Quarterly Real Estate Newsletter - Q4 2021

Updated: Apr 12


Friends,

Providing value is our core mission, and in that spirit, we are launching brand new programs in the New Year.


Fix & List Program: We have a new program for outdated properties that need repairs. Recently, we made $16K in upgrades to a home and sold it for $70K more, earning our seller $5$K more! Check out this blog post to learn more.


Golden Coupons: Early this year, you will receive postcard coupons for discounted food, products, and services from Denver-area businesses. Many of the coupons are one-of-a-kind! If you don’t receive them and would like to, email us. Most importantly, if you like our Golden Coupons let us know and we'll consider extending the program past Q1!


Home & Garden Show: Watch your mailbox in late-January for a postcard good for 2 FREE coupons ($24 value) to the H&G Show held February 12-20 at the Colorado Convention Center. If you don’t receive it, email us and we’ll ensure you get one.


In addition, we are announcing a cool and effective new real estate tool in our Q2 Quarterly Newsletter email, coming in early April!


Low inventory and strong demand is creating plenty of momentum heading into 2022. As a result, we expect to set new record sale prices this spring and early summer and are eagerly positioning our clients in anticipation for what is coming. What are our 2022 real estate forecasts? Check out our quarterly newsletter to find out.









 



In 2021, we sold 44 properties ranging from $215K-$3.5MM in 17 cities; varied geographically from Castle Rock to Loveland; Evergreen to Aurora. 2021 was capped off by a strong Q4, in which we served 11 clients, including 5 investors (see our recent 12-unit DTC condo building sale, here).

We are proud to present our “2021 Us vs. Them” statistics, which showcase our client performance over the past year. We consistently outperformed our competitors by almost 2%, while enjoying no contract fallouts on any of our listings, among other accomplishments. Take a look below.





 





The Zerr family enjoyed Cirque du Soleil at Gaylord of the Rockies, after which Emilia loved exploring its Christmas-decorated“town center.” Two-year-old Emi had an opportunity to meet Santa twice and enjoyed Christmas morning with her new dollhouse, play dress-up heels, and Play-Doh. Emi’s grandparents, aunts, and uncles spoiled her rotten!





David and the family traveled to San Diego for fall break, enjoying time by the beach, swimming in the house pool, and even securing a round at Torrey Pines Golf Course. To close out the year, David’s family enjoyed their annual Santa visit! The Jimenez family remains grateful for all the blessings in their lives!






Chris has been loving his winter adventures! He attended a real estate conference in Dallas (where he met – Charles Botensten – host of his favorite comedy podcast!), his first Vegas vacation (see below), comedy shows at Red Rocks, and Broncos games. He's looking forward to plenty of concerts at Fiddler's Green and Ball Arena in the new year ahead!







David, Bryan, & Chris made a quick trip to Vegas in November where David's favorite team – Duke - secured a victory against someone else's favorite team (to remain nameless ) - Gonzaga.




 


The high and low record sales for the past quarter include a 1 bed, 1 bath condo in Aurora for $114K and a 6 bed, 13 bath estate in Cherry Hills Village for $15.7MM belonging to Mike Shanahan. Click the icon below to check 'em out!



 

**QUESTION of the QUARTER: Is it smart to invest in real estate now?


Case in Point: We’re receiving many questions from clients who have saved up money during the pandemic and are asking whether it’s a good idea to invest in real estate now, especially given the Denver metro market’s appreciation over the past couple years and current record prices. Some wonder if we’re in a real estate “bubble.”


Q: Is it smart to invest in real estate now? How can I invest?


A: Broadly speaking, interest rates for investors are very low (3.75% as of today), which makes it easier to “cash flow,” meaning rent revenue exceeds expenses (incl. mortgage, insurance, taxes, property mgmt, vacancy, and reserves). When you compare a 3.75% investment loan with current inflation of 6.5%, you realize you can effectively borrow money at 2.25% less than inflation. That's a pretty incredible opportunity.


On a local level, the Denver market is attractive because rents have increased 18% over the past year and are expected to continue increasing. Occupancy is currently below 5.0% and tenant delinquency is even lower, reducing operating costs. Further, many smart investors are opting to invest in real estate, rather than the stock market, which is near a record high. Investing in Denver metro real estate has outperformed the stock market for years and current cash on cash returns in Denver real estate are 15%-20%, which is 4%-9% higher than the stock market’s long-term average of 11%.


Given current interest rates, rent and vacancy rates, real estate prices, and alternative investment vehicles, we expect the Denver market to be a good investment for the foreseeable future. Further, as stated in our quarterly newsletter, we expect real estate prices to increase 8%-10%+ over the next year, so it’s smart to invest sooner than later.


Who fits the profile of a Denver metro real estate investor? It depends on what type of investor you want to be. There are 3 ways you can invest in Denver real estate:

(1) buy and rent out on a long-term lease

(2) buy a home with a mother-in-law suite (preferably with its own separate entrance) and live on the main level while renting out the basement

(3) buy a second home in Summit, Grand, or Park County where you can enjoy mountain vacations while also renting short-term through Airbnb or an outside management firm like Evolve or Vacasa


To learn more about capital requirements, specifics about investment returns, and which geographic areas we recommend most for investment; please contact us.We have investor-friendly lenders, property managers, tax advisors, contractors, and other professionals we are happy to introduce you to. Also, reach out to us with other real estate-related questions. We’re more than just Realtors, we’re real estate advisors.



 


As we enter the New Year, we are delighted to be your real estate resource and connector. We are Greenwood Estates Realty, "The best real estate experience you've ever had."


Enjoy; we’ll catch you soon!


Blessings,

Bryan & David

P.S. - check out previous versions of our Quarterly Newsletter