The real estate market has been crazy in Colorado. Median prices in my town have jumped from $110,000 to $280,000 in 5 or 6 years. My town has some of the lowest prices in the area! With real estate prices increasing so fast, I decided to stop buying residential rental properties and focus more on flipping. There were a number of reasons I stopped buying rentals, but the biggest one was that I would not cash flow on properties anymore. On this episode of the InvestFourMore Real Estate Podcast I talk about the current real estate market. How crazy it is in Colorado, how the rest of the United States is doing, how you should invest in a crazy market, and why you cannot use national trends to decide how to invest locally.
On this episode of the InvestFourMore Podcast I talk with Jarred Kessler who is trying to start a company that would eliminate the need for real estate agents. I am a real estate agent, and a big proponent of using agents to make the most money when selling or buying houses. This podcast definitely had some tense moments and differing opinions! Jarred started a company called Easy Knock after being in the financial services industry and believing that the way houses are bought and sold is inefficient and out dated. The idea is that buyers and sellers of homes can use the website to complete transactions without the help of a real estate agent. We go back and forth quite a bit about the advantages of this idea, and if it is really beneficial to consumers.
I have had up to 20 flips going at once this year, which can be a lot to handle. I have a great team who helps me, and I have systems to get them repaired and sold. Before my team can do anything with the properties, we have to find properties to buy! In the past, I bought most of my flips from the foreclosure sale then had to change strategies and buy from the MLS. In the last year, I have bought many flips from wholesalers, and I am adding additional ways to buy. I have had good luck buying flips from the MLS and wholesalers, but I have not been buying as many houses as I thought I would. Last week, I bought my first flip since the middle of May. I have a goal to buy three flips every month, so that was a pretty long spell without buying any houses. I now have three more houses under contract and am getting back on track. On this episode of the InvestFourMore Real Estate Podcast, I talk all about how I find deals in today's real estate market.
One of the biggest hurdles to real estate investing is the cash needed to flip or buy rentals. Investors have to put more money down than owner occupied buyers, which makes it tough for many people to ever buy an investment property. Not only are there higher down payments for investment properties, but if you want a really good deal you may have to spend money on repairing a house as well. It also takes time to find good deals, find contractors, manage properties, and sell properties. Crowdfunding is one way to invest in real estate with less money and less work. Real estate crowdfunding is when a group of people pool their money together to invest in a fix and flip, an apartment complex, or some other type of property. Amy Kirsch is the Director of Investor Relations with Realty Shares, a crowdfunding company. She talks with me on this episode of the InvestFourMore Real Estate Podcast about how crowdfunding works, the pros, and the cons for people investing into projects and those looking to get funding for projects.