All Forum Posts by: Patrick Allen

On behalf of everyone at AZREIA I'd like to apologize for not holding our typical meetup last month: technical & logistical challenges could not be overcome by our main Phoenix office in time to allow the presentation to go off as planned on time. No worries: we'll just make it up this month!

After bringing some focus (back in April) to your Big Why of real estate investing and strategically selected buying niche & strategy to accomplish your goals, we now turn our attention to the deal funnel itself: what target market do you select, and how do you keep up with your lead flow? We will talk through a few ideas to consider before deciding where to focus your deal-finding time & dollars, as well as a few pointers from a professional Realtor about the power of client follow up (more importantly, several ideas of how you can structure your own system).

Register here via AZRIEA's Event Calendar

Tucson AZREIA New Investor Subgroup's vision is to get new investors into action: saving capital, learning the market and doing deals. To support you along the way meetings will include presentations on topics relating to the new investor, highly collaborative breakout sessions where you solve problems as a team, games and activities to instruct or facilitate conversation about RE and money, and a platform to crowd-source input from your peers about deals you're doing or problems you encounter on your journey into REI.

Please do note these meetings are not instructional: we are not presenting a step-by-step model on how to invest in real estate and we will not actively direct you on the path we (whoever "we" are) deem the best path for you. This is a chance to learn, talk with and get to know other investors around town.

Sending you a PM

You have a few doors, so maybe now is the time to start looking for private money? As someone who does it every day as an agent I'd say that now is not a good time to be BRRRR-ing (spotty availability of tradesman & it's getting much tougher to get a refi, income- & credit-wise). I'd also say that if we are to learn anything from the bear market brought on by COVID-19 it's that investing in properties with little $ down and little to no reserves is the single thing an investor must completely avoid. You mentioned that you have appropriate reserves for your existing properties, so that's obviously not lost on you.

Unless you're good with moving into it via a live-in flip or multi-unit house hack, I'd think you might have the most success finding one or several money partners who are willing to fund your not insignificant amount of experience turning and stabilizing assets. As I've heard many times at the REIA over the years "no money down does not mean no money down, it means none of MY money down"

It also speaks to last week's BP episode (382) with Josiah Smelser: when asked "what would finding $200k in private money do for your business right now" he answered "it would change everything"

Could have sworn I posted this a few weeks ago... Oops! Hopefully you all have come to expect the open invitation to drop into the next meetup of the New Investor Subgroup of AZREIA in Tucson (on the first Monday of every month at 6pm) by now ;-)

After bringing some focus to your Big Why of real estate investing and strategically selected buying niche & strategy to accomplish your goals, we now turn our attention to the deal funnel itself: what target market do you select, and how do you keep up with your lead flow? We will talk through a few ideas to consider before deciding where to focus your deal-finding time & dollars, as well as a few pointers from a professional Realtor about the power of client follow up (more importantly, several ideas of how you can structure your own system).

Register here via AZRIEA's Event Calendar

Tucson AZREIA New Investor Subgroup's vision is to get new investors into action: saving capital, learning the market and doing deals. To support you along the way meetings will include presentations on topics relating to the new investor, highly collaborative breakout sessions where you solve problems as a team, games and activities to instruct or facilitate conversation about RE and money, and a platform to crowd-source input from your peers about deals you're doing or problems you encounter on your journey into REI.

Please do note these meetings are not instructional: we are not presenting a step-by-step model on how to invest in real estate and we will not actively direct you on the path we (whoever "we" are) deem the best path for you. This is a chance to learn, talk with and get to know other investors around town.

Calling all newbie investors in Tucson, AZ! For the 2nd month in a row the New Investor Subgroup of AZREIA will be going virtual: join just on the first Monday in May from the comfort of your own shelter-in-place location via a Zoom.com live stream.

This month's meetup will cover two topics: "Establishing your Target Market" & "The Power of Follow-up"

We'll spend the first 20-30 minutes building on last month's conversation by discussing things to consider when choosing your geographic farming area. Then, after what I hope will be some excellent idea I have last minute to facilitate networking & to share your story, we will dive into the Elephant In The Room for far too many newer investors: why follow-up is key in real estate. We'll look into how to set up your real estate CRM (client resource management software) as well as several foundational marketing principles to keep in mind when marking directly for motivated sellers. 

Pre-Register here: registration link through AZREIA

As we always do, we will be getting together on the first Monday of the month to talk real estate and learn from one another. The meeting officially runs from 6:00-7:30pm, and please be advised the meeting this month will be VIRTUAL, not at the normal Keller Williams Building where we host in-person meetups.

