New member/investor from Los Angeles

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New member/investor from Los Angeles

Rick MartinPro Member
Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes

Hi, I feel like my head has been in the sand for not having found this site sooner.  After reading/listening from afar, I jumped in with a PRO membership.  Like many, I am looking to invest in out-of-state markets. I’m researching areas (Cleveland - and other cities in Ohio, Indianapolis, Kansas City, Jacksonville, Atlanta, Milwaukee, Chicago etc) ,and will be looking to build relationships.  Do I go boots on the ground, or turnkey?  That I am trying to decide.  I also want to dig under the hood here in SoCal as well, and will need help doing so.  I’ll be looking for Urban multifamily and suburban SFRs (hoping for C in B neighborhoods and B class). The short-term/vacation rental market intrigues me as well.  Although I have done a handful of real estate deals in the past, I am looking to reboot with more of an informed approach. Thanks!

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Veni F.Pro Member
BiggerPockets Support · Los Banos, Laguna · Member since 2017 · 320 posts · 99 votes
9y

Welcome to the BiggerPockets family @Rick Martin! I have listed some helpful recommendations for you:

Meet BiggerPockets member in your area:http://www.biggerpockets.com/meet

Set up keyword alerts to be notified of the topics that interest you:http://www.biggerpockets.com/alerts

Read Beginner’s Guide:http://www.biggerpockets.com/real-estate-investing

Check out BP Podcasts:http://www.biggerpockets.com/renewsblog/category/podcast/

Find upcoming real estate events: https://www.biggerpockets.com/forums/521-events-and-happenings

Forum and Blog rules: https://www.biggerpockets.com/rules

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person.

Welcome aboard!!!

BiggerPockets
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  • Veni F.Pro Member
    BiggerPockets Support · Los Banos, Laguna · Member since 2017 · 320 posts · 99 votes
    9y

    Welcome to the BiggerPockets family @Rick Martin! I have listed some helpful recommendations for you:

    Meet BiggerPockets member in your area:http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you:http://www.biggerpockets.com/alerts

    Read Beginner’s Guide:http://www.biggerpockets.com/real-estate-investing

    Check out BP Podcasts:http://www.biggerpockets.com/renewsblog/category/podcast/

    Find upcoming real estate events: https://www.biggerpockets.com/forums/521-events-and-happenings

    Forum and Blog rules: https://www.biggerpockets.com/rules

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person.

    Welcome aboard!!!

    BiggerPockets
    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y

    Welcome to the site @Rick Martin

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Rick Martin:

    Hi, I feel like my head has been in the sand for not having found this site sooner.  After reading/listening from afar, I jumped in with a PRO membership.  Like many, I am looking to invest in out-of-state markets. I’m researching areas (Cleveland - and other cities in Ohio, Indianapolis, Kansas City, Jacksonville, Atlanta, Milwaukee, Chicago etc) ,and will be looking to build relationships.  Do I go boots on the ground, or turnkey?  That I am trying to decide.  I also want to dig under the hood here in SoCal as well, and will need help doing so.  I’ll be looking for Urban multifamily and suburban SFRs (hoping for C in B neighborhoods and B class). The short-term/vacation rental market intrigues me as well.  Although I have done a handful of real estate deals in the past, I am looking to reboot with more of an informed approach. Thanks!

    Hello Rick,

    Investing in a turnkey asset out of state is a great way to go! If you go with a true provider you will be able to know that everything was done all under one roof. 

    I would suggest looking at a true provider. One who; owns, renovates, and manages the property for you. This way it is not some agent calling the property a "turnkey" because it has nice photos on the MLS.

    I would suggest looking at:

    How to Find the Right Turnkey Real Estate Investment Company for You

    and

    The Best Types of Markets for Profitable Turnkey Properties

    Send me a message if you have any other questions.

    0Reply
  • Vivek Khoche
    Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    9y

    @Rick Martin - Welcome to BP. Right now your research focus is too wide and too general. Not every market is same. There are plenty of stories on each side for your questions. Get the required education from fellow investors before you pull the trigger.

    Happy Investing

    Vivek

    0Reply
  • Shawn Holsapple
    Residential Real Estate Broker · Indianapolis, IN · Member since 2010 · 1k+ posts · 557 votes
    9y

    Welcome to BP @Rick Martin!

