Investing in Metro Denver real estate is a worthwhile means to increase wealth in terms of assets. Aside from acquiring a piece of property that will appreciate in value, a savvy investor will use their real estate investment to cross-collateralize on additional acquisitions. A luxury home is the perfect property to utilize in this manner. High end properties are not typically ideal for flipping, as they tend to take longer to sell on the open market. Consider the design of the home; if the design or functionality of the home is not standardized – it may appeal to fewer buyers.
Real estate investors that are looking to increase their portfolio will often use the higher valued property as collateral in acquiring new properties. In a sense, this allows an owner to essentially lend to themselves by securing a new loan with the previously purchased home as collateral. That property will then carry a lien that can be satisfied once the new loan is paid in full. Basically, this allows you to turn the living room of your primary residence into your piggy bank, borrowing against the value of the home to build your real estate portfolio.
This is precisely how people use their money to make money. The risks are minimal, and the payoff is not only worth it, but it’s easier than one might think. Picture this:
You have just purchased your dream home. Perhaps that means you have decided on a luxurious property that sits atop a valley, your living room wall is nothing but windows, that give way to a view of the mountains. Maybe you are curled up on the couch and have a fire going. You have peace of mind in knowing you have just used your home to purchase two rental properties and there is money coming in. You know those homes will pay for themselves, and now instead of owning one home, you proudly own three. By using this strategy, one would increase their monthly revenue and their net worth.
The Denver area is ideal if the above scenario has danced its way into your thoughts. For luxury homes, smaller neighborhoods, horse properties, golf courses, and historic communities in which to consider. If you are already contemplating the metro Denver area, and would prefer to speak with somebody directly, we would be delighted to hear your plans and help you obtain exactly what you are looking for, please contact us to turn those dreams into dream houses.