Investing with little time/experience
New to Real Estate · Baltimore · Member since 2020 · 16 posts · 22 votes
Hi everyone!
I am a single mom and physician in Baltimore, MD. I am eager to get into real estate investing, but keep getting stuck on how to start. I find that time is the biggest limiting factor. I also don't have any resources, or trusted contacts in the field. Ideally, I would like to have a rental property, and use a PM, so that I can be as hands-off as possible. I am also looking into syndications, but need to do a lot more research before jumping into that.
I would love to invest in a rental property out-of-state, and have been looking at WV. What is the best way to find out of state contacts that you can trust? Would I just find a real estate agent to see the properties for me? Do I ever have to physically be there for any out-of-state deals? Is this even possible?
Any help or resources is greatly appreciated. Thanks so much.
Paige, congratulations on making the decision to start investing in real estate. A couple things...take these with a grain of salt as this is my own journey and everyone is different and not one real estate investment story is the same.
-My husband and I lived in Baltimore, Federal Hill - in 2019 and 2020 (he played for the Orioles). So, folks from B-more are near and dear to my heart. Let's connect!
-You can gain a lot of passive income via real estate but as always (and I'm sure you know) - it's all about the long game. Set yourself up for success, 10-20+ years in the future through wise and calculated decisions now.
-When I first got into residential real estate, I listened to every podcast I could (bigger pockets, cash flow connections, etc.) and read as many books as I could (investing in real estate, tax strategies, BRRRR, investing with no money down, etc) and dabbled a bit in single family and multi family. I quickly realized that in order to make passive income that matched a w2 in residential RE, you'd have to scale and take time to build quite a large portfolio with a fair amount of moving parts. All good to some who love it - but I wanted a few more 0's and commas without the hassle of capital expenditures and owner's operations. So, I turned to commercial real estate.
-Passivity and long term growth was important to me as well as diversification. I found that owning a few single family homes for short term (and one for long term) rental was enough for me on the residential (mind you, I also have a PM) side, but I wanted to see more consistent returns and have favorable timelines/exit strategies.
-Syndications and funds will typically give you timelines and exit dates, passivity and diversification - bingo, hit the nail on the head for me.
So, my suggestion would be to connect with fellow syndicators or those invested in funds or REITS - find some folks who you assimilate with and start making connections. The more specific you can be about what you're looking for, the easier it will be to find the right group or firm you want to invest with.
Also, my last suggestion - value liquidity right now. With the market ebbing and flowing, you don't want your capital locked up for long durations of time.
Cheers!
Hi Paige, welcome to BP! You're in the right spot to find the information you need. Many out of state investors will work to establish a strong team of "boots on the ground" that usually includes at least an agent, a contractor/handyman and property manager. You can find lots of recommendations for each by searching in the BP forums for the locations you're looking at.The agent can show you around the properties via FaceTime or take videos for you. Lenders can typically work from anywhere so you can use one local to you in Baltimore, or one more local to the area you're investing in.
My recommendation would be to make a list of each of these potential team members and call down the list, see which ones you have a natural chemistry with since you'll frequently be on the phone with them.
Hope this helps!
Hi Sara, Thank you so much for taking the time to reply. I will get started with that. Thank you.
To get into real estate you need to have something to invest - time, money, or knowledge, and ideally all three. If you don’t have any of these things it’s probably not a good idea. Going out of state just raising the risk even further.
I have the money, for sure. I am an intelligent woman, so I think with some research and reading, I can check the knowledge box. Time is an issue. But I won't let it stop me from exploring my options. Thanks for your time and input.
@Paige Harrison You never need to visit the property or interact with tenants (if you don't want to) when you connect with key players. You need boots on the ground for real estate investing. Either your boots or someone else's and you're going to pay for it.
I'm an investor and local handyman in my market. I'm boots on the ground for other investors. As I typed this comment I also responded to an OOS investor from New York. We cleaned out his unit, scheduled a pickup for the dumpster, and now I'm quoting him for a new sink and various other minor repairs.
