Feel like vomiting!! Begin our business venture tomorrow!!!

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Feel like vomiting!! Begin our business venture tomorrow!!!

Antonio Marte
Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes

My wife (business partner) and I are headed to DFW Texas to look at SFR's tomorrow.We are New Yorkers looking for an ideal buy and hold property. Very nervous!! Just wanted to know of any mistakes you guys might have made when shopping around for your first investment property. Any help would be greatly appreciated!

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Val Csontos
Rental Property Investor · Annapolis, MD · Member since 2014 · 214 posts · 140 votes
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@Antonio Marte I had several mentors early on in my investing carrier who told me one the biggest mistake I could do as a newbie is invest too far from where i live. They said before i should consider properties out of state of even out of the county, I should build a small portfolio of properties not more than 30 minutes from my house so i can learn the basics. I still find this advise sound 15 years later. 

     How ever If you must invest out of state, i would say:

1, Do some basic homework in advance before you go. Check us census data for stable population growth for each zip code you are considering, i like to see at least 1% population gain both historic and forecast  AND very important to check for crime infestation in the area, so you can to to here for that:    https://www.crimereports.com/

2, don't trust your realtor's input on investing, rather maybe ask a round thee RE Investor clubs in DFW area to locate a reputable investor and pay them a reasonable consulting fee to give you a second opinion about area or even a particular property. (make sure they are not involved in the transaction in any way.)

Good Luck to You both and I hope it does work out!

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  • Christopher Gibbins
    Residential Real Estate Agent · Fort Worth, TX · Member since 2013 · 29 posts · 15 votes
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    @Antonio MarteI am a little biased here but good choice on the DFW marketing. But I have to ask why DFW Texas over something close to home? That would be my first concern is investing in a rental so far away? Are you planning on having a property manager take care of it? Are you moving here?

    Home prices here are very low and rental income is high. I have lived here over a year now and I love it. I am relativity new to REI myself but have grown a large database of knowledge that I am not afraid to share, plus I just love talking about it. Let me know if you guys wanna meet up while your in town and just want to talk real estate, I am always free for coffee.

    2Reply
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    11y

    Exciting!! I, too, am curious what your plan is for managing your first property that's so far from home. Sounds like a great market to jump into! Maybe just move there? ;-)

    0Reply
  • Andy WebbPro Member
    Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
    11y

    @Antonio Marte - have a great flight!  DFW is a big area - have you already targeted any particular areas for your visit?

    Beware of the house foundations in the area.  Our clay soil moves all over the place and the amount of settling and resulting repair can be extreme.  We recently lifted the front of a house 7"!

    Andy

    2Reply
  • Christopher Gibbins
    Residential Real Estate Agent · Fort Worth, TX · Member since 2013 · 29 posts · 15 votes
    11y

    Good point @Andy Webb foundations are one of the main issues here so keep your eyes pealed and be very mindful of where you are investing because like Andy said this is a big area. Dallas and Fort Worth and right next to each other but I have never been to Dallas just because its so far away. There are many little cities in-between aswell.

    0Reply
  • Val Csontos
    Rental Property Investor · Annapolis, MD · Member since 2014 · 214 posts · 140 votes
    11y

    @Antonio Marte I had several mentors early on in my investing carrier who told me one the biggest mistake I could do as a newbie is invest too far from where i live. They said before i should consider properties out of state of even out of the county, I should build a small portfolio of properties not more than 30 minutes from my house so i can learn the basics. I still find this advise sound 15 years later. 

         How ever If you must invest out of state, i would say:

    1, Do some basic homework in advance before you go. Check us census data for stable population growth for each zip code you are considering, i like to see at least 1% population gain both historic and forecast  AND very important to check for crime infestation in the area, so you can to to here for that:    https://www.crimereports.com/

    2, don't trust your realtor's input on investing, rather maybe ask a round thee RE Investor clubs in DFW area to locate a reputable investor and pay them a reasonable consulting fee to give you a second opinion about area or even a particular property. (make sure they are not involved in the transaction in any way.)

    Good Luck to You both and I hope it does work out!

    6Reply
  • Antonio Marte
    OP
    Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes
    11y

    thanks a lot guys!!!

    Chris I will definitely have to grab a coffee with you! I appreciate it. I'm looking in DFW beacuse it just seems like a reliable market with projected growth. I have a sister who like myself was a born and raised New Yorker who moved out there and said she will never leave Texas. We are actually interviewing with a few Property management firms, since we will still reside in NYC for a few years. 

