Baltimore, MD · Member since 2017 · 26 posts · 5 votes
Hi BP,
I have been reading real estate books, listening to the podcasts, reading the forums, and taking some online classes for a little while now and have decided that I should make a profile and start being more active. I am a young professional living in the Maryland/DC area with a 2017 goal of getting into real estate investing. My long-term goal would be to earn passive income through real estate to the point where I could cut back to part time at my job, while still having the financial freedom to travel and enjoy life.
I'm currently looking at some of the nicer neighborhoods in Baltimore in hopes of finding my first multi-unit investment property. I actually posted about a potential property that I found in the "starting out" section of the forum.
I would be interested to hear anyone else's experiences or paths to financial independence through real estate. I look forward to discussing real estate with you all and hope to work my way up to being a useful contributor on the forums.
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
9y
Drive around and you'll get a feel for the good ones from the bad ones really quickly. If there are a lot of boarded up and vacant homes then you can reasonably assume that it is not a desirable area to live or invest in.
As far as specific neighborhoods go, everyone has their own opinions. I personally like Belair-Parkside, Barclay, and Greenmont. There is also a lot of opportunity in Dundalk and Essex. I know several successful investors who really like Belair-Edison, although I am not as strong an advocate for that neighborhood as they are.
Everyone you talk to will probably have their own opinion of what the "right"neighborhoods to invest in are, and of course there isn't one "right" answer. Do your due dilligance, drive around, check comps (both resale and rental comps), and find a mentor or partner who can double check the deal for you before you pull the trigger.
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
9y
Hello and welcome to BP! It sounds like you have gotten a good start of learning before you start bur sooner or later you do need to take action. Iff you are buying rental units it is not favorable to buy a single family home that is occupied by a tenant that has not been through your screening process. An existing tenant usually does not meet your guidelines and you might offer them some cash to leave or possibly evict them.
I do not know that he has contacted you about getting small apartment complexes that can be your first projects while you Orkney at a W-2 job. Again, from what I have heard that having a regular job can help you get a loan from a national bank and get the lowest rate. There are other lenders that more interested at the project you are showing them what you may buy. The small complex guy is Lance Edwards and he got his start in buying small apartment complexes while he worked at a regular job place about 60 hours per week. At about the 2 year point he was making enough in real estate to quit his regular job. He then started to get into larger apartment properties. He wrote a book about buying small apartment complexes and got into teaching others.
He said that there was not as much completion than what you will encounter with SFH's. I got involved with BP about 19 months ago when I was medically recovering and was looking for more flexibility than with a regular 9 to 5 job. I am 60 years old now and I had a brain anuerism and stroke at age 54. I am still slowly recovering from that and I still cannot walk. I am lucky that I am married to a woman that has been saving money for about 25 years. Her boss has been real cool with her, a computer programmer, and only asks her to come in the office for 1/2 day and put in the rest of the day at home. He is still paying her as a full time employee and gets all of the benefits of a full time employee.
When I first got that accident I thougt it would only take me out of work for 6 months. Boy was I wrong! We have a daughter that is in her 3rd year at the University of Arkansas and I am so proud of her. Since we live about 6 hours away by car, we only see her on the school breaks. Thank the Lord that the school lets her payoff each semester "loan" of in three payments. Somehow my wife makes it all work on her salary and no money out of her savings. That is enough about me. There are several things you need to consider before you start making offers besides selecting your niche and market area.
One of those things you need to consider is forming some type of corporation or a LLC. You might need to hire an Attorney or a CPA to advise you on the forming you should do. That will keep any of your personal things from being reached by legal action against your business activities. Another thing you ought to consider strongly is to get your financing, if needed, figured out. They can get a loan letter to you that states the average loan closing time and the maximum amount that you qualified for.
Another thing you might do is to find your office location that is convenient and has a minimal of distractions. You could locate your office in your living home as long as you can close it off and has minimal distractions that are personal. Control everything you are responsible for until you can support somebody else. Do not try to do everything yourself. Have/Find a local and experienced Team members. Their experience would help if any of their past was experienced in what you do.
The typical primary Team members are Attonies/Lawyers, real estate Agents or brokers, CPA's (or accounts that you know), Inspectors, Property Managers, General Contractors, and Handeymen. Track all of the expenses and income in report form and have 3rd parties to help you possibly save on expenses o growing income.
Always remember, especially in the beginning, do the math analysis and try to look before you make an offer to purchase a property or at least have a clause in the sales contract that allows you to make a detailed inspection of the subject property (about 10 days) and possibly back out of the deal without a penalty that hurts you too much. Do not assume something will happen. Just be patient and consistent at what you do. Do not beleive a title on a business card because you might be more intelligent than them.
I am not trying to scare you off but I mentioned all of those personal things you never know what the future holds for you or your family. My personal doctor told me for about 30 years that was impressed with my fitness and that bad thing happened two days I was scheduled for preventive surgery after my chiropractor told me to get an MRI photography of my head. So try to prepare for anything that could happen. I have never been east of the Mississippi River so I cannot give you any geographical opinions.
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
9y
Welcome to BP and to the Baltimore investing community. What neighborhoods in Baltimore are you considering? I ask because "nicer" could mean different things to different people. I think you'll find the best cashflow in some of the B/C class neighborhoods in our city as opposed to what I personally consider the "nicer" A class neighborhoods, and since your goal is passive income you might want to shift your focus to those areas. Good luck!
