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Updated over 6 years ago on . Most recent reply
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What areas do you invest in? A,B,C or D?
What areas do you guys think will bring the best return on investment and security of investment? Areas B- or C+?
Does anybody invest in C- and D areas?
It seems that in my area a lot of multifamily units are in C- and D areas...Which seems to stop me...But I see those multifamily are being bought quick...
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@Mary Jay what are you focused on? Small multifamily or CRE?
As with anything, there are pros and cons for any strategy. The market is very hot on the value-add multifamily properties in C+ to B- areas and condition. That's probablytrue for most other niches as well.
If you ask 100 people what to do, you'll probably get 100 different answers too. Everyone is bias towards what they believe works or has worked for them.
It might be a great idea to focus more on what others are afraid of touching. Remember, fear is never a good advisor. So look up all the C and D class section 8 poscasts and blogs to get smart on the subject and make decisions on the way. Tons of people start with wholesaling, but that's not to say it will work for you. It didn't for me for many reasons. One of them being the neverending marketing ctivity and the fact that it just replaces a job and never becomes passive. Others may or will disagree. I just commented on three threads on that topic where often a heavy discussion ensues. So don't buy into the opinion battles just retrieve the knowledge and experience from others to form your decisions. And keep in mind your goals might change due to exoerience gathered - then be BOLD and change.
I personally have started focussing on mid- to large size multifamily syndicating (not only in greater Phoenix) since my activity and educational journey has lead me to realize a few advantages that I prefer over others: huge leverage, scalability, as you grow less hands on work - more passive due to on the ground teams, not local but nationwide investing, constant and growing cashflow, versus buy & sell. Said another way: Work once, get paid every month for as long as you keep your "golden goose".
That's not to say that it comes easy. The work needed to get your hands on a 20-plex or a 200-plex is practically the same but the rewards are 10X.
My partners and I are always looking to JV with anyone on the ground. PM me if you like.
Cheers, Ken ;-)