a toy, we can insure Christmas Morning for so many will be a joyous event.

We request donations be made prior to or at our annual holiday party as we will be delivering all the toys collected to the US Marine Corps Reserve the following morning. If we are able to fill an SUV, my holiday wishes will have come true early.

Happy Holidays and to delay may mean to forget.

www.madisonprops.com
303-771-3850