Investing with little time/experience
New to Real Estate · Baltimore · Member since 2020 · 16 posts · 22 votes
Investing with little time/experience
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Investor · Charleston, SC · Member since 2021 · 18 posts · 21 votes
4yPaige, 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!
48 Replies
- 4yOzzy SirimsiBusiness MemberReal Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
just start reaching out people, ask them questions, find an investor/agent who has connections, attend meet ups...
There is no a magic formula, just say hi to some who seem to do multiple projects etc..
- 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesDr. kind of intelligence and RE field/Construction kind of intelligence are two different things. Seen it too many times. Just be careful and don't rush in....
Quote from @Paige Harrison:
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.
Or if you have tons of money, hire someone to do it for you and give them a cut until you learn the business...
- 4yPaul MoorePro MemberCommercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
@Paige Harrison i’m only going to share my opinion and it is definitely not something you should take as a fact. In my experience talking with about 2000 investors or so over the last decade, I’ve come to the conclusion that investing actively is similar to being an Olympic athlete. If you have an obsessive focus on it and give it all of your time and energy, you have a great chance to win.
However, if you do it part time, especially in this highly competitive market, it’s a great way to increase your stress, decrease your life happiness index, make less at tour main job, and not make the profits you hope for. That is why I like the idea of syndications.
I will say that if this was 2008 to 2010, I would disagree with my own statements above. If you can buy during a downturn you can make a lot of profit and have a lot of opportunity even if you have a W-2 job or are enjoying retirement.
As many investing pros have stated, great investments are often boring. And it’s quite boring to invest in someone else’s syndication, I get that. But I’ll be turning 60 soon and boring is looking sexier than ever to me! Good luck!
- Charlotte, NC · Member since 2021 · 6 posts · 2 votes4y
Quote from @Owen Dashner:
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!
Hey Owen, I would be very interested in getting in contact with your business partners that run the apartment syndication business! Would it be possible for you to introduce me?
- Member since 2022 · 6 posts · 3 votes4yHI Paige, I'm also new to BP! Recently sold a rental property in Baltimore county and using the proceeds to pick up two more (Both in Baltimore County) -- one with a friend. Both he and I are trying to grow our network so we can build the portfolio up a bit.
Maybe we could connect and strategize? - Rental Property Investor · Forest Hill, MD · Member since 2021 · 2 posts · 3 votes4y
Hello Paige. This is officially my first post. Your story is similar to mine in that you are new to real estate and probably have a million questions, and you are pondering the numerous paths you could take to start your journey. My wife and I started a couple years ago with a beach rental that made sense for us. Now we are looking for rental #3. Our plan is to obtain rentals in areas we’d like to vacation. I think you said the same thing. We’ve learned a lot over these two years. Purchasing the property, finding a rental management company, and overseeing it all takes time and patience. I was curious about what is out in WV that attracts you to that area. We have found 3 very good realtors for MD, SC (Myrtle Beach area), and FL (Emerald Coast area) if you find yourself looking in those states. They do virtual showings for us when necessary, with a rather lengthy checklist from us. If you’d like those realtor contacts at some point, or would like to chat in detail about jumping into short term rentals, feel free to message me. Good luck.
- 4yMyrtle Mike ThompsonBusiness MemberRealtor · Myrtle Beach, SC · Member since 2016 · 350 posts · 204 votes
@Paige Harrison Welcome to the crazy (but rewarding) world of real estate investing! I would say Step 1 is to choose a market and Step 2 is find a good investor-friendly realtor. Several of my investor clients here in Myrtle Beach have never even been to Myrtle Beach. I provide market analysis and insight, virtual tours of properties, referrals to great property managers and contractors, etc. It can be - as you said - hands off. BiggerPockets is an awesome resource. If you feel WV is right for you, seek out a local agent through this site or ask for a recommendation.
Myrtle Mike Real Estate580 Reviews - Investor · Charleston, SC · Member since 2021 · 18 posts · 21 votes4y
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! - Specialist · Member since 2021 · 322 posts · 273 votes4y
Quote from @Paige Harrison:
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.
If you do consider syndications I would do as much due diligence as you can take. Trusting someone else to take care of the finer details is very freeing but also daunting. Ensuring your sponsor is doing things the right way includes things like vetting their acquisition standards, their track record and talking to investors who are in their deals.
Let me know if you have any questions on the process :)
- Member since 2017 · 9 posts · 9 votes4y
Paige,
I have personally had poor experiences with property managers and turnkey providers who have high ratings/reviews both here and other places online. I don't know that you can trust online reviews and it seems most are reluctant to publicly bash companies on here, leaving mostly positive reviews. Many graduate on to bigger and better things after being in the turnkey/remote rental space, which further limits reviews and long-term experiences.
