I just won a settlement of 200k

[Michael Raymond]

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

[Kenny Smith]

@Michael Raymond

I'd start by trying to first identify what your investment strategy is going to be.  From there, start to figure out which markets caters best to that strategy, what your entry costs are going to be and what markets you can afford, and narrow it down that way.

Once that's done, I'd then get connected with a local Realtor in that market to identify what areas/neighborhoods would best fit your needs.  If you are looking for partnerships, start perusing the forums page for other investors in that specific market.

Good luck!

[Marlon Fong]

Welcome to the site @Michael Raymond! It's great to have you here.

Here are some recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/m...

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Wishing you the best!

[John Mathew]

Hello Michael! 

One key factor that differentiates a good real estate investment from a bad one is its location. As a first-time investor, you must take the time to check out several sites before settling into one. Although opting for a place close to the metro is convenient, try not to limit yourself to just the options in your area. Branch out to neighboring cities or even go out-of-town to scout for properties that best suit your budget and goals.

Hope this helps you!

[Steven Foster Wilson]

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 Hello Michael, welcome to the BP community! 

I would choose the in-state option for starters provided that your local market can give you that 1-2% rule deal and if it's affordable. If that isn't available in your market, then you should consider out of state.

I highly recommend that you read this article on OOS investing. This explains who you need on your bus! You will need to get a local, Realtor, contractor, lender, and property manager. All the pieces to making a successful business. https://www.biggerpockets.com/...

[Bob Stevens]

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 Being from LI I know all too well 200k gets you nothing. If you are looking for rentals with 10% net caps or better with all in pricing of about 100k for SF, and about 45k per unit for MF ,  there are much better markets for cash flow, 

Good luck 

[River Sava]

Congrats and investing is the way to go! Do you know what type of properties you're interested in? 

[Travis Timmons]

Vultures sliding into your DMs in 3, 2, 1...

Congrats on your success. I'd suggest that you have a reason to invest in a market other than returns. Maybe that is local contacts, a place you used to live, somewhere you vacation and want to purchase a short term rental etc. Good luck!

[Dan Heuschele]

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 Educate first.  A fool and his money are soon parted.

Owning residential RE is not passive.  This is true even with the use of a PM.

There are literally countless investment opportunities available.  If you choose RE, you should have some passion for RE especially if not going a near passive route.

There are many forms of investing in RE. Often less passive can provide best returns but at the cost of time and often risk. Some RE options in order of passivity (IMO) from most active to most passive: New development, Flip, BRRRR, STR without PM, traditional buy and hold without PM, STR with PM, traditional buy and hold with PM, full service turnkey, Commercial MF with PM, Commercial non residential, NNN, syndication, REIT. Traditionally I have achieved infinite return on BRRRR, but they are work and take time. Be honest with yourself on your skills, available time, etc.

The recent rate increases places the RE market in an unfamiliar state.  Regardless of what anyone states, no one really ever knows the future and this is more true in new environments.  I am being very cautious on my RE at present.

If I wanted a mostly passive RE investment and RE was not a passion, I would evaluate RE syndicators and create a relationship with the ones that pass my scrutiny.  Maybe start by making minimum investment in a few RE syndications or invest in a syndicator of syndicators (a syndication that for a fee vets syndicators and invests in those vetted syndications).

Good luck

[Michael Raymond]

Quote from @Kenny Smith:

@Michael Raymond

I'd start by trying to first identify what your investment strategy is going to be.  From there, start to figure out which markets caters best to that strategy, what your entry costs are going to be and what markets you can afford, and narrow it down that way.

Once that's done, I'd then get connected with a local Realtor in that market to identify what areas/neighborhoods would best fit your needs.  If you are looking for partnerships, start perusing the forums page for other investors in that specific market.

Good luck!

[Michael Raymond]

Thank you for the advice I am looking out of state because it fits my budget without a lot of risk

[Michael Raymond]

Quote from @River Sava:

Congrats and investing is the way to go! Do you know what type of properties you're interested in? 

I would love to get into rentals and flips

[Michael Raymond]

Quote from @Travis Timmons:

Vultures sliding into your DMs in 3, 2, 1...

Congrats on your success. I'd suggest that you have a reason to invest in a market other than returns. Maybe that is local contacts, a place you used to live, somewhere you vacation and want to purchase a short term rental etc. Good luck!

