Zero to 4 doors in a year and a half - All out of state

Zero to 4 doors in a year and a half - All out of state

Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes

I wanted to share some of my recent progress.  I found BP about 2yrs ago.  Didnt have any experience in RE but I had a feeling it was something I could figure out.

I listen to the podcasts read the books like everyone recommended. About 6 months in I bought a property outside of Memphis through a turnkey company. My CoC was 7% when including vacancy and repair when I ran my numbers with the BP calculator, ehhh whatever right? (in actuality i got 16% the first year because there was no vacancy or repairs). I quickly realize there were way better returns to find out there. I spent count less hours banging my head thinking how any I gonna find these deals on my own? Btw I live in LA and all the properties are state and I have never seen them in person or visited those places ever. I continued to read listen and tell everyone who would listen that I was buying houses out of state. This is a great way to hold yourself accountable because the next time you see those people they will ask you , How is the RE investing going? and I always wanted to have good news to share. I decided to hire a coach to give me the confidence to go after these deals. I found a rockstar investor in @David Greene who was doing what I wanted to do.  You might recognize the name from BP podcast show 169.  He is also working on book for investing out of state so look out for that. 

I set my goal to have 2 rentals this year. I had a alarm go off every night to remind me that I was basically failing at it. I had nothing in October. Then I decided i cant just wait around for people to bring me deals and I hit Zillow and found all the properties that fit what i was looking for and called them one by one. Finally I found a property in Jacksonville Its a 4/1 currently getting a CoC just over 20%, 10 CAP. While in escrow an agent (@Matt Motil ) who I had been exploring deals with months ago brought me an amazing deal out side of Cleveland. A duplex that was rent ready I made an offer under asking, secretly hoping it was not accepted, but it was ...oops. Now I have to figure out how to buy it. Well I figured it out and this one ended up being a 30% CoC and a 12CAP.    

The biggest thing I have learned starting out is that you need to reprogram your thoughts and fears by pushing past your comfort zone.  I lost alot of sleep while in escrow for that first Turnkey deal just worrying, but by the 3rd I was sleeping like a baby.  

Things come together fast you just have to keep pushing forward until your goals are reached. You have to focus on them everyday even when they seem hopeless.  When I first came to BP I didnt think there was any way I would have 4 doors in a year and half. Thanks @Joshua D. @Brandon Turner and all the podcast guests.    

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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
9y

@Billy Maloney - This is a great share by you and I am fired up to hear that you are pushing out of your comfort zone and figuring out ways to continue building your portfolio.  Great find in hiring @David Greene as well.

There are so many investors who get started buying a turnkey property and then use that experience as the springboard to invest themselves.  They use the experience of getting started and declaring that "I am an investor" as that impetus to go and do more and build their portfolio.  As much as a I would love to be the one you build your portfolio with, there is no better story you could ever tell me than the one you told here.  To know that you are having success and moving forward is huge and personally I'm excited for you.

A lot of investors are going to find inspiration and strength from this post.  Best of luck as you keep building.  You are absolutely a "real" real estate investor and learning that if you can envision it and are willing to be diligent, you can achieve it.

Best to you ~  

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  • Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
    9y

    Posts like this make me happy! So glad I could be part of your success @Billy Maloney! Cheers to many more deals together in the future! 

  • Flipper/Rehabber · Patchogue, NY · Member since 2015 · 73 posts · 29 votes
    9y

    Hi @Billy Maloney.  Thank you so much for posting this.  I am in NY - an area not unlike yours where the home prices and taxes are forcing me to consider investing out of state for the first time and though I know it's the right move, I am terrified.  Have had success investing locally but have always been very hands on so the idea that I may not get to know every detail and physically be there has me in a bit of a state of paralysis.  Can you tell me what convinced you to go ahead with that first deal as all of us BP newbies see what looks like amazing deals listed here every day so I'm curious what made you actually go for one out of state and if you connected in person or just by phone and email on your first deal?

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    @Diane Manders What it came down to for me was getting the best returns with the money and experience I had.   You have to define what your specific goals are. My goal right now is cashflow at first because that will take some pressure off me financially so I work a little less at my day job and pursue RE locally.  I plan to mix in a flip or two along the way by partnering with my mentor.  

