New to the investor's side
Investor · Buffalo · Member since 2024 · 25 posts · 6 votes
New to the investor's side
Most Popular Reply
Investor · Buffalo, NY · Member since 2019 · 160 posts · 112 votes
2yI got the Buffalo keyword notice, and was going to tag @Matthew Irish-Jones but see he already responded with some A++ feedback.
I'll add to it that there is tremendous value to investing in your backyard. First, you can put your own eyes on a project much more easily, and build in-person relationships with your team. Second, you are keeping your investment, profits, and efforts in helping your own community. Many investors might not care about this, but maybe you are on of us that does. Third, you remain less reliant on other people and more on yourself. Personally, I like having control over my investments and managing my own property, while being less dependent on others to run my business. Therefore I'm not interested in out-of-state. Lastly, don't buy into all the anti-NYS stuff. Sure, landlord/tenant law here is much more friendly to tenants than landlords, but if you learn the laws, screen properly, and invest in locations that attract good tenants, you should be fine. Perhaps investing in university districts, MTR, or Class A units would be more ideal for you, as those tend to be less "eviction prone". Or hire a reputable management company and let them deal with it.
Have you been to one of the local BP meetups? We meet every second Wednesday of the month (so you just missed January's meeting this past week!) and the meet recently moved to Pearl Street Brewery. I only recently started going again, and the turnout has been very strong, with a nice mix of investors, lenders, contractors, etc. Please say hi if you do!
33 Replies
- Wholesaler · Texas, USA · Member since 2022 · 139 posts · 40 votes2y
Welcome and congrats on jumping in!
I have heard that NY is a difficult state to invest in. It is one we stay out of...
Doing a BRRRR from out of state comes with its own challenges, specifically regarding the rehab. Even if you have someone you trust to look over things for you, the rehab on a project can make or break a deal and there is A LOT that goes into a rehab done correctly.
STR might be a good avenue for y'all to pursue, especially if y'all can purchase something retail ready. You may be able to qualify for a "vacation home" loan which would allow you to put less than 20% down. Much more rare to find, but if you could get one off market you may be able to get a better price given realtors wouldn't have to be paid.
With a corporate job and a 10 month old, I'm sure you have your hands full! If you have funds to use, you may look into note investing or lending. Although, you typically want to know more than the person you are lending to. There are lender brokers (not sure if that is the correct legal term) that allow you to lend money through them. This can help you with not knowing much about real estate, but please do your diligence and make sure the company is reputable!
This is not to deter you or be negative. I think anyone that wants to make things happen and has/develops the discipline and resources to do so can! I hope that this did give you some things to consider, and you found it helpful!
Best of luck to you!
- Member since 2024 · 10 posts · 5 votes2y
Quote from @Morgan Gutierrez:
Welcome and congrats on jumping in!
I have heard that NY is a difficult state to invest in. It is one we stay out of...
Doing a BRRRR from out of state comes with its own challenges, specifically regarding the rehab. Even if you have someone you trust to look over things for you, the rehab on a project can make or break a deal and there is A LOT that goes into a rehab done correctly.
STR might be a good avenue for y'all to pursue, especially if y'all can purchase something retail ready. You may be able to qualify for a "vacation home" loan which would allow you to put less than 20% down. Much more rare to find, but if you could get one off market you may be able to get a better price given realtors wouldn't have to be paid.
With a corporate job and a 10 month old, I'm sure you have your hands full! If you have funds to use, you may look into note investing or lending. Although, you typically want to know more than the person you are lending to. There are lender brokers (not sure if that is the correct legal term) that allow you to lend money through them. This can help you with not knowing much about real estate, but please do your diligence and make sure the company is reputable!
This is not to deter you or be negative. I think anyone that wants to make things happen and has/develops the discipline and resources to do so can! I hope that this did give you some things to consider, and you found it helpful!
Best of luck to you!
welcome pamela! Morgan gave you some great tips!
- Member since 2023 · 40 posts · 30 votes2y
hey Pamela, congrats on your little one! I would not invest in NY, very difficult market. If you want to invest out of state then LTR is way more easier to manage remotely!
- 2yJulio GonzalezPro MemberSpecialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
Hi Pamela, welcome to BiggerPockets! This is a great place to learn and to connect with people so take advantage of all the great resources.
-Julio
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Thank you for the advice! NY is definitely not ideal which is why we were open to other options but we are determined to make it work either way! We will take all the advice we can get, we wanna do things “right” and we’re tired of making others rich at our expense!
I apologize for my grammar in the earlier post, chasing around a 10 month old that’s about to start walking isn’t for the weak!
I look forward to sharing our successes with you all! Anyone that has any more advice we are all ears! Thank you again for the warm welcome! - Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Morgan Gutierrez:
Welcome and congrats on jumping in!
