New investor from Long Island, NY trying to build solid Team

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New investor from Long Island, NY trying to build solid Team

Gunvant Kathrotiya
Long Island, NY · Member since 2018 · 4 posts · 3 votes

Hello Everyone,

Like every other new Investor I accidentally found BP and then read lots of forums, listened podcast and read Brandon Turner's book (super useful).

I'm an Engineer living in Long Island, NY where Price/Rent ratio is way off so I've been doing research to determine the best place for me to start buying rentals to hold long term for cash flow. From my research I have Pittsburgh, Cincinnati, Kansas City, Dallas and Jacksonville as potential market candidate where I can get good ROI.

Plan is to buy SFH or small MFH properties in C+ or better neighborhood that need minor work or are owned by motivated sellers that I can purchase for below market value with conventional financing, repair them to be rent ready, and hire a property manager to rent them out.

At this moment I'm looking for right members to build the solid TEAM and achieve my goal. I'm open to ideas and suggestions any veterans here may have.

Looking forward to network with you all.

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Gary Swank
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 821 posts · 255 votes
8y

@Gunvant Kathrotiya Realtors are absolutely a viable option and while some invest and are successful without the need of a Realtor, having one can prove valuable as these people are in properties every single day of their lives. But if you choose this route, you don't just want any Realtor, but one that has many years of experience working with Investors. Someone who has gone through a variety of transactions, has a team of real estate professionals, and can offer their knowledge in the REI side of the industry to assist you in purchasing decisions.

As far as Pittsburgh goes, it is a great city for cashflow that often offers a better buy-in than many other markets. Neighborhoods vary greatly but having someone who knows the area well with connections to property managers and other real estate professionals will certainly help. Ever want to talk more about the Pittsburgh market, feel free to reach out to me. I wish you the best as you build your team....Thanks, Gary

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  • Alex Deacon
    Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    @Gunvant Kathrotiya I like the business model and finding the right team is essential. 

    1Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    @Gunvant Kathrotiya you need to do your research on the Cleveland markets. It has been ranked the # 1 rental market for the 2nd year in a row by Forbes  , really the last 10 years but nobody was paying attention. , I am here to help .

    BTW, if you are not a cash buyer you are going to have a difficult time closing on good deals. Most everyone is cash  and many props you  not able to get a mortgage on and or the sellers prefer fast closings cash as is , All the best 

    1Reply
  • Gunvant Kathrotiya
    OP
    Long Island, NY · Member since 2018 · 4 posts · 3 votes
    8y

    @Bob Prisco Thanks, Yeah I have heard good things about Cleveland rental markets. I'm open to any good cashflow market as long as I have good team in place.

    I didn't wanted to do cash transaction because I wanted safety that I get going with bank for my first investment. Also someone mentioned in other forums that those props tends to be overpriced for their value unless you're buying from trusted source. I could be wrong.

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    Feel free to view my website. " overpriced for their value unless you're buying from trusted source. I could be wrong." This statement  really does not make any sense to me,  Also when provided an asking price  you can determine the values yourself with all the tools aval. or simply call a realtor .  Sure if you are being asked to pay 90k for a 3 br in GH, yes overpriced and your net cap will be under 8% , very bad investment. Remember your return is made when you purchase :)  Every property I sell / flip is on avg 58k, with values of 65- 80k, with not less then 11% net cap. Again if you are investing with a mortgage it will difficult to find consultants / investors that will want to help, just being honest. I do on avg 6-  8 deals per month all cash buyers, I wish you all the best .  Feel free to contact me anytime for any guidance regarding Cleveland. 

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    @Alex Deacon 100% correct, your team is essential.

    0Reply
  • Christian Salazar
    Investor · Overland Park, KS · Member since 2017 · 40 posts · 21 votes
    8y

    Gunvant Kathrotiya... first thing I would do is get in touch with a solid realtor on the ground that has deals.  The good ones that aren't always on MLS... i've connected a ton of investors on the coasts with my realtor... she's a hustler and always delivers.. let me know if you're interested!  Team is essential, but you can do it with a realtor and a manager... that's it.

