New to real estate investing looking for networking,

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New to real estate investing looking for networking,

Kevin Burke
Member since 2020 · 10 posts · 2 votes

Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance

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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Kevin Burke:

Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance


Hey Kevin, I suggest surrounding with yourself with a great team (lenders, PMs, realtors, etc), that's an important step especially you are planning to invest out of state. Also, consider looking into the Ohio market Primarily the 3 major cities like Cleveland, Columbus or Cincinnati. The price to rent ratio makes for great investments. Not to mention our appreciation has been 8% higher than the US national average, because of the high demand for affordable housing.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

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    0Reply
  • Mitchell Kennedy
    Real Estate Agent · Austin, TX · Member since 2022 · 16 posts · 2 votes
    3y

    Hey Kevin, welcome to the fun side of Real Estate! What market/city are you looking to invest in?

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Kevin Burke:

    Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance


    Hey Kevin, I suggest surrounding with yourself with a great team (lenders, PMs, realtors, etc), that's an important step especially you are planning to invest out of state. Also, consider looking into the Ohio market Primarily the 3 major cities like Cleveland, Columbus or Cincinnati. The price to rent ratio makes for great investments. Not to mention our appreciation has been 8% higher than the US national average, because of the high demand for affordable housing.

    2Reply
  • Scott E.
    Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    The first step is just to immerse yourself in education for the next 3-6 months. Study these forums, read books, listen to real estate podcasts. Just obsess over it.

    Once you get a base of education you will be able to decide which niche you would like to pursue (house flipping, wholesaling, long term rentals, short term rentals, commercial, etc).

    When you pick your niche, then you can start networking and building a team who will be able to support you in your business.

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Kevin Burke:

    Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance


    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/...

    I invest locally in Columbus, Ohio
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  • Tim Debronsky
    Full-Time Investor & Agent · Amherst, OH · Member since 2014 · 149 posts · 50 votes
    3y

    Congratulations Kevin on starting your real estate investing journey! You have come to the right place to learn and decide where you want to start investing. Read as many REI books as you can. I invest in Cleveland Ohio which is still affordable and a great cashflow market. Let me know how I can help you.

    0Reply
  • Pego Jean-Paul
    Real Estate Agent · Norwalk, CT · Member since 2021 · 22 posts · 7 votes
    3y

    Hi, look up for local Reia. You should be to find events and start networking it members there. I am going to my first meeting next week and I looking forward to learning from others and sharing my own experience. I would also tell everyone that you looking to invest in properties. You never know how they can help you get deals and link you up with people that also invest. I recently went to a wedding and I brought up that subject and found out my cousin is a wholeseller in Ohio. I have been able to connect and share our information. Try to enjoy this process and go out to meet people and connect. All the best. 

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Be intentional with your search and be relentless. A lot of people in the industry who have old school ways of thinking, don't let them deter you from your mission 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    3y
    Quote from @Kevin Burke:

    Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance


     Welcome aboard Kevin. I saw a few people talking about Cleveland as a market for you. Cleveland is very similar to a lot of other markets you'll find in the Midwest. These are areas with low prices and a high population of renters. Major thing to watch out for is blight though. Many parts of these kinds of markets is filled with blight and high crime.

    If you delve deeper into Cleveland, I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods. Biggest mistake I see out of state investors make here in Cleveland is overpaying for a property because they compared it to where they lived and thought there was no way they could lose since it was so cheap....You can still lose on a cheap deal folks. Trust me.

    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votes
    3y

    Hello @Kevin Burke,

    You seem to be on the right track. It is a big leap to accept that there may be a better investment location than where you live.

    Instead of networking, I propose the following steps.

    1. Goals

    Clarify your goals. Clear goals give you a yardstick by which you can evaluate decisions. If your goal is a dependable passive income that will get you off and keep you off the daily worker treadmill, you partially defined the location requirements.

    A dependable passive income is -

    • Reliable - You continuously receive income in good and bad economic times.
    • Inflation Compensating - Your rental income grows faster than inflation, compensating for rising prices.
    • Persistent – The income continues for a long time; you and your spouse will not outlive the income.

    2. Location

    The location determines all long-term income characteristics. Top location selection criteria are:

    • Pre-COVID rents and prices rose faster than inflation. Dollar bills have no value by themselves. Dollar bills are only worth what you can get in exchange for them. Every time you go to the store, buying the same basket of goods takes more and more dollars. Unless rents increase faster than inflation, you won't have the additional dollars you need and will soon be back on the treadmill.
    • Population Size - Greater than 1 million. Small towns may rely too much on a single business or market segment.
    • Population Change - Both state and city populations are increasing. Do not buy where state or city populations are static or decreasing.
    • Low crime - People with sufficient income will move away from cities with high crime levels. Companies will not choose high-crime locations for new operations. Eliminate any city on Neighborhood Scout’s 100 most dangerous cities.
    • Low operating cost - The two most obvious are property tax and insurance. High property taxes and insurance are a direct hit on cash flow.

