Shawn,
Thank you for asking me awesome questions. Although, I don't have all the answers yet, I am currently finding them out. This is all being currently organized in my real estate investment business plan which is a living document I am developing as the writing of this to hash out people, process and technology my business will deploy. To address some of your queries, I have some thoughts which I am crystalizing which include the following:
As far as finding off market properties, what is your strategy?
Apart from building my distinct brand, I am currently, looking at several systems i.e. This is more the marketing side of things i.e. elements like popstream/deal machine, direct mailers. Additionally, I plan on setting up a team which will including RE agents who either have their own RE investments that matches what I am doing and/or have strong working relationships with other RE investors in the local area. I am certain there are others elements that are missing which I am researching but this is just a start.
Are you aligned with wholesalers or do it yourself?
Based on the above, I am going for a hybrid approach. I will have my own systems for deal generation while also understanding/networking with the wholesalers in my local area. who am I to refuse a good deal. However, it must match my strict criteria.
Do you know the pitfalls and what to look for in a wholesale deal, do you have the cash to take one down?
Apart from the standard not understanding the contract terms, trusting their analysis and/or no inspection clause I am sure there may be other techniques that I may not know. However, to mitigate that in my exit strategy/risk mitigation section I am members with different real estate investor mentor/coaching groups where I can shop my own deals and/or have them validate the efficacy of these type of deal as well. This is just one of a few risk mitigation strategies I am employing. As for what to look for, that will entirely depend on my investing strategy criteria which I am still working towards based on the target markets. Although, I have do have investment cash set aside, my preference will be to utilize OPM. But, I do have enough to satisfy a hard money lender or a conventional lender.
As for my target market, I stated Orlando/Tampa to start. I am not sure how STRs i.e. Airbnb may do in in Clermont? Some initial research seems to check some of the right boxes, however price to rent ratio is still a concern unless one is considering arbitrage and/or other creative ways to run that sort of RE business. It still seems real iffy at best.
Besides, you have been in this market and know seem to know it well. I just happen to be a trust but verify kind of person so I have been busy researching the local area and doing my due diligence.
Hope that gives you an idea where I am currently in my adventures!
I also want to give a special thanks to you and all the folks who have read and responded my posts. I sincerely appreciate the kindness and empathy of everyone on this board. I am trying my best to add as much value with my questions and answers to others who may find themselves in my situation as a way go give back.
thanks!
Khurram
