Consolidating in one area or building teams in multiple areas

Multi-Family and Apartment Investing
4yFollow

Consolidating in one area or building teams in multiple areas

Cody Maheu
Member since 2021 · 45 posts · 18 votes

As the title suggests, I'm curious of BiggerPockets thoughts of confining in one geographic location or branching out into multiple areas.

Let me unpack our situation. Currently I work with 2 other investors and we just bought our first out of state duplex in Maine! We still have funds to look into our next asset but it seems there isn't too many deals in our market (or our network isn't too big yet). We are building processes to build teams effectively and we have learned a lot from acquiring this first duplex. We have got our process down with our realtor and what we expect. We are just wrapping up our property management interviews and will building a pipeline for our team to work together. While all that is in the works, we want to extend our network so we will be starting a virtual meetup in Maine next month as well.

With all that being said, what do you guys think about branching out into another area so we have a bigger pool to choose from? We just purchased our first duplex this month so should we wait to see how this goes and scan the area for the next few months or should we take this time to build a second team while still analyzing deals in Maine? I believe we can strengthen relationships by building up our portfolio in Maine but we can also jumpstart our wealth by getting more deals with an extended web. What do y'all think?

0Reply
14 views

4 Replies

Jump to latestLatest
  • Drew Moore
    Rental Property Investor · ME · Member since 2018 · 8 posts · 0 votes
    4y

    I think you're going about it the right way.  As you decide to branch into a new area, look for local FB groups for the neighborhood.  I have had great luck finding good contractors this way.  You will also see how local property managers post their listings in these groups to get an idea of how they operate.  

    I see you're already wrapping up your property manager interviews.  If you end up needing an option in the Midcoast area (Bath/Brunswick to Belfast/Searsport), feel free to contact me.  I'm new to property management, but have an extensive construction and project management background.  I also have a property management mentor who is retiring.  We are in talks for me to manage his portfolio this coming spring.

    I would be interested in joining your virtual meetup next month.

    0Reply
  • Wes Short
    Real Estate Broker · Indianapolis, IN · Member since 2015 · 112 posts · 64 votes
    4y

    @Cody Maheu Would agree you are taking the right steps when entering a market. 

    Believe the 4 team members that David Greene mentions in long distance investing are Contractor, Broker, Property Manager, and Lender. 

    Think looking in other markets is a good idea and if you have the right team it can be down its just building those relationships. 

    0Reply
  • Cody Maheu
    OP
    Member since 2021 · 45 posts · 18 votes
    4y


    @Drew Moore Thanks for the tip! One of the biggest things we learned during this run is that we want to have a property manager and realtor before beginning to vet properties. This way we don't just rely on one person's word and in the end the property manager is going to take care of it so it benefits them to vet properties correctly.  As we've been interviewing properties managers we are getting insight that our property isn't in the best part of town unfortunately, so we definitely want to fine tune the process for that not to happen again. Right now we haven't made any contacts on the contracting side but hopefully our PM will fill that gap and as time goes on we will build a bigger web.

    Thanks, I'll add those areas to my listings to see if theres anything exciting that pops up. Good luck with the new venture! I'll be sending out logistics for the virtual meetup later next week, so you can expect a direct message from me.

    0Reply
  • Cody Maheu
    OP
    Member since 2021 · 45 posts · 18 votes
    4y

    @Wes Short Thanks! We have definitely learned a lot from this first acquisition, so it'll make building that second team that much easier. Now it's back to the chalk board of location! 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free