I am starting out and late to the party

Starting Out
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I am starting out and late to the party

Timoteo Merlos
Member since 2019 · 6 posts · 7 votes

Hi I am trying to be an investor and would like to see some opinions on a good market to start out in seeing as my market is difficult to get into

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Doug McVinuaPro Member
Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
4y

@Timoteo Merlos Congratulations, If I was to guess the number one mistake most wanna-be investors make is never actually pulling the plug on the first property. 

Read, learn, run the numbers, make connections don't overanalyze, and then buy something, somewhere that is right for you.

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  • Cameron Braig
    Atlanta, GA · Member since 2021 · 493 posts · 162 votes
    4y

    Congrats on getting started and welcome to the forum. 

    The sunbelt continues to provide great opportunities. Florida, Georgia, North Carolina, Texas and Arizona have all seen growth in areas like population, rent, income and jobs. Depending on your goals these could be markets to look into. Best of luck getting started. 

    1Reply
  • Matthew Sipes
    Member since 2021 · 1 post · 1 vote
    4y

    It’s never too late to start! 

    I echo what was said above. The sunbelt is having many opportunities come up for people to grab. Especially with the huge population shift. Another option is to look in the Midwest at some of the bigger cities (OKC, KC, Omaha) for lower overall start cost as there are several multi family/ single family options that have been popping up as great rental properties. 

    Good luck and never give up on the goals. Life’s too short

    1Reply
  • Wesley MullenPro Member
    Investor · Norman, OK · Member since 2021 · 56 posts · 21 votes
    4y

    I echo everyone else about it's never too late to start, as I'm just starting myself. However, when starting out, the best advice that I've heard through BP and others is to start local. It's the market you know the best and provides boots on the ground vs getting into somewhere that you aren't familiar with. Essentially, in most cases it should prevent lest risk when starting out. There should always be deals within at least an hour or two from your region. Best of luck starting out! Research, reach out, connect, and take action!

    1Reply
  • Patrick Bavaro
    Fort Lauderdale, FL · Member since 2018 · 289 posts · 342 votes
    4y

    @Timoteo Merlos no such thing as late to the party with real estate! Just need to be smart and make good investments. The deals are to be had, you just have to "make them" in this market. For example, right now I Am building a new build 4/3 SFH in Cape Coral FL with an all in cost of about $265k. Rents are around $2300/mo and post construction appraisals are at $377k for this particular model. Best part is, only required 10% down! Good luck on the search! Feel free to connect for other ideas

    2Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
    4y
    Originally posted by @Timoteo Merlos:

    Hi I am trying to be an investor and would like to see some opinions on a good market to start out in seeing as my market is difficult to get into

     Hi Timoteo.

    Where to start, depends on your financial/investment goals. Are you going for cash flow? If so- how much? Or is cash on cash return what's important? Please elaborate if you want targeted help.

    1Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    If you ever want to check out a place that has a population growth, job growth and cheaper real estate prices relative to its size check out Columbus, Ohio. You'll have a higher cash flow as well when compared to to other pricy markets.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
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    The whole Sunbelt from Fla to the Western AZ border...

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  • Susan ThelenBusiness Member
    Real Estate Agent · Mesa, AZ · Member since 2020 · 91 posts · 39 votes
    4y

    Very exciting! I would try Arizona, Florida, Oklahoma. You should try to get on a Wholesalers list. Maybe also try to partner with someone to help reduce your risk. 

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  • Doug McVinuaPro Member
    Property Manager · Queen Creek, AZ · Member since 2016 · 608 posts · 426 votes
    4y

    @Timoteo Merlos Congratulations, If I was to guess the number one mistake most wanna-be investors make is never actually pulling the plug on the first property. 

    Read, learn, run the numbers, make connections don't overanalyze, and then buy something, somewhere that is right for you.

    [email protected]602-751-7577
    4Reply
  • Timoteo Merlos
    OP
    Member since 2019 · 6 posts · 7 votes
    4y

    @Chad McMahan I need capital so I am trying to wholesale first. I know everyone says that but I am actually trying.

