In 1986

If that wasn't enough, Congress decided to re-write the federal tax code in 1986.  In doing so they misguidedly pulled the rug out from under real estate investors nationwide by severely cutting back on the depreciation allowances that were the foundation for many of the investment decisions that caused investors to in invest in real estate in the first place during that era.

The compounding effects of these two disastrous macro economic events caused the entire residential & commercial real estate markets in Denver to collapse thereby sending 10's of thousands of properties into foreclosure.

The economic melt down created the best buying & wealth creating opportunity in the history of Denver since the gold & silver rushes.  The newspapers and other media outlets predicated doom & gloom for poor Denver that was so bad that they said we would never recover from it.

Sharp Colorado real estate investors began to scoop up the bargains.  Many were scared away by the bad news that the media was spreading.  Headlines read that Denver was "over built" with a twenty year supply of developed residential lots & commercial building sites.  Smart investors had a different perspective.  They had faith in Denver as regional economic center so they purchased these incredible properties that were selling for as little as 10 cents on the dollar. 

Great bargains were the rule and not the exception and investors that I worked with purchased single family homes, condos, town homes, apartment buildings, partially completed & unsold condos with development land, office buildings and industrial buildings.

Today's foreclosure situation is the product of misguided mortgage loans doomed from the day they were made.  Because these "subprime" loans were made on properties from condos to mcmansions that means there are great deals in every price range.  Foreclosures reveal the marginal real estate in the market and these properties always suffer in a down market and under perform in a good one.  This is where the experience comes in, we keep you away from the dogs and put you in the properties that have fallen due to bad loans & circumstances rather than bad location or construction.

Today's market is completely different from 20 years ago. In 1986-1990 Denver was hemorrhaging jobs due to the oil collapse.  Today oil is expanding along with a new industry - the green energy industry.  Both promise to bring many new high paying clean jobs to the Denver economy, just as the foreclosure epidemic offers up incredible buying opportunities. 

1987-88 were really the first years of the S&L/Oil foreclosure crisis and the last of the really great deals were long gone by 1991 so the window of opportunity was very short in truly very hard economic times in Denver brought on by a convergence of two macro economic events. 

Today's conditions may be gone tomorrow.  There has been no macro industry crash or re-write of the tax laws, just bad loan products sold to naive buyers and homeowner's.  Also remember that post WWII recessions average only 11 months in duration.  Denver's downtown office vacancy rate is now under 10% which is basically considered fully leased and several office towers are being planned. With oil selling for over $100 per barrel and the industry in expansion your foreclosure buying opportunity may be fleeting.

So don't hesitate to contact me to schedule a no obligation face to face so we can get you into the market as soon as possible.