High Rises And Tunnels 9 Rules For A Successful Strategy For Leveraging Development Plans Property

High Rises And Tunnels 9 Rules For A Successful Strategy For Leveraging Development Plans Property

High rises and tunnels, 9 rules for a successful strategy for leveraging development plans & property investments a perspective from Ryan Rose, Realtor at Keller Williams Realty Downtown, LLC.

It is no secret, Denver is in the middle of a population boom. Traffic cones directing you to one lane of traffic and cranes towering over the skyline have become the new normal. But how will all this construction affect your property investments. These are 9 my secrets to leveraging commercial development and property investments to maximize value gains:

  • Location Location Location: You have heard it a million times, if you want to build value in property investments location is key. You can never change the location of a property; but the adjacent properties might change use / form / function. That is heart of property investment, I refer to it as a buy & hold.

  • Know your competition: Don’t be the last one at the party. If you are looking at buy & holds in an area where the new development has already started construction you are likely investing in property that another investor has already done a buy & hold years prior. This isn’t necessarily a bad thing, you will be competing with 2nd tier sales which will have more buyers competing for the same property.  

  • Know your time frame: If you are investing in properties where the adjacent development will not be completed for 5 years, you have to be prepared that to maximize your profits you will have to hold on to that investment for at least 5 years if not more.

  • Plan ahead: Don’t purchase just because everyone else is, what is your end goal? If you purchase land where a multiunit townhouse development will maximize your return, you need to research and plan for the time when you will be ready to build and sell those units. Don’t be the first-time investor who bought without looking at zoning and after holding your investment for 5 years you discover you can only build a single family home.

  • Early bird catches the worm: There is risk with any investment. To get a solid return on your investment you have to be a pioneer. If you wait for i70 to be completely buried before you invest in that area, you have missed the boat. The investment potential has passed and you are now buying at market value. Analyze your risks, there is no such thing as a ‘sure thing’ in real estate investing.

  • Pair with a knowledgeable agent: A good real estate agent is on the front line of the real estate market. They will be able to direct you to the quick return and the long term buy & holds.

  • Self-educate: This is your money and this is your investment. Research multiple resources to get the full picture. This is where google can be your enemy. You need to dig deeper than the 1st three articles that come up on a Google search. Go to city planning meetings, review master plans and zoning plans. Have conversations with multiple sources.

  • Know your future buyer / client: Decide on the highest and best use for your investment. Figure out what you can spend on developing your investment. You likely won’t make a great return building a cheap storage facility where there is no concentration of apartments as a client base. If you chose not to develop the investment yourself, you need to have an idea of the future use to get zoning approvals to maximize your re-sale value.

  • Know your budget: Always know your numbers, figure out your yearly ‘hold cost’, save up for your future ‘development cost’

Ryan Rose Headshot
Phone: 720-441-3855
Dated: March 9th 2018
Views: 209
About Ryan: As a Denver Realtor, I am in love with what I do. I was inspired to pursue the real estate professio...

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Keller Williams Realty Downtown LLC
917 Auraria Parkway
Denver, CO

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