As the Denver real estate market cools, investors are holding back. But should you?

If you can actually wait it out, the Denver real estate market has big plans and a long way to go before we ever catch up to the supply needed. Is it safe to say that Denver real estate is not going to be facing a massive crash this year in 2023. There’s too much to consider.

Consider this, the United States needs supply in the 3 and 7 million range of homes available according to Freddie Mac. Where as the National Association of Realtors estimates up to near 6.8 million needed to meet current demand. For most of the last decade, not enough supply was being created. Even with high levels of completed units in recent years there is still a deficit from the massive slow down in February 2020.

Buying into Denver real estate is going to be a great method for earning income passively in 2023 if you know what you’re doing. While others are being fearful, it’s time to be fearless and calculated.

Yes recent interest rate rises have affected the affordability factor of what a buyer will actually buy. It’s not that houses are getting more expensive, the ability to borrow money got more expensive for Denver real estate investors despite price drops being the norm in the past few months. The Denver real estate market in 2023 will become and feel like a “normal” market finally compared to the past 2.5 years. This is also a massive benefit to people buying with FHA financing too. We’re not in a sellers market anymore in Denver.

The Denver Real Estate Market is for the Long Haul

Many investors are praying for the current Denver real estate market to be in a bubble, it’s just simply not.

The point of investing in Denver real estate is to get a return but not at the cost and risk of speculation. There’s a lot of stories we can share of witnessing dozens of investors buy properties that didn’t make sense on paper to begin with end up being “under water” by the end of 2022. They didn’t think about the multiple exit strategies and types of investments they can actually do in Denver real estate. Buy, hold and pray for appreciation is not a strategy.

People in 2010 thought it was a bad time to buy houses in Denver, that was actually the last best time we’ve seen in decades if you were thinking for the long term. You can get into real estate investing with very little money and with even something as simple as an FHA loan by house hacking a property. This is simply where you buy a duplex, triplex as a personal residence with the ability to rent out the other units. You rent out the other units with the goal of cash flowing the property but imagine if it was enough to at least cover all the expenses, wouldn’t that be worthwhile?

The Denver real estate market has vast opportunity we won’t see disappearing anytime soon. We’re strictly talking about real estate in Denver given we have 11 years of experience in this market and have done hundreds of deals. We cannot speak for the entire country as each state has its own economy, housing, population growth, job growth, etc.

No matter your experience whether you’ve never bought a house or have done 1,000 deals, the rules and principles remain the same. One of the biggest things to keep in mind is that it’s not those who are the strongest that survive, it’s those most able and quickest to adapt to the market regardless of it being a sellers or buyers market. There’s plenty of resources to begin with when you’re starting out but most important is continued education.

Successful Denver real estate investing is a highly, highly competitive however. We won’t try and make it sound like you’ll be cash flow rich your first year. There are many things to look at in determining where and if you want to invest in Denver real estate. Determining what exit strategy and investment route you’d like to go is absolutely the most important thing to figure out.

What type of property are you going to invest in the Denver real estate market? Single family, commercial, land, townhouses, condos, duplexes, quadplexes? You also need to consider the job growth of the area, development potential, values of the properties and Denver real estate trends.

Investors are interested with investing in Denver real estate because the potential to earn income is amazing.  However, it could take just one bad deal to put someone in the hole with their finances too. Therefore, you must know and be educated in real estate investing to avoid any losses. Great real estate investors find deals all the time in Denver whenever you speak to title companies about investor transactions.

This is part 1/2 of a blog post titled: “Should You Invest in Denver Real Estate in 2023?”

Cheers and Happy Investing!