Boston Investor Struggling to Start

[Jacque Mihovk]

Hi BP Community,

I’m a “new” investor and find myself in an in between phase that seldom gets talked about on the podcasts or in the forums. I have professional exposure to commercial real estate investment but have not done any deals personally. I’m established in my career and not looking to make RE my full time but I don’t have a ton of capital and I enjoy modeling and underwriting and being hands on with management so the passive/syndication route isn’t an option. Additionally, house hacking isn’t an option as I have 3 young children. 

I feel like my best route to getting started is by working with partners or private lenders given my current available capital. However it’s hard to get that ball rolling without any deals under my belt even though I do have experience with managing a syndication and property management through my professional career. 

I get very excited about investing and see it being a large part of my future. I’d love to have real estate provide some financial freedom/flexibility and create a portfolio that I could eventually get my kids involved with and pass down to them, but I end up feeling frozen/stuck based on the factors above. 

I know I need to find a way to start taking action but don’t quite know what that is right now, I’d love to get some feedback/thoughts on what those next steps should look like. 

Thanks in advance for your help. 

[Zachary Gray]

I think the value would be to identify your strengths

operating, underwriting, administrative, analytics, etc

then search for areas where you may be weaker such as deal finders, people with access to capital and opt to partner. I think its easiest to connect with these people at meetups. 

Another avenue that may be enticing would be pursuit of short term rental. short term rental can often be acquired at 5% down. Short term rental depreciation can be accelerated via a cost segregation and utilized to offset your taxes from your w2. By reducing your tax burden of your W2 while also reaping the benefit of the short term rental cash flow, you may be able to free up more capital to scale more quickly. Im not personally a short term rental Investor but these are some of the benefits that may support your pursuit of scaling more rapidly