The majority of investors who don't have handyman, agents, contractors, or PM will fail. Rentals become headaches if not managed effectively. I don't know about you but I still have a 9-5 job. If you're young all you can do is hustle, add value, and find a good path.
it is totally possible. As others have said, find a good agent in your target market and start building a team.
There are other ways, if you want a more hands off approach by looking for turnkey properties or partner with a reputable investor in some form of equity split, where you provide funding and they do the work.
also, talk to hard money lenders. they can put your money to work while you learn from their guidance and local market knowledge. they can network you with contractos, GC etc.
The shortcut for this is to join your target city or cities' real estate investing groups and REIA's on Facebook. Every major city has them. Once you are in the group, start watching for who the key players are (you'll be able to tell by their contributions to the posts and discussions). Once you have done that, start reaching out to them and introducing yourself and asking for referrals to the people you are looking for. Trust me, this works. And reach out to the owner of the FB group and introduce yourself. You might consider flying in and attending a local meetup/REIA after you narrow things down to a specific market or markets. A couple of my business partners run an apartment syndication business, I'd be happy to introduce you if you have any interest in that. Good luck to you!
Probably a better route might be syndications or turnkey rentals.
@Paige Harrison, there are certainly several ways to attack this, and each have their own upsides and downsides. Owning a property directly, in my book, will always be active. I invest local to where I live, and when I got started, my coworker's uncle was a handyman and did all my work for me. That was 2011, and he continued to be my go to guy until 2017, when after 6 years a couple dozen renovations, and many more handyman calls, he decided he was going to start doing a cruddy job.
In the approx. 18 months I tried using a PM, I went through 4, before taking my properties over and self managing again.
I mention this because with all real estate investments there are risks. As others mentioned, building a trusted team of "boots on the ground" is great and necessary, until it isn't great, then you are the one spending time interviewing new managers, new handyman, new agents.
You lose this responsibility with syndications, but you open up other risks. You still need to vet your syndicators. Phone calls, emails, reviewing track record, getting referrals, etc are all imperative due diligence. You can typically learn a lot from these conversations. I, personally, like syndicators that are operators versus just capital raisers, and I like syndicators that are building a real estate business. I like syndicators that are laser focused on asset type and risk profile.
The trade off is you have no control over operations, and your capital is illiquid until the sponsor decides to sell. There is risk on the trust side, that once you wire the funds, the syndicator will do the right things.
While I am not in your shoes, I have spoken to a lot of physicians that have done OOS rentals and decide to move to syndications. Few have had horror stories of their rentals, but the common theme is that even with turnkey rentals, and an established team, direct rentals are more work than they prefer. The stories I hear are biased, because the entire purpose of the conversations are to discuss syndications. Many times, these investors do still own their rentals, but after acquiring 3 or 4 they realize they cannot add to their direct portfolio with the time commitment needed.
Hi Paige! I'm a relatively new BP member too and I love your engagement. You're in the right place for guidance. May I ask why you are interested in WV? (location choice is an interest of mine) I've invested and managed in New Hampshire and Maine (before I was a RE agent and now), so I'm happy to be a resource for you. I own a multi in a city, a short-term rental on the water, and am looking to do more.
@Paige Harrison, there are certainly several ways to attack this, and each have their own upsides and downsides. Owning a property directly, in my book, will always be active. I invest local to where I live, and when I got started, my coworker's uncle was a handyman and did all my work for me. That was 2011, and he continued to be my go to guy until 2017, when after 6 years a couple dozen renovations, and many more handyman calls, he decided he was going to start doing a cruddy job.
In the approx. 18 months I tried using a PM, I went through 4, before taking my properties over and self managing again.
I mention this because with all real estate investments there are risks. As others mentioned, building a trusted team of "boots on the ground" is great and necessary, until it isn't great, then you are the one spending time interviewing new managers, new handyman, new agents.
You lose this responsibility with syndications, but you open up other risks. You still need to vet your syndicators. Phone calls, emails, reviewing track record, getting referrals, etc are all imperative due diligence. You can typically learn a lot from these conversations. I, personally, like syndicators that are operators versus just capital raisers, and I like syndicators that are building a real estate business. I like syndicators that are laser focused on asset type and risk profile.
