Long distance BRRRR newbie

15 Replies

Hello everyone!

I'm estatic to be part of this group. 

My name is Louis. I live in southern NY(Near NYC and NJ) where property taxes are insanely high and houses are way overpriced.

i would love to start investing using the BRRRR method and preferably long distance.

Any suggestions for a newbie with no properties currently?

Thank you for your time,

Louis


Hello Louis! Your first move would be to find a team in a market that you like. When looking at markets you want to make sure it is one that meets your goals. Our market here provides cash flow for low prices, so people recoup their initial investment faster and grow faster. Let me know if you want to learn more!

Hi @Louis Dilonardo III ! Welcome to BP.

I also live in a very expensive market where I had to focus towards long-distance investing (Kansas City) using the BRRRR method. It was intimidating especially starting out as a brand new investor, but it was the best decision made haha. Please feel free to connect!

Hi Louis, I'm an investor and agent from Wichita,KS.  We find some decent deals still here on occasion despite the low inventory predicament we are in.  I'm happy to help in anyway.  Feel free to reach out.

@Louis Dilonardo III Welcome !! The BRRR strategy is awesome way to invest. I also recommend house hacking to start if you can. I work with out of state investors often and honestly for most it just makes more sense financially to invest out of state with the rising prices and taxes in certain big cities. However I do see the fear of the unknown. Just reach out and make those connections, and when you fail just learn from it. Not meaning failing in a bad sense just meaning when you make a mistake. Because you will make mistakes but just grow through them and you will be fine. I agree with what Young and Stephen stated. Building a team on the ground or in that area that you want to invest is critical. Also you can still find deals even in this crazy market. I just helped a client find an off market duplex. Thats not to mention the others that are found on the Mls. Reach out with any questions anytime!

Thank you everyone! I truly appreciate your speedy replies and your input.

I've been listening to the podcasts for awhile and researching as much as I can.

I think the biggest hurdle for a newbie like me would be the fear of the unknown.

like you guys have said, having a team is critical. So I guess the first step would be to assemble a team.

Thank you for your time,

Louis


If you've already read David Greene's Book on Long distance investing, I would definitely suggest finding the market you want to invest first. Then do some research on the people that you want on your team. Once you've developed the team, then invest in real estate in that market. The most important thing is preparation to mitigate risks.

Originally posted by @Shivam Patel :

If you've already read David Greene's Book on Long distance investing, I would definitely suggest finding the market you want to invest first. Then do some research on the people that you want on your team. Once you've developed the team, then invest in real estate in that market. The most important thing is preparation to mitigate risks.

 I actually just received the book yesterday! Very excited to read it.

Originally posted by @Beth Golden :

I am also considering long distance investing but focusing on the Northeast -- I am in Westchester County where prices are sky high.  Good luck to both/all of us!

 I'm in Rockland county so I know exactly what you mean! It's pretty insane in this area.

Good luck!

@Louis Dilonardo III Yeah, worth it. The guy is a pure genius haha. I'd like to meet him one day.
I just recently got his SOLD, haven't read that one yet. To be honest, I went on a spree and bought like 10 bigger pockets books a few days ago haha. They were all on sale randomly. Anyways to stay on topic. I thought you should give property managers in the market you're looking at a call, to figure out the best areas to invest in(figure out rental comps), and then cross-check with realtors (figure out price comps). Create an excel sheet with rent/price ratio to see if it meets the 2% rule. Sort it by highest ratio, and there's your market, but Always DOUBLE CHECK. The the property manager may say it rents for 2,000, and the price point may be 100,000 per house, but that doesn't mean its true, and it doesn't always mean there's low vacancy rate, etc. I'm actually trying to automate that whole process right now. All i know is, do your due dillegence and properly research, and I know you got this bud! :D

Hey Louis! Sounds like a very similar story to myself. I'm also from Rockland County and just looking into real estate as an investment opportunity. I just finished Greene's book on investing out of state and definitely seems do-able. It just seems a little scary being a brand new investor out of state doing everything remotely. Luckily we have BP to bring us all closer together!


@Louis Dilonardo III @John Tobin

I just realized you guys aren't too far from me. I have a property in Boonton,NJ. I have a realtor @David Da Silva whose based in NY + NJ, and knows the market very well in our area. Currently he's helping me find a multifamily property. Trying to sort out my financing at the moment for my second property haha. If you guys have lenders I could talk to, please do reach out!

Hey Louis , I'm also located in the nyc area (Staten Island) market here and around is crazy .. I was also looking to invest long distance but having the same problem you are. Fearing the unknown also alone haha if your ever down to chat maybe net work feel free to private message me !