Denver Market Overview with Top Broker Adam Riddle
10/30/20 • 26 min
The pandemic has impacted many multi-family markets across the US but in Denver, the Mile High City, the investing landscape is as solid as ever. Today we get an insider’s perspective on the Denver market from Adam Riddle, Principal of Nexus Commercial Realty. We open our conversation by chatting about the trend of people leaving coastal cities and embracing a work-from-home lifestyle. With a diversified economy and easy access to nature, as Adam explains, more people are moving to Colorado than ever. We discuss what the cap rates look like across Colorado before diving into local investment trends and later, the strategies that are common in the Denver market. After sharing his journey into real estate, Adam provides his top advice to listeners wanting to invest in Denver — with details on areas that they should consider investing in. We touch on why a low cap rate isn’t a sign of a bad deal and then dive into Adam’s keys to success. His answers highlight the importance of understanding occupancy rates and why time management is a critical skill for investors to master. Tune in for an overview of Denver’s market from one of the city's top brokers.
Key Points From This Episode:
- Adam shares details about his company’s investment niche.
- Hear why Colorado’s single-family real estate market is “on fire.”
- Exploring the many reasons that people are moving to Colorado.
- What the general cap rates look like throughout Colorado.
- Colorado investment trends and why Adam’s company is the busiest that it’s ever been.
- How COVID hasn’t slowed down the Denver real estate market.
- Adam talks about his journey into real estate.
- Top advice to investors who want to enter the Denver market.
- Common strategies that Denver investors are employing.
- Why a low cap rate doesn’t indicate how good a deal is.
- Adam shares some insider information on areas in Colorado you should invest in.
- What every investor should look for in a deal and what Adam is most proud of.
- Why time management is has been the key to Adam’s success.
Tweetables:
“It used to be that people would get a job and then move there for it. Not people choose their cities and try and find a job once there.” — Adam Riddle [0:04:20]
“People are refocusing on the multifamily sector. And Colorado is one of those places where people like to travel to. If you have an investment there, you like to come and see it.” — Adam Riddle [0:09:36]
“Some of the best deals we've ever done were at a two cap rate because they had a story to them. So even if it's a low cap rate, it doesn't necessarily mean it's not a good deal.” — Adam Riddle [0:16:58]
Links Mentioned in Today’s Episode:
The pandemic has impacted many multi-family markets across the US but in Denver, the Mile High City, the investing landscape is as solid as ever. Today we get an insider’s perspective on the Denver market from Adam Riddle, Principal of Nexus Commercial Realty. We open our conversation by chatting about the trend of people leaving coastal cities and embracing a work-from-home lifestyle. With a diversified economy and easy access to nature, as Adam explains, more people are moving to Colorado than ever. We discuss what the cap rates look like across Colorado before diving into local investment trends and later, the strategies that are common in the Denver market. After sharing his journey into real estate, Adam provides his top advice to listeners wanting to invest in Denver — with details on areas that they should consider investing in. We touch on why a low cap rate isn’t a sign of a bad deal and then dive into Adam’s keys to success. His answers highlight the importance of understanding occupancy rates and why time management is a critical skill for investors to master. Tune in for an overview of Denver’s market from one of the city's top brokers.
Key Points From This Episode:
- Adam shares details about his company’s investment niche.
- Hear why Colorado’s single-family real estate market is “on fire.”
- Exploring the many reasons that people are moving to Colorado.
- What the general cap rates look like throughout Colorado.
- Colorado investment trends and why Adam’s company is the busiest that it’s ever been.
- How COVID hasn’t slowed down the Denver real estate market.
- Adam talks about his journey into real estate.
- Top advice to investors who want to enter the Denver market.
- Common strategies that Denver investors are employing.
- Why a low cap rate doesn’t indicate how good a deal is.
- Adam shares some insider information on areas in Colorado you should invest in.
- What every investor should look for in a deal and what Adam is most proud of.
- Why time management is has been the key to Adam’s success.