    0Reply
  • Fradel Schaechter
    lakewood, NJ · Member since 2017 · 282 posts · 156 votes
    8y

    @Gunvant Kathrotiya building your team is essential, and so is utilizing the team to get great advice!

    Best of luck in your investing!

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    @Gunvant Kathrotiya realtors is not the way to go, they simply have what other realtors have, but you may get lucky . Get to the local real estate meetings, connect with guys doing it, connect with banks, find attorneys that will help with pre foreclosures, learn about tax liens and who has them in the area. Networking is key! . I have not purchased a property on MLS in 8 years. But again, if you are not cash , it will be very difficult to find a great deal as you will be undercut by cash buyers . Sellers like me will take less if you close in a couple days vs 1 , 2 months. When I buy I also close in the week , thus getting a better deal All the best .

    0Reply
  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 821 posts · 255 votes
    8y

    @Gunvant Kathrotiya Realtors are absolutely a viable option and while some invest and are successful without the need of a Realtor, having one can prove valuable as these people are in properties every single day of their lives. But if you choose this route, you don't just want any Realtor, but one that has many years of experience working with Investors. Someone who has gone through a variety of transactions, has a team of real estate professionals, and can offer their knowledge in the REI side of the industry to assist you in purchasing decisions.

    As far as Pittsburgh goes, it is a great city for cashflow that often offers a better buy-in than many other markets. Neighborhoods vary greatly but having someone who knows the area well with connections to property managers and other real estate professionals will certainly help. Ever want to talk more about the Pittsburgh market, feel free to reach out to me. I wish you the best as you build your team....Thanks, Gary

    2Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    8y
    Originally posted by @Gunvant Kathrotiya:

    Hello Everyone,

    Like every other new Investor I accidentally found BP and then read lots of forums, listened podcast and read Brandon Turner's book (super useful).

    I'm an Engineer living in Long Island, NY where Price/Rent ratio is way off so I've been doing research to determine the best place for me to start buying rentals to hold long term for cash flow. From my research I have Pittsburgh, Cincinnati, Kansas City, Dallas and Jacksonville as potential market candidate where I can get good ROI.

    Plan is to buy SFH or small MFH properties in C+ or better neighborhood that need minor work or are owned by motivated sellers that I can purchase for below market value with conventional financing, repair them to be rent ready, and hire a property manager to rent them out.

    At this moment I'm looking for right members to build the solid TEAM and achieve my goal. I'm open to ideas and suggestions any veterans here may have.

    Looking forward to network with you all.

    Hello Gunvant and welcome to Biggerpockets! The last part of your post may be the most important to get up and running with your REI plans. Working with investors from out of state is not just a specialty with many additional fiduciary duties but a skill set, level of customer service and market knowledge that needs to be finely tuned, constantly augmented and refined to best serve the client. Building a team that includes a realtor that specializes in working with out of state investors is really important. They will be your trusted advisors and together, as a team, you will make decisions. As commercial agents (especially when working with new investors) one of the most important services we proved is research. We go over all the data with our investors, run numbers, analyze and advise. We then make an informed decision, as a team, as to how to proceed.

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • Gunvant Kathrotiya
    OP
    Long Island, NY · Member since 2018 · 4 posts · 3 votes
    8y

    @Robert Ellis @Bob Prisco @Christian Salazar @Gary Swank

    Almost every market in country making new highs and every property listed being ended up in bidding war, I believe only those realtor that specialize in working with Investor can be helpful finding good deals. If you buy at retail price and market go south in early years, you'll be underwater for many years and thats not good particularly for new investors.

