All Forum Posts by: Colin G Murphy

Hi @Rita L. yes, the "build to rent" model has been gathering a lot of steam during the past two years. Some big players are building entire communities for themselves, while smaller players are doing build to rent on individual single & multi family units, both to keep and to sell direct to investors (taking pre construction deposits when they can). 

Getting into new build is not something I would recommend at this stage in our market cycle. It is a notoriously difficult business model to get up and running at the best of times. Wholesaling is far safer.

That´s a valid argument @Israel Sternbuch and certainly take your point about Ireland being a roller coaster place to invest during the last 20 years. There are plenty of gems in middle America as well though. And while a resourceful investor can make money in literally ANY market he/she wants to, the high transaction costs, low yields and strong tenant laws in places like Germany & Spain are serious downsides. Many of the individual people I know that own real estate in these areas made their money elsewhere and just consider real estate somewhere safe to diversify.

Hi @Brandon Goldsmith

I haven´t used this website for a while but https://www.globalpropertyguide.com/ used to be a fantastic resource for researching international property markets. They have in depth market info, buyers guides, rental/yield analysis, taxes & costs, landlord/tenant laws for literally 100+ countries. It´s very impressive. I remember meeting the guy that built it at a property show in London about 12 years ago.

As an Irishman who lives in Tampa Florida but has bought/sold/lived/invested in many different countries, I will say that I think the USA is by far the best place to be a property investor. No other country comes remotely close in terms of the infrastructure available here, whether that is REIAs, syndications, private lenders, 30 year fixed rates for 1-10 homes, low transaction costs, high LTV ratios, incredible tax advantages for landlords etc etc.

There are a lot of beautiful places to live and vacation in the world, but when it comes to investing, it´s very hard to beat a portfolio of American middle class homes.

Hi @Stephanie Girardi

Yes, I´ve bought a couple of properties from Property Force in West Pasco. They are based on the East coast but seem to pick up deals over here from time to time. I´m not sure what you mean by "paying for their services". As far as I can tell, they do contract assignments and double closes like most wholesalers. If I get an email asking $80k for a particular home and that number makes sense to me, then I´ll reserve it, do my DD and buy it.  

In terms of finding a good wholesaler to work/train with, I know a lot in the Tampa area. DM me and I´ll pass on some details.

Hi @Joyce Jackson

I think you should contact an eviction specialist to help you out with this one (PM me if you want details of the one I use in Tampa). Nothing is straightforward about getting problematic tenants out these days. 

Hi @Kris L.

Largo is a lovely area. I have bought a few there, but would stay away from floodzones and older frame homes. My comfort zone tends to be in ARVs of $130-180k and most of Largo is priced higher than that these days.

Hello @Josh Rodriguez

Central Florida is a diverse market, and there are a wide range of locations and property types that would make solid long-term investments.

I mostly invest in Tampa, specifically in West Pasco (Port Richey & New Port Richey). Whether I’m wholesaling, flipping, or holding, the properties always meet the following criteria:

1. - Price: at least 20% below median home prices 
2. - Location: low-density suburban areas that are at least 50% owner occupied
3. - Construction: concrete block
4. - Year: 1970 or newer
5. - Type: single-family homes or multi-family homes with 2–4 units

Homes that tick these boxes are what I call Goldilocks properties—they are neither too expensive nor too cheap. By adhering to these criteria, you can (a) avoid the excessive repair and tenant management issues associated with lower-income areas, and (b) avoid the lower returns and more sensitive house prices in the higher-income areas.

If you wish to own properties that will naturally have the highest rental and resale demand, then the place to position yourself is slightly below the median. Whether the economy goes up, down or sideways, there will always be demand for properties in this category.

Between 2015 and 2020, I invested in nothing but affordable single-family homes in lower-middle-class areas. It wasn’t the sexiest part of the market, but it was steady and profitable. It also represents a formula that is a very safe way for a newbie investor to purchase their first couple of rentals.

In many ways, getting past the first 1–2 rentals is the hardest part of all. After that, it gets much easier. All you need to do is maintain a healthy attitude to learning, taking action and finding ways to network with like-minded people.

Here are some suggested next steps, and important to follow them in this order:

1. Decide on a market to invest in
2. Decide on a team to work with
3. Decide on a property type and price point
4. Decide on a property manager
5. Make a commitment to purchase within a specific time frame
6. Analyse lots of houses 
7. Take action, again and again.
8. Maintain a healthy level of reserves
9. Have a system to monitor the income and expenditure every month
10. Be patient and resilient - this is a long journey.

Good luck!

Hi @David Ramirez

Supply is incredibly tight in the Tampa market right now and you´re absolutely correct that many experienced flippers are diversifying into new build while others are having trouble finding deals (but selling them afterwards is still easy).

I focus mostly on West Pasco (New Port Richey / Port Richey) and not only is inventory ridiculously low (less than 1 months supply in the sub $200k market!) but median sales prices were 10% higher in June 2020 than they were in January 2020. Perfect illustration of how real estate is a lagging indictor. 

Buy and hold people don´t need to fret too much about that kind of situation as they will come out on top regardless of peaks and troughs as long as they (a) own it long enough (b) have adequate reserves and (c) use good property managers. Flippers and wholesalers need to be more careful that they don´t overexpose themselves. Tightening your underwriting standards as @Ronan Donnelly alluded to is a smart play, but lowering ARVs and extending holding cost assumptions is not so easy when everyone around you is scrambling for deals. 

In short, act like you are driving a car in the fog - keep going, but more carefully than before. 

Hi @Charles Bischoff

Congrats on the move to Tampa - it is both a great place to live and to invest in real estate. 

In terms of immediate next steps, here are a few tips

- Save six months of living expenses and put them in a separate account
- Save your down payment for the FHA loan and reserves/expenses for your first rental in another separate account
- Get prequalified for a loan
- Don´t do anything hasty between getting preapproved and buying (like getting a new car or changing jobs)
- Develop/steal/borrow a template for analysing deals
- Analyse a lot of deals, get used to crunching numbers every day
- Don´t let any earnest money go hard without getting a full inspection from a licensed professional
- Utilise but don´t overestimate your DIY skills. There are plenty of good contractors looking for work. 
- Avoid "heavy lifting" on your first deal or two. Purchase block, post 1960 construction, non flood zone.
- Be mentally prepared to own and live in that duplex longer than your initial estimate

Remember that real estate is a journey, and you have to go through its different phases. The only way to progress is by taking action, gaining experience, learning from your mistakes and moving forward continuously. In many ways, getting past the first 1 or 2 deals is the hardest part. Once you have done that, you´ve generally have earned the skills and connections to keep moving through the different levels with much less stress.

Good luck!

Hey @Andy Keffer! 

In terms of immediate next steps, here are a few tips

- Get prequalified for a loan
- Develop/steal/borrow a template for analysing deals
- Like @Edgar Rodriguez said, analyse a lot of deals, get used to crunching numbers every day
- Don´t let any earnest money go hard without getting a full inspection from a licensed professional 
- Avoid "heavy lifting" on your first deal or two. Purchase block, post 1960 construction, non flood zone. 
- Be mentally prepared to own and live in that house longer than your initial estimate

Remember that real estate is a journey, and you have to go through its different phases. The only way to progress is by taking action, gaining experience, learning from your mistakes and moving forward continuously. In many ways, getting past the first 1 or 2 deals is the hardest part. Once you have done that, you´ve generally have earned the skills and connections to keep moving through the different levels with much less stress.