    The people I worked with were recommendation from people I trusted. That's how I found @Matt Motil . You start there. Then you find a property manager and show them the properties your looking at to get there opinion on the area and what it should rent for.  I really only communicated over the phone and through text.  Then I let the inspectors do their job. Sure I could have gone there to walked through it with them and it would have been helpful but probably wouldn't have changed anything I dont know what to look for myself. If you need that for peace of mind then go for it. 

    At the end of the day your gonna have to trust in the people your working with as hard as that is. You ll need to control the fear with experience and education. We just fear what we dont know or dont understand.  The most important thing is that your numbers are good and they leave room for error.  You may have noticed 95% of the things we worry about never happen.  If something does go wrong then you get the gift of learning something new.  

  • Flipper/Rehabber · Patchogue, NY · Member since 2015 · 73 posts · 29 votes
    9y

    Thanks again @Billy Maloney.  The advice is greatly appreciated!  

  • Investor · Cary, IL · Member since 2014 · 124 posts · 95 votes
    9y

    @Billy Maloney congratulations on your success!  How has your experience been with managing your property managers from afar?  I think this is one of the things that creates the greatest amount of apprehension for me when considering out of state deals.  Do you have to stay on top of them all of the time or are they generally pretty autonomous regarding basic decisions and processes?

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    @Michael R. Well two of my deal are pretty new. My first deal the PM has been great. Havent had many problems they give me a call once in while just to check in and see if i have any concerns. Otherwise havent had to do much managing they handled the one repair call they got fine.   I would say with the new ones that it is sometimes annoying when you re trying to get answers you need sooner than later and it take more than 24 hours, if I email and don't get a response in a reasonable time I will call or text them too. There is more managing in the beginning or if you have vacancy, after that it auto pilot unless a problem comes up.  So far though my PM have come through pretty well for me.  I'm thinking that if you have to do alot of managing of your PM then you probably dont have a great one right?

  • Sonny RuckstuhlPro Member
    Investor · Reno, NV · Member since 2013 · 39 posts · 41 votes
    9y

    Congratulations, @Billy Maloney! I am excited by this community and hearing folks just getting started. I am in escrow on a 4 plex for first REI property. Transitioning from a well-paying job to retirement in 3 years and looking to get as many units as possible in next 18 months so I can use that income for purchases after I stop salaried job.

    Also looking out of state. Escrow is in Southern Oregon (5 hour drive) and am looking in places where I have family as well in southern Louisiana/MS, Gainesville, and Columbia, SC.  Like the idea that either I or someone I trust is close to any purchases. 

  • Inglewood, CA · Member since 2016 · 22 posts · 8 votes
    9y
    Billy Maloney this is incredibly inspiring. Hopefully we can cross paths in LA!
  • Contractor · WV (wv) · Member since 2016 · 12 posts · 10 votes
    9y

    Great to hear your story and all of the success! I'm sure many more will come! @Billy Maloney is a great resource to consult as he answered all of my questions and helped ease the idea of not only a new investor but also buying out of state.

  • Investor · Cary, IL · Member since 2014 · 124 posts · 95 votes
    9y

    That's reassuring to hear.  It seems like just about every other interaction you have with your network in this business.  Scrap the bad ones, get the good ones through the learning curve, and have periodic auto-pilot.  

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    Thanks for saying that @Kaleb Musie really appreciate it. The more we all share the more we all succeed. 

  • El Cerrito, CA · Member since 2015 · 257 posts · 129 votes
    9y

    I can confirm that @David Greene is awesome. I've been emailing him off and on since I heard his podcast several months ago and he has taught me a lot.

    @Billy Maloney nice work and thank you for sharing! Keep it up

  • Wholesaler · Atlanta, GA · Member since 2016 · 18 posts · 5 votes
    9y

    What a great story @Billy Maloney! This has made my day. I'm even nervous about deals in my city, let alone deals unseen. This is a testament to having great mentorship, a great team, and crunching the numbers correctly. Congratulations!

