At A Better Way Realty, our investing partnerships in Denver give our clients the opportunity to invest in different types of real estate without the management hassle or any obligation on the mortgages. Generally, our investing partnerships have a goal of either immediate income or capital appreciation.
Investing Partnerships in Denver with A Better Way Realty
A Message from Jim Flint
I’ve been personally involved in real estate since the early 1980s, investing in various property types across multiple states, including Colorado and six other states. The key to a successful real estate investment lies in two factors: either population growth around the property or the potential for management or physical improvements that enhance its competitiveness. I learned this early on, observing both successful and failed investors.
One notable experience was when I formed a partnership to purchase a mobile home park in Fort Collins for $1,250,000, with $250,000 down and the seller financing the rest. Three years later, we sold it for $2,075,000. While most real estate investments require a longer holding period to maximize returns, it’s important not to hold too long, as returns can diminish. In my real estate classes, I stress the importance of conducting a thorough property analysis, determining the internal rate of return (IRR), and assessing whether the property is likely to appreciate, stay stable, or decline.
Over the years, I’ve formed many partnerships to acquire several mobile home parks in Colorado, Wyoming, and Florida. We’ve also invested in self-storage facilities in Colorado and Alabama, as well as fix-and-flip projects. These partnerships later expanded to include assisted living and other group homes, which we lease to operators. Typically, the operators purchase the properties from us in three to five years, and we perform a 1031 exchange into new properties to defer taxes on any gains.
Currently, we own more than 42 properties, including assisted living, memory care, sober living, and traumatic brain injury homes, with the majority located in Colorado and one in Scottsdale, AZ. These homes range in size from 12 to 93 bedrooms, with over 800 beds across all properties. We lease them to operators on a triple net lease basis, meaning the operators are responsible for maintenance, taxes, insurance, and make lease payments to us.
We’ve also engaged in land development near Winter Park and formed partnerships to purchase four triple net lease buildings leased to major corporations. These properties include a Napa Auto Parts store in Minneapolis, a Dollar General store in Tampa, and two Family Dollar stores one in Atlanta and one in Philadelphia. Many of these acquisitions were funded through 1031 exchanges, where investors traded their single-family homes for shares in these commercial properties.
Some of our partnerships focus on immediate income, while others are geared toward long-term growth. A recent example is our purchase of two self-storage facilities in Mobile, AL. After improving these properties, we sold one for a modest profit and nearly doubled our investment on the other in just three years. We reinvested the proceeds from the sale into an assisted living property in Arizona to avoid paying taxes on the gain and to expand our footprint into additional markets.
In my real estate classes, I emphasize three core benefits of investing in real estate: income, tax advantages, and equity growth. Every property may emphasize one of these benefits more than the others, so it’s important to match your investment goals with the right property type.
If you have any questions or would like more information, feel free to
contact me at jim@abetterwayrealty.com or call 303-759-2222.
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