Many people have been asking me lately "What's going on with the foreclosures in Denver?", and "Is it safe to buy a house in Denver?"

Currently, Denver ranks 6th in the United States in Bank Owned properties.  This means that there are many properties for sale at greatly discounted prices.  This also means that many of these houses are distressed.  Many people who have been foreclosed on got very angry and upset at losing their home.  They took out their agression on the home, and have left holes, food, and giant messes of otherwise beautiful homes. Not all of these homes are in distressed areas.  Many are in transitional, up-and-coming neighborhoods like the new medical center area.

These statistics will scare some, but intrigue smart investors.  But let me ask you; When there is a sale on food at the grocery store, or on clothes at the mall, or on cars at the dealership, don't you rush out to get the best deal?  When prices are rock-bottom, and supply is greater than demand, simple economics says BUY!!!  Real estate investors make money when they buy, not always when they rent or sell.  

Right now, it is very possible to buy a single family home in Denver for $50,000 then renovate at a cost of $10,000.  After renovations and repairs, the house can rent out for positive cashflow, and in some cases sell at at least a 40% profit.  What other investment gives you a 40% profit?  In what other city in the United States can you buy a house in a good neighborhood for under $100,000?

Why Denver?

Denver is very charming to those of you who do not like hurricanes, hot weather, bugs, or earthquakes. 

The beautiful Rocky Mountains are less than 30 minutes away.  So if you like to ski, hike, fish, mountain bike, or spend great times outdoors, the Denver area has it all. 

Don't forget about Denver's HOT social scene, with tons of internationally acclaimed restaurants, clubs, and bars.   

Pro sports teams in the Centennial State read like a list of every professional sport ever to touch American soil. Football, baseball, basketball, soccer, hockey, arena football, lacrosse and rodeo are all represented professionally in Colorado.

Denver's medical facilities are some of the best in the world.  People come from all over the world to get treatment for asthma and other diseases.

New jobs continue to be created in Denver every day.  IBM is building a new campus, and Halliburton is also growing their job base here.  Many other employers are drawn to Denver by our temperate climate (yes we have snow, but not too much!), reasonable cost of living, and wonderful amenities. 

All of these amenities in a city where you can buy a home for less than 100K.  Where else can you live for so little, yet feel like you have it all?

Eventually people will see past their fear and decide to buy up all of these great deals in Denver.  Many out of state investors are already buying here because they see the opportunities for cashflow and profits. 

For you reluctant buyers---Will you be one of those people that says "I wish I would have bought a house then?" 
Or will you be the one who says "I wish I would have bought 10 more like that one". 

Will you be the one who waits for everyone else to buy, who waits for the mad rush to 'get a deal', or will you have the faith and foresight to buy now? 

Personally, I am in the process of buying an investment property in Denver, and hope to buy at least 3 more by year's end.  Many of my investor clients are buying 10 or more this year. 

 Please give your feedback, and thanks for reading!