    3. Tenant Pool Segment

    The only way to have a dependable passive income is if a dependable tenant continuously occupies the property. A dependable tenant is someone who:

    • Has stable employment in a market segment that is very likely to be stable or improve over time
    • Pays all the rent on schedule
    • Takes care of the property
    • Does not cause problems with neighbors
    • Does not engage in illegal activities while on the property
    • Stays for many years

    Such tenants are the exception, not the norm. In Las Vegas, most tenants that meet all the above requirements are in a single segment. We’ve targeted this segment for 15+ years. The results are -

    • Our average tenant stays over five years.
    • We've had five evictions in the last 15 years (over a thousand tenants).
    • 2008 crash - Zero decline in rent and zero vacancies.
    • COVID - Almost no impact
    • Eviction moratorium - No impact

    4. Property

    All property characteristics were decided when you selected a tenant pool segment. Buy properties similar to what they are renting today. There is no other option if you want this tenant segment to occupy your property. However, there is more to consider. See the image below.

    https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/whatYouNeedToConsider20221111.png

    If you follow the steps I outlined, your odds of consistently buying dependable passive income properties are excellent.

    [email protected]702-358-8884
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    WebsiteView Page
    0Reply
  • Kevin Burke
    OP
    Member since 2020 · 10 posts · 2 votes
    3y
    Quote from @Mitchell Kennedy:

    Hey Kevin, welcome to the fun side of Real Estate! What market/city are you looking to invest in?


     Mitchell, I was looking at the Killeen, TX area.

    0Reply
  • Kevin Burke
    OP
    Member since 2020 · 10 posts · 2 votes
    3y
    Quote from @Eric Fernwood:

    Hello @Kevin Burke,

    You seem to be on the right track. It is a big leap to accept that there may be a better investment location than where you live.

    Instead of networking, I propose the following steps.

    1. Goals

    Clarify your goals. Clear goals give you a yardstick by which you can evaluate decisions. If your goal is a dependable passive income that will get you off and keep you off the daily worker treadmill, you partially defined the location requirements.

    A dependable passive income is -

    • Reliable - You continuously receive income in good and bad economic times.
    • Inflation Compensating - Your rental income grows faster than inflation, compensating for rising prices.
    • Persistent – The income continues for a long time; you and your spouse will not outlive the income.

    2. Location

    The location determines all long-term income characteristics. Top location selection criteria are:

    • Pre-COVID rents and prices rose faster than inflation. Dollar bills have no value by themselves. Dollar bills are only worth what you can get in exchange for them. Every time you go to the store, buying the same basket of goods takes more and more dollars. Unless rents increase faster than inflation, you won't have the additional dollars you need and will soon be back on the treadmill.
    • Population Size - Greater than 1 million. Small towns may rely too much on a single business or market segment.
    • Population Change - Both state and city populations are increasing. Do not buy where state or city populations are static or decreasing.
    • Low crime - People with sufficient income will move away from cities with high crime levels. Companies will not choose high-crime locations for new operations. Eliminate any city on Neighborhood Scout’s 100 most dangerous cities.
    • Low operating cost - The two most obvious are property tax and insurance. High property taxes and insurance are a direct hit on cash flow.

    3. Tenant Pool Segment

    The only way to have a dependable passive income is if a dependable tenant continuously occupies the property. A dependable tenant is someone who:

    • Has stable employment in a market segment that is very likely to be stable or improve over time
    • Pays all the rent on schedule
    • Takes care of the property
    • Does not cause problems with neighbors
    • Does not engage in illegal activities while on the property
    • Stays for many years

    Such tenants are the exception, not the norm. In Las Vegas, most tenants that meet all the above requirements are in a single segment. We’ve targeted this segment for 15+ years. The results are -

    • Our average tenant stays over five years.
    • We've had five evictions in the last 15 years (over a thousand tenants).
    • 2008 crash - Zero decline in rent and zero vacancies.
    • COVID - Almost no impact
    • Eviction moratorium - No impact

    4. Property

    All property characteristics were decided when you selected a tenant pool segment. Buy properties similar to what they are renting today. There is no other option if you want this tenant segment to occupy your property. However, there is more to consider. See the image below.

    https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/whatYouNeedToConsider20221111.png

    If you follow the steps I outlined, your odds of consistently buying dependable passive income properties are excellent.


     Eric, thank you for the great information 

    0Reply
  • Kevin Burke
    OP
    Member since 2020 · 10 posts · 2 votes
    3y
    Quote from @James Wise:
    Quote from @Kevin Burke:

    Aloha everyone my name is Kevin Burke new to Real Estate investing I have been thinking about it for years getting all the knowledge I can. Now Iam ready to try and find my first deal. Trying to sick with SFH at first and then move into MFH later down the line. Looking for any tips, advise I'm currently living in Hawaii but trying to invest out of state also. Thanks in advance


     Welcome aboard Kevin. I saw a few people talking about Cleveland as a market for you. Cleveland is very similar to a lot of other markets you'll find in the Midwest. These are areas with low prices and a high population of renters. Major thing to watch out for is blight though. Many parts of these kinds of markets is filled with blight and high crime.

    If you delve deeper into Cleveland, I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods. Biggest mistake I see out of state investors make here in Cleveland is overpaying for a property because they compared it to where they lived and thought there was no way they could lose since it was so cheap....You can still lose on a cheap deal folks. Trust me.


     James, thank you for the great information. I have a few close friends that are from Cleveland.

    0Reply
  • Kevin Burke
    OP
    Member since 2020 · 10 posts · 2 votes
    3y
    Quote from @Tim Debronsky:

    Congratulations Kevin on starting your real estate investing journey! You have come to the right place to learn and decide where you want to start investing. Read as many REI books as you can. I invest in Cleveland Ohio which is still affordable and a great cashflow market. Let me know how I can help you.


     Tim, thank you for that great advice 

    0Reply
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