Investing in D areas (south Florida)

14 Replies

Good afternoon I am from south Florida ( Fort Lauderdale area)and I will be starting out in real estate investing real soon. What do you all think about investing in D areas. Seems like there is a lot of these type of properties available in my area for a reasonable price, and thoughts on purchasing from wholesalers . if from south Florida I am looking for a mentor. I could use the help. Don’t have a great support network down here. Family, and friends think I’m crazy.

Ask Ben Leybovicth.You ever flush a cockroach down the toilet?  That's what happens to most of their 💰 buying D-class.

There are 2 types of investor who can make a go of it. You live in your D class area or you buy 1000 units. 

True story. A ⛺ 🐜 got sentenced to 5years in the big 🏡. Landlord panic. Tenant say don't worry Bro my pal is getting out the same time I'm going in. Hell move into my space. Rent flowed seamlessly.

Research the areas before you decide to invest. Very important you identify the crime rates, neighborhood prices and other things. Educate yourself about the market before you invest. Good luck!

Wholesalers typically suck the profit out of anything worth buying.     However, they aren't any better/worse than realtors typically.

D areas, probably wouldn't start there if you don't have experience.    It's more work, more hassle and you have to have thicker skin.     However, it's typically better return on your investment.        Read up on how to make houses bullet proof.     In the areas you are talking about, you may need it.

You’ll get much better returns , there is a caveat though . You need thick skin you need to be as savage as the people who live there to get the money ..a lot of people on here think you can only make money in b class suburbia .heck some people on here are happy to get 50-100$ Monthly profit on a 200k+ house and they pat themselves on the back because they didn’t have to drive through the low income areas in their Range Rover and get  freightened when they saw poor people that look and live different from them .look  If you can handle it there is plenty of money ...but it is not easy and requires a different approach many would be unwilling to take . 

I'm in South Florida. Down here there are "D" areas and then there are "D" areas...both will be hard to manage but can be profitable in terms of return though there is little prospect for appreciation. Others will have a slightly lower return but have a great prospect of appreciation. The issue really is what your business model is, what you want and planning thoroughly. "D" properties require a greater deal of planning and a well documents platform of systems to run efficiently, effectively and profitably. Most people I see investing in "D" (and most investors overall) don't have any systems in place, don't create clarity for themselves let alone their tenants and just fly by the seat of their pants. On an "A" property you can get away with that. On a "D" you can't. Either way, people being down on "D" properties I would say is somewhat easy. When you are first starting out you may not have the luxury of getting into a superior market. I don't personally like "D" properties because I don't have time not but I do actively look at them in emerging areas where there is long term high probability of appreciation. I have not acquired one yet but am thinking I may in the next several months. If I do, I'll have the systems in place to deal with the challenges that go with "D" property. You'd be well to do the same. Feel free to reach out if you have specific questions. Good luck

Originally posted by @Eric Jacobs :

I'm in South Florida.  Down here there are "D" areas and then there are "D" areas...both will be hard to manage but can be profitable in terms of return though there is little prospect for appreciation.  Others will have a slightly lower return but have a great prospect of appreciation.  The issue really is what your business model is, what you want and planning thoroughly.  "D" properties require a greater deal of planning and a well documents platform of systems to run efficiently, effectively and profitably.  Most people I see investing in "D" (and most investors overall) don't have any systems in place, don't create clarity for themselves let alone their tenants and just fly by the seat of their pants.  On an "A" property you can get away with that.  On a "D" you can't.  Either way, people being down on "D" properties I would say is somewhat easy.  When you are first starting out you may not have the luxury of getting into a superior market.  I don't personally like "D" properties because I don't have time not but I do actively look at them in emerging areas where there is long term high probability of appreciation.  I have not acquired one yet but am thinking I may in the next several months.  If I do, I'll have the systems in place to deal with the challenges that go with "D" property.  You'd be well to do the same.  Feel free to reach out if you have specific questions.  Good luck 

 I was on a vendor tour this week and he has a lot of what you would actually consider C and B class based on crime states and the look of the area.. but the folks are financially challenged..  so he started to go to weekly rent collections.. which has really upped his cash flow.

and instead of waiting a whole month to figure out your not getting paid for the entire month.. at the end of the week if they don't pay he is noticing them the following week.. 

Generally speaking unless you are in the business of running these assets you will never make money you will lose money.. this is why its a wholesalers dream market constant burnt out landlord just get me whatever and I can be done with it.

Originally posted by @Jay Hinrichs :
Originally posted by @Eric Jacobs:

I'm in South Florida.  Down here there are "D" areas and then there are "D" areas...both will be hard to manage but can be profitable in terms of return though there is little prospect for appreciation.  Others will have a slightly lower return but have a great prospect of appreciation.  The issue really is what your business model is, what you want and planning thoroughly.  "D" properties require a greater deal of planning and a well documents platform of systems to run efficiently, effectively and profitably.  Most people I see investing in "D" (and most investors overall) don't have any systems in place, don't create clarity for themselves let alone their tenants and just fly by the seat of their pants.  On an "A" property you can get away with that.  On a "D" you can't.  Either way, people being down on "D" properties I would say is somewhat easy.  When you are first starting out you may not have the luxury of getting into a superior market.  I don't personally like "D" properties because I don't have time not but I do actively look at them in emerging areas where there is long term high probability of appreciation.  I have not acquired one yet but am thinking I may in the next several months.  If I do, I'll have the systems in place to deal with the challenges that go with "D" property.  You'd be well to do the same.  Feel free to reach out if you have specific questions.  Good luck 

 I was on a vendor tour this week and he has a lot of what you would actually consider C and B class based on crime states and the look of the area.. but the folks are financially challenged..  so he started to go to weekly rent collections.. which has really upped his cash flow.

and instead of waiting a whole month to figure out your not getting paid for the entire month.. at the end of the week if they don't pay he is noticing them the following week.. 