I have heard that NY is a difficult state to invest in. It is one we stay out of...
Doing a BRRRR from out of state comes with its own challenges, specifically regarding the rehab. Even if you have someone you trust to look over things for you, the rehab on a project can make or break a deal and there is A LOT that goes into a rehab done correctly.
STR might be a good avenue for y'all to pursue, especially if y'all can purchase something retail ready. You may be able to qualify for a "vacation home" loan which would allow you to put less than 20% down. Much more rare to find, but if you could get one off market you may be able to get a better price given realtors wouldn't have to be paid.
With a corporate job and a 10 month old, I'm sure you have your hands full! If you have funds to use, you may look into note investing or lending. Although, you typically want to know more than the person you are lending to. There are lender brokers (not sure if that is the correct legal term) that allow you to lend money through them. This can help you with not knowing much about real estate, but please do your diligence and make sure the company is reputable!
This is not to deter you or be negative. I think anyone that wants to make things happen and has/develops the discipline and resources to do so can! I hope that this did give you some things to consider, and you found it helpful!
Best of luck to you!
Morgan, I would love to talk to you about wholesale if you’re open to it? Thank you for all of the strong advice in your comment we truly appreciate all guidance at this point!
- Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes2y
Welcome Pamela! I agree, NY can be a tough market, especially regarding tenants since ny is very tenant friendly. I'm in the Syracuse area which is very popular with investors due to hospitals, universities etc. I agree, BRRRR can be difficult if you're not local with the rehab. If out of state, I think mid to long term rental is more of the play and may be worth looking into a reliable property manager. I'd be happy to have further discussions if you'd like to know more about the area!
- 2yStephanie JacobsonBusiness MemberReal Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
Hi @Pamela Maduro, and welcome! Where upstate are you? The markets here vary widely. Binghamton has been historically economically depressed but has a growing university, so it tends to have low property values with high actual cashflow (and no appreciation). Ithaca is opposite, where the cashflow is low and prices are high, but it appreciates pretty reliably. Syracuse is somewhere in between those two, but is experiencing a sudden boom in values and interest thanks to Micron. Rochester and Buffalo I don't cover, but I know they've both remained fairly stable over the past couple decades.
Depending on your goals and longterm strategy, you have many markets to choose from here with different strengths and weaknesses.
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes2y
Welcome to BiggerPockets Pamela!
- 2yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
Quote from @Pamela Maduro:
Hey all! My husband an I are deep diving in everything real estate! I've loves realestate ever since highschool and got extremely side tracked by moving up in a corporate job, at this point we have a 10 month old baby and I'm feeling the urge pressure tk get into something else that will allow more time with my family while creating a solid future! We're currently looking into doing a LTR or out of state air bnb and going to be doing the BRRRR method! We look forward to hearing stories and getting some good feedback from everyone!
Why are you thinking of investing out of state if you live in Buffalo? Buffalo is a great market to get started in with a low barrier to entry. It also has both cash flow and appreciating neighborhoods.
Doing out of state BRRR's is really complicated. You need great vendors or a company that specializes in this. They can be very hard to find. The out of state AirBnB also has some draw backs. You have to furnish the property which are funds you are spending unleveraged and management fee's are easily 20% of revenue.
If you can buy close to where you live to keep an eye on vendors, projects, etc.. you are in a better spot in my opinion.
Irish Jones Realty4.947 Reviews - 2yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
Quote from @Jonathan Cooper:
hey Pamela, congrats on your little one! I would not invest in NY, very difficult market. If you want to invest out of state then LTR is way more easier to manage remotely!
Buffalo NY was just voted #1 city to invest in nation wide by Marketwatch.com
I own over 60 LTR, MTR, STR units in WNY and manage 700. Our property management company is growing 10-15% a year from out of state and out of country investors.
Eviction laws suck in NY. Buying quality units and properly screening tenants solves most of these problems. We have a 93% collection rate on tenants we screen. There are all kinds of problems doing business in NYS, but if you know what those problems are and plan for them, investing in WNY is lucrative.
Irish Jones Realty4.947 Reviews - 2yEvan HoppleBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
@Pamela Maduro
Ohio is a strong LTR market with plenty of value add opportunities. Minimal landlord restrictions and strong rent growth
Reafco Real Estate - 2yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Welcome! You should be really proud that you're getting started early. Every investor says they wish they'd started earlier. Here's some advice for you:
- don't count out your local market. In almost every market, you will find people not from that market investing there. You may or may not find a niche that you like and that works for you there. Starting closer to home can be a little bit easier.
- be careful taking advice from people who are not doing the thing you are trying to do. If they tried and failed, they probably have some valuable lessons to share. If they never tried, then it's just conjecture.