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    @Kathleen Carnegie-Grant well that makes my day. It s funny although my mentor brings great value it was really having his validation that gave me the confidence to pull the trigger.  We put up these invisible wall created by fear that only exist in our minds. 

  • Wholesaler · Atlanta, GA · Member since 2016 · 18 posts · 5 votes
    9y

    @Billy Maloney Yes, we all have to deal with F.E.A.R (false evidence appearing real). :-)  The difference is trusting in yourself anyway, in spite of it, and stepping out.  The experience and wisdom of a mentor to validate what you already know, but doubt, is life affirming.

  • Investor · Atlanta, GA · Member since 2015 · 42 posts · 14 votes
    9y

    I think that should be the biggest takeaway from this post.  If you want deals, you can't just wait around for people to bring them to you. You have to be active and look for them.  People will help you, but you'll get to where you want a LOT faster if you put the work in yourself.

    Congrats!  Hope that things keeping going up for you.

  • Miami Lakes, FL · Member since 2015 · 133 posts · 83 votes
    9y

    Awesome story! I too bought a duplex in Cleveland just recently; while it was fully rented at closing, one tenant decided she no longer wanted to honor her lease, and the other decided that what he really wanted for Christmas was an eviction, so while there's some short-term pain at the moment I'm confident my PM will place good tenants in there shortly!

    Out of state investing can be intimidating, but with the resources available here on BP it's not that hard to pull the trigger!

  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y

    @Billy Maloney

    Thanks for sharing its great to hear your story and encouraging for us out of state and out of the US investors.

    I been investing out of Area in New Zealand for over 10 years and feel that with the right team in Memphis we can make it happen too. As you mentioned team is everything, especially when one is looking long term investing out of area.

    Keep up the good work and stay focus!

    Cheers.

  • New York City, NY · Member since 2016 · 470 posts · 348 votes
    9y

    @Diane Manders I hear ya! Just pick any city in the Midwest and lurk on that city's message boards. Chat with everyone who posts on there and ask them millions of questions. Then take a trip to visit that city and meet with people (other investors, agents, PMs, TKs). Eventually you'll start to know that city as well as you know Long Island and investing there won't feel like a big deal at all! Better to just pick 1 city & focus on it though - focusing on too many cities will just overwhelm you. Also don't rush to buy - spend a few months really learning that city and getting to know people there before making the leap - that should build your comfort level a lot. Best of luck!

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    Thanks @Ken Badziak  Luckily my Cleveland duplex was vacant and the PM I chose found tenants in just a week. Inheriting tenants can be risky.  My Jacksonville tenant was in the property when I bought it.  Already not feeling like i could have an eviction in my future.  Seller said "she has been a great tenant always pays"  yah right, we ll see about that.

  • Miami Lakes, FL · Member since 2015 · 133 posts · 83 votes
    9y

     They'll say anything if it helps them out of a bad situation.

    Luckily Ohio is a landlord-friendly state. One of the many reasons I like the area.

  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y

    @Billy Maloney - This is a great share by you and I am fired up to hear that you are pushing out of your comfort zone and figuring out ways to continue building your portfolio.  Great find in hiring @David Greene as well.

    There are so many investors who get started buying a turnkey property and then use that experience as the springboard to invest themselves.  They use the experience of getting started and declaring that "I am an investor" as that impetus to go and do more and build their portfolio.  As much as a I would love to be the one you build your portfolio with, there is no better story you could ever tell me than the one you told here.  To know that you are having success and moving forward is huge and personally I'm excited for you.

    A lot of investors are going to find inspiration and strength from this post.  Best of luck as you keep building.  You are absolutely a "real" real estate investor and learning that if you can envision it and are willing to be diligent, you can achieve it.

    Best to you ~  

  • Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    9y

    Thank you @Chris Clothier I really appreciate that.  I wouldn't have been able to get where I am now with out the help of your company.  I have so much respect for you and memphis invest.  I continue to recommend MI to investors that are a fit.  Thanks again.  

  • Jamaica, NY · Member since 2016 · 46 posts · 8 votes
    9y

    @Billy Maloney Congrats and thank you for sharing your story. I'm so nervous about investing out of state but your experience is encouraging. 

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