All Forum Posts by: Collin Placke

That does seem pretty high... Are you paying for a better interest rate in that quote? I'm not familiar with VA but $150k houses in Texas are about $3500.

I consider investing in a REIT more akin to investing in the stock market, and there are better funds/ETFs than REITs that deliver higher average returns. My advice would be to stop looking at "not having a ton of money saved up" as a barrier to entry. There is plenty of advice/strategies here on BP that can get you started in real estate investing with low or no money down. Your problem isn't that you don't have enough money saved to get started, you just don't have enough tools in your tool belt to have the confidence to get started with little or no money.

I say take the money you would have thrown into a REIT to earn 4% per year and join a reputable paid mentorship program... someone who can give you the tools, confidence, and motivation to get started and be a true real estate investor. I'm not a mentor or coach, but you can DM me for referrals.

My advice would be no, not worth the time and expense of keeping your license valid if you plan on being a real estate investor. Your time is better spent finding better off-market deals and building your portfolio. 

Hey Sawyer, you best bet is smaller local banks or hard money loans. Plenty of resources on BP for hard money. It's more expensive than a bank loan so make sure you underwrite the extra expenses in your economics and you'll be fine. You may find banks unwilling to fund flips/development with all this Corona uncertainty. 

@Bruce P. Once you get to the 100+ unit apartment complex space everything becomes a team sport. I started networking and surrounded myself with other experienced multifamily investors and started partnering with them. The key is to partner with people who have similar values and goals, but different skill sets than your own. Now I only add value to deals in areas I truly enjoy doing the work, and since I enjoy doing my small part it doesn't feel like a distraction from my job!

@Bill Goodland it's all in the approach. Call them and tell them your exact criteria and be specific and confident. Maybe don't say "I'm new to investing" instead say "Hey I'm new to investing in this particular market and I'm ready to build a presence here" That statement conveys a lot and it's not exactly a lie even if you have no other properties elsewhere.  

You need to decide what is most important to you and your partner... Do you want to truly enjoy living in your "home base" or are you okay setting up your home base wherever the numbers make the most sense?

I am an "out of state investor" meaning I don't invest where I live (Denver) so I strictly invest in markets where the numbers make sense. By "numbers" I mean population, population growth, income growth, job growth, job diversity, lower crime, lower vacancy., etc. The list could and should go on. 

Bottom line, if you only look at numbers, you could narrow your search pretty quickly to some of the top rental markets in the US. DFW, Austin, San Antonio, Kansas City, Hunstville AL, Jacksonville FL, the Carolinas, Nashville, Memphis, Phoenix, Reno. Just to name a few.

@Gina Kim Welcome to BP. Love the enthusiasm and comfort with investing out of state. I live in Denver which is fairly expensive and definitely not a cash-flowing rental city. My first investment property was an out of state BRRRR in Fort Worth, TX. Luckily I had a great mentor which gave me the know-how and confidence to take down a deal out of state. The deal itself was a home run, so just know if you're confident and have build a solid team you'll be successful.

I learned a lot from that first deal. Mainly that it was a pretty big distraction from my W2 job and I quickly realized single family BRRRR wouldn't scale quick enough to meet my goals.

I switched to passive investments in large apartment complexes managed by experienced professionals, and after a few passive investments I started becoming more active and joining General Partnerships taking down deals with those experienced teams. 

Depending on your family's goals, you should consider going straight into multifamily. Happy to discuss the benefits over single family that helped me make the transition if you reach out. 

As soon as or before you start looking for rental properties. I invest out of state so my contractors are my eyes and ears looking at potential rentals. Find 3-4 you like, interview them, pick 2 you really like, talk to other investors who have used them. When you find a house you like, have them tour it with you then decide who's bid you like better. 

They don't cashflow, they are betting on appreciation and debt pay down for returns. It's more of a capital preservation method for people with very deep pockets. If you want cashflow, look elsewhere!