Three Tips to Mastering Deal Acquisition
How to Make More Money in Real Estate: Three Tips to Mastering Deal Acquisition
As a seasoned broker and real estate investor who has brokered around a billion dollars in transactions with my team, I've identified patterns and strategies that can help you succeed in the competitive real estate market. Here are three tips to mastering deal acquisition:
1. Leverage Seasonal Trends
Did you know that July is actually a slow time for real estate in Denver? Contrary to popular belief, the summer is not always a hot market. Buyers can capitalize on this by purchasing properties when deals are 'on sale.' During July, sellers often become anxious if their homes sit on the market without much interest, making them more open to negotiating lower prices. The market also tends to slow down around the holidays. However, July offers an advantage with more homes available than in the winter months. Understanding these seasonal trends can give you a strategic edge in acquiring properties at better prices.
2. Understand the Path of Development
Knowing the path of development is crucial. Take Colfax in Denver and Aurora, for example. Many people don’t consider Colfax to be prime real estate, but significant capital investments have begun to transform the area. Over the past decade, billions of dollars were poured into the Anschutz Medical Campus, which attracted new
restaurants and new class A housing, raising property values around that area significantly. Homes we previously purchased for our clients at $120k are now worth $450k or more.
By learning where the city is investing money and building, you can learn the path of future development as projects are approved. These patterns are predictable and can create substantial wealth for investors. By identifying areas slated for development and investing early, you can benefit from the appreciation that follows. A rising tide lifts all boats.
3. Choose a 20-Year Market
Long-term market selection is another key strategy. Denver, for instance, is almost certain to be worth more in 20 years than it is now. When evaluating a market, consider the past 20 years of home appreciation. Look for diverse job opportunities and industries, as well as barriers to growth such as mountains, oceans, or strict zoning laws. These factors typically lead to higher appreciation compared to markets primarily driven by cash flow.
Choosing a market with strong long-term potential ensures that your investments will grow in value over time, providing substantial returns.
Learn More
There are many more tricks and strategies to learn in real estate. To dive deeper into deal acquisition, join us at our next class at Atlas in Denver. https://www.meetup.com/real-estate-ambitions/events
Mastering these three strategies can significantly enhance your ability to acquire profitable deals in real estate. By understanding seasonal trends, the path of development, and long-term market potential, you can make informed decisions that will lead to greater success and wealth.
Jen Reinhardt
www.ambitionpropertyinvestments.com
303-514-8491