Tweetables:
“It used to be that people would get a job and then move there for it. Not people choose their cities and try and find a job once there.” — Adam Riddle [0:04:20]
“People are refocusing on the multifamily sector. And Colorado is one of those places where people like to travel to. If you have an investment there, you like to come and see it.” — Adam Riddle [0:09:36]
“Some of the best deals we've ever done were at a two cap rate because they had a story to them. So even if it's a low cap rate, it doesn't necessarily mean it's not a good deal.” — Adam Riddle [0:16:58]
Links Mentioned in Today’s Episode:
Previous Episode
From Career Marine to High-return Investor with Brian Briscoe
Investing is like being in a dark forest with only a lantern to guide you. By staying still, you can only see what’s around you — just enough to take your first steps. By taking action and moving forward, you get further along the path and get to see what’s ahead. Today we speak with career Marine, Brian Briscoe, about the action that he took to become a high-return investor. After chatting about his entry into real estate and how he discovered multifamily investing, Brian talks about the intense learning process he underwent to become an investor. We then dive into Brian’s business philosophy, touching on where he invests along with his investing model. We ask Brian what he looks for in sponsors and in underwriting and his answers highlight the importance of credibility, and why you should look closely at your property’s break-even rates and reserve funds. Brian discusses how COVID has impacted his portfolio and what he’s done to adapt to circumstances. Near the end of the episode, we ask Brian to share the keys to his success. Tune in to hear what steps have led to Brian’s success and the books that have inspired him to pursue financial freedom.
Key Points From This Episode:
- Brian shares his journey as a career Marine and real estate investor.
- Pivoting toward multifamily investing after buying single-family homes.
- Details about what Brian did to learn about multifamily investing.
- Top reasons why Brian invests in commercial multifamily real estate.
- Hear why Brian’s group looks for deals in South Carolina.
- Brian discusses his investment group’s ‘forced appreciation’ business model.
- The importance of investing with credible partners.
- Red flags and what Brian looks for in good underwriting.
- How COVID has impacted Brian’s portfolio and how he’s adapted to circumstances.
- Brian shares the one question that you should ask every deal sponsor.
- Reflecting on the most significant lessons that Brian has learned from his top books.
- Why taking action has been the number one key to Brian’s success.
Links Mentioned in Today’s Episode:
Diary of an Apartment Investor Podcast
The Book on Investing In Real Estate with No (and Low) Money Down
Next Episode
Mastering Your Multifamily Mindset with Sterling White
While growing up on the wrong side of the tracks, a stray bullet ripped through the walls of Sterling White’s family home. In the moments that followed, eight-year-old Sterling decided to take control of his reality and begin working toward his future. From humble beginnings selling Kool-Aid, Sterling has since made his success from hundreds of single-family and multi-family deals and has accumulated over $18 million in assets. In this inspirational yet insightful episode, we hear about how Sterling’s resilience and acceptance of failure pushed him forward. He discusses how he started out in single-family investment at the age of 23 before landing his first multi-family deal in 2017. As he explains, he hasn’t looked back since. We then dive into how Sterling has streamlined his entire approach to real estate, spending less time and energy per unit, and completing fewer transactions while yielding similar returns to single-family. You’ll also hear how Sterling spots good investment deals, as he shares the vital questions he asks new partners, and when it’s the right time to walk away from them. He also tells us about the biggest mistakes he has made in real estate, and how a certain world record attempt taught him valuable life lessons. Join us today!
Key Points From This Episode:
- Introducing today’s guest Sterling White, and his expertise in the real estate industry.
- Sterling shares details about his professional background.
- How Sterling wanted to create a better reality for himself at a very early age.
- Sterling gives brief highlights of his career in real estate so far.
- Hear about Sterling’s world record attempt.
- The valuable lessons Sterling learned from his failure at the fireman carry mile.
- Why Sterling prefers investing in multi-family over single-family.
- How Sterling scaled up from single-family to hundreds of multi-family units.
- How Sterling decided which markets he was going to move into.
- The way Sterling decides what is going to be a worthy investment.
- Sterling tells us about one of his biggest multifamily mistakes.
- The qualities that Sterling looks for in his investors.
- Sterling’s forecast on what the near future holds for real estate with respect to the recent US election.
- The important questions Sterling asks his investors and partners.
Links Mentioned in Today’s Episode:
Ritter on Real Estate - Denver Market Overview with Top Broker Adam Riddle
Transcript
“AR: One of the bigger trends that we’re talking about right now is we’re looking at our stats and closings — who’s buying. It’s a lot of new capital to the state. We closed a project with a Canadian group last week, closing a project with a South American group next week, and just closed yesterday on a $8.5 million deal with a new group on a Colorado Springs project.”
[INTRO]
[00:00:26] KR: Welcome to Ritter on Rea
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