    If you can't find something within a couple hours of your home then, the Midwest is the place to be!

    Just don't deceived by the sexy low-end numbers we have here. It's pretty easy to get blinded by the massive ROI [on paper] when looking at 100 year old homes in Class C- neighborhoods that rent for $550-$600 & that can be picked up for under $30k.

    After you do lots of DD in the area you are thinking about, I would suggest making the 4 hour flight and stay a few days before making a purchase.  You can meet your team in person, look at the good [and bad] areas to own property and get a much better feel of what you are getting into.

    Of course just don't get stuck on analysis paralysis and end up never moving forward - I was guilty of this myself.

    For the most part, one should be able to find a freshly rehabbed, simple home, in a good working class neighborhood that rents for around $800 for close to $80k or less.

    I would also recommend staying away from [older] duplexes as well for now until you get a good feel of the area.

    Just a few thoughts, I hope that helps.

    - it's always good to see another Investor utilizing this great site!

    Of course, you need to read The Ultimate Beginners Guide to REI here on BP

    If you haven’t already, please read/listen to these books ASAP!

    Rich Dad Poor Dad

    Rich Dads Cash Flow Quadrant

    Rich Dads Increase your financial IQ

    The Real Book of Real Estate

    The ABC’s of RE Investing

    The ABC’s of PM

    Rich Dad RE Tax Advantages

    The 10X Rule

    The E-Myth

    The 4 Hour Work Week

    BiggerPocketsPodCast -I hear #136 is exceptional!

    1Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    Thanks Vivek.  Yes, trying to narrow down to an area or two, and will be doing all the DD before pulling the trigger.  Good reminder!

    0Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    Thanks Shawn.  Flying to the city, driving the areas extensively and meeting the team are musts, I agree.  I look forward to that part actually, and hope that it will lead to some profitable relationships and investments. Thanks also for that great list!  I am trying to find the balance between due diligence and paralysis by analysis.

    0Reply
  • Jeffrey Hotz
    Real Estate Professional · Dublin, OH · Member since 2013 · 251 posts · 165 votes
    9y
    Hey Rick Martin I'm familiar with a few of the markets you mentioned as I've been an active, "boots on the ground" investor in Cleveland, Chicago and about to move to Columbus. These markets are all different and I'd certainly advise to take a look and focus on one. There are positives and negatives to all, and a lot has to do with your business model and what type of rental investment you can stomach. Pick one and start working it! Concerning turn-key, I'm going to get killed for this statement, but I've never seen many sell anything turn key that was much of a deal. Go ahead with the comments, but I'm sticking by the statement. I've sold crap to turn key companies and have seen the package it into a polished turd. From what I've seen they all sell you a POS, hire a crackhead to update, put questionable management in place and call it turn key. Don't know how someone can sleep with this business model.
    0Reply
  • Jeffrey Hotz
    Real Estate Professional · Dublin, OH · Member since 2013 · 251 posts · 165 votes
    9y
    Just figured I'd add to the turn key comment I just posted since I put that out there and should backtrack a little. Not all sell POS, and not all hire crackhead contractor, and not all put questionable management in place. But I've never seen anything be a deal more than something that's awfully close to market price, or higher.
    0Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    I appreciate those honest words Jeffery.  My gut is to build my own team through personal and trusted referrals.  I know that this could come as a great challenge, being so far away.  Any wisdom that you can share with the three markets would be well appreciated.  I've heard positive things about Columbus, but has that ship sailed?  I will, as you say, pick one market and focus on that, but in the meantime, it is overwhelming narrowing the list.

    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Rick Martin Welcome to BP! I'm in New York and invest in the Mid-west. Best decision I've made in my REI career! Best of luck to you. Always remember to persist and you will WIN!!

    0Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    Thanks Shawn.  Glad it's working for you.  I'm excited for the opportunities!

    0Reply
  • Bradley De comarmond
    West Hollywood, CA · Member since 2016 · 235 posts · 72 votes
    9y

    Welcome @Rick Martin 

    I feel the same way. The best part is that the more involved you get with the Bigger Pockets community, the more you will get out of it! 

    Considering 1 bit of advice or connection could lead to thousands of dollars earned (or saved), it's well worth the pro membership in my opinion.