Lol thank you for your advice I do have family in Austin I’m hoping to get something down there as Austin continues to rise

[Michael Raymond]

Quote from @Bob Stevens:

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 Being from LI I know all too well 200k gets you nothing. If you are looking for rentals with 10% net caps or better with all in pricing of about 100k for SF, and about 45k per unit for MF ,  there are much better markets for cash flow, 

Good luck 

Thank you for the advice I’m convinced I have to got out of state investing I will be doing my homework 

[Michael Raymond]

Quote from @John Mathew:

Hello Michael! 

One key factor that differentiates a good real estate investment from a bad one is its location. As a first-time investor, you must take the time to check out several sites before settling into one. Although opting for a place close to the metro is convenient, try not to limit yourself to just the options in your area. Branch out to neighboring cities or even go out-of-town to scout for properties that best suit your budget and goals.

Hope this helps you!

Thank you for the advice I am convinced that I will have to invest out of state 

[James Wise]

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 If you're looking for cheaper more landlord friendly markets, hit up the Midwest. - Cleveland, Detroit, Toledo, KC, Indy etc...

[Bob Stevens]

Quote from @Michael Raymond:

Quote from @Bob Stevens:

Quote from @Michael Raymond:

I live in New York and I want to get into real estate but I don’t think New York will the best to start I’m looking for advice for local and out out of state and or partnerships 

 Being from LI I know all too well 200k gets you nothing. If you are looking for rentals with 10% net caps or better with all in pricing of about 100k for SF, and about 45k per unit for MF ,  there are much better markets for cash flow, 

Good luck 

Thank you for the advice I’m convinced I have to got out of state investing I will be doing my homework 

 ALL you need to do is connect with those that provide rentals, nothing for you to do , 

[Nathan Gesner]

Read "Long-Distance Real Estate Investing" by David Greene. Watch the YouTube video where Dave Meyers from BiggerPockets explains which markets are best for investing.

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

[Joshua Messinger]

Welcome to BP @Michael Raymond! 

My biggest piece of advice would be to really dial in on what your strengths are and what you can bring to the table when getting into the game... Do you have any past experience that may propel you into a space that you may not have imagined would help? 

The other side to that is to really key in on what your objectives are. Having a clear vision and plan on how you will accomplish those objectives will allow you to reverse engineer the process to really jump-start your career in real estate. 

Don't make things too complicated also, keep it simple and focus on moving forward 1 day at a time. If you have any more questions please don't hesitate to reach out! 

-

Josh 

[Aaron Gordy]

@Michael Raymond doing flips from afar is probably not a good move. I would suggest buying a ltr and getting to know reliable construction folks prior to taking on a construction project. Construction is a risky endeavor especially since you probably don't have go to folks for various trades. Turn key rentals is not nearly as risky. 

[Jared Prevost]

Hi Michael,

Looks like you've got some great advice here. If it were me, I'd address a few things before deciding on a market.

1) Personal finances - as @Nathan Gesner mentioned, if you don't already have your personal finances in order make sure you get that taken care of. Buying real estate without having solid personal finances adds a tremendous amount of risk to your portfolio.

2) Ask yourself this question - do you want to invest actively or passively? In other words, do you want to buy the house in your name or the name of your LLC and have decision-making power and responsibility? Or would you prefer to give up the time and responsibility commitment in exchange for lower returns and less upside?

If you want to invest actively, there are a lot of great suggestions on this thread about long-distance investing.

If you want to invest passively, there are options to be so in a debt position as a private lender or in an equity position as a money partner on a deal or in a syndication. If you're interested in investing passively, I'd be happy to provide you with some direction on how to do so successfully

[Roschelle McCoy]

Jared hit the nail on the head. Decide first if you want to be an active or a passive investor. Most people think of real estate investing as only being active, but there are many ways to earn income through REI without doing all the work. If you don't have the time, desire or passion to find deals, renovate/repair, find tenants, manage properties, etc, then passive investing is the way to go. There is still some up front due diligence involved with passive investing to choose the right partners that you'll be investing with and understanding the deal and market, but after that it's all hands off.

I have a team that specializes in multifamily syndications.  If you have interest in learning more about passively investing in syndications DM me.