The trade off is you have no control over operations, and your capital is illiquid until the sponsor decides to sell. There is risk on the trust side, that once you wire the funds, the syndicator will do the right things.
While I am not in your shoes, I have spoken to a lot of physicians that have done OOS rentals and decide to move to syndications. Few have had horror stories of their rentals, but the common theme is that even with turnkey rentals, and an established team, direct rentals are more work than they prefer. The stories I hear are biased, because the entire purpose of the conversations are to discuss syndications. Many times, these investors do still own their rentals, but after acquiring 3 or 4 they realize they cannot add to their direct portfolio with the time commitment needed.
Hi Paige! I'm a relatively new BP member too and I love your engagement. You're in the right place for guidance. May I ask why you are interested in WV? (location choice is an interest of mine) I've invested and managed in New Hampshire and Maine (before I was a RE agent and now), so I'm happy to be a resource for you. I own a multi in a city, a short-term rental on the water, and am looking to do more.
Hi everyone!
I am a single mom and physician in Baltimore, MD. I am eager to get into real estate investing, but keep getting stuck on how to start. I find that time is the biggest limiting factor. I also don't have any resources, or trusted contacts in the field. Ideally, I would like to have a rental property, and use a PM, so that I can be as hands-off as possible. I am also looking into syndications, but need to do a lot more research before jumping into that.
I would love to invest in a rental property out-of-state, and have been looking at WV. What is the best way to find out of state contacts that you can trust? Would I just find a real estate agent to see the properties for me? Do I ever have to physically be there for any out-of-state deals? Is this even possible?
Any help or resources is greatly appreciated. Thanks so much.
Hi Paige, there plenty of opportunities out there, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.
A very good source of local analysis is rereport.com
Hi everyone!
I am a single mom and physician in Baltimore, MD. I am eager to get into real estate investing, but keep getting stuck on how to start. I find that time is the biggest limiting factor. I also don't have any resources, or trusted contacts in the field. Ideally, I would like to have a rental property, and use a PM, so that I can be as hands-off as possible. I am also looking into syndications, but need to do a lot more research before jumping into that.
I would love to invest in a rental property out-of-state, and have been looking at WV. What is the best way to find out of state contacts that you can trust? Would I just find a real estate agent to see the properties for me? Do I ever have to physically be there for any out-of-state deals? Is this even possible?
Any help or resources is greatly appreciated. Thanks so much.
Hi Paige, there plenty of opportunities out there, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.
A very good source of local analysis is rereport.com
Thank you for that very helpful information, Leslie!
Hi Paige, welcome to BiggerPockets! You found the right place for information.
Hi everyone!
I am a single mom and physician in Baltimore, MD. I am eager to get into real estate investing, but keep getting stuck on how to start. I find that time is the biggest limiting factor. I also don't have any resources, or trusted contacts in the field. Ideally, I would like to have a rental property, and use a PM, so that I can be as hands-off as possible. I am also looking into syndications, but need to do a lot more research before jumping into that.
I would love to invest in a rental property out-of-state, and have been looking at WV. What is the best way to find out of state contacts that you can trust? Would I just find a real estate agent to see the properties for me? Do I ever have to physically be there for any out-of-state deals? Is this even possible?
Any help or resources is greatly appreciated. Thanks so much.
Welcome to the BP community! As an encouragement to you, I’ve recently heard a couple of BP podcasts where moms (I know at least one was a single mom!) got into investing and eventually replaced their incomes and found financial freedom. For inspiration, listen to shows 331 and 340. There is also a show on the BP rookie podcast where they interviewed a mom (married, but sounds like she did all the work) who started with turnkey, eventually got into all types of other deals and now owns a crazy number of properties. All that to say, you can do this!
Hi everyone!
I am a single mom and physician in Baltimore, MD. I am eager to get into real estate investing, but keep getting stuck on how to start. I find that time is the biggest limiting factor. I also don't have any resources, or trusted contacts in the field. Ideally, I would like to have a rental property, and use a PM, so that I can be as hands-off as possible. I am also looking into syndications, but need to do a lot more research before jumping into that.
I would love to invest in a rental property out-of-state, and have been looking at WV. What is the best way to find out of state contacts that you can trust? Would I just find a real estate agent to see the properties for me? Do I ever have to physically be there for any out-of-state deals? Is this even possible?
