Hey Everyone! New Investor from Lancaster Looking to Learn.
Member since 2025 · 1 post · 2 votes
Hey Everyone! New Investor from Lancaster Looking to Learn.
Most Popular Reply
Memphis, TN · Member since 2024 · 180 posts · 223 votes
11moHi Jacob, welcome to BP!
I’m an agent here in Memphis on Dean’s Harris' team at CrestCore Realty. We work exclusively with of out-of-state investors and help them build solid portfolios by sourcing properties with lower entry points and strong cash-flow potential. We also have a great team of vendor partners (contractors, lenders, property management, etc.) that make investing long term successful.Would love to connect and be a resource as you start building your portfolio- Best of luck!
6 Replies
- 11moMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
Welcome to BP! This is an excellent platform for networking, making connections, and expanding your knowledge. There are numerous opportunities in Real Estate Investing (REI). Make sure you utilize the abundant resources available here: Explore insightful articles and podcasts. Join forums where experienced investors share their journeys.
This journey is all about building relationships with like-minded individuals, which can offer support and motivation as you face the challenges of real estate investing.
Remember, every expert was once a beginner. Stay open-minded, be persistent, and maintain your curiosity. Wishing you the best of luck on your real estate adventure!
- Memphis, TN · Member since 2024 · 180 posts · 223 votes11mo
Hi Jacob, welcome to BP!
I’m an agent here in Memphis on Dean’s Harris' team at CrestCore Realty. We work exclusively with of out-of-state investors and help them build solid portfolios by sourcing properties with lower entry points and strong cash-flow potential. We also have a great team of vendor partners (contractors, lenders, property management, etc.) that make investing long term successful.Would love to connect and be a resource as you start building your portfolio- Best of luck!
- Member since 2023 · 22 posts · 7 votes11mo
Hi! Welcome to investing! There are a lot of great options out there for beginners such as house hacking that give you the opportunity to purchase an investment home while also purchasing a home for you to live in! This forum is a great way to connect with other people that are in the same boat as you, as well as agents and other people in the industry that can help you on your journey! Good luck!
- 11moBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Welcome, @Jacob Peirson! At 21, you’re way ahead of the curve by jumping into real estate this early! That’s going to give you a huge advantage long term. Starting out, the best thing you can do is soak up as much as possible, set a clear buy box (property type, location, price range), and analyze deals daily to sharpen your eye.
Some good next steps:
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Pick a strategy to focus on first (buy & hold, house hacking, BRRRR, etc.).
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Learn the numbers! Cash flow, cap rates, and return metrics will guide your decisions.
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Connect with investor-friendly agents and property managers—your team matters as much as the property.
I’m a real estate agent based in Memphis, TN, and I help out-of-state investors build cash-flowing rental portfolios here. If you ever want to explore the Memphis market or just run through deal analysis for practice, happy to connect and share what’s working for investors here.
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- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 453 votes11mo
Welcome, Jacob! Starting at 21 puts you in a great position to build serious long-term wealth through real estate.
Lancaster has some solid fundamentals, affordable prices, growing demand, and a mix of rental and flip potential. Focusing on strategies and market analysis early on will help you move with confidence when the right opportunity shows up.
This community is full of insight and support, so stay active, ask questions, and connect with others nearby. Feel free to reach out anytime if you want to talk deals, markets, or funding strategies.
- 11moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts. This caused a historically unique opportunity for investors - they could buy Class A properties and immediately cashflow when renting them out.
This couldn't last forever, and it didn't, as excited new investors drove up prices.
Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.
So, the flood of new investors switched to buying Class B properties.
COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors. According to CoreLogic, in December of 2023, almost 30% of home sales were to investors!
Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).
Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.
In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.
If you don't believe us, try putting several Class D tenants in Class A apartment buildings and watch what happens. Or try the reverse - rehab a Class D property to Class A standards and try to get a Class A or B tenant to rent it.
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.
In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
According to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.
To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure. If only it was that easy. Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent. Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.
Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.
We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.
Once you understand the above, you still need to find a property. You’ll have to do what investors did before the Great Real Estate Crash:
- Evaluating 100 properties, to identify 10 to make offers on, in the hopes one seller accepts.
- Yes, this takes a lot of work! - Network with wholesalers who can bring you “deals”
- Many wholesalers are also newbies who have no clue what a real deal is and are just time-wasters.
NOTE: We often see wholesalers re-marketing MLS properties at HIGHER amounts! - Start using your own personal network to find motivated sellers.
- Start posting on your favorite social media site what you are looking for – not once or twice, but CONSISTENTLY for 6 months! Give updates on properties you’ve looked at or analyzed to keep your audience engaged, so when they stumble upon a potential situation, you are the first one they think of.
Good luck!
Logical Property Management4.9458 Reviews - Evaluating 100 properties, to identify 10 to make offers on, in the hopes one seller accepts.
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