@Michael Lee- I wish you the best of luck with your recovery. You have given me a lot of good information and a lot for me to think about. I'm trying to learn more every day and get a better understanding of the ins and outs of real estate investing.
@Joe Norman- Right now I am looking in some of the neighborhoods around the Inner Harbor. Fells Point, Locust Point, Federal Hill, and Canton are the ones that I currently have my eyes on. I think that is largely because they are appeal to me personally as a young adult interested in that type of environment. What sort of areas or neighborhoods do you recommend I look into? I'm still very new to the Baltimore area and don't know all the good spots from the bad ones yet.
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
9y
Drive around and you'll get a feel for the good ones from the bad ones really quickly. If there are a lot of boarded up and vacant homes then you can reasonably assume that it is not a desirable area to live or invest in.
As far as specific neighborhoods go, everyone has their own opinions. I personally like Belair-Parkside, Barclay, and Greenmont. There is also a lot of opportunity in Dundalk and Essex. I know several successful investors who really like Belair-Edison, although I am not as strong an advocate for that neighborhood as they are.
Everyone you talk to will probably have their own opinion of what the "right"neighborhoods to invest in are, and of course there isn't one "right" answer. Do your due dilligance, drive around, check comps (both resale and rental comps), and find a mentor or partner who can double check the deal for you before you pull the trigger.
Flipper/Rehabber · Pittsburgh, PA · Member since 2016 · 121 posts · 60 votes
9y
@Sam G. Congratulations on deciding to take action and welcome to Baltimore investing. If you really want to start getting into the action; go to the local meet up groups. I know Bwi has an investor meet up. I haven't been yet but heard great things about it. I am part of the Baltimore Reia and has been a great experience for me. As for the areas you mentioned, def great areas but also $$$ especially if you are looking for multi. U might be able to pick up a row house for a decent price and rent out the rooms. I wish you the best of luck and feel free to reach out to me anytime, i am always happy to help any way that i can.
Baltimore, MD · Member since 2017 · 26 posts · 5 votes
9y
@Joe Norman- That sounds like good advice. I'll do some exploring around Baltimore and try to widen my search for first houses.
@James A.- I was just about to ask what the best investor meetups are in the Baltimore area. I went to one a few months ago that ended up just being a 3-hour sales pitch for the guy's wholesaling course, so that kind of turned me off of the whole REIA thing for a little bit. Any idea how I could get more information about some of the better meetups in Baltimore?
Flipper/Rehabber · Pittsburgh, PA · Member since 2016 · 121 posts · 60 votes
9y
@Sam G. so you gotta keep your mind open when going to some of the groups bc they do pitch stuff but gotta go with the intention of networking and connecting with like minded people. Also some the things might actually come in useful for whatever avenue you are pursuing. You gotta decide what you think is worth it. I have attended Baltimore REIA, Rehabber Pro is great; they actually do their meetings at a house that has been renovated by a member. I have yet to be Bwi meetup or mid Atlantic investor assoc. and The Real Deal meetup. I just joined Baltimore Multifamily Real Estate Investing Group and Real Estate Inventing Incubator. I would recommend going to the different ones and you can decide which one best suit your investing goals. I hope to see you around at one of them.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y
@Sam G.. All the groups have their pluses and minuses. My favorite is the BWI meetup. All groups that grow need to do some type of sales as the cost of the facilities for a larger group can be substantial
Also sometimes a particular speaker will be very salesy but that is not necessarily the general vibe of the group.
I go to the meetings not for the presentation but to network before and after. After the BWI Meetup people are usually at champions bar in the hotel until they close at midnight
Baltimore, MD · Member since 2017 · 20 posts · 2 votes
9y
Hi everyone! I'm new to Bigger Pockets as well but have dabbled in real estate investing in the last few years. @Sam G. Why don't we do our own? I have a few friends in the business (RE agents, engineers, CPA's) who are not on Bigger Pockets and I think it would great way to mingle and share ideas. I wouldn't mind planning a happy hour or something. Thoughts?
Baltimore, MD · Member since 2017 · 26 posts · 5 votes
9y
@James A., @Ned Carey- That's great feedback. I'll look into the BWI meetup and some others in the Baltimore area. Hope to see you at a meetup in the future!
@Natalie Nelson- Welcome! It's good to hear from a relatively new investor that has already had some success in Baltimore. After hearing from some other local investors on here, I think I definitely need to expand my searching to include different areas of Baltimore. As far as the meetup goes, I would definitely be interested in doing a happy hour or something like that. Feel free to message me with details if and when you organize something.
Rental Property Investor · Baltimore, MD · Member since 2016 · 153 posts · 158 votes
9y
Sam - if you join meetup.com and checkout the BWI group, you might want to go to their Monday Mixer event as it's basically a big happy hour with other investors.
I have seen many BP members who have started from zero and are now experienced investors with multiple properties. The two people who run the above meetup are examples. There are several other regulars there who have done the same thing.
Flipper/Rehabber · Pittsburgh, PA · Member since 2016 · 121 posts · 60 votes
9y
@Natalie Nelson I like where your head is at!! You never have to twist my arm to grab drinks and talk real estate. lol I would love to start a mastermind group; my vote is Fri night happy hr. Pick a Fri and lets make it happen, Canton and Fells has some great spots.