- stay focused until you get that first deal under your belt. If you're trying to pursue too many things you'll probably close on none.
- your first deal doesn't have to be a homerun. Base hits are ok, too. It's easy to get sucked in to other people's success stories and think that's the bar you need to hit. But they usually don't tell you about all their base hits (or strikeouts) along the way.
- join a local REIA even if you don't intend to invest locally because you'll learn so much from others and you never know who they'll have connections to.
Good luck to you - you're already off to a good start by building relationships!
- Investor · Buffalo, NY · Member since 2019 · 160 posts · 112 votes2y
I got the Buffalo keyword notice, and was going to tag @Matthew Irish-Jones but see he already responded with some A++ feedback.
I'll add to it that there is tremendous value to investing in your backyard. First, you can put your own eyes on a project much more easily, and build in-person relationships with your team. Second, you are keeping your investment, profits, and efforts in helping your own community. Many investors might not care about this, but maybe you are on of us that does. Third, you remain less reliant on other people and more on yourself. Personally, I like having control over my investments and managing my own property, while being less dependent on others to run my business. Therefore I'm not interested in out-of-state. Lastly, don't buy into all the anti-NYS stuff. Sure, landlord/tenant law here is much more friendly to tenants than landlords, but if you learn the laws, screen properly, and invest in locations that attract good tenants, you should be fine. Perhaps investing in university districts, MTR, or Class A units would be more ideal for you, as those tend to be less "eviction prone". Or hire a reputable management company and let them deal with it.
Have you been to one of the local BP meetups? We meet every second Wednesday of the month (so you just missed January's meeting this past week!) and the meet recently moved to Pearl Street Brewery. I only recently started going again, and the turnout has been very strong, with a nice mix of investors, lenders, contractors, etc. Please say hi if you do!
- 2yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Pamela Maduro check out all that's happening in Detroit:
https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/
We've helped hundreds of OOS investors avoid the scammers in our area and make solid investments.
Logical Property Management4.9453 Reviews - Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Jonathan Cooper:
hey Pamela, congrats on your little one! I would not invest in NY, very difficult market. If you want to invest out of state then LTR is way more easier to manage remotely!
Thank you! Do you have a few markets you would recommend?
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2yKiernan that would be great! We are eager to make the move and start our portfolio, just normal nerves to get started. Are you an agent or an investor?
Quote from @Kiernan LaFaver:
Welcome Pamela! I agree, NY can be a tough market, especially regarding tenants since ny is very tenant friendly. I'm in the Syracuse area which is very popular with investors due to hospitals, universities etc. I agree, BRRRR can be difficult if you're not local with the rehab. If out of state, I think mid to long term rental is more of the play and may be worth looking into a reliable property manager. I'd be happy to have further discussions if you'd like to know more about the area!
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Stephanie Jacobson:
Hi @Pamela Maduro, and welcome! Where upstate are you? The markets here vary widely. Binghamton has been historically economically depressed but has a growing university, so it tends to have low property values with high actual cashflow (and no appreciation). Ithaca is opposite, where the cashflow is low and prices are high, but it appreciates pretty reliably. Syracuse is somewhere in between those two, but is experiencing a sudden boom in values and interest thanks to Micron. Rochester and Buffalo I don't cover, but I know they've both remained fairly stable over the past couple decades.
Depending on your goals and longterm strategy, you have many markets to choose from here with different strengths and weaknesses
Hi Stephanie! thanks for the info, We are in fact in Buffalo, I'm originally from the Hudson valley so I'm still trying to get acclimated to the difference in cost of living and value in Erie county!
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2yHi, thank you for the comment. I've lived in myrtle beach in my early 20's and still have some really good connections down there and i am still somewhat familiar with the cost of things. Plus we were thinking it would be a great area to invest so that we can take our family vacations. I think we are leaning more towards a LTR and then eventually doing an Air BNB
Quote from @Matthew Irish-Jones:
Quote from @Pamela Maduro:
Hey all! My husband an I are deep diving in everything real estate! I've loves realestate ever since highschool and got extremely side tracked by moving up in a corporate job, at this point we have a 10 month old baby and I'm feeling the urge pressure tk get into something else that will allow more time with my family while creating a solid future! We're currently looking into doing a LTR or out of state air bnb and going to be doing the BRRRR method! We look forward to hearing stories and getting some good feedback from everyone!
Why are you thinking of investing out of state if you live in Buffalo? Buffalo is a great market to get started in with a low barrier to entry. It also has both cash flow and appreciating neighborhoods.
Doing out of state BRRR's is really complicated. You need great vendors or a company that specializes in this. They can be very hard to find. The out of state AirBnB also has some draw backs. You have to furnish the property which are funds you are spending unleveraged and management fee's are easily 20% of revenue.
