Las Vegas, NV · Member since 2017 · 3 posts · 0 votes
I'm a new investor with cash to invest - and I'm not limited to any area, but would prefer to focus on one. I've got a few "newb" questions...
I have a few investor friends who are not buying anything right now - they are saying that, overall, prices are too high and that I should wait. I'm a bit antsy to do my first deal, and have been sitting on investment money for a while. Should I wait? Is this true?
In your opinion, what is the best way to research areas to invest? Again, I'm not tied to any particular location, and am frequently out of the country a lot, so I'm location agnostic.
Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
8y
10% ROI is very realistic. Think you can even do better than that. There are always deals out there, no matter what the economy is doing. You just have to be able to find or create them.
Start with your goals. You say you're looking for at least 10% ROI. What exactly are you looking to buy? Single family homes? Multi family?
Realtor · Kansas City, MO · Member since 2014 · 148 posts · 40 votes
8y
@Jason Regan Something I have learned in my life, never take advice from someone that isn't doing what you want to accomplish. I have properties that I am selling right now in the KC market that are yielding a 12-17% cash-on-cash return.
Investing is not up or down market specific, strategies are up or down market specific.
Research areas can be based on cap rates, purchase prices, rents, other investors in the market, neighborhoods, crime, business growth, population growth, business journals, even some great data resources from large companies like Marcus and Millichap.
Ballwin, MO · Member since 2018 · 10 posts · 1 vote
8y
@Blake Brose "Investing is not up or down market specific, strategies are up or down market specific." It sounds like there are things that tend to work in different types of markets.
How would someone do that?
It'd be great to hear a story or example of you took advantage of the type of market we're in now if you'd be willing to share (or how your think someone might do that).
Las Vegas, NV · Member since 2017 · 3 posts · 0 votes
8y
@Jason Carter - I am open to single family or multi family.
@Blake Brose - thanks for the input. 12-17% is pretty amazing. Are these flips or rentals? Financed or cash holdings?
To be more specific, I'm looking for long term rentals that are returning over 10% cash-on-cash. The market or location doesn't matter (I spend most of my time out of the US). I'm not opposed to flips, but they are more difficult for me since I'm abroad so much.
Portland, OR · Member since 2018 · 3 posts · 0 votes
8y
Hi
@Jason Regan! I always believe in right timing so take your time, continue to look for potential opportunities and if possible, ask sellers to run the numbers for you in terms of ROI's, cap rates, etc.
Kansas City, MO · Member since 2015 · 609 posts · 321 votes
8y
You're probably aware, but ROI and IRR are not the same thing. I would shoot for a much higher IRR than 10%. But that's just me, like what is said here often, we all have different goals and strategies.