In today's financial world, those with an interest in investing have a wealth of appealing options. From the stock market and bond market to precious metals, real estate, and everything in between, some investors in this valley look far and wide for large returns—but what if the best investment is sitting right here in our own back yard? As brokers who have worked in the community for years and helped many residents discover the power of investing in a tangible, real, local asset that they can improve, manage, and take pride in owning, we know that choosing local has some immense benefits over buying in other areas. Here, we lay out a few of them:
- Barrier of Entry: Investment properties that “make sense” can be difficult to find in our valley but when you do, they are even more difficult to replicate or compete with. With large land and construction costs it is almost impossible for a new developer to compete with the existing market. This contrasts significantly with larger metropolitan areas where urban sprawl is constantly changing markets.
- Year-Round Market Metrics: Unlike some of our neighboring resort communities like Vail and Telluride, our valley has a solid year-round economy that is not totally reliant on the ski resorts. Additionally, with the vast numbers of entrepreneurs and other professionals choosing to work remotely these days, we are seeing an influx of residents who have the ability to settle down anywhere but instead choose to reside, recreate, and work in our amazing valley.
- Future Demographics: Like it or not, we live in one of the most beautiful places in the world—and the secret is out. We would love to blame this phenomenon on the Ikon pass, but truth be told, the trend of newcomers relocating to our community has been in motion for decades for a variety of reasons. By 2050, estimates predict that Garfield and Pitkin counties could grow by an additional 45,000 new residents. And guess what? They all need a place to live and work.
So those are a few reasons why it’s smart to invest locally, but let’s also discuss how to make it happen. We’ve found that two of the most common ways locals are investing in valley real estate are:
- Outright Property Ownership: In this case, investors purchase a property and then solely own and manage the property. If an investor can afford to purchase a property on his/her own, this grants considerable opportunity to generate income and realize potential appreciation. Given the high cost of real estate in the Roaring Fork Valley, buying an investment property outright is often not a feasible option. Investors should keep in mind that owning an investment property, large or small, requires a significant amount of effort. Buyers should take time to consider: Do I have a workable business model? Am I prepared to be a landlord? Can I withstand an economic downturn and sustain finances through a certain vacancy rate?
- Partnerships: If buyers don’t have access to capital allowing them to invest alone, they can pool funds and generate a limited liability company (LLC) to invest in real estate. By doing so, this of course allows a group of investors that cannot or are not willing to purchase a property solely to group together and buy assets as an LLC. Investors can even pool IRA and 401K funds into local real estate investments. Don’t let the wolves of Wall Street manage your retirement funds when you could invest those funds in a local, tangible asset.
Whether you plan on purchasing investment properties yourself or with partners, it is crucial to seek a trusted, professional commercial broker to assist you. Together we sold over $20 million in investment real estate in 2018 alone, and we are honored every time we become a local buyer’s first call when they’re considering an investment in the valley. We not only assist clients in building their portfolios, but we strive to practice what we preach by consistently investing in Roaring Fork Valley real estate ourselves. Our new office location at Integrated Mountain Plaza in Carbondale further demonstrates our commitment to choosing local. We also proudly help our clients acquire investment properties through IRA and 401K funds, which have turned into incredible investments for them over the years.
If you would like to learn more about investing in our valley, we hold informal luncheons at The Goat in Carbondale on the second Wednesday of every month. Please RSVP at DillardTeam.Integrated@gmail.com if you would like to join us. We hope to see you soon.
Scott Dillard and Matt Rubsamen are brokers with Integrated Mountain Properties. Scott is one of the few brokers in the Roaring Fork Valley with the prestigious CCIM Designation, which makes him a recognized expert in commercial and investment real estate. Matt lets his production and reputation as a commercial broker do the talking, and sold more commercial real estate than any other broker in the mid-valley last year. Both spend their free time with their families biking, kayaking, fishing, and skiing in our amazing natural playgrounds.