The more you NOCO Podcast

Nomading- A Real Estate Investing Strategy for Everyone!

February 25, 2022 Kodi Season 1 Episode 1
The more you NOCO Podcast
Nomading- A Real Estate Investing Strategy for Everyone!
Show Notes

Want to read more? Its here ->https://theweinlandteam.com/nomad-for-poor-and-young-people/

On Episode 1 of the More You NoCo podcast, brought to you by the Weinland Team with RE/MAX Alliance, we spoke with Matt Weaver, a lender with Excel Financial Group, a local Northern Colorado small business, about investing in real estate and “nomading” to get into investing. Getting into real estate investing is tricky for most people, but there are tips and tricks that can help you get into a home even easier than you may have thought. Matt is an expert in “nomading”, one of the tricks, because he is doing it himself. Matt has not only been a lender in Northern Colorado for several years, but has been a resident for over 20 years.

 

Why Invest in Real Estate?

 

Before we can get into why real estate over other investment options, you need to think about your reasoning for getting into investing. Of course, there are going to be different needs for different investors; some may be looking for a “loss” for tax purposes, some may be looking for cash flow, and some may be looking for rentals that will become their retirement plan. It is important to identify your unique reasoning for getting into real estate investing since all of the above situations are going to be looking for different types of houses. A great real estate professional, lender, and financial planning team can help you identify a goal that is right for you. Having a personal “why” for wanting to get into real estate investing is key, just like any other goal, so that when you experience the hiccups that are along the way to purchasing your first real estate investment, you can have a strong reason for keeping you going.

Now that you have a personal reason for wanting to invest, let’s see why real estate may be a better option than others. Matt assures listeners that real estate may be a safer option, especially in Northern Colorado. The market is consistent in the Northern Colorado area, usually going up or staying steady. With stocks and such there is much more fluctuation according to Matt. “A lot of the benefits you get from real estate is your appreciation, you have your loan “pay down” and your debt “pay down” when you have an investment property. Then you have rental income and cash flow coming in on top of that.” Here at the Weinland Team have always love the fact that real estate is an investment you can live in. That is a unique benefit that few investments have! However, there is a drawback to a market that is consistently going up, the cost of housing or finding good investment properties can be hard to find. While this can be a hindrance for some people or may make Northern Colorado feel like a worse option than other places around the country where houses are cheaper, but rents are still just as high, this is usually a better market to invest in purely due to appreciation rates. Northern Colorado’s appreciation rates beat most places around the country meaning the sooner you get into a home here, the better off you are. Cash flow can oftentimes trip up investors when you are first looking at properties in Northern Colorado because that number looks lower than other places, but appreciation makes up for this lower cash flow. To over simplify this Matt gives the following example. With a house, you are buying an investment property. You are putting renters in there. They are paying your mortgage for you and then the longer you own it… in 20 or 30 years [it is worth double].