    0Reply
  • Gunvant Kathrotiya
    OP
    Long Island, NY · Member since 2018 · 4 posts · 3 votes
    8y

    @Robert Ellis @Bob Prisco @Christian Salazar @Gary Swank @Alex Deacon @Fradel Schaechter

    Thank you all, will reach out to you if I have any specific questions regarding your market or expertise.

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    @Gunvant Kathrotiya You need to get boots on the ground. I get 15 - 20 deals a month sent to me, none are from realtors or MLS. . But again, you need to be cash, find a hard money source that is willing to work with you, ( until you have enough on your own ) have your money ready. There are endless investors that want to buy with a mortgage., You want to deal from strength when making an offer. Hit them with a low offer cash " as is " close 3 days, vs close to ask and 1 - 2 month close . All the best

    2Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    8y

    @Gunvant Kathrotiya

    As someone who was born and raised here in NY I can tell you that while your goals of obtaining good deals in LI are well intended it is tough.  You have an over abundance of competition and your margins aren't that lucrative when compared to the amount of time spent per project.  Now obviously I am generalizing here but nonetheless "food for thought".

    This is why out of state investing worked well for me and made the most sense in terms of rate of return on my money. I recommend attending local REI meetings and speaking with those that have done the type of investing you want to do.

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    8y

    @Steve Kontos correct LI has much to much competition. Contractors doing the work themselves undercut your offer, and every Tom DIck and Harry is a flipper :) . I did many deals here stopped about 10 years ago. I am not going to invest 300k to make 40k in 6 months, just not worth it. You need to find an out of state market , get there, learn, and a  build a team, and go for it!! I started in Cleveland about 8 years or so ago . I remember I was told  your crazy Bob, , well, now those same people are upset they did not buy. All the best to you and continued success .

    0Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    8y

    @Bob Prisco

    I appreciate the post Bob and I remember being told the exact same thing.  It was scary at first but 10 years later, I haven't stopped.  Kudos to you because I truly believe at the end of the day if you can't adapt in this (or any) business based on the current landscape, you will not thrive.  

    1Reply
  • Sebastian Tellez
    Liberty, MO · Member since 2017 · 6 posts · 1 vote
    8y

    @Gunvant Kathrotiya.  I am also getting started in real estate.  I am in Kansas City and it is a great place to buy properties low and rent them.  I would like to hear more about what roles you are looking to fill so that I can know how to help you better.  PM me if you want to hear more.  Welcome to BP.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Gunvant Kathrotiya:

    @Bob Prisco Thanks, Yeah I have heard good things about Cleveland rental markets. I'm open to any good cashflow market as long as I have good team in place.

    I didn't wanted to do cash transaction because I wanted safety that I get going with bank for my first investment. Also someone mentioned in other forums that those props tends to be overpriced for their value unless you're buying from trusted source. I could be wrong.

    If you are looking into the Cleveland market I recommend checking out The Ultimate Guide to Grading Cleveland Neighborhoods. Prices are going to vary widely neighborhood to neighborhood. This guide will explain why.

    As for not buying cash that's a good move. The ability to use bank financing is what sets real estate investing apart from other investing vehicles. Try getting a 30 year loan to buy Bitcoin or invest in the Stock Market, ain't gonna happen lol. On top of the ability to quadruple your buying power with the best bet the bank will require you to get an appraisal so you know you didn't overpay for a property as they aren't gonna let you burn their money.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Bob Prisco:

    @Gunvant Kathrotiya realtors is not the way to go, they simply have what other realtors have, but you may get lucky . Get to the local real estate meetings, connect with guys doing it, connect with banks, find attorneys that will help with pre foreclosures, learn about tax liens and who has them in the area. Networking is key! . I have not purchased a property on MLS in 8 years. But again, if you are not cash , it will be very difficult to find a great deal as you will be undercut by cash buyers . Sellers like me will take less if you close in a couple days vs 1 , 2 months. When I buy I also close in the week , thus getting a better deal All the best .

     lol solid advice Bob. Should he avoid the Doctor when he is sick too?

    0Reply
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