All Forum Posts by: Todd Anderson

@Sean Besselman,

You came to the right place to ask your questions.  There is definitely other investors in the BP community that have gone through this exact situation.

I work with many investors that need to identify where to put their 1031 proceeds.  Many of the investors that i talk with find that looking to New Construction investing can solve the problem very efficiently.  You are able to find properties off market and are turn key and ready to except your proceeds.  The investors that I have worked with, find this kind of investment to be an easy way to identify a property that will be ready for the timing involved in a 1031 exchange.

Please feel free to connect if you need more information.  Best of luck with all the moving parts.

@Mark J.

Congrats on building your portfolio to the point you have.  It takes some work to get to where you are.

I would totally agree with the thoughts of @Dave Foster.  I was in the same point in my investing journey and I decided to start a management company of my own.  After years of running this company I need out and sold the company.  At this point I decided I needed to move the properties.  I did just that and exchanged the properties to a better market that was in an area that was growing in population and employment.  In an area like this I was able to start getting better return on the equity that I had in the properties.

Today I work with may investors in the same position.  They have found that they can scale to a point that having someone else manage is a good thing.  We have found one other improvement.  If you Exchange your investments into new construction investment properties you are able to have newer properties that require much less maintenance which also cuts management costs.  

All things considered the investors that i work with now have fount this is a great way to not only solve their current problems but also level up their investment portfolio.

Please connect with me if you would like to talk about you more.  Best of Luck!

@KeAnna Dakwa,

Welcome to the BP community.

Although the Bermingham market has slowed,  I still thing that this will be a good market for growth.  

Best of luck learning about what strategy will work best for you.  Connect if you have more specific questions.

@Slavik Jacksonville

Welcome to the BP community.

I would echo what others have said that you will need to learn more and narrow down on an investing strategy to focus on.  

In the past the investors that I have worked with like Jacksonville for the infill multi family.  I have found it to be a great market and great metricks.  I would say that you want to stay in the south half and the southeast is growing in better areas.

Let em know if i can help.  Best of luck

@Devakumar Sai Chinthala,

My first question is why would you buy an investment that you need to constantly feed?  Are you hoping for a bug gain in appreciation.  Hope Is not a good investing plan.  Are you planning on doing a value add?

In today's world, where information in moved so easily, I don't understand why investors don't find markets that have cash flow and are growing and driving appreciation.  There are many factors that may make this investment go worse that this layout.  

The simple answer is NO.  I would lot be interested in an investment like this.  There are so many investments that are in good growing markets.  Cash Flow has definitely tightened in may markets but is still out there. and there are ways to find good interest rates that allow for cash flow.

Let me know if I can answer any more questions and, best of luck with this.

@Mario Niccolini,

Congrats on getting started with you REI journey. It sounds like you are in a good place to start. I have done both types of investing and both types of management. They are very different. I haven't seen anyone ask if you are planning on self managing.

The investors that I work with now find the hybrid of the two a better place when they are just starting and growing. The market of 2-4 unit has the benefit of easy access and still get you to scale under one roof. For anything 4 units or under you can use residential financing. I feel for most people this is a good start because Institutional Financing can be difficult when you have no track record. Normally you can get up to 10 conventional mortgages before you will need to move towards the DSCR. With quads this is 40 units.

The other big benefit to starting this way is the ease to exit.  When you are dealing with buyers that can use conventional financing, your pool of buyers is much bigger.  You can also have the option of selling some to pay down the others and have a number of payed of properties to cash flow.  

As far as your second question, the team.  There are also 2 ways to handle this.  You can either get referrals and vet and build the team piece by piece of you can go with a reputable turn key provider who has already done this work for you.  The answer to this will depend on how much time you want to spend on this process.  The investors that I work with normally want to spend their time doing what they do best, how they made their money to invest.  

Let me know if I can help more in any way and best of luck.

@Srini Rajamani,

Welcome to the BP community. Real Estate Investing would definitely be something to look into. To be totally honest it is not the Best way to get quick cash flow. REI is a long game, but, in my opinion it is the best way to build wealth.

I would start by narrowing down your market.  You will get a lot of opinions about the beat markets.  I do believe that you have some listed.  Find one that has strong, sustained  population and job growth.  I also believe that the best markets have good quality homes that will appreciate.

Once you find the market or markets you are interested in you can then start looking for deals. When I talk with the investors that I work with I recommend they look at new construction.  There are a few advantages, like less maintenance and better tenant.  The builders right now are also offering some very nice incentives, like rate buydowns and free property management. 

let me know if I can help in any way and best of luck. 

@Lau Cor,

Welcome to the Bp community.  Being that you are looking to make your first investment OOS, I would recommend finding a turnkey solution in a good growing market.  

To get the most out of your investment you should find a market that is growing in population and Jobs.   This will let you get in the way of appreciation.

Next find a situation where you can talk and learn from someone who has done it before.  When you build a good relationship with a good turn key provider, they can help you find the best deal and best vendors to work on that deal. The investors that I work with like the fact that this has been something that has been accomplished before.

With OOS investing the team that you work with can make of break a deal.  take the time tom find the right team.

Best of luck.

@John Helms,

As it has been said it would depend on the property.  Specifically how long it has been on the market.  being that this is you first investment property is there a reason that you are not getting help on this one?  The right agent or team can help to make sure that you are making the best deal for you.  Working with someone who has done it before can save you a lot of money in the long run

I have some some good deals in that market on new construction.

Best of luck.

@Gabriel Shapira

The investors that I have talked with lately and others on BP seem to be very interested in the Charlotte area.  It makes sense because of their population growth and the strong job metrics of the area.  We have found good luck looking in the smaller markets just 30-45 minutes outside on the city.  There are some great incentives with the new builds in these areas.  many of the investors that I work with have found these deals beat anything else they find on the market.

Best of luck in NC, and let me know if you want more info.