Tucson AZREIA New Investor Subgroup's vision is to get new investors into action: saving capital, learning the market and doing deals. To support you along the way meetings will include presentations on topics relating to the new investor, highly collaborative breakout sessions where you solve problems as a team, games and activities to instruct or facilitate conversation about RE and money, and a platform to crowd-source input from your peers about deals you're doing or problems you encounter on your journey into REI.

Please do note these meetings are not instructional: we are not presenting a step-by-step model on how to invest in real estate and we will not actively direct you on the path we (whoever "we" are) deem the best path for you. This is a chance to learn, talk with and get to know other investors around town.

At the risk of pointing out what might be obvious, the "best" real estate market for an investor is where the investor has key people on the ground to provide lead flow, state-specific procedural knowledge & tradespeople to take the deals down. Lots of markets look great on paper and generally speaking the REI market is a reasonably free one such that rewards are balanced pretty well with the risk profile of that market.

For sure you should consider proximity, job & migration patterns, "landlord friendliness" of the local laws et al when choosing a target market, but to rip off David Greene's point: just about any RE market works if the investor has a solid roster of business partners in their Core Four.

If you want cash flow, go to the Midwest

If you want appreciation potential, go where the population & rental growth numbers look strong

If you want a market where you can be there in a day if there's an emergency, limit your search to California, Nevada, Arizona & SW Utah

**Update** Due to the current state of affairs brought on by COVID-19, the next meetup of the New Investor's Subgroup has been changed to a virtual meeting.

Please follow the same link above (or this one here) to sign up through AZREIA's website. Upon registration, you will receive an invitation to a Zoom meeting at the scheduled time.

Questions or feedback: please DM me.

This is my first major market shift and I'm just guessing here, but:

- Residential markets take a noticeable hit in March/April offers and thus May/June closings. RE prices do not peak in June/July as they usually do

- As vacancies pile up *some* landlords result in panic selling June/July, but not enough to be statistically relevant (at least in my own market in AZ). Only investors with approved financing & who continue to analyze deals for the entire intermediary are able to grab these distressed sale opportunities. 

- Accelerated activity begins June/July, moving the peak selling months into late summer/early Fall. This altered demand window could be extended later into the Fall, depending on how schools handle re-opening for the '20/'21 school year.

- A recession hits (National GDP fails to grow in Q1 & Q2), but only in the statistical sense: Q3 & Q4 numbers suggest a continuation to the bull market until after the election. Many RE markets do not feel the recession apart from our current sense of uncertainty & lifestyle limitation.

- After "pressure testing" the idea during the quarantine period, businesses will feel more empowered to allow work-from-home plans to employees. This will stimulate growth & expansion of those businesses, but have trickle down effects to certain niches of commercial real estate (Retail & Office Spaces)

- Prices, DOM & Absorption rates continue to soar at a rate which substantially outpaces inflation, causing a broader recession in the RE markets within the next 24 months.

I've done a deal recently with Jesse Kibler as well, and second @Darin Hayes's endorsement of him. An outside-the-box thinker who is well connected in the Phoenix market.

There is a lot of investor activity down south in Tucson as well... if you need property manager or contractor recommendations, etc in the Old Pueblo feel free to DM me. I'm personally pretty excited about our market over the last 3-5 years and don't see things slowing down anytime soon (so long as they economy recovers as we all hope it does).

Calling all newbie investors in Tucson, AZ! If you're currently wanting to get in on the action of real estate investing right here in the Old Pueblo but simply didn't know where to start, consider yourself invited to the April Meetup of the Tucson chapter of the New Investors Subgroup of AZREIA: the Arizona Real Estate Investor's Association.

This month we are returning to basics: Why Start Now? & How to Select Your Niche/Strategy. This is the foundation piece: why now is now is the best time to get started building wealth through real estate, as well as establishing what we buy and why: I'll be sharing a few resources to help you decide these things for yourself.

Register here via AZRIEA's Event Calendar

Tucson AZREIA New Investor Subgroup's vision is to get new investors into action: saving capital, learning the market and doing deals. To support you along the way meetings will include presentations on topics relating to the new investor, collaborative breakout sessions to network with your peers, and a platform to crowd-source input from other newbie investors about deals you're doing or problems you encounter on your journey into REI.

Please do note these meetings are not instructional: we are not presenting a step-by-step model on how to invest in real estate and we will not actively direct you on the path we (in any general sense) deem the best path for you. This is a chance to learn, talk with and get to know other investors around town.