Any help or resources is greatly appreciated. Thanks so much.
do you work at Hopkins?
Having done many out of state deals, I can say it is a pretty decent time commitment to analyze / rehab etc. for this reason, Physicians are usually better off doing syndications. There are sooo many syndicators out there, but 99% of them haven’t weathered a recession. Do your due diligence on the operator as that is the most important thing.
If you want to own smaller properties, the best person on your team is your property manager. A good one will have in house contractors to manage the repairs for you so it’s a little more turn key, and they will make sure you’re buying in the right areas.
Why invest out of state? I was thinking Baltimore was a good rental market for cash flow but could be way off
Welcome to the BP!
This is a great forum with very knowledgeable members that will help to guide you in the right direction,
There are a few self-contained guides that you can access here: https://www.biggerpockets.com/guides
I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts
What you are saying is clearly possible but you must have the right mindset. Not saying you dont, but oh too often do people get into it for the wrong reasons and become disillusioned. Itś not as simplistic saying ¨I have no time, want a property and will be all hands off¨. Itś so much too this. I have been in the business for some time and to believe you will always do little to nothing is not realistic. Yes, I have things that kind of run themselves but that can change at the drop of a dime and you must be positioned jump in as needed. At any time you could have to mitigate potential disasters and drive multiple moving parts from multiple angles. That is where the experience and resources kick in. That asset could be functioning one minute then the bottom drops out. If you dont have all the teams and tons of other factors up and running it can devastate you mentally and financially. Unfortunately, youtube and HGTV makes this stuff seem like some simple get rich element anyone can pick up and put down (MLM). If people could easily walk in, acquire a home in the mountains/beech, do nothing and make a bunch of money; everyone would have it. Either way, congratulations for making the first move. This is the place to build all the knowledge you need. Best of luck and welcome to BP!!!!!
Hi Paige! I'm a relatively new BP member too and I love your engagement. You're in the right place for guidance. May I ask why you are interested in WV? (location choice is an interest of mine) I've invested and managed in New Hampshire and Maine (before I was a RE agent and now), so I'm happy to be a resource for you. I own a multi in a city, a short-term rental on the water, and am looking to do more.
Hi Paige,
If you're looking for an STR close to the water, I would give emerald coast a try. It's a very strong regional market for STRs, particularly places like Panama City Beach. Best part about STRs is that you can do it all remotely and manage for 1-2 hours/week once it's up and running (or hire a PM). The latter I don't recommend because PMs in STR markets tend to take big chunks of your pie (much higher percentage than long-term rentals). STRs are also a good first-time investment choice as cash flow can be quite high. If interested, I would suggest reading short-term rental book by Avery Carl (check Amazon) and getting a good agent that knows what they're doing, invest themselves, and know the lay of the land. Check out @Matt "Roar" Gardner
Also check out @Melissa Haworth.
What you are saying is clearly possible but you must have the right mindset. Not saying you dont, but oh too often do people get into it for the wrong reasons and become disillusioned. Itś not as simplistic saying ¨I have no time, want a property and will be all hands off¨. Itś so much too this. I have been in the business for some time and to believe you will always do little to nothing is not realistic. Yes, I have things that kind of run themselves but that can change at the drop of a dime and you must be positioned jump in as needed. At any time you could have to mitigate potential disasters and drive multiple moving parts from multiple angles. That is where the experience and resources kick in. That asset could be functioning one minute then the bottom drops out. If you dont have all the teams and tons of other factors up and running it can devastate you mentally and financially. Unfortunately, youtube and HGTV makes this stuff seem like some simple get rich element anyone can pick up and put down (MLM). If people could easily walk in, acquire a home in the mountains/beech, do nothing and make a bunch of money; everyone would have it. Either way, congratulations for making the first move. This is the place to build all the knowledge you need. Best of luck and welcome to BP!!!!!
