All Forum Posts by: Account Closed

I have been trying to break into this market sense last year. At first timidly, then trying to wait for the Moratorium to end, and now, more agressivly.   

I am a long distance Investor, so my first step was to set up my Team.  I have been placing offers above ask, and covering closing costs, and earnst money deposit.  Only to have the seller come back with a requested for best and final with due dilligence money of 2k. I hate the idea of due dilligence money, and won't do it, so I loose out.  Usally to the Investor who offers 10-30k, over and put in due dilligence money. They buy the home at a price it won't cash flow.   Pushing prices even higher.  Leaving me to go back to the drawingboard, with ever slimmer margins.

It is worth providing some context to these purchases.  In addition to low inventory, something else is at play here in this market, and across the country.

Many people, my self include, believe we may be at the start of an increasing inflationary period in the US.  Several factors, such as 26% of the US money supply was creates in the past year (WallStJournal 21Feb2021 https://www.wsj.com/articles/t... ) and supply shortages of everything.... I wont bore you with more.  The point is, if you believe that 'hyper inflation' is around the corner then your best bet is to short the US Dollar.  One of the easiest ways to do this is to borrow as much as you can and invest in Real assests.  Actually there is a great oversimplified Video I'll post below.  ( if the link isnt working then just YouTube  Economics Explained Hyperinflation)

Anyway, those type of thoughts create fear, and panic buying. People would rather loose 20-30k to gain a house then 20-30k to inflation.  So what's the fix? Individually we can do nothing but continue to try to out bin eachother on each offer. There must be something we can do collectivly to help work together?  However, I dont know what that looks like for small Investors such as my self.

I know most group investment stratigies involve laywers, and be an accredited investor. I'm not there yet, and at this rate it seems to be slipping from my grasp.

Go to youtube  Search Bigger Pockets Pod Cast 300, and take notes.   Put it on fast speed, then pause anytime your confused.  Then rewind, and annotate any words or terms you don't understand and google them.    

Also  search Bigger Pockets newbie, and bigger pockets rookie on youtube.   You will get an amazing education for free.   If you need a break from BP, then youtube 'Rich Dad Poor Dad audiobook' it's available on there, listen to that and it will give you an idea of assets vs liabilities.  That will help you get into a growth mindset.  

Further resources for general economics is on youtube,  I like 'economics explained'.  He breaks things down at very simple levels.    Good luck in your learning. 

I too was in this stage for quiet sometime.   Then I tried to wait out the eviction moratorium.  I selected my city, which has been experiencing a boom in real estate like everywhere else.  I reached out to realtors and property managers.  Being stationed overseas it was more difficult to get in contact with them, but with referrals from here, and interviews with the individuals I feel confident in my team.  Then it was a matter of which realtor could send me cash flow deals.   The first one I worked with put me on a standard mailer, and I received notifications every morning, and would crunch the numbers, however, when I wanted feedback on the neighborhood, or rents in the area he did not quiet communicate this aspect as clearly as my property manager that I had decided on.  I leaned heavily on this property manager, e-mailing every morning, sometimes multiple times a day, with my property location and expectations.  In many cases, she was able to tell me there was no way it would rent for that, or the property already had 10 offers and needs too much rehab to make it cash flow.   We finally found one where the numbers work and I put an offer in yesterday, After researching and learning and analyzing multiple properties for about a year!  I have a feeling I will be outbid on this property, but it is a numbers game.   

You must take the first step and place an offer.   Throw your hat in the ring.  I look forward to finally getting to the point of an inspection.  I'm guessing it is going to take multiple offers on a variety of homes.   Let us know how your journey goes!

Thank you so much for sharing this.   
I too am looking in that area, from afar. However, during my building my team phase, I continued to meet people that said, "If your not in any rush, you may want to wait until the moratorium is lifted."   So I have, and now it's extended and prices continue to rise. 

I am interested in the area because of the military base also.   I am a government employee civilian, and like the idea of knowing that if something didn't pan out I could always move into the house myself.  My two main issues now seem to be:

1. Not knowing the neighborhoods.   I am looking in a similar price range but zillow keeps pointing me to some bad spots.  I run the numbers, send it to the property manager/realtor that I have been speaking with, just to be told it's not an area they service, or that property is already under contract.

2. Not knowing when to get pre-qualified with a lender, and which lender?  I am having a hard time finding a lender that would do investment properties.  So do I just blindly start calling lenders in the area and roll the dice, or do you have any recommendations. 

While I am not really in a rush, I want to position myself to be ready to pull the trigger when I find the right deal.
So again, thank you for your post.  It was exactly what I needed to hear this morning, and any further advice would be appreciated.   

 Who do you use for property management out there?

I am in the same boat.   Step one. Identify your target market.

Step two build your Team. Thats where I am currently.  Lots of phone calls, lots of reading reviews and Websites and Emails.  Also utalize this site for people in your target market to give you referrals of good contact.

I am looking in Fayetteville NC

Hello everyone.

I am starting out on my journey and have identified my market I want to invest in.  Last weeks Action plan was to contact property Managers and start building my Team.

I am currently in Germany as a DOD civilian, so the time difference creates some challanges to say the least.  I only got 2 e-mails back from property Managers. So still working on that Team member.

This weeks goal is to get pre-qualified with a lender that has experience working with investment property. I was feeling quiet confident about this step, until the FHA announced those new investment loan guidelines. However, I am still moving forward.

Next week will be all about finding a realtor, and finalizing my descision on a property Manager.  

I will let you know how it goes, and hope this post will be a resource for others, all advice and opinons are welcome.

@Dan DiFilippo   I would like. 
I have recently become interested in the area, and part of my 'take action plan' for this week is to contact property managers, as well as a real estate agents in the area.   Any information you have on Fayetteville would be greatly appreciated. 

I have just started looking in this area as well, please let us know how it worked out for you Travis Betz.