Investment Services

Overview

The opportunities in the Denver real estate market have never been better for individuals looking for outstanding, risk adjusted returns. The residential rental market has been remarkably resilient during the recent recession and as the economy improves, home values and rental rates are projected to increase.

Denver and the surrounding area is supported by a diversified economic base that in- cludes telecommunications, transportation, biotechnology, energy, and agribusiness; all growing sectors that are bringing new business to the city and surrounding area. Fur- ther, with its cultural amenities, outdoor recreation options, and mild climate, Denver is consistently ranked at the top of the list of desirable places to live.

Historically low borrowing rates, a robust rental market, a growing local economy, and favorable demographic trends make it an ideal time to consider making rental/income property a part of your investment portfolio. In this presentation, we will explain how these market forces are creating an investment opportunity in residential rental real es- tate that has the potential to provide significant returns now and well into the future. 

Investment Thesis

Investment in Real Estate is a proven, long-term investment vehicle. The annual return on real estate over the last 60 years is about 4%. Even when factoring in the recent “mortgage crisis” and the corresponding price declines, the long-term returns for residential real estate have been very good. The chart below shows the current housing market beginning to stabilize and prices returning to their long term trend. 

As with all markets there will be ups and downs along the way but as prices are begin- ning to stabilize, confidence in real estate has begun to increase. This is evidenced by the fact that, recently, there has been fairly aggressive investment in this asset class by some important Wall Street players. The Blackstone Group, founded by Steve Schwarzman & Pete Peterson, has been one of the most visible. Several other players including Wayne Hughes, the founder of Public Storage have surfaced as well. These are not fly-by night investors chasing the latest story. These are well-known investors that are famous for their foresight and ingenuity. The reasons these seasoned investors are buying residential real estate are obvious.

  1. 1)  Attractive Cash Flow: Steady or rising rental rates are providing adequate in- come to provide the opportunity to acquire a tangible asset that will pay for itself in a comparatively short period of time.

  2. 2)  Underlying Value Appreciation: Home prices have stabilized and returned to a more “normal” rate of return (see chart on previous page) after getting over heated due in large part to very loose lending practices.

  3. 3)  Leverage: Mortgage rates are still at historic lows and offer investors very attrac- tive returns when leverage is used.

  4. 4)  Tax Benefits: Depending on your individual situation, Real Estate investments can offer several tax advantages. Speak with your tax advisor to find out what works best for you. 


Summary

The Walters Group can help you every step of the way if you are buying one property or building a portfolio of several investment properties. We can help identify the property or properties that are right for you. We can help with acquisition, financing, management and the eventual liquidation of the investment. A well thought out investment in a rental property can generate reliable income for a set period of time or for years to come. If this sounds like something you might be interested in please contact us to learn how we can help.

You can call Willie Walters at 303-908-2330 or email him at willie@gowalters.com