All Forum Posts by: Andy Odano

Thanks @James Wise!

There have been a variety of strategies offered up and discussed in great detail on BP threads and forums, mine included, with regards to the strategy one would employ investing in A/B class properties versus C/D class properties, or TK vs DIY, 1% vs COC returns vs IRR vs ROI, etc etc, I think the most important thing I've learned is that each investor should define their goals, financial situation, risk aversion, willingness to be hands on, etc and identify what the best strategy is for them to meet those goals, and DO YOUR DUE DILIGENCE, and NEVER WAIVER on your metrics of evaluation. If a deal doesn't meet your standards to accomplish your goals, don't compromise.

I've found that most often, those who do their due diligence, regardless of the strategy they've employed, have been successful. I'm still working to understand how I can best leverage my unique situation to find success in REI, but I know that once I do have that clarity, I'm going to be hyper-focused in putting that plan into action!

Thanks @Elizabeth Wilson. Once I determine which market(s) i'm going to focus on, at least to start, I'll open a new thread in that city's forum to get some recs. 

Thanks @Caleb Heimsoth! 

I'm definitely leaning towards Memphis, and other midwest states for Cash Flow opportunities, seems like the numbers work out better there. 

Any references for reputable TK providers and/or agents/pms in Memphis? Also, what areas present good cash flow opportunities in Memphis?

Thanks @Elizabeth Wilson!

Yes, the BP community has given me a warm welcome with a plethora of valuable responses that I'm hoping I don't let go to waste :)

I'm certainly not opposed to investing in a CA market, specifically the greater LA area given I've spent my whole life here, however, as you stated, the prices are a bit crazy right now, and I'm looking for greater COC returns which aren't readily attainable in most CA markets. I also think the CA market, LA in particular, is overpriced and is in line for a correction. I would be happy to be proven wrong on this, should there be good cash flow properties where the numbers check out, but in my research, the margins just aren't there like they are in certain areas of the midwest/south.

I agree that there is inherent risk whether you do DIY or TK, it all boils down to the numbers and doing your due diligence. I guess the better question is, regardless of DIY or TK, and without having local knowledge or someone to assist you with local knowledge, how does one go about vetting the services of any given provider?

Jason provided some awesome recommendations on securing a reputable GC, like tying the funding to completion of work, requiring the appraiser submit updates before funds are released and working with GCs who use a net 30 payment cycle, and also going and meeting these various professionals face to face in the market your prospecting. 

What kind of similar steps should/could we take to vet a property manager co?

Thanks @Jason Cory!

This is great stuff. I'm learning that there is simply no substitute for going and seeing the market for yourself.

I do have a question as it relates to the Birmingham sub-markets. For someone looking to apply the BRRRR method, are investors of C & D class properties in the various sub-markets of Birmingham able to get 70-80% LTV on those properties to reinvest in other properties?

Thanks @John Thedford, appreciate your insights!

I will certainly heed that advice on working with an agent to find a deal and lining up the financing prior to making an offer. 

Thanks @Andrew Syrios! 

I've been focusing my energy researching Houston, Jacksonville, Birmingham and Memphis in particular, but I've had my own reservations about some of the Turnkey providers that I've found in each of these areas. As an inexperienced investor, my inclination is to go with one of these Turnkey providers to ensure I'm not getting into a terrible deal and to streamline the process of getting it financed, renovated and rented out. But I'm also passionate, detail oriented and diligent about everything I do, so I'm gaining more confidence (with the help of BP) that I can outsource these things on my own. 

Since I'm looking out of state for these investment properties, in places where I typically don't have familiarity or 'boots on the ground', I'm struggling to find the right process to vet these various providers (General Contractors, Lenders, Property Mangers, etc). How does one go about identifying reliable providers remotely, out of state?

Should I use online resources? Should I reach out to a few local broker's and get their recommendations on GCs, lenders or property managers? Should I reach out to property managers and get recommendations on GCs, lenders and agent/brokers? 

Your insights are greatly appreciated!

Thanks @Bill Regan! Appreciate your insights. 

I do have a full time job currently and I'm also attempting to transition my career into the retail real estate industry, so time isn't necessarily abundant for me. But I'm also not averse to being hands on initially, at least before I grow my portfolio. 

In your experience, are you finding that any particular markets are ripe for investment?

Hello,

I'm new to BiggerPockets but have found it very educating thus far as I get started in the REI world. I'm a Los Angeles native looking to invest in out of state income properties, and hopefully, build a portfolio of properties through the BRRRR method. I am still learning the art of evaluating the deal using things like COC return estimates, IRR estimates, 70& rule, 1% rule, etc.

I've been interested in REI for several years but haven't had the opportunity and knowledge to get in strategically. I recently attained my real estate license in CA, and have been researching various markets and turnkey providers to find the best deal to get started. My questions for the BP community are as follows:

1. Currently, what are the best, up and coming markets to get into?

- Recently, I've focused my energy on these areas: Houston, Dallas, Jacksonville, Birmingham, Charlotte, Indianapolis, Memphis

2. Is it better to go with a turnkey provider who takes care of all the initial costs and management, or is it better to find a property on your own, find a contractor on your own, and find a property management co on your own?

Thanks in advance for sharing your knowledge, time, and recommendations. 

Sincerely,

Andy O.