Happy Veteran’s Day From Spaces Real Estate in Boulder!
At Spaces Real Estate, we love a great client success story. This tale of remarkable Boulder real estate results comes to us from our very own Ken Crifasi.
At the height of the recently reheated Boulder real estate market, Ken met a savvy first time real estate investor looking for a home in Boulder or in the Denver Metro area. Val was eager to score a great bargain on an investment property. He was working as a helicopter pilot for the United States Air Force and stationed in Kuwait.
This purchase would need to happen from afar. Ken agreed to do all of the ground work stateside and provide photos, advice, and spread sheet analysis to aid in property selection. Working as a team, they crunched the numbers, reviewed all alternatives, and decided that a 4-plex would maximize Val’s investment dollars and return on investment.
The stage was set for a great deal on a first-time investment, but there was a snag – mortgage rates had just hit new lows and investors were buying up listings like crazy. Suddenly prices were rising at a fast pace and the great deals were becoming harder and harder to find.
Through skill and determination, Ken identified some possibilities and Val found some properties online as well. They managed to narrow the choices and wrote a first offer. The property was priced lower than market value, so the offer was over asking price. The market was so competitive that even this aggressive offer was not enough to secure the investment!
Val continued to hunt and found some more options that seemed like fantastic opportunities from his vantage point online in Kuwait. Ken agreed that the numbers looked good, but found that the properties were not what they seemed after careful investigation.
Ken realized that this tough challenge would require some out-of-the-box real estate problem solving. “Let me try a different route” he said. “Let’s find the ideal property that is not listed yet, and see if we can beat out the other investors to a deal BEFORE it’s listed.” Val agreed that this was a smart approach and Ken got to work combing through his database of realtors, clients, property owners, and investors.
Ken managed to find an owner of a 4-plex willing to consider a sale. The property was in a GREAT neighborhood, but the numbers didn’t look so promising. Ken dug deeper and carefully studied the Profit and Loss and Cash Flow Statements. Ken realized that the property was being managed poorly and that there was a ton of lost income opportunity.
They submitted an offer and of course there was no competition since other investors didn’t even know about the property. The offer was accepted! Ken attended the inspection, met with existing tenants, performed extensive due diligence, and helped Val seal the deal.
In the end, after 100‘s of emails and even a call by Satellite Phone, Val bought the investment for Zero Down payment, and a positive Cash Flow of over $900 per month! Val didn’t even see the property in person until after the closing.
Congratulations Val – Happy Veteran’s Day and a special thanks from the Spaces Real Estate team for your service to our country!