First steps with OOS REI

First steps with OOS REI

Kyle SmithPro Member
New to Real Estate · St. Paul, MN · Member since 2020 · 4 posts · 3 votes

Rookie question here. Long story short, I plan on moving in May but won't know where until mid-late March. I don't know for sure at the moment, but depending on where I move, my employer may provide housing. However, if my employer doesn't provide housing, I'll be looking at purchasing my first primary residence. I would like to do the BRRRR strategy but would be open to and even prefer something on the simple side for my first property.

My difficulty is this: I'd rather not put my money towards an investment property and then be needing that same money to purchase my primary residence, so I was thinking I could find a partner who would want to let me find the deals and they can front the money for a downpayment and we split the profit. However, I'm thinking it may be hard to find a partner if I don't already have a team in place. If that's the case, I should get a team in place first, right? At the same time, I don't want to set up a team if I am not able to make a purchase for another 6 months, I respect other people's time too much for that and don't want to make anyone feel like they're wasting their time.

Also, when looking for a partner, do I look for the partner first or the market first? My preferred market is in Columbus, OH, but I imagine I'm going to want to hold that loosely until I find a partner?

Thanks for the help everyone!

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Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
5y

@Kyle Smith don't get too caught up in details, real estate is like any other form of investing, the sooner you do it, the more wealth will be generated. Come to Columbus and start searching for a team!

I started investing in Columbus OH while I was a sophomore at OSU. I bought a duplex on campus and fixed it up enough to rent and eventually complete a BRRRR. That deal is giving me a ton of cash flow / month and gave me a sizable check to go buy my second investment property.

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Kyle Smith:

    Rookie question here. Long story short, I plan on moving in May but won't know where until mid-late March. I don't know for sure at the moment, but depending on where I move, my employer may provide housing. However, if my employer doesn't provide housing, I'll be looking at purchasing my first primary residence. I would like to do the BRRRR strategy but would be open to and even prefer something on the simple side for my first property.

    My difficulty is this: I'd rather not put my money towards an investment property and then be needing that same money to purchase my primary residence, so I was thinking I could find a partner who would want to let me find the deals and they can front the money for a downpayment and we split the profit. However, I'm thinking it may be hard to find a partner if I don't already have a team in place. If that's the case, I should get a team in place first, right? At the same time, I don't want to set up a team if I am not able to make a purchase for another 6 months, I respect other people's time too much for that and don't want to make anyone feel like they're wasting their time.

    Also, when looking for a partner, do I look for the partner first or the market first? My preferred market is in Columbus, OH, but I imagine I'm going to want to hold that loosely until I find a partner?

    Thanks for the help everyone!

     I would start the team asap so you can start analyzing deals!

    Columbus, Ohio is a great market to get started in

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y

    @Kyle Smith don't get too caught up in details, real estate is like any other form of investing, the sooner you do it, the more wealth will be generated. Come to Columbus and start searching for a team!

    I started investing in Columbus OH while I was a sophomore at OSU. I bought a duplex on campus and fixed it up enough to rent and eventually complete a BRRRR. That deal is giving me a ton of cash flow / month and gave me a sizable check to go buy my second investment property.

  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Columbus is a solid market to get started in. I would consider house hacking a multi-family property if you don't want to go all in with your money from the start. @Kyle Smith

  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 708 posts · 297 votes
    5y

    Kyle, 

    First of all welcome to BP and I hope this response can help out quite a bit.

    #1 I highly recommend having as much of a team in place as possible. This will allow someone who is potentially willing to partner with you the ability to see how your team puts together deals and you can show the value of your team. 

    #2 I would recommend looking into more than just one market as it could limit your deal flow or partnership opportunities. I work with OOSI from all around the world in Rock County, Wisconsin and they love this market. 

    #3 I would be sure to understand the value you bring and be able to explain that to an investor. Investors will want to know what they are giving you 50% of the profit for because it immediately cuts their CoC ROI in half.

    #4 Be aware the a BRRRR property involves "Rent". So if you are purchasing your own home, you will not be able to BRRRR the property as easily.

    Best of luck!

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