    Nichole thank you. If we like it we definitely plan on moving down there. The earned income we are getting in NYC is helping fund this opportunity so we wanted to stay in NYC until we can somehow expand down there. NYC properties are just too expensive for a blue collar guy like myself.

    Andy that's awesome advice. Thank you. We have a few B class neighborhoods we want to check out. Off the top of my head I can't remember the names. As far as foundation inspections how would you deal with a furnished and closed basement where checking a  foundation would be more difficult? 

    Thanks again everyone

    0Reply
  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    11y

    @Antonio Marte, when will you be here? How long will you be staying? Where will you be staying? Is there an agent showing you around? Will you be looking at listed properties?

    As has been noted, DFW is huge. It would take nearly 2 hours to drive from SW Fort Worth to NE Dallas (that swath covers the best residential areas) If you find yourself needing a little guidance, please let me know. 

    3Reply
  • Antonio Marte
    OP
    Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes
    11y
    Originally posted by @Val Csontos:

    @Antonio Marte I had several mentors early on in my investing carrier who told me one the biggest mistake I could do as a newbie is invest too far from where i live. They said before i should consider properties out of state of even out of the county, I should build a small portfolio of properties not more than 30 minutes from my house so i can learn the basics. I still find this advise sound 15 years later. 

         How ever If you must invest out of state, i would say:

    1, Do some basic homework in advance before you go. Check us census data for stable population growth for each zip code you are considering, i like to see at least 1% population gain both historic and forecast  AND very important to check for crime infestation in the area, so you can to to here for that:    https://www.crimereports.com/

    2, don't trust your realtor's input on investing, rather maybe ask a round thee RE Investor clubs in DFW area to locate a reputable investor and pay them a reasonable consulting fee to give you a second opinion about area or even a particular property. (make sure they are not involved in the transaction in any way.)

    Good Luck to You both and I hope it does work out!

     Val thank you for the advice! We've studied the census and sites like pediacities.com to kind of narrow down which towns/cities we want to look into. We are going to drive around etc. I would love to invest closer to home, the mortgages in ny are out of this world!! Went to an open house the other day, 1200sq ft 3 bed 1.5 bath- 780k. Thank you again!

    0Reply
  • Antonio Marte
    OP
    Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes
    11y
    Originally posted by @Jerry Puckett:

    @Antonio Marte, when will you be here? How long will you be staying? Where will you be staying? Is there an agent showing you around? Will you be looking at listed properties?

    As has been noted, DFW is huge. It would take nearly 2 hours to drive from SW Fort Worth to NE Dallas (that swath covers the best residential areas) If you find yourself needing a little guidance, please let me know. 

     We will be staying at a hotel 10mins from DFW international, for I believe 8 days. Adam wright who we met here will show us a few properties here and there. We are looking at listed properties, I found some on craigslist, a few turnkey companies approached us as well. I appreciate lending a helping hand Jerry!

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
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    My biggest mistake starting out - overpaying!! The DFW area as a whole is a complete sellers market right now, finding a good deal will prove to be tough so my biggest advice to you is to be patient, learn the market, and get a good deal, don't just buy simple to buy.

    Foundations are also something to watch for as others mentioned!

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    6Reply
  • Lynn Weber
    Residential Real Estate Agent · Fort Worth, TX · Member since 2014 · 10 posts · 14 votes
    11y
    Originally posted by @Antonio Marte:

     As far as foundation inspections how would you deal with a furnished and closed basement where checking a  foundation would be more difficult? 

    We don't really have basements here (it's extremely unusual).  Most houses are on slabs unless you are looking at something 1940's or older.  We were told "If it doesn't have foundation problems, it did, or it will".  And we've found that pretty true.  Good luck with your search!

    4Reply
  • Account Closed
    Investor · Chesapeake, VA · Member since 2014 · 18 posts · 3 votes
    11y

    Antonio, Welcome to DFW and as others have mentioned this is a great place to launch the real estate investing career. I also wanted to lend a helping hand if you need another one. I help investors find and purchase propoerties in the DFW area, I'm a Realtor and work stricly with investors. Be prepared to make offers quickly if you find a property still on the market that interests you, or to explore the off market property options. The MLS listings, if they are worth anything, don't stick around very long.

