Rochester Investment. Any room for the little guy?

Question

In Rochester, the focus seems to be revitalization of downtown, UofR, and NOTA. But with all three of those focuses you also will hear the same names running the game. Is there any room for the "small-time", "newbie" investor? Or is it just getting to the point where the big guns are going to wipe out the young blood before they even have a chance to get their feet wet? Of course, there is always a needed product to fit every demographic, but it also seems like these big guns are over saturating themselves in the market which could effect things on a larger scale. I love Rochester, and am excited to see what is next for this amazing city, but also curious/worried about where the "small-time" investor fits in the equation. Would love to hear what everyone else thinks..

Mark Updegraff · Answer

Real estate investment should be viewed as a market of abundance, not scarcity.  This is the biggest mind leap all new investors must make.  I sang the same stupid tune as the newbie when I began.  Until BP helped me take off the goggles and see the world for what it really is, ABUNDANT!!

The secret to success is learning the facts before jumping in.  In today's tech savvy world everything is at your fingertips.  From the county records of how much a property transferred to, to demographic and employment data, rental rates on zillow, trulia, rent-o-meter, street view, birds eye view, etc etc etc.  There is no substitute for experience, but everyone must start somewhere.  Don't get discouraged by all the nay sayers that believe we live in a land of scarcity.

"Don't tell them about our markets, I don't want others coming in... too much competition"  Complete and utter BS.  FLIP in that market when it get's HOT!  While you're finding the next exponential curve to ride out on HOLD.  There are too many ways to make money in RE to have the attitude that other's are going to get your deal.  If they get it, then you were not on your game and get on it and get the next!

The BEST part about RE is that the markets move!!  If they didn't this would be the most boring sport out there.  Things are constantly changing, and even if you aren't big enough to make big changes, you're smart enough to pinpoint them and get onto the curve.  Who cares if other's join you, their helping the curve on it's way.  When the curve is spent, find a new one!

Mark W. · Answer

Absolutely.  There is a ton of property in Rochester to go around.  The "big time" investors can't buy it all.  And what might work for me might not work for the other guy.  And vice versa.

Everybody starts somewhere.  You can land your first property with a low first time homebuyer down payment so I believe the barrier to entry is low.  After that, capital does become an issue.  There are a number of solutions to that problem.  Live frugally and save, take on a partner, start up a side business, work full time and pour your investing income back into your business.

David Faulkner · Answer

I fully admit that I don't know the first thing about Rochester, but can offer an alternate POV. What I do know is that in my market single family homes in the ghetto start at $400k and there's room for the little guy here. So, I gotta think there'd be room for the little guy in a market where a similar home costs $24k. Also, you may not believe me, but there are definite advantages to being the little guy, find and exploit them ...

Melisa Claxton · Answer

Good question!  Looking forward to hearing local perspective.

Gino Barbaro · Answer

@Ahren Henby

It all depends on your strategy. If you live in the market and accumulate cash flowing multis, you can amass a nice portfolio.  It won't appreciate, but you will get a nice return.

Not many markets where you can buy a 40,000 duplex and receive 1,200 per month in rents.  The management is more intensive, but so is the potential return.

The "big" guns don't focus on the smaller stuff, so if you don't want to get wiped out by the big guns, invest in what they don't

Gino

Brad Nella · Answer

There is opportunity in every neighborhood!!! How bad do you wanna be successful??

Rochester Investment. Any room for the little guy?

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