Generally speaking unless you are in the business of running these assets you will never make money you will lose money.. this is why its a wholesalers dream market constant burnt out landlord just get me whatever and I can be done with it.

Weekly rent ... hmm that’s very interesting to me .. you can wait at the same front door with the rent -a -center guy to get paid lol 

What system handles the -oh bumpkin I just saw a drug deal going down on my property?

I like the weekly collection thing. Bring along a 🐶 the bounty hunter look alike. They'll 🏃 or happily pay. 

Originally posted by @Dennis M. :
Originally posted by @Jay Hinrichs:
Originally posted by @Eric Jacobs:

I'm in South Florida.  Down here there are "D" areas and then there are "D" areas...both will be hard to manage but can be profitable in terms of return though there is little prospect for appreciation.  Others will have a slightly lower return but have a great prospect of appreciation.  The issue really is what your business model is, what you want and planning thoroughly.  "D" properties require a greater deal of planning and a well documents platform of systems to run efficiently, effectively and profitably.  Most people I see investing in "D" (and most investors overall) don't have any systems in place, don't create clarity for themselves let alone their tenants and just fly by the seat of their pants.  On an "A" property you can get away with that.  On a "D" you can't.  Either way, people being down on "D" properties I would say is somewhat easy.  When you are first starting out you may not have the luxury of getting into a superior market.  I don't personally like "D" properties because I don't have time not but I do actively look at them in emerging areas where there is long term high probability of appreciation.  I have not acquired one yet but am thinking I may in the next several months.  If I do, I'll have the systems in place to deal with the challenges that go with "D" property.  You'd be well to do the same.  Feel free to reach out if you have specific questions.  Good luck 

 I was on a vendor tour this week and he has a lot of what you would actually consider C and B class based on crime states and the look of the area.. but the folks are financially challenged..  so he started to go to weekly rent collections.. which has really upped his cash flow.

and instead of waiting a whole month to figure out your not getting paid for the entire month.. at the end of the week if they don't pay he is noticing them the following week.. 

Generally speaking unless you are in the business of running these assets you will never make money you will lose money.. this is why its a wholesalers dream market constant burnt out landlord just get me whatever and I can be done with it.

Weekly rent ... hmm that’s very interesting to me .. you can wait at the same front door with the rent -a -center guy to get paid lol 

 this vendor has an office in town were tenants are to drop their rent every Friday... no rent on Friday eviction notice are hung on Monday.

Originally posted by @Dennis M. :
Originally posted by @Jay Hinrichs:
Originally posted by @Eric Jacobs:

I'm in South Florida.  Down here there are "D" areas and then there are "D" areas...both will be hard to manage but can be profitable in terms of return though there is little prospect for appreciation.  Others will have a slightly lower return but have a great prospect of appreciation.  The issue really is what your business model is, what you want and planning thoroughly.  "D" properties require a greater deal of planning and a well documents platform of systems to run efficiently, effectively and profitably.  Most people I see investing in "D" (and most investors overall) don't have any systems in place, don't create clarity for themselves let alone their tenants and just fly by the seat of their pants.  On an "A" property you can get away with that.  On a "D" you can't.  Either way, people being down on "D" properties I would say is somewhat easy.  When you are first starting out you may not have the luxury of getting into a superior market.  I don't personally like "D" properties because I don't have time not but I do actively look at them in emerging areas where there is long term high probability of appreciation.  I have not acquired one yet but am thinking I may in the next several months.  If I do, I'll have the systems in place to deal with the challenges that go with "D" property.  You'd be well to do the same.  Feel free to reach out if you have specific questions.  Good luck 

 I was on a vendor tour this week and he has a lot of what you would actually consider C and B class based on crime states and the look of the area.. but the folks are financially challenged..  so he started to go to weekly rent collections.. which has really upped his cash flow.

and instead of waiting a whole month to figure out your not getting paid for the entire month.. at the end of the week if they don't pay he is noticing them the following week.. 

Generally speaking unless you are in the business of running these assets you will never make money you will lose money.. this is why its a wholesalers dream market constant burnt out landlord just get me whatever and I can be done with it.

Weekly rent ... hmm that’s very interesting to me .. you can wait at the same front door with the rent -a -center guy to get paid lol 

the first I heard of weekly rent on an sfr actually was with Aussie clients of mine quite common there.. but then again all banking is electronic they don't have paper checques or money orders..   I had to explain to this Aussie simply wont work in the US as most of the folks in the lower asset class don't have checking accounts and will never get one for a few reasons.. ONE don't trust the bank or two they are on the permanently barred federal system as a check bouncer and can never get one with their SS 

There is a guy here in my town that just came recently from Omaha/Council Bluffs---- the guy works his balls off every day him and his wife, and has a few $ partners and they are buying up all of the low end stuff, putting a crew together and setting up shop. It must be working the guy is pretty successful. I think scalability is the key when you get into the low end stuff. Not my cup of tea but can't argue with success!