    1Reply
  • Nova Mendoza
    Rental Property Investor · Ontario, CA · Member since 2018 · 58 posts · 25 votes
    4y

    @Joshua Janus

    I’d love to connect! I’m already looking here.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Originally posted by @Timoteo Merlos:

    @Chad McMahan I need capital so I am trying to wholesale first. I know everyone says that but I am actually trying.

     Kudos for actually trying! Most people just talk. You never know who you'll meet that might help you out...

    0Reply
  • Vivi Liu
    Investor · Dallas, TX · Member since 2021 · 14 posts · 5 votes
    4y

    @Patrick Bavaro

    Good deal!

    1Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    4y
    Originally posted by @Patrick Bavaro:

    @Timoteo Merlos no such thing as late to the party with real estate! Just need to be smart and make good investments. The deals are to be had, you just have to "make them" in this market. For example, right now I Am building a new build 4/3 SFH in Cape Coral FL with an all in cost of about $265k. Rents are around $2300/mo and post construction appraisals are at $377k for this particular model. Best part is, only required 10% down! Good luck on the search! Feel free to connect for other ideas

    Hi Patrick, how did you get that deal? Did you go to a home builder with models on display? Or did you find land, then engage a builder to go for it? Or are you the GC and subbing all the work out?

    0Reply
  • Patrick Bavaro
    Fort Lauderdale, FL · Member since 2018 · 289 posts · 342 votes
    4y

    @Michael King hi Michael, I actually used a turnkey company that I found here on BP that has the network built with the lender and the builder. For the most part, it’s pretty hands off and I’ve been very happy with the deal. Right now, I pay $100/mo in my construction loan. As the build continues that cost will increase a bit, but not tremendously. I’ll send you a message with the details if you’d like to connect or discuss

    0Reply
  • Bhekizwe M.
    Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    4y
    Originally posted by @Timoteo Merlos:

    @Chad McMahan I need capital so I am trying to wholesale first. I know everyone says that but I am actually trying.

    Its never late to start.Read learn, listen, connect as mentioned above. With wholesaling its about marketing and sales....overcome objections....solve problems...negotiate wholesale prices....control the property....assign/double close...repeat

    There are other exit strategies too

    0Reply
  • Seth Young
    Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes
    4y

    @Timoteo Merlos

    We all know the best time to start investing in real estate was yesterday.. However, its never to late to start! I would suggest looking into the southern/midwest portion of the US. Are you looking to infest in single family or multi family homes? Best of luck in all your investing. 

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @Timoteo Merlos it depends on what your overall goals and criteria are. Start by clearly defining that and you'll quickly narrow down your choices. If your objective is cash flow then you'll want to focus on more affordable markets which you'll usually find in the Midwest and Southeast. In addition to good cash flow and COC return, look at the long term economic and demographic trends. When evaluating any new market, I look at several metrics including population growth, job growth, income, modern/diverse economies, reasonable property taxes and favorable landlord/tenant laws. Personally, I like Indianapolis, Kansas City and Davenport, IA in the Quad Cities, I would have all of them on my radar.

    0Reply
  • Cade Olof
    Real Estate Agent · Tucson, AZ · Member since 2020 · 103 posts · 64 votes
    4y

    Never too late to start! You just have to keep figuring out the next step. 

    Before I worry about a market, I'd sit down and try to figure out what my specialty is going to be (Start with what interests you. This may change over time as you become more experienced). Multifamily buy and holds, apartment syndications, self-storage, wholesaling, flips??? The reality is that there is so much variety and you HAVE to niche down what it is you're looking for. 

    Once you crack down on that, you may find that picking a market will be a lot easier. Markets differ in being either an appreciation or cash flow market. You have to decide which one helps you hit your goals and then niche down on that one specialty. You'll see a lot more results that way! Feel free to PM me if you'd like to connect further!

    1Reply
  • Isaac S.
    Member since 2018 · 563 posts · 562 votes
    4y

    The market you can buy low and sell high and/or have very positive cash flow in between acquisition and disposition.

    Good luck!

    0Reply
  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    Hi @Timoteo Merlos you may want to consider a lease option sandwich or perhaps an Airbnb arbitrage. You can Google each of these options. These are easier for beginners and require less capital than most investments. Good luck!

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    Here is an article from Forbes that can help. 

    https://www.forbes.com/sites/i...

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