Rich's Corner

How do I choose the real estate I buy? I currently own 5 Aspen properties and I am under contract for number 6. I have doubled my net worth in the last three years. I have accomplished this not by working nonstop, but by allowing my real estate to work for me. My real estate assets “work” for me regardless of whether I am awake, asleep, on vacation or running my business. (Even I can only work 60-80 hours per week.) In an appreciating market, my properties work for me 168 hours per week all year round.

My criteria for buying real estate are very simple. I generally buy properties that I would personally like to live in and that are located in a historically stable market.

I define a historically stable market as an area where 70% or more of the buyers pay cash for their real estate investments (i.e. Aspen). Why? Because people that pay cash rarely, if ever, have to sell and therefore rarely lower their prices. They can afford to wait for a stronger market.

Next, I look for the most sought after areas within that market. One of the unique beauties of Aspen is one’s ability to walk everywhere. Every property I have purchased in Aspen is within easy walking distance to the town core. The center of the “flame” historically has been the core of Aspen.

My third criterion is personal. I prefer units on the first floor and on one level with an indoor/outdoor feeling. I have had my share of athletic injuries so I prefer to live on one level. Also, transporting groceries, luggage, bikes, etc. up flights of stairs or slow elevators, is a bore, even at my young age!

Of course, you will have your own personal preferences; however, I suggest that you look for a historically stable market and study its cycles. Sought after areas go up and down. I try to be early and late in my market timing as waiting for the absolute peak and valley is very difficult.
Determine the percentage of cash buyers as well as the hottest areas within that market. In Aspen, historically the hottest areas continue to be within easy walking distance to the downtown core and the Gondola.

Call me crazy…I believe that stairs are a thing of the past. I predict you will see a stronger push toward single-level living.  We successfully developed single-level living in Obemeyer Place and Monarch on the Park.

As always, feel free to call me with any real estate questions you might have. Since I have been writing this column, a number of buyers and sellers have contacted me for my opinion. I have also been called on as an expert witness in the area of real estate, provided I do not have a conflict of interest, I am available.

P.S. For me, the juice in life is problem solving. I like it, I live it, I want more of it.

Call me …Rich …Today 920-3131

The opinions above are only opinions and should not be relied upon to make financial decisions without the advice of your financial adviser, attorney, and accountant. Further, the examples are based on history and are not in any way meant to be a projection of the future. Caveat emptor.

With kindest regards, I remain,
Sincerely yours,
Rich Wagar

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