My best deals doing hard money lending came from messaging someone from their YouTube channel, which then led me to a former partner of theirs. I also had success contacting some from my local real estate group. It is very random and risky no matter what, which is true for any industry.
As far as remote investing, I recommend getting on some lists to get used to how they market their properties. I am sure it is similar in the medical field- you can get different numbers based on subjective parameters. It is difficult to compare apples to apples with marketing materials, but over time you get a "feel" for which deals are prime. Even in other business, people evaluate capital projects differently which is true for real estate as well.
I stopped purchasing new properties and have started unloading what I have. Still doing hard money lending, but to a lesser extent. I recommend spending a lot of time learning before jumping in. Best of luck whatever you decide.
- Fort Lauderdale, FL · Member since 2018 · 289 posts · 342 votes4y
@Paige Harrison welcome to the RE journey! Out of state investing is a great idea. I also have a high demand lifestyle and W2 and made the jumó into real estate last year through a turnkey company with high reviews here on BP (Rent to Retirement). I now have 4 properties and working on the fifth! One of them through rent to retirement is a new build in Cape Coral FL that will have about $100k equity immediately once it’s built. Can’t get better than that! Any market is great, just got to find the right team!
- Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes4y
@Paige Harrison I think that working with a full service turnkey company that operates in numerous markets for diversification purposes would be your best option. I would suggest working with a team that has trustworthy and reliable reputation. In my opinion, the most important aspect in investing out of state is the team you work with. Best of luck with all your investing!
- New to Real Estate · Baltimore · Member since 2020 · 16 posts · 22 votes4y
Quote from @Seth Young:
@Paige Harrison I think that working with a full service turnkey company that operates in numerous markets for diversification purposes would be your best option. I would suggest working with a team that has trustworthy and reliable reputation. In my opinion, the most important aspect in investing out of state is the team you work with. Best of luck with all your investing!
Do you have any recommendations of companies?
- Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes4y
Hi Paige,
Welcome to Bigger Pockets!! These forums are your best option to find the knowledge you are looking for in terms of building relationships out of state with lenders, brokers, property managements, etc. Have you tried to explore turnkeys by any chance? Let me know if you want to connect and chat about it.
- Member since 2022 · 2 posts · 2 votes4y
Quote from @Paige Harrison:
Hi Morgan!Quote from @Morgan Smith:
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.
I am interested in WV for a few reasons. One, depending on the type of property I chose to buy, I would love to use it as a getaway for myself a few times per year. I am located in MD so it would be a drivable distance. I also really enjoy mountains, outdoors, etc.
Two, I feel that WV is an untapped resource. It’s affordable and I think will be more sought after in time…like MT and ID are experiencing now. So I guess I am thinking in terms of appreciation.
A multi STR on the water sounds delightful!Paige, I used to live in Wv, Martinsburg, Charles Town, Hedgesville, Berkeley Springs are all seeing huge development right now. All are gateways to MD, VA, and PA. Would not be surprised if you are correct on your prediction of appreciation. I am also investing in these areas. No idea when the appreciation will come but from my analysis of these areas, cash flow seems to be the more dominate play rather than going for equity. Unless investing deeper into WV such as Morgantown, home to WVU. A short drive to Pittsburgh and seeing a boom in student population is that is more what you are looking for.
Hope some of this info will help you. Good luck out there!
- Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes4y
You might look at Hampshire County , Capon Bridge is very beautiful , country , mountainous, close to Winchester. Tucker County has a few great ski resorts and their is a moratorium currently on AirBnb taking over, so you may want to see if that gets resolved favorably, sounds like it will. Berkeley County is close to the interstate , Hedgesville and Berkeley Springs are neat places. I would get a few realtors in the area to start sending properties. You might also find some deals on auction.com, but you are buying as is and would need a crew to renovate, but you would have more equity.
- Real Estate Agent · Member since 2019 · 67 posts · 33 votes4y
Hello Paige,
I'm looking at the WV Eastern Panhandle as well to reinvest proceeds of a MD property I am about to put on the market. I am a realtor licensed in MD and VA. I can devote time to scouting the market and pick the right WV realtor/property manager/Real estate lawyer. Happy to connect as working as a team would bring value to all.
- Lender · Martinsburg, WV · Member since 2013 · 171 posts · 93 votes4y
I am an Investor / Realtor in the Eastern Panhandle of WV. I have a partnership in an investment company and we hold around 50 rentals units mostly in Berekely County WV but some in other adjoining counties. We Flip, wholesale, market for properties to purchase and hold a local meetup group. I talk to investors all the time that want to get started and there is usually some major hurdle to overcome to get started. Could be Time, Money, Knowledge, or the Market. I had an investor that I helped buy many multi-units in the local area around 2016 and then I helped him sell off everything in 2020. I only meet him one time and he was stationed in ASIA for the bulk of this time. What you are looking to do is very possible, people write books about it. I would recommend connecting with as many people in those possible markets you're looking to invest in and asking lots of questions to gauge their knowledge of the local market and how you can do business together. Your network equals your network. Start making phone calls.
