Investor Services

Initial Consultation

During your initial free consultation, we will discuss why real estate has historically been your best investment. We will discuss the four profit centers that support this. There will be a brief overview of the entire investment process so that you, as the investor, can get a feel for what to expect. We will include a discussion of investing in bank-owned and foreclosure properties and what you should expect if investing in them.

Buyer Representation

There are many advantages to being represented by a licensed real estate broker. As a buyer agent, your Realty Broker of Colorado (RBC) broker specializes in investment properties and will guide you in determining the best property, price, and terms for your investment. Buyer agency allows us to negotiate and use our best skills to get the best price and terms for the buyer. When purchasing real estate listed for sale, the seller typically pays the real estate commission for this service.

Strategy

When investing in real estate, there are two fundamental strategies - Buy & Hold and Fix & Flip. We will discuss with you the differences between these strategies and why one is better than the other. You will learn some of the finer points of investing, such as advanced tenant marketing prior to closing. We will also introduce you to a 10-year investment strategy and show you how investing in real estate can fund your retirement.

Financing

When buying investment property, typically the buyer will need to obtain financing. Selecting the right financing will increase the cash flow and future profitability of your investment. There are many different mortgages, including fixed-rate, adjustable-rate, 15-year, 30-year, and interest-only loans. The financing selection will be chosen based on your needs, but we will also discuss why, for investors, one is typically better than the others.

You will learn how leverage can be a valuable tool in accumulating wealth. While a buyer of their own personal residence can purchase property with as little as 0% down, investment property typically requires anywhere from 10% to 25% down. There are many sources for a down payment. We will discuss in detail how you can be creative and find the necessary down payment to buy your first investment property.

Property Identification

What type of investment property is the best for you and how do you narrow down the selection? There are many different types of investment property, such as single-family homes, multi-unit buildings, commercial properties, office buildings and retail storefronts, and land. Your RBC agent will help you determine which is best for you.

Single-family homes typically work out to be the best investment for the beginning investor. There is a golden price range that an investor should adhere to in order to maximize your investment return. Location of the property is of paramount importance. Your RBC agent will be with you during the property screening as you look at specific properties that best fit your needs.

Property Analysis & Selection

Once the property is identified, how do you determine if it's a good investment? Your RBC agent will perform an in-depth analysis of available properties to include price comparison, evaluation of comparable sold, listed, and under-contract properties, and a net operating income. The condition of the property will be evaluated to identify if there are significant repairs or upgrades needed. Together, you and your RBC agent will then determine the offer price.

Contract Negotiations

Contract negotiations are critical in getting the best price on your property. Your RBC agent will review the contract and any required addendums with you. Your RBC agent is licensed to write a contract and complete all required addendums on your behalf and present it to the seller or seller's agent. As your representative, your RBC agent will use his best efforts to negotiate on your behalf using various negotiating strategies. Once the contract is accepted, you will be required to deposit earnest money.

Steps Leading to a Successful Closing

Once the property is under contract, a number of steps need to be accomplished to bring it to a closing. Your RBC agent will monitor these steps and key dates, including title review, loan application, property inspection, seller property disclosure, and utility transfer. You can have an attorney represent you to review the legal documents.

Property Inspections

A thorough property inspection by a professional inspector is strongly recommended. Your RBC agent can also arrange for a licensed engineer to inspect your property. Particular attention is paid to the roof, furnace, structure, electrical, and plumbing systems.

Resolution to those items identified in the report will be negotiated between you, your RBC agent, and the seller. Verification of agreed upon repairs will take place before closing.

Property Management

It's important to decide if you are going to manage your investment property or use a professional property management company. There are advantages to both. Your RBC agent will help you make this decision and discuss other important considerations including marketing, leases, and contractor selection. Very critical to the success of your investment is the selection of a qualified tenant. Your RBC agent will review with you the specific steps in the selection and screening process of your tenant.

The Closing

All the steps you've taken to this point to own an investment property culminate at the property closing. The closing will be conducted by the title company. Your RBC agent will attend the closing with you. At the closing you will be given a deed to the property.

30-Day Follow-up Review

As part of our continuing service to you, your RBC agent will contact you within 30 days of the closing to review the progress of your repair, marketing, and leasing plans as well as discuss any questions you may have.

On-Going Access to RBC Resources

All resources of Realty Brokers of Colorado and its service providers are available to you. These would include the RBC Contractor List where you can find the best and most competitive contractors for services you need at your property, a professional property management company, an appraiser, a property inspector, a general contractor, and a lending company. Many of these service providers are located on site in our building. As a valued client and investor, you will be notified of prime investment opportunities as RBC becomes aware of them.

A successful real estate investor needs to find out quickly which investment properties are available in order to take advantage of immediate market opportunities. Realty Brokers of Colorado subscribes to a weekly service that identifies all the foreclosure properties in the 10 Front Range counties. This provides our company with the most accurate and up-to-date database of foreclosure properties available. The list identifies the various foreclosure stages and contact information on each property. As an RBC client, you will have access to this data through your RBC agent.

My team is dedicated to making your experience with us the best it can be. All of our agents and staff receive continual training on customer service and all aspects of investment real estate. We truly provide only the very best of services to our clients. I have directed and closed hundreds of transactions since being licensed in 1979. With nearly 200 different duties involved in a given real estate transaction, we take pride in exceeding our clients' expectations on each and every one of those duties. We look forward to serving you.

Duane A. Duffy
Broker/Owner