    Again if you are looking for another person to show you around I would be happy to help. Either way good luck and I hope you find the one. 

    Kevin 

    0Reply
  • Laird Wynn
    Beachwood, OH · Member since 2015 · 22 posts · 17 votes
    11y

    Antonio,

    There are 2 keys to investing in an area far from where you live.

    1  A GREAT property manager!  Ask for references from other out of town clients of theirs and then call the references.  Find out about average maintenance charges, time to lease a unit and fees from the clients.

    2. While you don;t have to live in an area to successfully invest in it, you do have to be an expert.  I live in Cleveland, Ohio and I see too many investors come from out of town and buy before they do their research.    The risk you take in real estate is limited to the difference between what you think a house is worth and what it will actually sell for.   If you are an expert in a local market, then you really reduce the risk and can invest with confidence.

    Good Luck!

    2Reply
  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    11y

    Hi @Antonio Marte,

    Wow! 8 days. That's nothing to sneeze at. You'll be able to see some sights as well. Adam will take very good care of you. 

    I don't live far from DFW myself. Give us a shout sometime this week...phone number is in signature.

    1Reply
  • Dmitri L.
    Investor · DFW, TX · Member since 2013 · 319 posts · 101 votes
    11y

    @Antonio Marte

    Funny I'm actually headed into DFW area tomorrow as well, so we'll be there at the same time. Only staying two days though., eight days is great commitment!

    Best of luck in your search, and let's trade tips and contacts at some point to win-win off each others' experience

    Cheers

    -Dmitri

    0Reply
  • Eva Salas
    Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
    11y

    What can I add after all that great advise except um...bring barf bags?   

    0Reply
  • Andy WebbPro Member
    Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
    11y

    @Antonio Marte - no basements in Texas.  If you find a house that does have one, probably best to stay away (we did find a split level in Ft. Worth that was partially underground) - we ran away after hearing some horror stories from prior owners (leaking, etc).  

    Foundation inspections are free, so it is always worth getting one.  If you find some houses that you are interested in, the guys showing you around should have contacts of some reputable and investor-friendly (important) companies.  If not, send me a message - we have worked with a few in the area.

    Generally be aware that the construction down here probably differs from what you know in NY.  Be sure to acquaint yourself with any differences so you don't make assumptions based on your local experience up there.

    Andy

    0Reply
  • Antonio Marte
    OP
    Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes
    11y

    Originally posted by @Will Barnard:

    My biggest mistake starting out - overpaying!! The DFW area as a whole is a complete sellers market right now, finding a good deal will prove to be tough so my biggest advice to you is to be patient, learn the market, and get a good deal, don't just buy simple to buy.

    Foundations are also something to watch for as others mentioned!
     

    I figured i wouldn't be running across any homerun deals. I really want something where i can build equity in order and buy more property. Cash flow $100-$200 NOI a month would be a true plus for us. I will definitely be patient though. Thanks Will!

    Originally posted by @Lynn Weber

    We don't really have basements here (it's extremely unusual). Most houses are on slabs unless you are looking at something 1940's or older. We were told "If it doesn't have foundation problems, it did, or it will". And we've found that pretty true. Good luck with your search!

    Excellent.Thank you Lynn that is definitely helpful. 

    Originally posted by @Kevin Marshall

    Welcome to DFW and as others have mentioned this is a great place to launch the real estate investing career. I also wanted to lend a helping hand if you need another one. I help investors find and purchase propoerties in the DFW area, I'm a Realtor and work stricly with investors. Be prepared to make offers quickly if you find a property still on the market that interests you, or to explore the off market property options. The MLS listings, if they are worth anything, don't stick around very long.

    Again if you are looking for another person to show you around I would be happy to help. Either way good luck and I hope you find the one.

    Kevin 

    Kevin thanks alot. I sent you a colleague request! I will stay in touch.

    Originally posted by @Laird Wynn

    There are 2 keys to investing in an area far from where you live.

    1 A GREAT property manager! Ask for references from other out of town clients of theirs and then call the references. Find out about average maintenance charges, time to lease a unit and fees from the clients.

    2. While you don;t have to live in an area to successfully invest in it, you do have to be an expert. I live in Cleveland, Ohio and I see too many investors come from out of town and buy before they do their research. The risk you take in real estate is limited to the difference between what you think a house is worth and what it will actually sell for. If you are an expert in a local market, then you really reduce the risk and can invest with confidence.

