Attempting to narrow down my options

10 Replies

Hello all,

I currently work remote as a project manager and have no strong ties to any one location or area, I am very flexible. This is all great, but it also gives me way too many options, which makes it hard to narrow down where I should invest, but also what strategy I should use. I have a few rental properties (oakland, baltimore, orlando), but I am looking to make the transition into a full time investor. 

I am really interested in doing some BRRRR properties as I have done some similar remodeling in the past. I am interested in multi-family investments. I am open to relocating and doing house hacking, or out of state investing. I am wiling to relocate for short or long periods of time to follow through with any BRRRR's or house hacking I can get my hands on. I also have a good amount of capital so I would potentially be a cash buyer or possibly a hard money lender.

So as you can see, I am all over the board. 

I am looking for real estate agents that are investor friendly in up and coming markets, or just any agents that have good deals. 

I am looking for multi-family, BRRRR, or flix and flip deals - wholesalers?

I am seeking advice on markets if anyone has any insight on how I should narrow my search. 

I am very open to any ideas? 

Hope to hear from some of you! 

Thank you,

Hailey

@Hailey Brown

I think transitioning out of the 'grass is greener' mentality can be difficult but needed - which I'm hearing a bit of.  Options are great but who needs 300 outfits to pick from in the morning?  I can relate to what you're expressing though.

My opinion is that you should decide on your 'entry point' first and let the numbers do the talking for you.  You might think about consolidating your RE holdings (getting out of so many geographies) and utilizing that equity.

My bias is towards getting good experience and doing something on volume vs. raising a bunch of money and/or a big commercial deal as a first go.

The analysis at least for the BRRRR stuff is to look at the macro drivers of a regional economy, and then dig into the usual buy numbers and rent numbers to ensure you feel good about getting on that loop in a certain area.

Hope this helps!

Hi @Hailey Brown ,

You are indeed all over the board. 

And in answering this keep in mind the biases of those answering -- everyone is biased towards what worked for them. Me telling you to buy in Oakland where I "coincidentally" write mortgages, for example, would be an example of that. Or the person that's had great success amassing turnkey rentals in the Midwest, again it worked for them so they're a huge fan of it. One thing we know for certain from this website is that there are a LOT of different ways to find success.

Write a list of all the strategies you are considering. Then write pros/cons of each. Cross out anything they all have in common (like "dealing with tenants," that's true with all rental property investing so no reason for it to be on your list multiple times), and when a pro and con are similar, cross them out too. If one "pro" is good enough to negate two minor "cons," great let it be so. Pare this list down. Ben Franklin used to do this; if it reminds you of algebra where you "divide both sides by X to cancel out X," that's no coincidence. Once you're pared down, you will see where the "action is" after eliminating all the small/trivial things that can jam up our thought processes. Compare that to your goals, timeframes, risk tolerance, etc, because at this point it's a matter of preference. 

@Jim Goebel That is exactly it, I am not sure where the grass is greener, but surely I know its out there somewhere! I agree on you with the geographic areas, that was never my intention, I was just in a bind trying to spend some 1031 exchange money. I will start doing some research on drivers in the economies and try to narrow down that way. Thank you! 

@Chris Mason that is a great idea! I have not thought about writing out the strategies that way while comparing them to my goals, timeframes, and risk tolerance. I am going to do this today, and I will circle back and see if I can narrow the list down. Thanks! 

@Hailey Brown I don't know what is right for you . I do know that most successful investors focus on one thing.  That one thing may change or evolve over time, but only one thing at a time. 

One of my beliefs is that the investors that know the geographical market best tend to get the best deals. I know Baltimore city hands down. I can't tell you squat about 10 ft over the county line. But I get a lot of great deals in the city.

@Ned Carey That is very true, I know there are plenty of strategies that work for people. I do need to narrow it down to one and master that before moving on to the next. I will be in Baltimore this weekend if you are free to meet up for coffee and talk about the Baltimore market that would be nice. 

@Hailey Brown , I know I am going to sound like a broken record here but our three colleagues that responded above me are all absolutely right.  I like to think of myself as a fairly common sense type of person.  As such, it is always extremely important to bring everything back to the basic's (fundamentals)  as this is usually were we are able to get back to why we are ultimately doing this and that usually slows things down and allows us to concentrate on one thing more specifically!  

As @Chris Mason mentioned above make a list. If you have the ability to move around as it sounds you do, what place (places) gets you most excited? Then research these market places to see if they have the desired metrics that make them conducive for REI FOR YOU! If not move on.  If so dive in deeper.  However, prior to getting there you need to figure out your Niche (you mentioned several above, although you can do that, it will make it extremely difficult to focus!) pick one!  Its not to say you cannot have another but you need to focus and figure this one out first.  Then pick your strategy ( once again you listed many) pick one!

It appears that you definitely understand the value of investing as it is obvious that you already own RE.  But become a SME (subject matter expert) in what ever you choose to do and before you know it the path will become very clear and your laser focus will start to bear fruit.  

Remember how I mentioned that I am a common sense guy.  Well, the reason I am responding to your post in particular is because I have and am dealing with the same issues and have found by trying to bring it back to the basic's things have started to become much more clear for me.  I am now able to see beyond the once shiny objects that were obstructing my view before.  

I certainly hope this helps and am in no way trying to sound judgmental. I appreciate you allowing me to share. If you are ever over on the West coast more specifically Washington State please feel free to reach out, I always enjoy meeting with like minded folks and talking about the one thing we all have in common on BP, RE! Here is to wishing you nothing but GR8 success in finding your eventually way in your REI investing career!

My only question is are you single? Sounds like a good "all over the board" to me. 

@Tony Wooldridge Tony, thank you for your response. These are all things I know in my head, but sometimes I just need the extra push to hear it from somewhere else, so definitely thank you for that! It is sort of the "fear of missing out" issue I have been having, hearing about everyones success in all the strategies makes me want to do all, but that is not possible right now, as a beginner. I have listed out my pro's and con's and I am leaning more towards the BRRRR strategy. I am going to focus on eliminating the distractions (other RE investing strategies, that are all good and have proven to work) and just focus on one for now.

I do live on the west coast, but I am not often in Washington, but I will definitely keep you in mind when I am. Thank you again for your response, it is helpful. 

Now to go figure out which market I should go after! 

Hailey 

@Hailey Brown You have already done the first step in REI finding and becoming a BP Pro Member - look for any deals with a returning a profit you like and move forward. Be sure to search out any and all meetups in areas you attend to visit before beforehand and attend them to network; may all your success continue - take care.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here