    Like you, I live in LA (west Hollywood) but will only focus out of state for a few reasons...the cash flow potential, lower cost to purchase property, and the no state income tax (in Florida) at least.

    Investing out of state can be intimidating, but well worth it and a lot easier the more you do it, especially when you have people you can trust in those areas.

    Best of luck and if you have any questions, feel free to connect and ask away.

    -Brad

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    you got it @Rick Martin.  Also don't forget to "@" someone when directing a response to them otherwise they may miss your reply.  Cheers and best of luck to you on your journey!!!  To answer your question I'd go boots on the ground.  That's what I did.  It took me some time however I'm self sufficient and don't need to rely on someone else's opinion on a great deal.  I know when a good deal is presented.  I'm so involved in my market that I sell properties to the locals.....Go boots, whoot whoot!!!!!

    1Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    Thanks for the tip @Shawn Ackerman.  That's good intel, and so is the "boots" advice. Going boots!

    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Rick Martin Self sufficient my friend....Who know's you may even sell me a deal down the line.  Congrats! I think that's the best way to go.

    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    9y
    Originally posted by @Rick Martin:

    I appreciate those honest words Jeffery.  My gut is to build my own team through personal and trusted referrals.  I know that this could come as a great challenge, being so far away.  Any wisdom that you can share with the three markets would be well appreciated.  I've heard positive things about Columbus, but has that ship sailed?  I will, as you say, pick one market and focus on that, but in the meantime, it is overwhelming narrowing the list.

     if you want turnkey in columbus there are still deals but many more in toledo and cleveland. columbus just has better macroeconomics in my opinion. 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    Thanks for insight @Robert Ellis.  Columbus sounded like a really nice opportunity for a while.

    0Reply
  • Anahit Gasparyan
    Real Estate Agent · Los Angeles, CA · Member since 2017 · 2 posts · 0 votes
    9y

    Hello, 

    If you are looking for great upside, check out some areas around downtown. Echo Park and Silverlake changed dramatically within the past 10 years. Same exact thing is happening in Boyle Heights as we speak! 

    0Reply
  • Ken Scarbrough
    Indianapolis, IN · Member since 2014 · 46 posts · 12 votes
    9y

    Hello @Rick Martin!

    Local Indianapolis investor here, PM me if you are looking for a boots on the ground partner with extensive property management experience (with my own duplexes). Please PM me if you are interested in a partnership, a property manager, or if you have any questions whatsoever. Welcome!

    Kenneth Scarbrough, Member, Heartland Home Rentals llc/Scarbrough Property Management llc 

    0Reply
  • Ivan BarrattBusiness Member
    Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
    9y

    @Rick Martin happy to chat sometime. what's your multifamily acquisition criteria (price point, units, return expectations, your financing method, etc)?  Indy is a tale of two cities... it's the best of times and worst of times and that depends 100% on you, your education and YOUR TEAM! :)

    Ivan

    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    Hey @Rick Martin Looks like you have alot more options than you bargained for.  Be well my friend and keep your eye on the prize.

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Rick Martin:

    Thanks for insight @Robert Ellis.  Columbus sounded like a really nice opportunity for a while.

    I hope you are not overwhelmed with questions/answers. If you have any for me, feel free to send me a message.

    0Reply
  • Rick MartinPro Member
    OP
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    9y

    interesting @Anahit Gasparyan.  I want to do something local, if the numbers can work.

    @Ken Scarbrough I'm looking to speak with knowledgeable, local people, so we will talk.

    @Ivan Barratt I put the cart before the horse, as I am still narrowing down cities, but was tired of being a passive member on the forum, so jumped in. , price point depends on if I can get a good value in an emerging area, not looking for war zones, but would like to be educated on the working class areas.  For a range 60k-150k, returns, minimum 10-12%. Financing may be another post... to exhaust all bank loans ( I'm qualified with an LA lender), or start developing a relationship with a portfolio lender right away.

    @Shawn Ackerman I got the @ symbol down.

    @Tom Ott Overwhelmed?  Yes definitely overwhelmed, but I'll pull in the reigns.  It is obviously an awesome way to network.

    2Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Rick Martin I see your still @ it!!!

    0Reply
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