    Good Luck!

    That has been our priority looking for a good property manager, if we don't find one we are comfortable with it might be a deal breaker for us. Thank You!

    Originally posted by @Dimitri L

    Funny I'm actually headed into DFW area tomorrow as well, so we'll be there at the same time. Only staying two days though., eight days is great commitment!

    Best of luck in your search, and let's trade tips and contacts at some point to win-win off each others' experience

    Cheers

    -Dmitri

    Thanks that is great Dimitri! Relationships like these are exactly what i was looking for by joining this site. I will stay in touch and will share any info i might find helpful. Do you currently have any property? This would be my first. 

    Originally posted by @Andy W.

    @Antonio Marte - no basements in Texas. If you find a house that does have one, probably best to stay away (we did find a split level in Ft. Worth that was partially underground) - we ran away after hearing some horror stories from prior owners (leaking, etc).

    Foundation inspections are free, so it is always worth getting one. If you find some houses that you are interested in, the guys showing you around should have contacts of some reputable and investor-friendly (important) companies. If not, send me a message - we have worked with a few in the area.

    Generally be aware that the construction down here probably differs from what you know in NY. Be sure to acquaint yourself with any differences so you don't make assumptions based on your local experience up there.

    Andy

    This is great advice. I sent you a colleague request. 

    Thanks for all the help everyone! This is all very useful! 

    0Reply
  • Antonio Marte
    OP
    Contractor · Rego Park, NY · Member since 2015 · 53 posts · 20 votes
    11y

    sorry i haven't mastered the art of multi-quote on the thread replies.

    1Reply
  • Dmitri L.
    Investor · DFW, TX · Member since 2013 · 319 posts · 101 votes
    11y

    @Andy Webb

    When you say foundation inspections are free, what are you referring to? As part of a home inspection you pay for? I have paid for engineers report, but that was after we saw obvious signs of foundation issues already

    @Antonio Marte

    Sounds great! Sent you a colleague request. I'm still looking for my first property as well. Sent a few offers so far but haven't yet caught anything at a price that makes sense.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    11y

    I absolutely agree with Will Barnard. If you are desperate to buy before leaving that would be a big mistake. Don't fall into that trap. If you don't find something that makes sense, you might need to make more trips. We were just given an example of that in a RE seminar. We were given a problem to solve. When the moderator said we only had 3 minutes left to decide, several people caved (including me) and changed our votes. This was a hypothecial case. Using that in real life, beware taking a marginal deal just because your only have one day left. Find the right deal or don't buy it.

    2Reply
  • Joshua Chen
    Investor · Riverside, CA · Member since 2015 · 185 posts · 27 votes
    11y

    Congratulations on the business venture and good luck!!

    1Reply
  • Cal R.
    Little Elm, TX · Member since 2015 · 14 posts · 18 votes
    11y

    Congrats and good luck!

    My area is absolutely nuts, depending on where you are looking expect to pay well over asking if you even want to have a shot at getting the property. As for the foundations, here is a picture of a foundation in the process of a 13" lift.

    2Reply
  • Sergio AltomarePro Member
    Rental Property Investor · Greater Philadelphia · Member since 2012 · 135 posts · 60 votes
    11y

    @Antonio Marte I would echo the distance comments, especially when you are targeting $100-$200 NOI per month. I would also ask why SFR? My partner and I have been in the game for 3 years and only do multis, with triplexes being what we are most after. A vacancy in a MFR still gets the bills paid. I don't know what your budget is, but we are doing very well in Philly, which is a bit away from you, but not nearly as far as DFW. We started slow and started our own management company to really keep our properties in line. We've now graduated to syndicating deals with friends and family. I would also caution on the realtor, and find out how many properties they own and what their cash flow is. We were taken to many s-holes by different realtors, who claimed they were cash flow, blah, blah blah, but we could never rent out some of the places to a living human.

    Good luck.

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    1Reply
  • Sergio AltomarePro Member
    Rental Property Investor · Greater Philadelphia · Member since 2012 · 135 posts · 60 votes
    11y

    @Antonio Marte one mistake that just came to mind for me was not hiring a CPA till last year. I've been doing my and family taxes for 20 years, but I truly underestimated the value of an accountant with deep knowledge of RE investing. He's not only helped with taxes, but he's also taught us a lot on entity and structuring deals.

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