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

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

3 min read
Ken Corsini

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005.

Experience
With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.

Having been involved in thousands of transactions and having owned over 800 houses, multiple commercial and multifamily properties, and more, Ken brings a wealth of knowledge and experience to the BiggerPockets community. He has authored over 100 blogs and currently hosts the “Best Deal Ever Show” on the BiggerPockets YouTube channel. He is also the host of the popular Deal Farm Podcast.

Ken is currently writing a book in conjunction with BiggerPockets called “Profit Like the Pros,” scheduled for release in Fall 2020.

He and his wife also run Roc.Star Kids, a non-profit organization focused on the needs of children and families in the fight against childhood cancer. For more information on this very personal cause, check out their story here.

Press
In addition to HGTV and HGTV Magazine, Ken has been featured on The Today Show, People Magazine, The LA Times, Think Realty Magazine (cover), TV Insider, In Touch Weekly, Life and Style Magazine, The Wrap, The Atlanta Journal Constitution, UGA Today, US Chamber of Commerce, PopSugar, Entertainment Magazine, and a number of local periodicals.

Education
Ken has a Business Degree from the University of Georgia and a Masters Degree in Building Construction from Georgia Tech.

Accreditations
Ken is currently licensed as a general contractor (commercial) in the state of Georgia.

Follow
RedBarnHomes.com
Instagram @kencorsini
Twitter @kencorsini
Facebook

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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.

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. 

Based out of Oakland, Annie Dickerson didn't see the area as a viable locale to continue to invest. So she set out to find a better market. Landing on Huntsville, Ala., she bought a six-plex that she was able to turn in two years for $100K profit! Find out here how she pulled this off!