Hello all. I am new to real estate investing. I am based in California and interested in out-of-state investments. I contacted realtors but they send me usual properties that are negative cash flowing. I could not buy anything yet despite my willingness. Here are my questions for experienced members:
- Should I find realtors who are also investors? Is this platform good for that purpose?
- Should I work with wholesalers?
- what is the best way to find opportunities for someone who works full time with a demanding job that leaves little time for me to explore (driving for dollars etc.)?
Any help is welcome. Thanks
What strategy were you attempting to use?
I was trying to find properties suitable for buy-and-hold but I am not against the BRRRR strategy as well. I just do not have experience in rehab so I thought my first purchase should be a safer bet, maybe a buy-and-hold. I focused mostly on the TX Dallas area but not against other areas.
If you need any eyes or boots on the ground for your Real Estate around north dallas and north Ft. Worth dm me I'm happy to help @Samil Tun
Cash flow is tough in DFW right now...but that can depend on what you put down. Prices have run up faster than rents, but rents typically are catching up 2-3 years later. For example one I rented for $2500 2 years ago just rented at $3200 this year....but because many leases are for 12-24 months or so, then it can take a while to catch up with price run up.
So putting more money down than the minimum can help you solve that problem.
I look at a lot of wholesale deals and very rarely see anything interesting. So often the ARV is inflated and the repairs severely underestimated. Won't say there's never a deal, but they seem to be few and far between with little meat on the bone for the investor.
You can source your own deals, but it does take time, effort, and money. Buy a list of distressed properties and mail and call to that list.
There are plenty of investor realtors around like me on the BP forum and that probably helps some. You might also look at different areas that might have better prices, but might also have more risk. I would suggest some of the smaller cities outside of the main DFW metroplex.
@Samil Tun as others have said DFW is not known for being an extreme cash flow market at this point in time, very few places outside of the midwest are, and the places that cash flow well on paper are not always the places you want to own property so if you want to go this route I strongly recommend taking the time to learn about the place you want to invest, unfortunately nobody else is going to do it for you, even if their marketing says they will. The reason, it is hard and can be time consuming if your expectations are high especially for a realtor who doesn't get paid until you close a deal, which as you've stated you aren't in a position to do right now anyway.
@Aaron K. thanks for your comment. I am familiar with the DFW area and lived there for five years. That is actually why I focused on that area but I am not against other states as well. I am considering reaching out to realtors in different states. I actually liked the way you put it. On-paper-cash-flowing areas can be usually undesirable areas, and this is true for DFW too. That said, my expectation is not really high, but numbers need to match. I am not interested in negative cash flow although there may be a promise of appreciation. One correction for your comment is that I did not state I am not ready to close it. In fact, it is the exact opposite. Even when I find myself a deal, the realtor can be too slow to act and deals are gone in a day (because it was a good one). I think part of the problem is the hot seller market, which probably makes realtors preoccupied, not to mention inflated prices. All sellers are under the impression that they can get it sold at over asking price. Anyways, that is a different topic but as my original question implies, I am interested in building a functional system with realtors. I find investor-friendly ones are speaking the same language.
@Samil Tun apologies, I misread your initial post as you couldn't buy anything for reasons other than the state of the market. I still think that you'll need to invest the time yourself to learn and have the realtor be a secondary factor who just helps with the logistics and paperwork, if you decide to go the MLS route.
Hi. I’m an agent in NY. If you don’t like one agent, look for another. Eventually you’ll find someone who will help you and you enjoy working with. It costs you nothing to work with an agent.
Hi @Samil Tun, I'm sorry you've had a hard time... you are likely finding people who don't understand real estate investment and/or aren't willing to write multiple offers on your behalf. It's a lot of work, but it's totally possible. We are winning deals that will cashflow.
I wouldn't work with a wholesaler from out of state unless you have several people who can vouch for their numbers (both comps and rehab). I have purchased several houses from wholesalers and I honestly don't think their numbers have been accurate even once... we still made money, but we never went off their numbers.
I'm currently working with two out-of-state investors and would be happy to help you as well! Hopefully we can connect soon.
Hi @Jessica Harrison , thanks for reaching out. I would be more than happy to connect. Thanks for your suggestions. I think these are important point you just made. Let's have some discussion.
Hi @Krystalea Nestle , yes, they are important and valuable. That is why I would like to connect and work with them. If they are investor-friendly, that is even better. I am just trying to reach out to realtors that I can call team members and collaborate with them. Thanks for your input.
Did you research about out of state investing already? Which area do you prefer?
I would network with a couple seasoned wholesalers who are consistently putting out properties.
The only success from my experience with a realtor is a pocket listing.
Off-market deals have yielded us much higher ROI.
@Aigo Pyles , yes, out of state is the only option I have been trying right now. I prefer AZ, TX, NC, SC, FL but open to other locations based on price, potential, and the quality of the neighborhood. That said, I am not interested in buying something in a war zone just because it is cheap or fits the 1 percent rule, etc. I am looking for some kind of balance between the price and desirability of the location and the property.
There are many different ways to invest in real estate that are easy, especially if you're new! Just check out other methods to have fractional ownership in significant projects to support the surrounding community.
If you are in a position to buy, you can explore partnership opportunities with other investors in the markets you have interest in. Let a local investor be boots on the ground and use their resources.
I’d be happy to connect and share some ideas as I’ve partnered with someone on deals that has benefited us both.
Happy to connect.
@Yenlan Patton I sent a message to you and thanks for the info.
I'm an investor in TX and a licensed agent. I only have cashflowing deals myself and yes they are hard to find d and even harder to secure. I can help you find what you want.