If you can buy close to where you live to keep an eye on vendors, projects, etc.. you are in a better spot in my opinion.
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Matthew Irish-Jones:
Quote from @Jonathan Cooper:
hey Pamela, congrats on your little one! I would not invest in NY, very difficult market. If you want to invest out of state then LTR is way more easier to manage remotely!
Buffalo NY was just voted #1 city to invest in nation wide by Marketwatch.com
I own over 60 LTR, MTR, STR units in WNY and manage 700. Our property management company is growing 10-15% a year from out of state and out of country investors.
Eviction laws suck in NY. Buying quality units and properly screening tenants solves most of these problems. We have a 93% collection rate on tenants we screen. There are all kinds of problems doing business in NYS, but if you know what those problems are and plan for them, investing in WNY is lucrative.
wow that is very impressive, hopefully one day we will be in the same position! I would love to connect and possibly work with you in the future if this is something you are open too?
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Bonnie Low:
Welcome! You should be really proud that you're getting started early. Every investor says they wish they'd started earlier. Here's some advice for you:
- don't count out your local market. In almost every market, you will find people not from that market investing there. You may or may not find a niche that you like and that works for you there. Starting closer to home can be a little bit easier.
- be careful taking advice from people who are not doing the thing you are trying to do. If they tried and failed, they probably have some valuable lessons to share. If they never tried, then it's just conjecture.
- stay focused until you get that first deal under your belt. If you're trying to pursue too many things you'll probably close on none.
- your first deal doesn't have to be a homerun. Base hits are ok, too. It's easy to get sucked in to other people's success stories and think that's the bar you need to hit. But they usually don't tell you about all their base hits (or strikeouts) along the way.
- join a local REIA even if you don't intend to invest locally because you'll learn so much from others and you never know who they'll have connections to.
Good luck to you - you're already off to a good start by building relationships!
Yes! thank you for your comment, we absolutely are soaking up a lot of information and feel like its almost better to jump in with one strategy so we don't have shiny object syndrome.
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2yHi, and yes, he did, i appreciate your advice as well! As far as the meetings I found out about them the day of so unfortunately, we were unable to make it, but we do plan on attending some, my husband and I are very interested in helping our community and being a part of it, he grew up here I moved here a few years ago. So, meeting people locally with the same interests and intent is something we are aiming for. I'd love to connect if you're interested maybe we can help each other out on future deals?
Quote from @Timothy Smith:
I got the Buffalo keyword notice, and was going to tag @Matthew Irish-Jones but see he already responded with some A++ feedback.
I'll add to it that there is tremendous value to investing in your backyard. First, you can put your own eyes on a project much more easily, and build in-person relationships with your team. Second, you are keeping your investment, profits, and efforts in helping your own community. Many investors might not care about this, but maybe you are on of us that does. Third, you remain less reliant on other people and more on yourself. Personally, I like having control over my investments and managing my own property, while being less dependent on others to run my business. Therefore I'm not interested in out-of-state. Lastly, don't buy into all the anti-NYS stuff. Sure, landlord/tenant law here is much more friendly to tenants than landlords, but if you learn the laws, screen properly, and invest in locations that attract good tenants, you should be fine. Perhaps investing in university districts, MTR, or Class A units would be more ideal for you, as those tend to be less "eviction prone". Or hire a reputable management company and let them deal with it.
Have you been to one of the local BP meetups? We meet every second Wednesday of the month (so you just missed January's meeting this past week!) and the meet recently moved to Pearl Street Brewery. I only recently started going again, and the turnout has been very strong, with a nice mix of investors, lenders, contractors, etc. Please say hi if you do!
- Investor · Buffalo · Member since 2024 · 25 posts · 6 votes2y
Quote from @Michael Smythe:
@Pamela Maduro check out all that's happening in Detroit:
https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/
We've helped hundreds of OOS investors avoid the scammers in our area and make solid investments.
Ill check this out right now! Are you open to connecting?
- Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes2yI am currently an agent. My plan is to have 3-4 rental properties within 10 years or so. I like working with investors like yourself because it also educates me about the process for when I’m financially ready to dive into the investing world myself!
Quote from @Pamela Maduro:
Kiernan that would be great! We are eager to make the move and start our portfolio, just normal nerves to get started. Are you an agent or an investor?Quote from @Kiernan LaFaver:
Welcome Pamela! I agree, NY can be a tough market, especially regarding tenants since ny is very tenant friendly. I'm in the Syracuse area which is very popular with investors due to hospitals, universities etc. I agree, BRRRR can be difficult if you're not local with the rehab. If out of state, I think mid to long term rental is more of the play and may be worth looking into a reliable property manager. I'd be happy to have further discussions if you'd like to know more about the area!
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