I hear everything you are saying. I have been back and forth for years, and ultimately talk myself out if it. But I am ready to diversify my income streams, and want to get into RE for the appreciation, and hopefully cash flow. I am still deciding which medium makes the most sense for me. I am leaning towards syndications for the passivity (after my due diligence on the operator is complete). But I think I would like to have a rental property, as well. Maybe that looks like finding a partner that does the majority of the work, and I provide capital. Ideally, I would love a STR that I could use myself a few times a year, but I worry about PM/contractors falling through and then the passivity goes out the window.
I definitely have more work to do, but am appreciating all the feedback, and am motivated to get my foot in the door. Planning to attend some meet ups in the area to see what else is out there.
What you are saying is clearly possible but you must have the right mindset. Not saying you dont, but oh too often do people get into it for the wrong reasons and become disillusioned. Itś not as simplistic saying ¨I have no time, want a property and will be all hands off¨. Itś so much too this. I have been in the business for some time and to believe you will always do little to nothing is not realistic. Yes, I have things that kind of run themselves but that can change at the drop of a dime and you must be positioned jump in as needed. At any time you could have to mitigate potential disasters and drive multiple moving parts from multiple angles. That is where the experience and resources kick in. That asset could be functioning one minute then the bottom drops out. If you dont have all the teams and tons of other factors up and running it can devastate you mentally and financially. Unfortunately, youtube and HGTV makes this stuff seem like some simple get rich element anyone can pick up and put down (MLM). If people could easily walk in, acquire a home in the mountains/beech, do nothing and make a bunch of money; everyone would have it. Either way, congratulations for making the first move. This is the place to build all the knowledge you need. Best of luck and welcome to BP!!!!!
I hear everything you are saying. I have been back and forth for years, and ultimately talk myself out if it. But I am ready to diversify my income streams, and want to get into RE for the appreciation, and hopefully cash flow. I am still deciding which medium makes the most sense for me. I am leaning towards syndications for the passivity (after my due diligence on the operator is complete). But I think I would like to have a rental property, as well. Maybe that looks like finding a partner that does the majority of the work, and I provide capital. Ideally, I would love a STR that I could use myself a few times a year, but I worry about PM/contractors falling through and then the passivity goes out the window.
I definitely have more work to do, but am appreciating all the feedback, and am motivated to get my foot in the door. Planning to attend some meet ups in the area to see what else is out there.
Well the syndication would be very hands off. STR are great but as with anything those numbers must line up right. Itś so many expenses and very easy to be under water if not done right. Yes, partnering is a very good approach and hitting those meet ups and a plus. You are on the right track. Read a lot, do podcasts and ask as many questions here just like you are doing.
Welcome to the Baltimore REI community and good luck on your journey! IMO owning cash-flowing rental property is the best way to invest both short term and long term. There are plenty of opportunities for this in/around Baltimore, but make sure you really know your sub-market and, once you've identified potential deals, really dig into the neighborhood and surrounding blocks. Good luck and let me know if I can be a resource for you!
@Paige Harrison several other things to consider, form your LLC now. Investing in WV, you will run into rural properties that will affect your terms on the loan you get, but it is doable. Also, if you partner with someone on this first one that has bought investment properties before (more the better), this will improve your terms as well.
Hi Paige! I'm a relatively new BP member too and I love your engagement. You're in the right place for guidance. May I ask why you are interested in WV? (location choice is an interest of mine) I've invested and managed in New Hampshire and Maine (before I was a RE agent and now), so I'm happy to be a resource for you. I own a multi in a city, a short-term rental on the water, and am looking to do more.
Hi Paige,
If you're looking for an STR close to the water, I would give emerald coast a try. It's a very strong regional market for STRs, particularly places like Panama City Beach. Best part about STRs is that you can do it all remotely and manage for 1-2 hours/week once it's up and running (or hire a PM). The latter I don't recommend because PMs in STR markets tend to take big chunks of your pie (much higher percentage than long-term rentals). STRs are also a good first-time investment choice as cash flow can be quite high. If interested, I would suggest reading short-term rental book by Avery Carl (check Amazon) and getting a good agent that knows what they're doing, invest themselves, and know the lay of the land. Check out @Matt "Roar" Gardner
Also check out @Melissa Haworth.
Thanks for the love, @Carlos Garcia! I hope everything is going well for you, brother!