Real Estate Deal Analysis & Advice

Best Deal Ever Show #22: How to Turn $100K on an Out-of-State Property

Expertise: Real Estate Investing Basics, Landlording & Rental Properties, Real Estate News & Commentary, Mortgages & Creative Financing, Real Estate Wholesaling, Personal Development, Flipping Houses, Business Management, Real Estate Deal Analysis & Advice
184 Articles Written
medium size apartment building with light gray cement exterior and lots of windows against a vibrant blue sky

Annie is based in Oakland, California, also known as the Brooklyn of the Bay Area. She first began in the industry while living in D.C. with her husband, after her Realtor explained that a property she bought could one day become “cash flow positive.” After hearing those words, she moved forward and rented out her in-law suite and eventually began purchasing additional duplex family homes to rent out, as well.

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Experts in syndications, she and her business partner Julie, run Goodegg Investments, which focuses on helping busy mothers get started in real estate without the hassle of being landlords.

For those who don't know what real estate syndications are, Annie does a great job explaining in our interview. Simply put, syndication means that a group of investors come together to purchase a large real estate investment—and in this case for Goodegg Investments.

Annie’s companies take on large commercial buildings for their investors, while managing the landlord aspect of the property, allowing her tenants to take part of what's called "passive investing." This means they take home a monthly cash distribution payment and take a share of the profits once the property is sold.

Over the last two years, Goodegg has co-sponsored 5,800 multifamily doors across the southeast and has over $700 million in assets.

What’s so unique about Annie’s story is that her company focuses primarily on helping women get into the investment side of real estate. Annie says that oftentimes the investment aspect of real estate has a “hard edge.” She feels she’s been able to stand out by making sure her brand is simple to understand and has an inviting atmosphere that’s focused on building community.

Related: Best Deal Ever Show #21: One Deal, $7M Profit With Sean Conlon

Annie’s Best Deal Ever

After listening to the BiggerPockets Podcast and diving into research, Annie decided that she felt ready to start expanding her reach into a new area. Through her research, she settled on the emerging market of Huntsville, Alabama, primarily because it had the qualities that fit her investment goals.

Location, Location, Location

Once settling on a city, Annie took the initiative and reached out to brokers and property managers, but she found her gem of a property through LoopNet. What she found was a six-plex that was fully occupied for $170,000—across the street from a trendy, up-and-coming space with lots of new businesses and promising potential.

Not only was this a great location because of the activities across the street, but Huntsville also has a large amount of government-owned land surrounding the city, meaning that there is limited availability for housing. Because of the location, Annie felt confident that this was a place she wanted to be in and took a leap, purchasing the property with HELOC (home equity line of credit) from another investment property she owned. She got an incredible interest rate of 2 percent for the first year.

Ultimately, after two years and a few repairs, Annie sold the property and made about $100,000 in profit, offloading it for approximately $270,000.

Person looking for places to stay on digital tablet

Key Lessons Learned

Although this hasn’t been Annie’s biggest deal, she said it’s certainly her best deal. She was able to quickly resell the property and learned foundational principles from this experience that she’s applied to even larger deals.

Related: Best Deal Ever Show #20: $6.5M Purchase with Zero Out of Pocket

Her mindset shifted after doing this deal, leaving her with the lessons that have brought her closer to where she’s wanting to go.

She advises: “Fail fast. Fail faster if you can.” And she encourages investors to not be afraid to try something new. Because without past failures, it’s impossible to move forward and find even bigger opportunities.

Annie’s Top 3 Tips for Other Investors

1. Research carefully

Look for smaller markets with job and population growth and something that meets your investment goals.

2. Ask what sets the city apart

Like we mentioned earlier, the land was likely to go up in value over time due to its location and government land limitations.

3. Realize that, in Annie’s words, “small hinges swing big doors”

Finding the right market is the hinge that will determine the extent of what’s possible. After you select the market, then you can build (sometimes literally) the rest of the dream from the ground up. Whether that’s taking on repairs, upgrading, building a team, or finding the perfect person to partner with.

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Is there a market other than your home market that you have targeted for investment?

Let’s talk in the comment section below. 

Ken Corsini G+ is the host of the Deal Farm Podcast (on iTunes) and has 10 years of full-time real estate investing experience...
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    Greg Rulfs from Los Angeles, CA
    Replied 2 months ago
    Amazing work, congrats Annie!
    Peter McDonough Rental Property Investor from Huntsville, AL
    Replied 2 months ago
    Hey guys, I live here in Huntsville, and regularly go to the bar across the street. That property looks nothing like the thumbnail in the video. It looks super beat up, and lots of garbage in the yard. The tenants look like not great tenants as well. Maybe I''ll take a picture and post it here later today.
    Loiie Perkins
    Replied 2 months ago
    So Peter did you watch her video and listen to her discussion about the property?
    Peter McDonough Rental Property Investor from Huntsville, AL
    Replied 2 months ago
    I did not. Is the property currently being run down explained in the video?
    Candido Garcia
    Replied 2 months ago
    @Peter McDonough Those "aiming up at the sky" property pictures are generally taken when you really don't want to look down at "the garbage in the yard". We have both good and bad actors in the investment field. Please do take a picture and post the reality of this property.
    Peter McDonough Rental Property Investor from Huntsville, AL
    Replied about 2 months ago
    Here's the pic! https://imgur.com/a/SIOFWiy