- 4yAlex BreshearsBusiness MemberLender · Springfield, MO · Member since 2020 · 351 posts · 504 votes
HI Paige! I can say that your story really resonates with me and I wanted to throw another idea out there. Have you thought about private lending? For example, you would be acting as a lender for another active investor. There is no real major oversight once the funds are working for you, so that may fit a bit better into a busy lifestyle that a lot of us have. While you won't necessarily have the upside potential of gain in asset prices, it does become somewhat passive and just checking in with borrowers to find out how the project is going. You can start lending out your own capital, maybe work into a line of credit or brokering capital of friends and family. There's a lot of ways to scale that as a business should you choose, or if you want to remain more passive and just use your own funds for some extra cashflow every month, you can do that too!
- Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes4y
Hi Paige,
Yours is a common dilemma. We work with, and I have interviewed, numerous busy medical professionals with the desire and resources to invest in real estate, but lacking the time and experience.
Yes, investing passively in real estate syndications is absolutely an option. It does take some education at the start but it's a very viable option.
If you are going to go the active route and try to invest out of state you have a couple of options:
1. Turn-Key Rentals. REI Nation (formerly Memphis Invest) is a great outfit IMHO. They've been in the business a long time and they are fully integrated top to bottom. They won't be passing you off to another property manager once you take over a property. They handle that in-house. There are loads of other very good Turn-Key providers, I would urge you to perform a LOT of due diligence on them before buying a property this way. The downside with this strategy is that it's not always completely as passive as they make it out to be, and the value-add on the property has very often already been extracted by the turn-key company.
2. DIY Long Distance Investing. You could set about building a team in a rental market that makes sense for your investing goals. David Greene literally wrote the book on this and has great action steps you can take. We also interviewed Antoine Martel from Martel Turnkey and he had great insights into who you should reach out to first in a new market. His advice differs a bit from David's in that he recommends reaching out to Property Managers first, not realtors. They are going to have a better feel for the good rental sub-markets in an area, and they are more likely to spend time talking to you if they believe there is an opportunity for a long-term relationship as opposed to the transactional relationship of a realtor.
Good luck to you!
- 4yJoshua JanusBusiness MemberRealtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
@Paige Harrison If you are looking for a more passive investing experience and have a high income from your main job or w2, going the turnkey route is a good option. You are able to invest with less hassle, maintenance, updates and worries. Partnering up a truly turnkey asset with a great property management team, inspector and list of general contractors is an effective way to set up your investing for success. If you are an out of state investor and are investing in the best markets that suit your income, cash reserves, goals, and emphasis on cash flow versus appreciation, than getting into a turnkey asset is a relatively smoother way to get started versus trying to take on a BRRRR as your first investment.
- New to Real Estate · Baltimore · Member since 2020 · 16 posts · 22 votes4yI like this idea. Thanks Alex, I will look into this more!
Quote from @Alex Breshears:
HI Paige! I can say that your story really resonates with me and I wanted to throw another idea out there. Have you thought about private lending? For example, you would be acting as a lender for another active investor. There is no real major oversight once the funds are working for you, so that may fit a bit better into a busy lifestyle that a lot of us have. While you won't necessarily have the upside potential of gain in asset prices, it does become somewhat passive and just checking in with borrowers to find out how the project is going. You can start lending out your own capital, maybe work into a line of credit or brokering capital of friends and family. There's a lot of ways to scale that as a business should you choose, or if you want to remain more passive and just use your own funds for some extra cashflow every month, you can do that too!
- New to Real Estate · Baltimore · Member since 2020 · 16 posts · 22 votes4y
Quote from @Joe Pitrolo:
You might look at Hampshire County , Capon Bridge is very beautiful , country , mountainous, close to Winchester. Tucker County has a few great ski resorts and their is a moratorium currently on AirBnb taking over, so you may want to see if that gets resolved favorably, sounds like it will. Berkeley County is close to the interstate , Hedgesville and Berkeley Springs are neat places. I would get a few realtors in the area to start sending properties. You might also find some deals on auction.com, but you are buying as is and would need a crew to renovate, but you would have more equity.
Hey Joe, shifting my focus to Canaan Valley at the moment. My Dad works at Timberline a few weekends during the winter, so it would make sense for him to have somewhere to stay during his shifts. That means less cashflow, but it would be more of an appreciation game. I think WV is going be the next MT/ID in the future...just not sure when.
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